North America Vehicle Rental Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

North America Vehicle Rental Market Trends and Insights

Rise in Inbound Leisure Travel Post-COVID-19

Leisure bookings already command more than half of all transactions and are growing at an 11.44% CAGR as airport passenger volumes climb and consumers combine business and leisure stays, lengthening rental durations. Airports like Boise International reported concession revenue rising in tandem with 3-8% passenger growth in 2024. Operators respond by shifting inventory toward SUVs and premium trims with higher margins, reinforcing the upward trajectory in average revenue per transaction.

Strong Rebound of Corporate Road-Warrior Segment

Business travellers view in-person meetings as indispensable and have restored budgets accordingly, allowing corporate bookings to regain premium-priced share. Individual customers now account for two-thirds of total demand because many companies permit direct employee bookings, which pushes transactions through consumer-facing apps. This shift supports the North American vehicle rental market as suppliers monetise the same vehicles across multiple price bands while tightly managing utilisation.

AI-Driven Dynamic Pricing Lifting Revenue Per Available Car (RevPAC)

Machine-learning engines correlate weather, flight schedules, and local events to recalibrate rates hourly, lifting RevPAC without provoking demand destruction. Hertz reported an optimal average daily rate, crediting algorithmic systems that offer suitable prices and vehicle rotation. Predictive maintenance modules reduce downtime, amplifying fleet productivity across the North American vehicle rental market.

EV-Focused Fleet Incentives Under U.S. IRA & Canadian ZEV Mandates

Federal emissions rules targeting 85 g/mile by model-year 2032 are prompting operators to enlarge electric fleets, supported by tax credits that temper total cost of ownership.^{[1]“Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles; Final Rule,”, U.S. Environmental Protection Agency, epa.gov} Charging infrastructure expansion, especially in Canada, underpins a 13.87% CAGR for battery electric rentals, positioning electrification as a central differentiator across the North American vehicle rental market.

OEM Vehicle Supply Constraints and High Acquisition Costs

Higher interest rates and elevated invoice prices, new-vehicle averages reached USD 48,641 in 2025, stretching fleet budgets, forcing companies to keep cars longer, and heightening residual-value risk. The cost headwind trims near-term margins across the North American vehicle rental market.

Rising Insurance Premiums and Liability-Claims Inflation

Motor insurance losses of USD 53 billion over 2022-2023 feed into premium hikes. Rental firms offset the drag by embedding telematics and refining driver screening, yet elevated claim severity still shaves profit per unit.

Segment Analysis

By Vehicle Type: SUVs Drive Premium Segment Growth

Economy cars maintained a 44.53% North America vehicle rental market share in 2024, underlining their continued role for budget-sensitive travellers. OEMs’ tilt toward larger platforms aids fleet electrification because many new EVs are crossover silhouettes that offer improved battery packaging. Meanwhile, multi-purpose vans support small-business transport, and luxury cars benefit from high-end leisure demand. SUVs and crossovers are expanding at a 10.21% CAGR and are the fastest-growing class within the North American vehicle rental market. 

Fleet managers within the North American vehicle rental market balance unit cost, residual value, and customer preference when mapping future acquisitions. Hertz’s strategic sale of 20,000 under-performing EVs illustrates how quickly mix decisions can shift based on utilisation data and resale prices. Such flexibility allows operators to maintain yield discipline even as consumer tastes evolve.

Note: Segment shares of all individual segments available upon report purchase

By Application Type: Leisure Travel Dominates Growth Trajectory

Leisure bookings accounted for 52.89% of the North American vehicle rental market share in 2024, with an 11.44% CAGR to 2030. The work-from-anywhere ethos blends professional obligations with personal travel, lengthening rental periods and expanding the revenue pool. Business demand has normalised more slowly, yet remains critical because corporate travellers pay higher daily rates and drive weekday utilisation.

Operators allocate more premium SUVs and crossovers to leisure-heavy corridors such as Florida and Nevada, while maintaining economy vehicles for mid-week corporate volumes. The result is higher utilisation and stronger pricing power than during the pre-pandemic era as the North American vehicle rental market adapts to hybrid travel patterns.

