Recording a y-o-y growth of 5.3% in 2023, the United States car rental field reached US$ 32,084.4 million. Over the forecast period, demand for car rentals in the United States is predicted to rise at a CAGR of 4.9%. Total car rental revenue in the United States is set to expand from US$ 33,775.8 million in 2024 to US$ 54,249.5 million by 2034.
Key Factors Spurring Growth of the United States Car Rental Sector-
Key Trends in the Car Rental Domain-
The United States automobile rental sector has become highly competitive. This is due to companies' increasing investments in technical innovations, combined with their growing internet presence.
Customers are increasingly using these services due to the penetration of information technology in the vehicle rental domain. This has made car bookings and reservations considerably simpler, more dependable, and safer.
Online tourist vehicle bookings are increasing in the United States because of increased travel and tourism activity and rising smartphone usage. Subsequently, an increase in the number of users aged 25 to 34 years who prefer to book vehicle rentals through online channels will benefit the target sector.
Growing demand for convenience transportation is expected to fuel growth in the United States car rental sector. Similarly, the introduction of new car rental service models is set to transform the target sector.
The need for car rentals is also increasing, particularly among urban people, as a result of rising urbanization and growing auto ownership costs. People are choosing car rentals due to their convenience and cost-effectiveness.
The sharing economy is reducing the cost and increasing accessibility of automobile rentals. Further, the growth of business and tourism travel is increasing vehicle rental service demand even more.
Technological developments such as smartphone apps and online booking systems have made the rental process more accessible. However, the sector could undergo a complete transformation with the introduction of linked and self-driving vehicles.
In order to meet the varied needs of their clientele, car rental firms are growing their footprint, providing a greater selection of automobiles. They are forming alliances with other transportation suppliers.
Keeping a close watch on changing consumer preferences will help rental car agencies to frame their strategies accordingly. For instance, car rental companies that prioritize client convenience, make investments in digital technologies, and adjust to changing consumer tastes will likely succeed in the United States.
| Attributes | Key Insights |
|---|---|
| Base Value (2023) | US$ 32,084.4 million |
| Estimated United States Car Rental Sector Size (2024) | US$ 33,775.8 million |
| Projected United States Car Rental Sector Revenue (2034) | US$ 54,249.5 million |
| Anticipated CAGR (2024 to 2034) | 4.9% |
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The car rental sector in the United States exhibited a steady CAGR of 3.8% between 2019 and 2023. It attained a total valuation of US$ 32,084.4 million at the end of 2023. Over the forecast period, the target domain is poised to exhibit a CAGR of 4.9%.
| Historical CAGR (2019 to 2023) | 3.8% |
|---|---|
| Forecast CAGR (2024 to 2034) | 4.9% |
The COVID-19 pandemic had a far-reaching and deep influence on the target domain. Due to lockdowns, rental car companies could not operate, which significantly hampered car rental demand.
There have been travel restrictions, which also negatively impacted car rental services operations. As a result, the sector underwent significant adjustments over this period.
The United States car rental sector is expected to surge significantly in the forecast years despite facing certain challenges. Car rental companies that can adapt to these challenges and offer innovative products and services will be well-positioned for success.
Travel is becoming increasingly popular, both domestically and internationally. This is driving demand for car rentals, as several travelers prefer to have their transportation when they arrive at their destination.
The car rental sector in the United States is opening a series of new business models. For instance, the aggregator model connects rental firms with actual car owners, simplifying the renting process while providing considerable cost and risk reduction benefits. Compared to traditional business models used by automobile rental companies, the aggregator model reduces capital expenditure and risk factors.
Growing tourism, especially of tourists using airplanes for business & leisure, primarily drives the growth of car rental services in the United States. Increasing tourism activity ensures higher demand for car rental services as renting a car is identified as one of the most preferred modes of transportation for business and leisure.
Airports are mainly situated outside cities, which increases the need to hire car rental services for faster movement. People traveling for business often use car rental services due to greater comfort and faster commuting.
Car rental has grown in popularity across the United States and other nations due to the ease of booking and availability via internet platforms. Tourists prefer to use online booking platforms as they provide a simple, hassle-free money transfer facility via digital payment, as well as live tracking and greater safety.
The expanding number of smartphone users and internet penetration play an important influence in the automobile rental sector. Daily commuters choose internet platforms to book shared cabs for business trips or city rides.
