U.S. Car Rental Market Size - By Booking Mode, By Rental Length, By Vehicle, By Application, By End Use, Growth Forecast, 2025 – 2034

U.S. Car Rental Market Size

The U.S. car rental market size was valued at USD 35.2 billion in 2024 and is estimated to register a CAGR of 5% between 2025 and 2034. Increasing demand for travel and tourism across the region is expected to drive market growth. People are traveling more for vacations, business trips, and leisure, which boosts the demand for rental vehicles. Post-pandemic trends show a preference for personal transportation over public options, as travelers seek greater flexibility and safety. As the travel industry continues to recover and expand, car rental companies are benefiting from the growing number of tourists and travelers who need reliable transportation during their trips.
 

For instance, according to the U.S. Department of Commerce, between 2020 and 2023, international visits to the U.S. rose by 246%, reaching 66.5 million. During the same period, travel exports from international visitors grew by 153%, totaling USD 213 billion. Additionally, the number of American jobs supported by travel exports surged by 63%, reaching 1.6 million. Rental companies are also supporting by offering more diversified fleets, including electric vehicles, luxury cars, and larger vehicles suited for family trips.
 

The rise of digital platforms and mobile app integration is propelling the U.S. car rental market growth. As technology continues to advance, car rental companies are increasingly offering digital solutions that enhance customer convenience and streamline the rental process. Consumers can now easily book vehicles through mobile apps, choose their preferred car, and even unlock or start the vehicle using their smartphones. This shift towards digitalization has made car rentals more accessible and appealing, especially to younger consumers who prioritize convenience and a seamless user experience.
 

U.S. Car Rental Market Trends

Increasing consumer spending on transportation is significantly driving market growth. As disposable incomes rise, consumers are spending more on travel and mobility. This includes spending on car rentals for both leisure and business purposes. Higher spending on transportation is driven by factors such as increased disposable income, lower fuel prices, and a growing desire for experiences such as road trips, vacations, and weekend getaways. Many consumers now prioritize convenience and flexibility, choosing to rent cars for short-term trips rather than relying on public transport or ridesharing services.
 

For instance, according to the U.S. Department of Transportation, transportation continues to be one of the largest annual consumer expenses, amounting to USD 12,295 per year as of 2023. With a growing preference for personal transportation options, car rentals are becoming an essential part of the travel experience, contributing to the ongoing growth of the car rental market.
 

One significant pitfall for the market is the rising costs of fleet maintenance and vehicle acquisition. As the price of new cars continues to rise, largely due to supply chain disruptions and semiconductor shortages, car rental companies face higher costs when expanding their fleets. This results in increased operating expenses, which can be passed on to consumers in the form of higher rental rates.
 

Additionally, the cost of maintaining a diverse fleet, especially as companies adapt to growing demand for electric vehicles (EVs) and other specialty cars, adds further financial pressure. These rising costs, coupled with market fluctuations and demand variability, present challenges for car rental companies seeking to maintain profitability while offering competitive pricing and a diverse selection of vehicles.
 

U.S. Car Rental Market Analysis

Based on rental length, the market is divided into short term and long term. In 2024, the short term segment held a market share of over 65% and is expected to cross USD 36 billion by 2034. The short-term segment growth is driven by the increase in local and regional travel. With more people opting for "staycations" or nearby getaways, short-term rentals have become a popular choice for weekend trips, day excursions, and other brief travel needs.
 

Consumers are choosing to rent cars for a few days rather than committing to long-term vehicle ownership or relying on public transportation. As more consumers prioritize convenience, affordability, and flexibility for short trips, rental companies are adapting by offering more short-term rental options.
 

Based on application, the U.S. car rental market is categorized into leisure/tourism and business. The leisure/tourism segment held a market share of around 64% in 2024. As families and groups increasingly prefer to travel together, the leisure and tourism segment is anticipated to grow. These groups are turning to rental cars that can accommodate their needs. Opting for a rental vehicle provides flexibility and simplifies coordination, enabling visits to multiple destinations without the constraints of public transportation or rideshares.
 

