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U.S. Car Rental Market By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs); By Rental Duration (Hourly Rentals, Daily Rentals, Weekly Rentals, Monthly Rentals, Others); By Rental Model (Airport Rentals, Local Rentals, One-way Rentals, Round-trip Rentals); By Customer Segment (Leisure Rentals, Business Rentals, Government and Institutional Rentals, Insurance Replacement Rentals, Special Events and Occasions Rentals, Others) – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Name: U.S. Car Rental Market - Demand, Size and Competitive Analysis
Creator: Credence Research Inc.
Published: 2025-11-15
License: https://www.credenceresearch.com/info/privacy-policy
Keywords: U.S. Car Rental Market

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Market Overview:

The U.S. Car Rental Market size was valued at USD 33.46 million in 2018 to USD 54.64 million in 2024 and is anticipated to reach USD 104.23 million by 2032, at a CAGR of 7.83% during the forecast period. Rising travel demand, expanding business mobility, and a strong focus on digital booking platforms continue to strengthen market adoption across major customer groups.

REPORT ATTRIBUTE	DETAILS
Historical Period	2020-2023
Base Year	2024
Forecast Period	2025-2032
U.S. Car Rental Market Size 2024	USD 54.64 million
U.S. Car Rental Market, CAGR	7.83%
U.S. Car Rental Market Size 2032	USD 104.23 million

Growth in this market is driven by expanding domestic tourism, rising airport passenger volume, and growing demand for convenient short-term mobility. Companies actively enhance fleet availability, digital reservation systems, and personalized rental options to improve customer experience. Increased adoption of electric vehicles in rental fleets also supports sustainability goals and attracts new consumer segments. Corporate rentals, subscription-based models, and app-based mobility platforms continue to accelerate service adoption across cities and airports.

Regional expansion remains strong, with the West and South leading due to high tourism activity, strong urban mobility infrastructure, and large airport networks. The Northeast shows steady growth as business travel rebounds and digital rental platforms gain wider acceptance. Emerging growth is notable in smaller metropolitan areas where rising population density and increased on-demand mobility needs improve market penetration. Coastal regions also benefit from strong leisure travel trends and improved fleet electrification initiatives.

U.S. Car Rental Market size

Market Insights:

The U.S. Car Rental Market expanded from USD 33.46 billion in 2018 to USD 54.64 billion in 2024, and it is forecasted to reach USD 104.23 billion by 2032, supported by a steady 7.83% CAGR driven by strong travel recovery and digital adoption.
The West leads with 34% share, supported by high tourism density and large airport networks; the South follows with 29% share due to population growth and highway mobility; the Midwest holds 21% share, supported by stable airport traffic and business travel.
The Northeast is the fastest-growing region with 16% share, driven by urban mobility needs, corporate rentals, and rapid hybrid-EV fleet expansion across major cities.
SUVs represent the largest vehicle-type segment at roughly 25%, supported by strong demand from leisure travelers and long-distance renters who prefer higher comfort and utility.
Economy and executive cars together account for over 40% of segment contribution, driven by cost-efficient rentals for urban users and rising corporate travel needs in key states.

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Expansion of Travel Activity and Customer Mobility Needs

Growing travel activity strengthens demand for flexible mobility. The U.S. Car Rental Market benefits from steady airport traffic and rising domestic trips. Travelers choose rentals for control, comfort, and direct access to destinations. Companies widen fleet choices to match shifting expectations. Digital booking improves convenience for frequent users. Strong tourism in major cities supports long-term rental growth. Business travel recovery raises bookings across corporate accounts. Urban travelers also rely on rentals for short mobility needs. Competitive service packages encourage repeat usage.

For instance, Hertz reported that corporate travel bookings rose double-digits in 2023 driven by renewed business routes across the U.S.

