US Car Rental Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The US Car Rental Market Report is Segmented by Application (Leisure and Tourism and Business and Corporate), Vehicle Type (Economy and Budget Cars, and More), Booking Channel (Online and Offline), Rental Duration (Short-Term, and More), Propulsion (ICE Vehicles, and More), Service Model (Traditional Corporate Fleets and Peer-To-Peer Platforms), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

US Car Rental Market Size and Share

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Compare market size and growth of US Car Rental Market with other markets in Automotive Industry

US Car Rental Market Analysis by Mordor Intelligence

The US Car Rental market is valued at USD 38.90 billion in 2025 and is projected to reach USD 49.13 billion by 2030, expanding at a 4.78% CAGR. The trajectory underscores the sector’s resilience as domestic road-trip culture, hybrid-work patterns, and a swing back toward in-person meetings restore steady rental demand. Growth is reinforced by the 72.23% penetration of online booking channels, the South region’s outsized traveler volumes, and accelerated fleet electrification programs that draw leisure and corporate customers. At the same time, persistent vehicle supply constraints and rising capital costs temper near-term expansion, prompting operators to optimize fleet mix and pursue data-driven pricing. Heightened competition from peer-to-peer marketplaces and ride-hailing services is nudging incumbents to invest in contactless experiences, predictive analytics, and diversified service models.

Key Report Takeaways

  • By application, leisure travel led with 58.32% revenue share in 2024 and is set to grow at a 5.32% CAGR through 2030.
  • By vehicle type, economy cars contributed 59.87% of revenue in 2024, whereas SUVs and crossovers are projected to rise at a 12.48% CAGR.
  • By booking channel, online platforms commanded 72.23% revenue share in 2024; the same channel is growing at an 8.77% CAGR to 2030.
  • By rental duration, short-term contracts accounted for 68.55% of revenue in 2024; long-term and subscription formats are expanding at a 10.64% CAGR.
  • By propulsion, ICE vehicles held 80.23% of 2024 revenue, while battery-electric vehicles are advancing at a 24.55% CAGR.
  • By service model, traditional operators controlled 89.35% of 2024 revenue; peer-to-peer platforms are anticipated to accelerate at a 17.63% CAGR through 2030.
  • By region, the South held 31.52% of the US car rental market share in 2024, while the West is forecast to post the fastest 7.32% CAGR through 2030.

Segment Analysis

By Application: Leisure Demand Anchors Growth

Leisure rentals captured 58.32% of 2024 revenue, generating the largest US car rental market income slice and posting a 5.32% CAGR outlook through 2030. Road trip culture, national park tourism, and flexible vacation timing under hybrid work policies lengthen rental durations and boost average daily rate (ADR) performance.

Leisure travel is adding momentum as professionals extend work trips for personal recreation, lengthening contracts and enhancing profitability. For incumbents, packaging loyalty benefits such as free class upgrades encourages customers to stay within the brand ecosystem while reinforcing occupancy during shoulder periods. The resulting utilization gains support capital-return targets even as acquisition outlays rise.

Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

By Vehicle Type: SUVs and Crossovers Gain Traction

Economy models still dominate fleet counts with a 59.87% share. Yet the SUV and crossover category, noted for 12.48% CAGR, is redefining revenue mix as customers prioritize space and perceived safety. Operators capitalize on higher ADRs for larger vehicles, offsetting inflationary costs in fleet procurement.

OEM production shifts toward premium trims constrain economy-car supply, forcing rental companies to balance customer budgets against availability. Telematics now guides micro-fleet allocation, positioning SUVs where family vacation demand peaks. The strategy maximizes utilization and lowers repositioning miles, contributing to reduced operating expenses even as statutory insurance premiums climb.

By Booking Channel: Digital First Becomes Default

Online platforms generated 72.23% of sales in 2024, demonstrating the overwhelming customer preference for mobile convenience. This channel contributed nearly USD 28.0 billion to the US car rental market size and is tracking an 8.77% CAGR as AI chatbots, predictive pricing engines, and contactless check-in services mature.