Principal Consultant
The below section highlights the projected CAGR of key segments, including car type, end-use, and booking mode:
Growth Outlook by Car Type
| Car Type | Economy Car |
|---|---|
| Value CAGR | 4.5% |
Economy cars are identified as the most preferred mode of transportation in the United States car rental sector. This is because economy car rental services offer less expensive rides, which are affordable to mass customers.
Economy cars are compact, fuel-efficient vehicles that are simple to drive and maneuver. They are an excellent choice for city driving and short road journeys. As a result, the economy car category is projected to expand at a CAGR of 4.5% during the projection period.
Growth Outlook by End Use
| End-use | On-airport |
|---|---|
| Value CAGR | 5.8% |
The on-airport category accounts for a prominent share of the United States rental car sector. This is due to the high presence of international/domestic tourists who rely on on-airport car rental services for leisure as well as business travels.
Rental cars within airport premises offer convenience and accessibility to customers traveling in the United States. This, in turn, is propelling the growth of the on-airport segment, and the trend is expected to continue through 2034.
The on-airport rental car services allow travelers to pick up and drop off their rental car without leaving the airport. As per the latest analysis, the target segment is expected to surge with a CAGR of 5.8% during the forecast period.
Growth Outlook by Booking Mode
| Booking Mode | Mobile Application |
|---|---|
| Value CAGR | 6.9% |
Online booking platforms, including mobile applications and other internet services, will continue to dominate the car rental sector during the forecast period. The mobile application segment is expected to rise with a CAGR of 6.9%.
The growth of mobile users and high internet penetration primarily drive a preferential shift of consumers toward mobile platforms. Similarly, the growing popularity of on-demand culture is expected to boost the target segment.
Today, people across the United States prefer to book their rental cars through mobile applications. This is due to the convenience and real-time availability of rental options offered by mobile apps.
Mobile car rental apps offer an efficient, convenient, and feature-rich experience that caters to the contemporary American lifestyle. Thanks to these mobile car rental applications, people in the United States can easily browse and book rentals anytime, anywhere.
The car rental sector in the United States has a fragmented competitive landscape, with several players competing on the basis of car type, end-use, booking mode, and sector. Hertz Global Holdings Inc., Enterprise Rent-A-Car, Avis Budget Group Inc., Uber Technologies Inc., and Getaround Inc. are the leading United States-based car rental providers.
The Catalyst Capital Group Inc., Sixt SE, Localize Rent A Car SA, and Europcar Mobility Group are other global car rental companies operating in the United States. Key rental car companies are focused on offering new services to attract customers and boost their revenue.
Top rental car companies in the United States also maintain strategic alliances with hotels and airlines to retain their competitive advantages over other industry players. They are also showing interest in acquisitions, mergers, and partnerships to solidify their position in the United States.
Recent Developments in the United States Car Rental Sector-
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| Attribute | Details |
|---|---|
| Estimated Value (2024) | US$ 33,775.8 million |
| Projected Value (2034) | US$ 54,249.5 million |
| Expected Growth Rate (2024 to 2034) | 4.9% CAGR |
| Forecast Period | 2023 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Industry Analysis | US$ million for Value |
| Key Countries Covered | United States |
| Key Segments Covered | Car Type, End-use, Booking Mode, Sector |
| Key Companies Profiled | The Hertz Global Holdings Inc.; Enterprise Rent-A-Car; Avis Budget Group Inc.; Uber Technologies Inc.; Getaround Inc.; U-Save Car & Truck Rental; Rent-A-Wreck of America Inc.; Wingz; Car2go; Group GmbH; The Catalyst Capital Group Inc.; Sixt SE; Localize Rent A Car SA; Europcar Mobility Group; Others (as requested) |
| Report Coverage | Business Forecast, Company Share Analysis, Competition Intelligence, Business Dynamics and Challenges, and Strategic Growth Initiatives |
The target sector is estimated to reach US$ 33,775.8 million in 2024.
The United States sector’s value is set to total US$ 54,249.5 million by 2034.
Demand in the United States is set to expand at a 4.9% CAGR through 2034.
The target sector grew at a CAGR of 3.8% from 2019 to 2023.
The economy car segment currently dominates the target sector.