Rising Preference for Digital Platforms and Easy Access Models

Digital adoption improves engagement across customer groups. The U.S. Car Rental Market gains momentum through app-based reservation tools. Platforms offer real-time fleet visibility that drives quick decisions. Automated check-in reduces wait time at rental points. Subscription models attract customers seeking predictable mobility. Self-service kiosks speed up handovers at airport counters. Cloud systems enhance fleet coordination across branches. Companies invest in secure payment features to build trust. Integration of AI tools improves customer support workflows.

For instance, Hertz expanded its self-service kiosk deployments across airports that collectively handle millions of passengers each year.

Growing Shift Toward Electric Mobility and Sustainable Fleets

Sustainability goals influence rental fleet decisions. The U.S. Car Rental Market expands electric options to meet new preferences. EV availability helps companies align with emission targets. Charging networks grow near hotels and airports to support wider usage. Rental operators highlight environmental benefits to attract eco-minded users. Fleet upgrades include hybrids for longer routes. Companies track energy efficiency to manage operating costs. Government incentives support wider EV adoption in rental fleets. Partnerships with automakers improve access to updated EV models.

Strengthening Corporate Demand and Mobility-as-a-Service Expansion

Corporate clients maintain strong demand for rentals. The U.S. Car Rental Market benefits from structured travel policies. Firms use rentals for predictable mobility during regional travel. Companies prefer standardized rental services for workforce safety. Mobility-as-a-Service tools simplify booking within enterprise systems. Loyalty programs strengthen retention across large accounts. Firms rely on rentals to manage short-term transportation gaps. Service providers enhance fleet quality to meet corporate standards. Business districts support long-term rental needs during peak movement periods.

Market Trends:

Rise of Contactless Rentals and Automation in Customer Touchpoints

Contactless services reshape customer interaction. The U.S. Car Rental Market sees fast adoption of automated processes. Mobile-based pickup unlocks cars without desk visits. Remote verification speeds up onboarding steps. Operators reduce queue times at major airports. Digital keys improve security and convenience for users. Virtual assistance tools support customers during use. Fleet operators monitor vehicle status through connected systems. Automation increases service efficiency across locations.

For instance, Hertz enables contactless access for its Tesla rentals via the official Tesla mobile app, where renters can temporarily add the vehicle as a digital key after scanning a QR code.

Growing Penetration of Connected Cars and Telematics Integration

Connected car features enhance user experience. The U.S. Car Rental Market integrates telematics to optimize fleet control. Operators track vehicle health to reduce downtime. Navigation support improves route planning for renters. Real-time alerts help customers manage safety needs. Voice-enabled functions strengthen in-car comfort. Data tools guide companies in fleet rotation. Predictive diagnostics decrease maintenance delays. Remote updates allow smoother coordination across rental outlets.

For instance, Enterprise Holdings expanded voice-enabled support through vehicles equipped with Apple CarPlay and Android Auto across thousands of models.

Expansion of Short-Duration and On-Demand Rental Models

Short-duration rentals attract flexible users. The U.S. Car Rental Market offers hourly and day-based access. Urban customers choose short use for quick errands. Fast-growing gig workforce relies on rental cars for work trips. Operators place vehicles in high-traffic zones for easy access. Seamless app-based activation reduces friction in the process. Firms match demand patterns through AI forecasting. Younger consumers show growing interest in low-commitment rentals. Subscription models also support short-term mobility shifts.

Increasing Role of Data Analytics in Service Optimization

Data insights guide operational planning. The U.S. Car Rental Market leverages analytics for better decisions. Demand prediction supports timely fleet allocation. Customer data improves loyalty program design. Operators track usage patterns to update vehicle mix. Analytics tools enhance cost planning for branches. Real-time monitoring supports safer rental operations. Firms use data to refine marketing strategies. Data security investments maintain customer trust across platforms.

Market Challenges Analysis:

Rising Maintenance Burden and High Operating Costs Impact Stability

High ownership costs create pressure across fleets. The U.S. Car Rental Market faces frequent repairs due to heavy vehicle use. Operators struggle to maintain consistent vehicle conditions. Supply chain delays slow down fleet replacements. Fuel cost variations complicate pricing for customers. Insurance rates impact margins across key outlets. Seasonal demand shifts reduce predictability for operators. Branches manage inventory uncertainty during busy travel periods. Firms invest in risk controls to prevent service decline.