Offline channels, including counters and phone reservations, remain relevant to complex group bookings and insurance-replacement segments, yet their share shrinks annually. To preserve margins, operators push add-on services - such as GPS, child seats, and liability waivers - through app upsell screens where acceptance rates can double compared with desk pitches. Marketplaces like Turo amplify digital influence by offering fully app-mediated rentals and specialty vehicles beyond traditional fleets.

By Rental Duration: Subscriptions Extend Lifecycle Value

Short-term contracts (Less than or equal to 30 days) delivered 68.55% of turnover in 2024, driven by vacationers and business travelers who need rapid access and predictable costs. Long-term and subscription packages, however, record a 10.64% CAGR, signaling a structural shift to access-over-ownership models within the US car rental market.

Subscription buyers appreciate bundled insurance, maintenance, and the option to swap vehicles with minimal notice. For operators, subscriptions offer recurring revenue, lower churn, and better forecasting of fleet utilization. Enterprise Mobility leveraged this trend through Flex-E-Rent, boosting retention among corporate accounts that prefer month-to-month flexibility over multi-year leases.

By Propulsion: EV Adoption Picks Up Despite Volatility

Conventional ICE vehicles maintained an 80.23% share in 2024, but battery-electric units logged the market’s fastest 24.55% CAGR, indicating a gradual greening of the US car rental industry. Operators use EV rentals to introduce mainstream travelers to electric mobility, which strengthens OEM relationships and accesses bulk-purchase discounts.

Charging infrastructure remains the bottleneck, yet new partnerships with utilities and charge-point operators are reducing station downtime near major airports. Federal and state incentives covering vehicle purchase and charging hardware offset initial costs, smoothing the path to profitability. Firms that master residual-value risk through data-driven asset management stand to gain early-mover brand equity.

US Car Rental Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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

By Service Model: Peer-to-Peer Platforms Challenge Incumbents

Traditional corporate fleets continued to hold 89.35% of 2024 receipts, but peer-to-peer operators are scaling at a 17.63% CAGR. Marketplace hosts supply 360,000 vehicles nationwide, expanding choice beyond what capital-intensive incumbents can finance. Many hosts list specialty cars—vintage, performance, or luxury trims-that attract premium rates and younger demographics.

The Uber–Turo partnership scheduled for 2025 will inject shared-fleet inventory into a mass-market ride-hailing app, potentially accelerating customer adoption. Incumbents counter by integrating tele-operations and on-demand delivery, offering hotel guests or urban residents a vehicle at their doorstep without a physical branch. Whichever model better synchronizes supply with hyper-local demand will capture incremental wallet share.

Geography Analysis

The South accounted for 31.52% of 2024 revenue, making it the largest regional US car rental market contributor. Robust in-migration, year-round tourism, and major convention hubs in Florida and Texas sustain high fleet turnover. New consolidated rental car centers at Orlando International and Dallas/Fort Worth airports streamline operations, cutting shuttle times and elevating customer satisfaction. Leisure visitors gravitate toward coastal routes and theme parks, while corporate relocations amplify weekday demand, balancing utilization curves across the calendar.

The West is the fastest-growing territory with a projected 7.32% CAGR through 2030. Technology corridors in California and Washington, combined with an influx of international tourists, drive double-digit gains in airport rentals. Stringent emission norms and a strong EV culture tilt fleet composition toward electrified models, supported by aggressive state-funded charging infrastructure rollouts. High urban parking costs in San Francisco and Los Angeles make on-demand rentals a practical alternative to ownership, boosting traditional and peer-to-peer contracts. Airports like LAX are finalizing multibillion-dollar automated people-mover links that funnel customers directly to consolidated rental centers, raising throughput and lowering per-customer operating costs.[2]“LAX Automated People Mover Reaches 75% Completion,” Los Angeles World Airports, lawa.org

