The United States Car Rental Market is expected to reach US$ 194.37 billion by 2033 from US$ 90.31 billion in 2024, with a CAGR of 8.89% from 2025 to 2033. Rising domestic and international travel, tourism, the desire for flexible mobility, business travel, fleet diversification, vehicle sharing trends, and the expansion of rental services at airports and city centers are the main factors driving the U.S. car rental market.
Due to rising domestic travel, foreign travel, and business travel, the U.S. car rental market is growing and there is a steady demand for rental cars. Travelers are increasingly choosing rental cars over owning their own vehicles due to their growing need for flexible transportation options, especially in cities. Reservations have been easier and the consumer experience has improved because to digitalization, which includes mobile apps and online booking systems. Fleet diversity satisfies a range of customer preferences by providing premium, eco-friendly, and affordable automobiles. Rental sites near airports and in the heart of cities, along with trends toward car sharing, further encourage market acceptance. Partnerships with corporate clients, ride-hailing services, and travel agents also help to expand the market and increase revenue.
United States Car Rental Industry Overview
A automobile rental service enables people or companies to borrow cars for a few hours to several weeks, depending on their needs. Economy automobiles, SUVs, premium cars, and specialized autos are all possible rental car options. Particularly for tourists, travelers, and business clients who might not own cars or who prefer short-term transportation, car rentals offer ease, mobility, and flexibility. Online booking, mobile app management, vehicle delivery, and pick-up are all common features of contemporary automobile rental firms. Rentals may come with maintenance support, roadside assistance, and insurance. Car rental services are essential to both personal and business mobility solutions because they offer a financially viable substitute for car ownership.Due to rising domestic travel, foreign travel, and business travel, the U.S. car rental market is growing and there is a steady demand for rental cars. Travelers are increasingly choosing rental cars over owning their own vehicles due to their growing need for flexible transportation options, especially in cities. Reservations have been easier and the consumer experience has improved because to digitalization, which includes mobile apps and online booking systems. Fleet diversity satisfies a range of customer preferences by providing premium, eco-friendly, and affordable automobiles. Rental sites near airports and in the heart of cities, along with trends toward car sharing, further encourage market acceptance. Partnerships with corporate clients, ride-hailing services, and travel agents also help to expand the market and increase revenue.
Growth Drivers for the United States Car Rental Market
Rising Domestic and International Travel
The demand for rental cars in the United States is still being driven by an increase in both domestic and international travel. Rental cars are preferred by tourists and business travelers due to their convenience and flexibility. Rentals of airports and city centers are still common, and new service options make them more accessible. Customers will have access to a greater variety of automobiles, including luxury, budget, and specialist models, thanks to SIXT's relationship with Stellantis, which commenced in January 2024. These larger fleets accommodate a wider range of traveler preferences, enhancing client satisfaction and fostering steady increases in demand for rentals.Urbanization & Flexible Mobility Preferences
The need for adaptable car rental options is being driven by urbanization and shifting mobility patterns. Because of the traffic, parking, and maintenance costs, city people frequently prefer short-term access to cars over owning one. Examples of innovations that demonstrate how providers are developing affordable, on-demand urban mobility solutions include Vay's remote-controlled car rental business in Las Vegas (January 2024), which permits per-minute rentals. By appealing to tech-savvy, convenience-focused customers and promoting greater utilization rates, these models let rental companies expand into new urban markets and accommodate flexible transportation needs.Vehicle Sharing & Subscription Trends
As customers increasingly look for flexible alternatives to ownership, vehicle sharing and subscription models continue to be important development drivers. Users can select cars according to their lifestyle requirements, budget, and convenience with the use of app-based access, long-term subscription plans, and short-term rentals. Additionally, these solutions assist providers in increasing operational effectiveness, optimizing fleet utilization, and drawing in new clientele, such as eco-aware and youthful professionals. Vehicle sharing and subscription services, which prioritize accessibility, affordability, and choice, greatly expand the market without competing with factors related to travel or urbanization.Challenges in the United States Car Rental Market
Rising Operational & Maintenance Costs
An important obstacle facing the US vehicle rental industry is the rise in operating and maintenance expenses. The cost of purchasing, maintaining, and insuring automobiles keeps going up, especially in light of shifting fuel prices and growing labor expenses. Although they increase operating costs, routine maintenance, repairs, and cleaning are necessary to guarantee fleet safety and customer pleasure. Administrative and maintenance expenses also rise when state and federal safety and pollution rules are followed. When incorporating modern technology like GPS monitoring, app-based booking systems, and linked automobile capabilities, rental companies also incur increased expenditures. For automobile rental companies looking to turn a profit, controlling these growing costs while preserving competitive pricing and excellent service continues to be a major problem.Fleet Management & Utilization Challenges
In the US automobile rental business, effective fleet management and utilization pose constant issues. To satisfy different consumer demands, automakers must keep a wide range of automobiles, including SUVs, luxury, economy, and specialized models. Fleet allocation and utilization are complicated by seasonal variations, holiday peaks, and regional demand disparities. Vehicle underutilization lowers profitability, and a lack of availability can result in lost sales and unhappy clients. Additionally, advanced fleet management systems and knowledgeable staff are needed to schedule maintenance, monitor vehicle health, and reduce downtime. Effective fleet management is a crucial and difficult task for automobile rental companies in a highly competitive market since success depends on striking a balance between vehicle availability, cost effectiveness, and operational flexibility.California Car Rental Market