Intense Competition and Limited Product Differentiation Reduce Market Clarity

Competition affects revenue visibility for rental brands. The U.S. Car Rental Market competes with ride-hailing, car-sharing, and leasing. Customers compare services based on price and access ease. Limited differentiation reduces higher-margin opportunities. Loyalty becomes harder to retain among younger users. Digital platforms raise service expectations across locations. Small operators face challenges meeting digital standards. Firms adjust strategies to maintain value perception in dense markets.

Market Opportunities:

Growing EV Infrastructure and Green Mobility Policies Strengthen Expansion

EV growth creates new opportunities for rental firms. The U.S. Car Rental Market benefits from expanding charging stations. Government programs encourage sustainable fleet upgrades. Travelers show more interest in low-emission transport. Companies adopt green packages to attract eco-focused users. Airports introduce EV-only rental zones in select regions. Automakers form partnerships to supply updated EV fleets. Operators promote environmental branding to gain wider reach.

Rising Tourism Recovery and Regional Travel Demand Support Growth

Tourism recovery opens strong expansion prospects. The U.S. Car Rental Market gains momentum from increased domestic trips. Travelers prefer rentals for flexible regional movement. Operators broaden fleet mix to match changing profiles. Online platforms convert more bookings during peak seasons. Road trips regain popularity for short leisure travel. Suburban regions create demand for convenient mobility. Firms offer value packages to attract returning customers.

Market Segmentation Analysis:

By Vehicle Type

The U.S. Car Rental Market spans luxury cars, executive cars, economy cars, SUVs, and MUVs. Economy cars and SUVs lead demand due to their cost efficiency and suitability for varied road conditions. Luxury and executive cars attract corporate and premium travelers who seek comfort and brand assurance. MUVs support group movement and seasonal tourism peaks. The segment reflects clear alignment with customer budgets and trip preferences. It benefits from growing interest in hybrid and electric variants across select categories. Fleet diversification strengthens overall service coverage.

For instance, in October 2021, Hertz announced an ambitious plan to acquire 100,000 Tesla Model 3 units to strengthen its EV-ready fleet, a move that made headlines and temporarily expanded its electric options across major U.S. airports.

By Rental Duration

Rental duration categories include hourly, daily, weekly, monthly, and other flexible formats. Daily and weekly rentals maintain strong traction due to airport volumes and leisure travel patterns. Monthly rentals support long-stay requirements among business and temporary mobility users. Hourly rentals rise in dense cities driven by app-based access and short-trip mobility needs. It adapts well to changing travel frequency with dynamic pricing models. Seasonal flows influence weekly rental spikes during holiday periods. Flexible formats widen customer reach across regions.

For instance, Avis Budget Group expanded its connected fleet to more than 200,000 telematics-enabled vehicles, a verified enhancement that supports faster hourly and daily rental turnover through real-time monitoring and automated check-in features.

By Rental Model

The rental model segment includes airport rentals, local rentals, one-way rentals, and round-trip rentals. Airport rentals dominate due to steady passenger turnover and structured booking cycles. Local rentals serve users seeking short-term mobility within urban and suburban centers. One-way rentals gain popularity from customers who prefer route flexibility without return constraints. Round-trip rentals retain demand for planned travel itineraries. It supports varied travel purposes through differentiated service options. Expansion in airport infrastructure strengthens category growth.

By Customer Segment

Customer categories include leisure rentals, business rentals, government and institutional rentals, insurance replacement rentals, special events rentals, and others. Leisure and business customers generate the highest activity due to consistent travel patterns. Government rentals support official transit needs across states. Insurance replacement rentals maintain stable demand linked to vehicle downtime events. Special events rentals surge during tourism peaks and large gatherings. It aligns rental offerings with user-specific mobility expectations.