The Northeast and Midwest provide steady, diversified revenue streams despite more modest growth. Dense metropolitan clusters like New York, Boston, and Chicago generate consistent corporate traffic, while extensive highway networks enable regional leisure drives to coastal or rural retreats. Seasonal fluctuations-winter storms that depress bookings-are mitigated by insurance-replacement demand resulting from weather-related accidents. Airports such as Gerald R. Ford International opened new rental facilities in 2024, demonstrating ongoing investment in traveler convenience.[3]Gerald R. Ford International Airport Authority, “Airport Opens New Rental Car Facility,” grr.orgMidwestern manufacturing hubs also sustain corporate rentals linked to supplier visits and supply-chain site audits, anchoring weekday utilization rates.

Competitive Landscape

The US car rental market is highly concentrated, creating significant economies of scale in fleet purchasing and back-office technology. Enterprise Holdings leverages a multi-brand portfolio-Enterprise, National, and Alamo—to serve leisure and corporate segments with differentiated value propositions. Avis Budget Group maintains brand recognition among price-sensitive consumers, while Hertz emphasizes premium segments and technology-forward initiatives such as AI-powered damage detection, rolled out nationwide in 2025.

Scale advantages translate into favorable OEM procurement terms, priority access to new-model allocations, and lower per-unit financing costs. Leading firms also secure long-term airport concessions, locking in high-traffic locations that smaller entrants struggle to access. Despite size, incumbents face strategic risk from asset-light disruptors that sidestep fleet ownership.

Technology deployment is emerging as the main competitive lever. Incumbents invest in predictive analytics to allocate vehicles to micro-markets, telematics to monitor driving behavior, and subscription platforms that smooth revenue volatility. Partnerships with charging-infrastructure specialists seek to fast-track EV readiness, mitigating range-anxiety barriers and reinforcing sustainability credentials. In parallel, tele-operation pilots aim to reposition vehicles autonomously, potentially slashing labor costs and improving urban availability.

US Car Rental Industry Leaders

  1. Enterprise Holdings Inc.

  2. Hertz Global Holdings Inc.

  3. Avis Budget Group Inc.

  4. Sixt SE

  5. Fox Rent A Car

  6. *Disclaimer: Major Players sorted in no particular order
Market Concentration.PNG
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • April 2025: Hertz partnered with UVeye to install AI vehicle-inspection kiosks nationwide, shortening return times and improving loss-damage detection.
  • January 2025: XCharge agreed with a major rental group to build Level-3 chargers at multiple US airports.
  • June 2024: Europcar opened its first US branches at Atlanta and Dallas airports, offering premium EV-heavy fleets. This strategic expansion marks a significant milestone for Europcar in officially expanding its presence into key travel hubs within the United States.

Table of Contents for US Car Rental Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surge in domestic road-trip/leisure demand
    • 4.2.2 Rapid growth of online & mobile booking channels
    • 4.2.3 OEM-backed electrification of rental fleets
    • 4.2.4 Flexible fleet-leasing demand from hybrid-work corporates
    • 4.2.5 Peer-to-peer supply expansion & price discovery
    • 4.2.6 Telematics-driven OPEX optimisation
  • 4.3 Market Restraints
    • 4.3.1 Persistent new-vehicle supply constraints & high CAPEX
    • 4.3.2 Residual-value risk from low-priced Chinese EV imports
    • 4.3.3 Escalating airport concession & local taxation costs
    • 4.3.4 Modal substitution by ride-hailing & subscription MaaS
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Technological Outlook
  • 4.6 Regulatory Landscape
  • 4.7 Porter's Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers/Consumers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Intensity of Competitive Rivalry