Enterprise Holdings is a leading car rental company in the United States.
1. Executive Summary
1.1. United States Industry Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Business Overview
2.1. Business Coverage / Taxonomy
2.2. Business Definition / Scope / Limitations
3. Key Trends
3.1. Key Trends Impacting the Sales Growth
3.1.1. More Emphasis on Car Renting
3.1.2. Increasing Demand for Online Services Others (during the course of the study)
3.2. Future Prospects of Industry
3.2.1. Factors Fueling Growth
3.2.2. Influx of Brands
3.2.3. Increasing Demand for E-vehicles
4. Demand Analysis 2019 to 2023 and Forecast, 2024 to 2034
4.1. Historical and Current Household Expenditure on Analysis, 2019 to 2023
4.2. Y-o-Y Growth Trend Analysis
4.3. Y-o-Y Growth Trend Analysis
5. Pricing Analysis
5.1. Regional Pricing Analysis By Car Type
5.2. Pricing Break-up
5.2.1. Manufacturer Level Pricing
5.2.2. Distributor Level Pricing
5.3. Regional Average Pricing Analysis Benchmark
6. Demand (in Value or Size in US$ Million) Analysis 2019 to 2023 and Forecast, 2024 to 2034
6.1. Historical Value (US$ Million) Analysis, 2019 to 2023
6.2. Current and Future Value (US$ Million) Projections, 2024 to 2034
6.2.1. Y-o-Y Growth Trend Analysis
6.2.2. Absolute $ Opportunity Analysis
7. Business Background
7.1. Macro-Economic Factors
7.1.1. United States GDP Growth Outlook
7.1.2. Industry Overview
7.1.3. Spending Outlook
7.1.4. United States Service Industry Outlook
7.2. Forecast Factors - Relevance & Impact
7.2.1. Top Companies Historical Growth
7.2.2. GDP Growth Forecast
7.2.3. Top Companies Historical Growth
7.2.4. United States Service Sector Gross Value Added
7.2.5. Industry Outlook
7.2.6. United States Urbanization Growth Outlook
7.3. Value Chain
7.3.1. Profit Margin Analysis at each sales point
7.3.2. List & role of key participant
7.3.2.1. Manufacture
7.3.2.2. Distributors/Retailers
7.4. Key Dynamics
7.4.1. Drivers
7.4.2. Restraints
7.4.3. Opportunity Analysis
7.5. PESTLE Analysis of Business
7.6. Porter’s Five Force Analysis
8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Car Type
8.1. Introduction / Key Findings
8.2. Historical Business Size (US$ Million) Analysis By Car Type, 2019 to 2023
8.3. Current and Future Business Size (US$ Million) Analysis and Forecast By Car Type, 2024 to 2034
8.3.1. Economy Cars
8.3.2. Compact Cars
8.3.3. Intermediate Cars
8.3.4. Premium Cars
8.3.5. Luxury Cars
8.3.6. Others
8.4. Business Attractiveness Analysis By Car Type
9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use
9.1. Introduction / Key Findings
9.2. Historical Business Size (US$ Million) Analysis By End Use, 2019 to 2023
9.3. Current and Future Business Size (US$ Million) Analysis and Forecast By End Use, 2024 to 2034
9.3.1. Intercity
9.3.2. Intracity
9.3.3. On-airport
9.3.4. Others
9.4. Business Attractiveness Analysis By End Use
10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Booking Mode
10.1. Introduction / Key Findings
10.2. Historical Business Size (US$ Million) Analysis By Booking Mode, 2019 to 2023
10.3. Current and Future Business Size (US$ Million) Analysis and Forecast By Booking Mode, 2024 to 2034
10.3.1. Offline Access
10.3.2. Mobile Application
10.3.3. Other Internet Access
10.4. Business Attractiveness Analysis By Booking Mode
11. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sector
11.1. Introduction / Key Findings
11.2. Historical Business Size (US$ Million) Analysis By Sector, 2019 to 2023
11.3. Current and Future Business Size (US$ Million) Analysis and Forecast By Sector, 2024 to 2034
11.3.1. Organized
11.3.2. Unorganized
11.4. Business Attractiveness Analysis By Sector
12. Industry Analysis
12.1. Introduction / Key Findings
12.2. Industry Analysis
