U.S. Car Rental Market Size

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.

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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.