U.S. Car Rental Market segmentation

Segmentation:

By Vehicle Type

Luxury Cars
Executive Cars
Economy Cars
SUVs
MUVs

By Rental Duration

Hourly Rentals
Daily Rentals
Weekly Rentals
Monthly Rentals
Others

By Rental Model

Airport Rentals
Local Rentals
One-way Rentals
Round-trip Rentals

By Customer Segment

Leisure Rentals
Business Rentals
Government and Institutional Rentals
Insurance Replacement Rentals
Special Events and Occasions Rentals
Others

Regional Analysis:

North America Regional Leadership

The U.S. Car Rental Market maintains strong regional strength, with the West holding an estimated 34% share. Tourism hubs in California, Nevada, and Arizona support steady rental activity throughout the year. The region benefits from large airport networks and strong business travel corridors. Major rental brands expand fleets in metropolitan zones to meet rising mobility needs. It shows consistent growth due to digital rental adoption and a high concentration of leisure travelers. Fleet electrification gains traction across coastal states, improving long-term service quality. Operators focus on premium vehicle categories to match evolving customer expectations.

Strength of the South and Midwest Regions

The South secures nearly 29% share driven by increasing population density, strong domestic tourism, and expanding highway connectivity. Texas, Florida, and Georgia remain key states due to year-round travel flows. The U.S. Car Rental Market sees growing corporate rentals in these states because of rising business activity. The Midwest captures close to 21% share supported by stable airport traffic and regional travel needs. Demand grows across Illinois, Ohio, and Michigan through improved rental access near major transit nodes. The region benefits from strong participation in daily and weekly rental formats. Operators expand offerings to include economy and SUV categories for wider user coverage.

Emerging Strength in the Northeast Region

The Northeast holds roughly 16% share with steady rental activity driven by business travel and tourism in New York, New Jersey, and Massachusetts. The U.S. Car Rental Market gains traction in this region through high urban mobility needs and increasing preference for short-duration rentals. Airport rentals show strong performance due to dense international traffic. It experiences rising demand for premium and executive vehicles among corporate users. Hybrid and electric fleets grow quickly in this region due to supportive state policies. Seasonal travel peaks continue to influence fleet allocation patterns. Operators enhance digital booking support to strengthen customer convenience across major cities.

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Key Player Analysis:

Hertz U.S. Holdings
Enterprise Holdings
Avis Budget Group
Sixt SE
Europcar Mobility Group
China Auto Rental
Toyota Rent a Car
Ola Cabs
Zoomcar
Getaround

Competitive Analysis:

The U.S. Car Rental Market presents strong competitive intensity led by established brands with wide fleets and nationwide networks. It features companies that invest in digital booking, faster checkout systems, and expanded vehicle categories. Competitors prioritize fleet upgrades to meet shifting customer needs across leisure, corporate, and airport channels. It shows strong differentiation through loyalty programs and premium service tiers. Companies strengthen operational efficiency through connected vehicle platforms and data-driven fleet control. New mobility platforms push traditional operators to refine pricing and improve customer engagement. Partnerships with travel agencies and airports further increase brand presence and booking volume.

Recent Developments:

In May 2025, Hertz Global Holdings announced progress under its Back-to-Basics roadmap, highlighting fleet rotation and cost-control measures that contributed to improved profitability and liquidity; this was accompanied by updates on debt management and asset replenishment strategies as part of ongoing financial strengthening efforts.
Avis Budget Group recently announced a multi-year strategic partnership with Waymo in July 2025 to manage Waymo’s autonomous ride-hailing fleet.

Report Coverage:

The research report offers an in-depth analysis based on vehicle type, rental duration, rental model, and customer segment. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

Future Outlook:

Demand increases across airport corridors supported by rising domestic travel.
Digital rental channels gain wider adoption through app-based workflows.
Fleet electrification expands with stronger charging coverage in cities.
Subscription and flexible rental plans attract younger customers.
Telematics integration improves fleet visibility and safety.
Business travel recovery strengthens corporate rental activity.
Premium and executive vehicle categories gain more traction.
Autonomous and connected vehicle pilots shape future service formats.
Partnerships with airlines and travel portals enhance booking density.
Sustainability goals influence long-term fleet procurement strategies.