5. Market Size & Growth Forecasts (Value (USD))

  • 5.1 By Application
    • 5.1.1 Leisure and Tourism
    • 5.1.2 Business and Corporate
  • 5.2 By Vehicle Type
    • 5.2.1 Economy and Budget Cars
    • 5.2.2 Luxury and Premium Cars
    • 5.2.3 SUVs and Crossovers
  • 5.3 By Booking Channel
    • 5.3.1 Online (Web & App)
    • 5.3.2 Offline (Counter & Phone)
  • 5.4 By Rental Duration
    • 5.4.1 Short-Term (less than 30 days)
    • 5.4.2 Long-Term and Subscription (more than 30 days)
  • 5.5 By Propulsion
    • 5.5.1 ICE Vehicles
    • 5.5.2 Hybrid-Electric Vehicles
    • 5.5.3 Battery-Electric Vehicles
  • 5.6 By Service Model
    • 5.6.1 Traditional Corporate Fleets
    • 5.6.2 Peer-to-Peer Platforms
  • 5.7 By Geography
    • 5.7.1 Northeast
    • 5.7.2 Midwest
    • 5.7.3 South
    • 5.7.4 West

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves & Partnerships
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (Includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, SWOT Analysis, and Recent Developments)
    • 6.4.1 Enterprise Holdings Inc.
    • 6.4.2 Hertz Global Holdings Inc.
    • 6.4.3 Avis Budget Group Inc.
    • 6.4.4 Sixt SE
    • 6.4.5 Fox Rent A Car
    • 6.4.6 Ace Rent A Car
    • 6.4.7 Advantage Rent A Car
    • 6.4.8 U-Save Car & Truck Rental
    • 6.4.9 Turo Inc.
    • 6.4.10 Getaround Inc.
    • 6.4.11 Kyte
    • 6.4.12 HyreCar Inc.

7. Market Opportunities & Future Outlook

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

US Car Rental Market Report Scope

The United States vehicle rental market is segmented by application type (Leisure/Tourism, and Business), by vehicle (Luxury/Premium Cars, and Economy/Budget Cars), and by booking (Online Access, and Offline Access)

By Application Leisure and Tourism
Business and Corporate
By Vehicle Type Economy and Budget Cars
Luxury and Premium Cars
SUVs and Crossovers
By Booking Channel Online (Web & App)
Offline (Counter & Phone)
By Rental Duration Short-Term (less than 30 days)
Long-Term and Subscription (more than 30 days)
By Propulsion ICE Vehicles
Hybrid-Electric Vehicles
Battery-Electric Vehicles
By Service Model Traditional Corporate Fleets
Peer-to-Peer Platforms
By Geography Northeast
Midwest
South
West
By Application
Leisure and Tourism
Business and Corporate
By Vehicle Type
Economy and Budget Cars
Luxury and Premium Cars
SUVs and Crossovers
By Booking Channel
Online (Web & App)
Offline (Counter & Phone)
By Rental Duration
Short-Term (less than 30 days)
Long-Term and Subscription (more than 30 days)
By Propulsion
ICE Vehicles
Hybrid-Electric Vehicles
Battery-Electric Vehicles
By Service Model
Traditional Corporate Fleets
Peer-to-Peer Platforms
By Geography
Northeast
Midwest
South
West
Need A Different Region or Segment?
Customize Now

Key Questions Answered in the Report

What is the current US car rental market size and its growth outlook?

The US car rental market size stands at USD 38.90 billion in 2025 and is forecast to reach USD 49.13 billion by 2030 at a 4.78% CAGR.

Which region leads the US car rental market?

The South region leads with 31.52% revenue share, supported by consistent tourism flows and rising corporate relocations.

How fast are electric vehicles growing within US rental fleets?

Battery-electric rentals are expanding at a 24.55% CAGR thanks to OEM partnerships and expanding airport charging infrastructure.

Why are long-term and subscription rentals gaining popularity?

Hybrid work schedules and a preference for flexible access over ownership are pushing long-term and subscription formats to grow at a 10.6% CAGR, offering predictable costs for customers and recurring revenue for operators.

What share do online channels hold in car rental bookings?

Online platforms account for 72.23% of bookings and are projected to grow at an 8.77% CAGR through 2030.

US Car Rental Market Report Snapshots