The United States car rental market comprises various premium and economy car rental brands that offer services to travelers and corporates for local and outstation transportation needs. Rental cars provide flexibility, convenience and affordability to customers for their daily commute or leisure travels within the country. The market offers a wide range of vehicles from compact economy cars ideal for city drives to luxury and sports utility vehicles for touring purposes. The increasing tourism and business activities have been augmenting the demand for rental services across different states of the country.
The United States Car Rental Market is estimated to be valued at USD 35.26 Bn in 2024 and is expected to reach USD 51.12 Bn by 2031, growing at a CAGR of 5.5% from 2024 to 2031.
Key Takeaways
Key players operating in the United States car rental market are Enterprise Rent-A-Car, Hertz Global Holdings Inc, Avis Budget Group, Sixt SE and Europcar Mobility Group.
The demand for United States Car Rental Market is growing considerably owing to rising tourism activities in popular destinations such as Florida, California, New York, Hawaii and Texas. Additionally, frequent business travels within different states have also fueled the market growth over the past few years.
Major players are focusing on fleet modernization and upgrading their digital platforms to improve customer experience. Technologies such as GPS tracking, remote unlocking, and paperless rentals are revolutionizing the industry.
Market Trends
Increased mobility: More people are preferring rental cars over public transportation for door-to-door mobility on demand. This has boosted the first and last mile connectivity aspect of rental business.
Sustainability drive: Major players are investing in electric vehicles and promoting green rental options to reduce emissions and appeal to eco-conscious customers.
Mobility-as-a-service (MaaS): Companies are expanding beyond traditional rental models and launching subscription-based plans and collaborative partnerships for seamless transportation solutions.
Market Opportunities
Higher international leisure travels: As travel restrictions ease globally post-pandemic, international tourist arrivals in the US are projected to rise sharply. This will drive the demand for rental options.
Mobility startups partnerships: Collaborating with emerging shared and micro-mobility startups can help incumbents expand their mobility offerings and achieve synergies.
Innovative business models: Developing innovative business models focusing on shifts like multi-modal transportation, autonomous vehicles and subscription services can capture new revenue pools.
Impact of COVID-19 on United States Car Rental Market
The COVID-19 pandemic has severely impacted the United States car rental market. During the pre-COVID times, the car rental industry in the US was growing steadily owing to increasing business and leisure travels. However, the imposition of lockdowns and travel restrictions globally due to the pandemic led to a massive decline in the rental demand. As people were advised to avoid all non-essential travel and stay indoors, the rental bookings reduced drastically impacting the revenues of major rental companies.
With restrictions now being gradually lifted and businesses resuming operations, the car rental market is witnessing signs of recovery. However, demand is still not back to the pre-COVID levels. The companies are having constraints in terms of fleet availability as many vehicles were returned during lockdowns. They are also focusing on enhanced sanitization and social distancing guidelines to regain customer confidence. Contactless services are being promoted. It is expected that the market may take some more time to fully recover given the prevailing uncertainties around the virus. The companies need to devise cost-cutting strategies and raise funds to sustain in the current market scenario.
California car rental market represents the highest value share in the overall United States market. The state accounts for maximum business and tourist travels contributing significantly to the car rental revenues. It is followed by markets of Texas and Florida which are also major business and leisure destinations attracting large number of visitors.
The Southeast region of the United States has emerged as the fastest growing market for car rentals in the country over the past few years. States like Georgia, North Carolina and South Carolina have witnessed substantial economic and infrastructure growth resulting in increased travels. The expansion of corporate hubs and tourist attractions in these states has boosted the car rental demand growth rates.
Get more insights on : United States Car Rental Market
Get this Report in Japanese Language: 米国のレンタカー市場
Get this Report in Korean Language: 미국 자동차 렌탈 시장
Explore more related articles – The Rise of Organized Retail in India
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)