U.S. Car Rental Market Size, Share & Trends Analysis Report By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars), By Application (Local Usage, Airport Transport, Outstation), By Booking Mode (Online, Offline/Direct), And Segment Forecasts, 2025 - 2

U.S. Car Rental Market Size & Trends

The U.S. car rental market size was valued at USD 37.88 billion in 2024 and is projected to grow at a CAGR of 7.5% from 2025 to 2030. The increasing demand for tourism-related travel has significantly boosted the market. Travelers, both domestic and international, are opting for rental vehicles to explore destinations with greater flexibility and comfort. This trend is further supported by the rise in leisure and business travel, which has created a consistent need for convenient transportation options. This growth is particularly pronounced in urban centers, tourism hubs, and business corridors.

Following the relaxation of pandemic-related restrictions, the United States has witnessed a resurgence in both domestic and international tourism. According to the U.S. Travel Association, domestic travel spending surpassed pre-pandemic levels in 2023, while inbound travel continued its recovery trajectory. This upswing has directly benefited airport-based and leisure-focused car rental providers, particularly in high-traffic destinations such as Orlando, Las Vegas, and Los Angeles.

Consumers are increasingly valuing flexibility over ownership, particularly in urban environments where the total cost of vehicle ownership-factoring in insurance, parking, and depreciation-has escalated significantly. This trend is further amplified among younger demographics and business travelers who seek convenience and reduced commitment. For instance, Hertz and Enterprise have reported growing interest in subscription-based rental models and short-duration rentals facilitated through mobile apps.

As business travel resumes, albeit selectively, car rental companies are witnessing an uptick in demand from corporate clients, particularly for regional travel and inter-city movement. Companies are also turning to rental fleets to supplement transportation needs for employees in hybrid work models. For example, Avis Budget Group highlighted in its quarterly filings that business travel volume was contributing to revenue stabilization and growth in key markets.

Technological advancements have revolutionized the U.S. car rental industry. Integrating online platforms and mobile applications has streamlined the booking process, making it more accessible and user-friendly. Features such as digital payments, vehicle selection, and app-based unlocking have enhanced customer satisfaction and expanded the market. For instance, Enterprise, National, and Alamo leverage digital platforms and IoT for streamlined booking, contactless operations, and enhanced fleet management.

The adoption of electric vehicles (EVs) in rental fleets is gaining traction. As consumers become more environmentally conscious, rental companies are incorporating EVs to meet the demand for sustainable transportation solutions. This shift aligns with global sustainability goals and attracts eco-minded travelers. For instance, in August 2022, European electric vehicle rental startup UFODrive launched in San Francisco, marking its entry into the U.S. market. The company offers contact-free EV rentals amid high gas prices, rental car shortages, and rising demand for electric vehicles. UFODrive was launched in New York and Austin in October, followed by rapid European growth.

The growing emphasis on hygiene and safety protocols, especially post-pandemic, has increased consumer confidence in car rental services. Companies are investing in sanitization measures and offering diverse vehicle options to cater to varying customer preferences, further driving market growth.

U.S. Car Rental Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. car rental market report based on vehicle type, application, and booking mode:

• Vehicle Outlook (Revenue, USD Million, 2018 - 2030)
• Luxury cars
• Executive cars
• Economy cars
• SUVs
• MUVs
• Application Outlook (Revenue, USD Million, 2018 - 2030)
• Local usage
• Airport transport
• Outstation
• Others
• Booking Mode Outlook (Revenue, USD Million, 2018 - 2030)
• Offline/Direct
• Online