12.3. Business Attractiveness Analysis
13. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
13.1. Introduction
13.2. Pricing Analysis
13.3. Historical Business Size (US$ Million) Trend Analysis By Business Taxonomy, 2019 to 2023
13.4. Business Size (US$ Million) Forecast By Business Taxonomy, 2024 to 2034
13.4.1. By Region
13.4.1.1. West
13.4.1.2. South West
13.4.1.3. Mid-West
13.4.1.4. North East
13.4.1.5. South East
13.4.2. By Car Type
13.4.2.1. Economy Cars
13.4.2.2. Compact Cars
13.4.2.3. Intermediate Cars
13.4.2.4. Premium Cars
13.4.2.5. Luxury Cars
13.4.2.6. Others
13.4.3. By End Use
13.4.3.1. Intercity
13.4.3.2. Intracity
13.4.3.3. On-Airport
13.4.3.4. Others
13.4.4. By Booking Mode
13.4.4.1. Offline Access
13.4.4.2. Mobile Application
13.4.4.3. Other Internet Access
13.4.5. By Sector
13.4.5.1. Organized
13.4.5.2. Unorganized
13.5. Business Attractiveness Analysis
13.5.1. By Car Type
13.5.2. By End Use
13.5.3. By Booking Mode
13.5.4. By Sector
13.6. Key Trends
13.7. Drivers and Restraints - Impact Analysis
13.8. Key Players Participants - Intensity Mapping
14. West Region Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
14.1. Introduction
14.2. Pricing Analysis
14.3. Historical Business Size (US$ Million) Trend Analysis By Business Taxonomy, 2019 to 2023
14.4. Business Size (US$ Million) Forecast By Business Taxonomy, 2024 to 2034
14.4.1. By Car Type
14.4.2. By End Use
14.4.3. By Booking Mode
14.4.4. By Sector
14.5. Business Attractiveness Analysis
14.5.1. By Car Type
14.5.2. By End Use
14.5.3. By Booking Mode
14.5.4. By Sector
14.6. Key Trends
14.7. Drivers and Restraints - Impact Analysis
14.8. Key Players Participants - Intensity Mapping
15. South-East Region Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
15.1. Introduction
15.2. Pricing Analysis
15.3. Historical Business Size (US$ Million) Trend Analysis By Business Taxonomy, 2019 to 2023
15.4. Business Size (US$ Million) Forecast By Business Taxonomy, 2024 to 2034
15.4.1. By Car Type
15.4.2. By End Use
15.4.3. By Booking Mode
15.4.4. By Sector
15.5. Business Attractiveness Analysis
15.5.1. By Car Type
15.5.2. By End Use
15.5.3. By Booking Mode
15.5.4. By Sector
15.6. Key Trends
15.7. Drivers and Restraints - Impact Analysis
15.8. Key Players Participants - Intensity Mapping
16. South West Region Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
16.1. Introduction
16.2. Pricing Analysis
16.3. Historical Business Size (US$ Million) Trend Analysis By Business Taxonomy, 2019 to 2023
16.4. Business Size (US$ Million) Forecast By Business Taxonomy, 2024 to 2034
16.4.1. By Car Type
16.4.2. By End Use
16.4.3. By Booking Mode
16.4.4. By Sector
16.5. Business Attractiveness Analysis
16.5.1. By Car Type
16.5.2. By End Use
16.5.3. By Booking Mode
16.5.4. By Sector
16.6. Key Trends
16.7. Drivers and Restraints - Impact Analysis
16.8. Key Players Participants - Intensity Mapping
17. Mid-West Region Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
17.1. Introduction
17.2. Pricing Analysis
17.3. Historical Business Size (US$ Million) Trend Analysis By Business Taxonomy, 2019 to 2023
17.4. Business Size (US$ Million) Forecast By Business Taxonomy, 2024 to 2034
17.4.1. By Car Type
17.4.2. By End Use
17.4.3. By Booking Mode
17.4.4. By Sector
17.5. Business Attractiveness Analysis
17.5.1. By Car Type
17.5.2. By End Use
17.5.3. By Booking Mode
17.5.4. By Sector
17.6. Key Trends
17.7. Drivers and Restraints - Impact Analysis
17.8. Key Players Participants - Intensity Mapping
18. North East Region Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
18.1. Introduction
18.2. Pricing Analysis
18.3. Historical Business Size (US$ Million) Trend Analysis By Business Taxonomy, 2019 to 2023