CHAPTER NO. 1: GENESIS OF THE MARKET

1.1 Market Prelude – Introduction & Scope

1.2 The Big Picture – Objectives & Vision

1.3 Strategic Edge – Unique Value Proposition

1.4 Stakeholder Compass – Key Beneficiaries

CHAPTER NO. 2: EXECUTIVE LENS

2.1 Pulse of the Industry – Market Snapshot

2.2 Growth Arc – Revenue Projections (USD Billion)

2.3. Premium Insights – Based on Primary Interviews

CHAPTER NO. 3: CAR RENTAL MARKET FORCES & INDUSTRY PULSE

3.1 Foundations of Change – Market Overview
3.2 Catalysts of Expansion – Key Market Drivers
3.2.1 Momentum Boosters – Growth Triggers
3.2.2 Innovation Fuel – Disruptive Technologies
3.3 Headwinds & Crosswinds – Market Restraints
3.3.1 Regulatory Tides – Compliance Challenges
3.3.2 Economic Frictions – Inflationary Pressures
3.4 Untapped Horizons – Growth Potential & Opportunities
3.5 Strategic Navigation – Industry Frameworks
3.5.1 Market Equilibrium – Porter’s Five Forces
3.5.2 Ecosystem Dynamics – Value Chain Analysis
3.5.3 Macro Forces – PESTEL Breakdown

