Market Size of North America Vehicle Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Vehicle Rental Market Analysis
The North America Vehicle Rental Market was valued at USD 25.16 billion in 2021 and is expected to reach USD 42.65 billion by 2027 registering a CAGR of around 9 % during the forecast period (2022 - 2027).
The COVID-19 pandemic had negatively impacted the growth of the market as initial lockdowns and travel restrictions resulted in decreased demand for rental vehicles. However, post-pandemic as restrictions eased, demand for rental services started picking up pace in wake of growing consumer inclination towards rental vehicles over public transportation. This trend is likely to continue over the forecast period.
Over the medium term, growing popularity of online car rental booking applications and rising awareness about the features such as time-saving and cost-effectiveness of vehicle rentals are likely to drive demand in the market. In addition, growing focus of rental companies to expand their vehicle rental portfolio with the latest and eco-friendly products to further enhance the growth of the market during the forecast period.
Besides these rise in internet penetration across developed regions will help market to grow during the forecast period. Moreover, the infrastructure development in the developing regions is paving new way for the growth of market. The aforementioned factors likely to create optimistic environment and inturn to encourage key companies in the market to focus only on corporate segment, considering the lucrative business opportunities and growth potential offered by this market.
United States expected to act as leading country across North American region due to major market players operating in this region. These market players had adopted car rental software in smart-phone applications, which is driving the growth of vehicle rental market in North America region.
North America Vehicle Rental Industry Segmentation
A rental vehicle means a motor vehicle that is used for or by a person other than the owner of the motor vehicle through an arrangement and for consideration. The report covers details on the latest trends, developments, and instances in the North American vehicle rental market. The scope of the report covers segmentation based on vehicle type, application type, rental duration type, and country.
By Vehicle Type, the market is segmented into Luxury Cars, Economy Cars, MPVs, and Others. By Application type, the market is segmented into Local Usage, Outstation, and Others.
By Rental duration type, the market is segmented into Short-Term and Long-Term and by Country, the market is segmented into United States, Canada, and Rest of North America. For each segment market sizing and forecast have been done on basis of value (USD billion).
| By Vehicle Type | |
| Luxury Cars | |
| Economy Cars | |
| Multi Purpose Vehicles (MPV) | |
| Others |
| By Application Type | |
| Local Usage | |
| Outstation | |
| Others |
| By Rental Duration | |
| Short term | |
| Long term |
| By Booking type | |
| Online booking | |
| Offline booking |
| By Country | |
| United States | |
| Canada | |
| Rest of North America |
North America Vehicle Rental Market Size Summary
The North America vehicle rental market is poised for significant growth, driven by a shift in consumer preferences towards rental vehicles over public transportation. This trend has been bolstered by the easing of COVID-19 restrictions, which initially dampened market growth due to reduced travel demand. The increasing popularity of online car rental booking applications and the awareness of the cost-effectiveness and convenience of vehicle rentals are key factors propelling the market forward. Additionally, rental companies are expanding their portfolios with the latest eco-friendly vehicles, further enhancing market growth. The rise in internet penetration and infrastructure development in developing regions are also contributing to a positive market outlook, encouraging companies to focus on the corporate segment due to its lucrative opportunities.
The United States is expected to lead the North American vehicle rental market, supported by major market players and the adoption of advanced car rental software in smartphone applications. The short-term rental segment is anticipated to experience substantial growth, driven by the benefits it offers to business owners and the preferences of tourists and families. The presence of international visitors and foreign nationals in the U.S. further fuels demand for rental services, with major companies like Hertz and Europcar offering flexible rental packages. The market is characterized by strategic expansions, acquisitions, and the introduction of innovative products, such as electric vehicles and connected car technology, by leading players like Enterprise Holdings and Avis Budget Group. These developments are expected to enhance the competitive landscape and meet the increasing demand for vehicle rental services across the region.
North America Vehicle Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Vehicle Type
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2.1.1 Luxury Cars
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2.1.2 Economy Cars
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2.1.3 Multi Purpose Vehicles (MPV)
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2.1.4 Others
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2.2 By Application Type
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2.2.1 Local Usage
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2.2.2 Outstation
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2.2.3 Others
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2.3 By Rental Duration
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2.3.1 Short term
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2.3.2 Long term
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2.4 By Booking type
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2.4.1 Online booking
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2.4.2 Offline booking
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2.5 By Country
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2.5.1 United States
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2.5.2 Canada
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2.5.3 Rest of North America
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North America Vehicle Rental Market Size FAQs
What is the current North America Vehicle Rental Market size?
The North America Vehicle Rental Market is projected to register a CAGR of 9% during the forecast period (2024-2029)
Who are the key players in North America Vehicle Rental Market?
SIXT SE, Hertz Corporation, Enterprise Holdings Inc. , Avis Budget Group, Inc and Europcar Mobility Group are the major companies operating in the North America Vehicle Rental Market.