By Rental Duration: Subscription Models Reshape Long-Term Segment

Short-term rentals under 30 days still contribute 80.79% of revenue in the North American vehicle rental market size for 2024. Still, long-term and subscription products will exceed all other durations at a 12.89% CAGR through 2030. Professionals relocating for multi-month assignments and consumers postponing new-car purchases prefer flexible access without ownership burdens.

Subscription services permit dynamic kilometre caps, monthly swap options, and bundled maintenance, allowing operators to capture a stable revenue annuity. The approach also evens seasonal demand swings, smoothing fleet utilisation curves across the North American vehicle rental market.

By Booking Type: Digital Transformation Accelerates Online Dominance

Online and mobile reservations represented 74.24% of the North American vehicle rental market share in 2024 and will expand at a 13.25% CAGR between 2025 and 2030. Contactless check-in, push-notification upgrades, and biometric identity verification shorten queue times and elevate customer satisfaction.

Offline channels remain relevant for complex itineraries or when travellers require guidance on cross-border documentation. Nevertheless, AI-backed inventory allocation and automated upsell prompts ensure that even offline bookings feed data into unified pricing engines across the North American vehicle rental market.

By Customer Type: Individual Segment Drives Market Expansion

Individual renters generated 66.02% of the North America vehicle market size in 2024 and will post the quickest growth of 11.76% CAGR between 2025 and 2030. Direct-to-consumer apps, transparent pricing, and robust loyalty benefits amplify repeat business. Corporate accounts, although stabilising, prioritise cost control, thereby exerting downward pressure on negotiated rates.

Operators view lifetime customer value as the central metric, fostering personalised marketing that nudges occasional users toward premium categories. This customer-centric pivot strengthens margins within the North American vehicle rental market.

By Rental Location: On-Airport Facilities Maintain Strategic Advantage

In 2024, on-airport sites held 65.11% of the North American vehicle rental market, rising at a 12.87% CAGR due to USD-denominated multi-billion construction programmes. Projects such as Cincinnati/Northern Kentucky’s USD 175 million transportation centre cut journey times from gate to car, boosting customer satisfaction.

Off-airport branches attract price-conscious consumers with lower daily rates and often bundle ride-hailing vouchers for the first-mile transfer. This two-tier structure widens choice without diluting brand equity across the North American vehicle rental market.

By Fuel Type: Electric Vehicle Adoption Accelerates Despite Challenges

Internal combustion models accounted for 87.07% of the North American vehicle rental market share in 2024, yet battery electrics will scale quickly under government mandates, growing at a 13.87% CAGR between 2025 and 2030. High residual-value volatility and charging-stall availability remain operational hurdles, but federal tax credits narrow the total cost of ownership gap.

Several operators install DC fast-chargers within ConRAC facilities, ensuring turnover times stay competitive with petrol vehicles. These investments strengthen the long-term competitiveness of electrified offerings within the North American vehicle rental market.

Geography Analysis

The United States dominates the North American vehicle rental market, holding 86.96% of 2024 revenue. Dense aviation networks around New York, Los Angeles, and Chicago feed high turnover and allow sophisticated yield management. States such as Florida, California, and Nevada register above-average leisure growth on the back of theme-park traffic and entertainment tourism. ConRAC projects at Orlando and Sacramento are reshaping customer experience and boosting on-airport market share.

Canada, although smaller, is the fastest-growing geography at 6.03% CAGR. Federal goals to deploy 679,000 public chargers by 2040 underpin early adoption of EV rentals.^{[2]Electric Vehicle Charging Infrastructure for Canada,”, Natural Resources Canada, natural-resources.canada.ca} Toronto, Vancouver, and Montreal benefit from revived inbound tourism as border restrictions ease, while provincial eco-tourism campaigns push leisure utilisation in scenic regions.

Mexico and select Caribbean islands round out the rest of the North American vehicle rental market. Cross-border manufacturing supply chains fuel demand for cargo vans, whereas sun-and-sand destinations rely on leisure arrivals. Regulatory variability and infrastructure gaps require operators to tailor fleet mix, insurance packages, and pricing models locally, yet the adjacent markets supply incremental growth opportunities as regional integration deepens.