3.6 Price Trend Analysis

3.6.1 Country-wise Price Trend
3.6.2 Price Trend by Product

CHAPTER NO. 4: KEY INVESTMENT EPICENTER

4.1 Country-wise Goldmines – High-Growth Geographies

4.2 Product Frontiers – Lucrative Product Categories

4.3 Application Sweet Spots – Emerging Demand Segments

CHAPTER NO. 5: REVENUE TRAJECTORY & WEALTH MAPPING

5.1 Momentum Metrics – Forecast & Growth Curves

5.2 Country-wise Revenue Footprint – Market Share Insights

5.3 Segmental Wealth Flow – Vehicle Type & Rental Model Revenue

CHAPTER NO. 6: TRADE & COMMERCE ANALYSIS

6.1. Import Analysis by Country

6.1.1. U.S. Car Rental Market Import Volume By Country

6.2. Export Analysis by Country

6.2.1. U.S. Car Rental Market Export Volume By Country

CHAPTER NO. 7: COMPETITION ANALYSIS

7.1. Company Market Share Analysis

7.1.1. U.S. Car Rental Market: Company Market Share

7.1. U.S. Car Rental Market Company Volume Market Share

7.2. U.S. Car Rental Market Company Revenue Market Share

7.3. Strategic Developments

7.3.1. Acquisitions & Mergers

7.3.2. New Product Launch

7.3.3. Country-wise Expansion

7.4. Competitive Dashboard

7.5. Company Assessment Metrics, 2024

CHAPTER NO. 8: CAR RENTAL MARKET – BY VEHICLE TYPE SEGMENT ANALYSIS

8.1. Car Rental Market Overview by Vehicle Type Segment

8.1.1. Car Rental Market Volume Share By Vehicle Type

8.1.2. Car Rental Market Revenue Share By Vehicle Type

8.2. Luxury cars

8.3. Executive cars

8.4. Economy cars

8.5. SUVs

8.6. MUVs

CHAPTER NO. 9: CAR RENTAL MARKET – BY RENTAL DURATION SEGMENT ANALYSIS

9.1. Car Rental Market Overview by Rental Duration Segment

9.1.1. Car Rental Market Volume Share By Rental Duration

9.1.2. Car Rental Market Revenue Share By Rental Duration

9.2. Hourly Rentals

9.3. Daily Rentals

9.4. Weekly Rentals

9.5. Monthly Rentals

9.6. Others

CHAPTER NO. 10: CAR RENTAL MARKET – BY RENTAL MODEL SEGMENT ANALYSIS

10.1. Car Rental Market Overview by Rental Model Segment

10.1.1. Car Rental Market Volume Share By Rental Model

10.1.2. Car Rental Market Revenue Share By Rental Model

10.2. Airport Rentals

10.3. Local Rentals

10.4. One-way Rentals

10.5. Round-trip Rentals

CHAPTER NO. 11: CAR RENTAL MARKET – BY CUSTOMER SEGMENT ANALYSIS

11.1. Car Rental Market Overview by Customer Segment

11.1.1. Car Rental Market Volume Share By Customer Segment

11.1.2. Car Rental Market Revenue Share By Customer Segment

11.2. Leisure Rentals

11.3. Business Rentals

11.4. Government and Institutional Rentals

11.5. Insurance Replacement Rentals

11.6. Special Events and Occasions Rentals

11.7. Others

CHAPTER NO. 12: CAR RENTAL MARKET – COUNTRY-WISE ANALYSIS

12.1. Car Rental Market Overview by Country Segment

12.1.1. U.S. Car Rental Market Volume Share By Country

12.1.2. U.S. Car Rental Market Revenue Share By Country

12.1.3. Country

12.1.4. U.S. Car Rental Market Volume By Country

12.1.5. U.S. Car Rental Market Revenue By Country

12.1.6. Vehicle Type

12.1.7. U.S. Car Rental Market Volume By Vehicle Type

12.1.8. U.S. Car Rental Market Revenue By Vehicle Type

12.1.9. Rental Duration

12.1.10. U.S. Car Rental Market Volume By Rental Duration

12.1.11. U.S. Car Rental Market Revenue By Rental Duration

12.1.12. Rental Model

12.1.13. U.S. Car Rental Market Volume By Rental Model

12.1.14. U.S. Car Rental Market Revenue By Rental Model

12.1.12. Customer Segment

12.1.13. U.S. Car Rental Market Volume By Customer Segment

12.1.14. U.S. Car Rental Market Revenue By Customer Segment

CHAPTER NO. 13: COMPANY PROFILES

13.1. Hertz U.S. Holdings

13.1.1. Company Overview

13.1.2. Product Portfolio

13.1.3. Financial Overview

13.1.4. Recent Developments

13.1.5. Growth Strategy

13.1.6. SWOT Analysis

13.2. Enterprise Holdings

13.3. Avis Budget Group

13.4. Sixt SE

13.5. Europcar Mobility Group

13.6. China Auto Rental

13.7. Toyota Rent a Car

13.8. Ola Cabs

13.9. Zoomcar

13.10. Getaround

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Frequently Asked Questions

What is the current market size for U.S. Car Rental Market, and what is its projected size in 2032?

The U.S. Car Rental Market stands at USD 54.64 million in 2024 and is projected to reach USD 104.23 million by 2032. The market shows steady demand across business and leisure segments.

At what Compound Annual Growth Rate is the U.S. Car Rental Market projected to grow between 2024 and 2032?

The U.S. Car Rental Market is set to grow at a CAGR of 7.83%, supported by strong tourism recovery and digital rental adoption.

Which U.S. Car Rental Market segment held the largest share in 2024?

The U.S. Car Rental Market saw strong dominance from the airport rentals segment in 2024 due to high passenger traffic and frequent turnover.

What are the primary factors fueling the growth of the U.S. Car Rental Market?

The U.S. Car Rental Market grows through rising domestic travel, digital booking tools, and wider fleet choices that support flexible mobility needs.

Who are the leading companies in the U.S. Car Rental Market?

The U.S. Car Rental Market is led by Hertz, Enterprise Holdings, Avis Budget Group, Sixt SE, and other regional operators with strong networks

Which region commanded the largest share of the U.S. Car Rental Market in 2024?

The U.S. Car Rental Market recorded the highest share in the West region due to strong tourism activity and large airport networks supporting rental demand.

About Author

Ganesh Chandwade

Senior Industry Consultant

Ganesh is a senior industry consultant specializing in heavy industries and advanced materials.

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