Additionally, as travelers seek cost-effective options for group trips, renting a car for a road trip or family vacation can often be more affordable than multiple flights or other transportation alternatives. This rising trend in group-centric travel is fueling demand in the leisure and tourism sector of the market.
 

California car rental market accounted for 20% of the revenue share in 2024. California is one of the top travel destinations in the U.S., attracting large numbers of visitors annually for its diverse offerings, including beaches and national parks. Tourists often rely on car rentals to explore the state’s vast landscapes and attractions at their own pace. The state's infrastructure, including scenic routes such as the Pacific Coast Highway and the ability to access multiple destinations, makes car rentals the most convenient option for many travelers.
 

Additionally, rental companies are catering to this demand by offering a variety of vehicles, from compact cars for city trips to larger SUVs for family vacations.
 

The expansion of international tourism, especially from Latin America and Europe, drives the growth of Florida's car rental market. Florida has long been a popular destination for international travelers due to its proximity to both the Caribbean and South America, as well as its cultural ties with Latin American countries. Many of these visitors prefer renting cars, finding it more convenient and flexible than relying on public transport.
 

In response, Florida's rental companies are customizing their services for these international tourists, offering features such as multilingual support, GPS rentals, and cross-border rental options, thereby aiming to capture large share in the expanding market.

U.S. Car Rental Market Share

Enterprise and Avis Budget Group hold a market share of over 40% in the U.S. car rental industry. Enterprise focuses on its strong customer service and extensive network of locations. The company also invests heavily in building a robust presence at airports, neighborhoods, and key travel hubs, making it convenient for customers to access rentals. Additionally, Enterprise has expanded its fleet diversity, offering everything from economy cars to SUVs and luxury vehicles, catering to a broad range of customer needs. Their loyalty programs, such as Enterprise Plus, encourage repeat business with benefits such as upgrades and discounts.
 

Avis Budget Group embraces technology and digital innovation. With a strong mobile app, customers can easily book, modify, and manage rentals. Avis also offers flexible rental terms and membership programs, such as Avis Preferred, to increase customer retention. Moreover, the company is focusing on electric vehicle (EV) rentals, aligning with the growing demand for sustainable travel options.
 

U.S. Car Rental Market Companies

Major players operating in the U.S. car rental industry include:

• Advantage Rent a Car
• Alamo Rent A Car
• Avis Budget
• Enterprise
• Fox Rent as Car
• Getaround
• Hertz
• Midway Car Rental
• Sixt
   

U.S. Car Rental Industry News

• In January 2024, Vay launched remotely-driven rental car service, in Las Vegas, Nevada. This allows users to rent a car on a per-minute basis, offering a cost-effective and hassle-free mobility solution.
   
• In January 2024, SIXT and Stellantis signed an agreement for the purchasing of up to 250,000 vehicles for rental fleet across Europe and North America by 2026. SIXT rental customers will benefit from an attractive choice of vehicles of Stellantis including Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Opel, Peugeot, Ram, Vauxhall and Maserati.
   

The U.S. car rental market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and Fleet Size from 2021 to 2034, for the following segments:

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Market, By Booking Mode

• Offline
• Online

Market, By Rental Length

• Short term
• Long term

Market, By Vehicle

• Luxury cars
• Executive cars
• Economy cars
• SUVs
• MUVs

Market, By Application

• Leisure/tourism 
• Business

Market, By End Use

• Self-driven 
• Chauffeur-driven

The above information is provided for the following regions and countries:

• Arizona
• California
• Colorado
• Florida
• Georgia
• Illinois
• Indiana
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Missouri
• Nevada
• New Jersey
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Tennessee
• Texas
• Utah
• Virginia
• Washington
• Wisconsin