18.4. Business Size (US$ Million) Forecast By Business Taxonomy, 2024 to 2034
18.4.1. By Car Type
18.4.2. By End Use
18.4.3. By Booking Mode
18.4.4. By Sector
18.5. Business Attractiveness Analysis
18.5.1. By Car Type
18.5.2. By End Use
18.5.3. By Booking Mode
18.5.4. By Sector
18.6. Key Trends
18.7. Drivers and Restraints - Impact Analysis
18.8. Key Players Participants - Intensity Mapping
19. Business Structure Analysis
19.1. Industry Analysis by Tier of Companies (Car Rental)
19.2. Business Share Analysis of Top Players
19.3. Business Presence Analysis
20. Competition Analysis
20.1. Competition Dashboard
20.2. Competition Benchmarking
20.3. Competition Deep Dive
20.3.1. The Hertz Global Holdings Inc.
20.3.1.1. Overview
20.3.1.2. Product Portfolio
20.3.1.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.1.4. Sales Footprint
20.3.1.5. Strategy Overview
20.3.2. Enterprise Rent-A-Car
20.3.2.1. Overview
20.3.2.2. Product Portfolio
20.3.2.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.2.4. Sales Footprint
20.3.2.5. Strategy Overview
20.3.3. Sixt SE
20.3.3.1. Overview
20.3.3.2. Product Portfolio
20.3.3.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.3.4. Sales Footprint
20.3.3.5. Strategy Overview
20.3.4. Avis Budget Group Inc.
20.3.4.1. Overview
20.3.4.2. Product Portfolio
20.3.4.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.4.4. Sales Footprint
20.3.4.5. Strategy Overview
20.3.5. Europcar Mobility Group
20.3.5.1. Overview
20.3.5.2. Product Portfolio
20.3.5.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.5.4. Sales Footprint
20.3.5.5. Strategy Overview
20.3.6. Uber Technologies Inc.
20.3.6.1. Overview
20.3.6.2. Product Portfolio
20.3.6.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.6.4. Sales Footprint
20.3.6.5. Strategy Overview
20.3.7. Localize Rent A Car SA
20.3.7.1. Overview
20.3.7.2. Product Portfolio
20.3.7.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.7.4. Sales Footprint
20.3.7.5. Strategy Overview
20.3.8. The Catalyst Capital Group Inc.
20.3.8.1. Overview
20.3.8.2. Product Portfolio
20.3.8.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.8.4. Sales Footprint
20.3.8.5. Strategy Overview
20.3.9. Getaround Inc.
20.3.9.1. Overview
20.3.9.2. Product Portfolio
20.3.9.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.9.4. Sales Footprint
20.3.9.5. Strategy Overview
20.3.10. U-Save Car & Truck Rental
20.3.10.1. Overview
20.3.10.2. Product Portfolio
20.3.10.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.10.4. Sales Footprint
20.3.10.5. Strategy Overview
20.3.11. Rent-A-Wreck of America Inc.
20.3.11.1. Overview
20.3.11.2. Product Portfolio
20.3.11.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.11.4. Sales Footprint
20.3.11.5. Strategy Overview
20.3.12. Wingz
20.3.12.1. Overview
20.3.12.2. Product Portfolio
20.3.12.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.12.4. Sales Footprint
20.3.12.5. Strategy Overview
20.3.13. Car2go
20.3.13.1. Overview
20.3.13.2. Product Portfolio
20.3.13.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.13.4. Sales Footprint
20.3.13.5. Strategy Overview
20.3.14. Group GmbH
20.3.14.1. Overview
20.3.14.2. Product Portfolio
20.3.14.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.14.4. Sales Footprint
20.3.14.5. Strategy Overview
20.3.15. Others (as requested)
20.3.15.1. Overview
20.3.15.2. Product Portfolio
20.3.15.3. Profitability by Key Segments (Car Type/Booking Mode/End Use/Sector/Region)
20.3.15.4. Sales Footprint
20.3.15.5. Strategy Overview
21. Assumptions and Acronyms Used
22. Research Methodology
Consumer Product
February 2024
REP-GB-3043
200 pages
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Car Rental Industry Analysis in the United States