California is one of the largest car rental markets in the United States, driven by robust tourism, international travel, and business activity. Major cities like Los Angeles, San Francisco, and San Diego attract millions of tourists annually, boosting airport and city-center rentals. The state’s diverse population and high urbanization rates encourage flexible mobility solutions, including short-term rentals and app-based services. Additionally, California’s focus on sustainability has accelerated the adoption of electric and hybrid rental vehicles, appealing to environmentally conscious consumers. High business travel demand, coupled with large-scale events, conventions, and entertainment industry requirements, further supports fleet utilization. Car rental companies operating in California benefit from strong consumer demand, advanced digital infrastructure, and opportunities for innovation in mobility solutions.Texas Car Rental Market
Texas represents a rapidly growing car rental market due to its large population, expanding urban centers, and strong domestic and business travel demand. Key cities such as Houston, Dallas, Austin, and San Antonio drive high rental activity, supported by airport rentals and road trips. Economic growth, corporate travel, and conventions contribute to consistent demand for rental vehicles, while ride-sharing and flexible mobility trends attract urban consumers. Texas also sees increased adoption of app-based rentals and subscription services, offering convenience and accessibility. With rising tourism and business expansion, rental companies are investing in diversified fleets, including economy, luxury, and SUV options. The state’s large geography and limited public transit in some areas make car rentals a preferred choice for mobility, fueling market growth.New York Car Rental Market
New York is a critical market for car rental services in the U.S., driven by dense urbanization, business hubs, and high domestic and international tourism. New York City, with its airports and metropolitan centers, sees strong demand from business travelers, tourists, and short-term urban users. Flexible mobility solutions, including short-term rentals, app-based bookings, and vehicle subscriptions, are increasingly popular. The state’s tourism industry, corporate travel, and cultural events significantly contribute to rental activity. Fleet diversification, including luxury, economy, and hybrid vehicles, caters to diverse consumer preferences. Rental companies benefit from strategic airport and city-center locations, high disposable incomes, and a tech-savvy population, making New York a high-value market for service expansion and innovation.Florida Car Rental Market
Florida’s car rental market is fueled by extensive tourism, vacation travel, and business conventions. Cities such as Miami, Orlando, and Tampa see high demand for airport and city rentals, particularly from international and domestic tourists visiting beaches, theme parks, and cultural attractions. Seasonal travel peaks during holidays and spring break drive short-term rentals, while business travel supports long-term rentals. Florida’s urbanization and growing population encourage adoption of flexible mobility solutions, including per-day, per-hour, and app-based rentals. Car rental companies are expanding diversified fleets, offering economy, SUVs, and luxury vehicles to meet consumer needs. The state’s thriving tourism and hospitality sectors, combined with digital booking adoption, make Florida a key market for growth in the U.S. car rental industry.Recent Developments in United States Car Rental Market
- In April 2025, Hertz partnered with UVeye to deploy AI-powered vehicle inspection kiosks nationwide. This initiative aims to reduce vehicle return times and enhance loss and damage detection, improving operational efficiency and customer experience.
- In January 2025, XCharge entered into an agreement with a major U.S. car rental group to install Level-3 fast chargers at multiple airports across the country, supporting the growing adoption of electric vehicles in rental fleets.
- In June 2024, Europcar launched its first U.S. branches at Atlanta and Dallas airports, offering premium, EV-focused fleets. This expansion marks a strategic milestone for Europcar, establishing its presence in key travel hubs and catering to the increasing demand for electric and sustainable rental options in the United States.
United States Car Rental Market Segments:
Service Type
- Offline Booking
- Online Booking
Rental Length
- Short Term
- Long Term
Vehicle Type
- Luxury
- Executive
- Economy
- SUVs
- Others
Application
- Leisure/Tourism
- Business
End User
- Self-Driven
- Chauffeur-Driven
States - Market breakup in 29 viewpoints:
- California
- Texas
- New York
- Florida
- Illinois
- Pennsylvania
- Ohio
- Georgia
- New Jersey
- Washington
- North Carolina
- Massachusetts
- Virginia
- Michigan
- Maryland
- Colorado
- Tennessee
- Indiana
- Arizona
- Minnesota
- Wisconsin
- Missouri
- Connecticut
- South Carolina
- Oregon
- Louisiana
- Alabama
- Kentucky
- Rest of United States
All companies have been covered from 5 viewpoints:
- Company Overview
- Key Persons
- Recent Development & Strategies
- SWOT Analysis
- Sales Analysis
Key Players Analysis
- Avis Budget Group, Inc.
- Carzonrent India Private Limited
- Eco rent a car
- Enterprise Holdings, Inc.
- Enterprise Rent-A-Car
- Europcar
- Localiza
- Sixt SE
- The Hertz Corporation
Table of Contents
1. Introduction3. Executive Summary13. Value Chain Analysis
2. Research & Methodology
4. Market Dynamics
5. United States Car Rental Market
6. Market Share Analysis
7. Booking Type
8. Rental Length
9. Vehicle Type
10. Application
11. End-User
12. Top States
14. Porter's Five Forces Analysis
15. SWOT Analysis
16. Pricing Benchmark Analysis
17. Key Players Analysis
Companies Mentioned
- Avis Budget Group, Inc.
- Carzonrent India Private Limited
- Eco rent a car
- Enterprise Holdings, Inc.
- Enterprise Rent-A-Car
- Europcar
- Localiza
- Sixt SE
- The Hertz Corporation
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | September 2025 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 90.31 Billion |
| Forecasted Market Value ( USD | $ 194.37 Billion |
| Compound Annual Growth Rate | 8.8% |
| Regions Covered | United States |
| No. of Companies Mentioned | 9 |
