Market Size of United States Vehicle Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Car Rental Market Analysis
Covid-19 hit all the industries of the world and this was no exception. Due to transport halt, the mobility of people was affected and consequently, the market and it's economy was disrupted. On the other hand, the post pandemic situation looks promising for the market. Due to the current environmental movement and people avoiding public transport options, this market serves as a best alternative for the mobility requirements and thus looks prospects look promising for the future.
The United States vehicle rental market (henceforth referred to as the market studied) is anticipated to register a CAGR of about 5.7 % during the forecast period (2021 - 2026).
- Increased concern and awareness of lower emissions has primarily led to the increase in car rental options, where car rental and carpooling significantly helps reduce the number of cars on the road.
- One of the major trends in the United States car rental market is the increased use of electric vehicles in some car rental fleets; this provides considerable options for users to be more environment-friendly in their commuting habits. In addition, car rental also provides the option of increased mobility without the concern of paying the costs associated with vehicle ownership.
- These services are offered via websites and through other online platforms, which has helped the growth of the car rental market. However, increased operational costs has hindered the growth of the market, as consumers deter from the option of choosing luxury vehicles, and end up for more economical and cost-effective vehicle options.
US Car Rental Industry Segmentation
The United States vehicle rental market is segmented by application type (Leisure/Tourism, and Business), by vehicle (Luxury/Premium Cars, and Economy/Budget Cars), and by booking (Online Access, and Offline Access)
| By Application | |
| Leisure/Tourism | |
| Business |
| By Vehicle | |
| Luxury/Premium Cars | |
| Economy/Budget Cars |
| By Booking | |
| Online Access | |
| Offline Access |
United States Vehicle Rental Market Size Summary
The United States car rental market is poised for growth, driven by a shift in consumer preferences towards more sustainable and flexible mobility solutions. The market has shown resilience in the post-pandemic landscape, as individuals increasingly seek alternatives to public transportation due to environmental concerns and the desire for personal space. The integration of electric vehicles into rental fleets is a notable trend, aligning with the growing emphasis on reducing emissions. This shift not only caters to environmentally conscious consumers but also enhances the appeal of car rentals as a cost-effective option compared to vehicle ownership. The market's expansion is further supported by the convenience of online booking platforms, which streamline the rental process and offer features like document verification and cashless transactions, providing a competitive edge to established players.
The competitive landscape of the US car rental market is dominated by major players such as Avis Budget Group, Enterprise Rent-A-Car, and Hertz Global Holdings Inc., who have expanded their reach through strategic acquisitions and franchise models. These companies have also embraced car-sharing models, introducing services like CarShare and OnDemand to capture a broader customer base. The state of New York, with its significant tourist traffic and numerous airports, represents a key market with high demand for rental services. Despite the higher costs associated with renting in such competitive regions, the convenience and variety of options available continue to drive consumer interest. As the industry moves towards further digitalization and collaboration with other service providers, the market is expected to enhance its efficiency and reach, catering to both local and international travelers.
United States 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 Force 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 Application
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2.1.1 Leisure/Tourism
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2.1.2 Business
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2.2 By Vehicle
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2.2.1 Luxury/Premium Cars
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2.2.2 Economy/Budget Cars
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2.3 By Booking
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2.3.1 Online Access
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2.3.2 Offline Access
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United States Vehicle Rental Market Size FAQs
What is the current United States Vehicle Rental Market size?
The United States Vehicle Rental Market is projected to register a CAGR of 5.70% during the forecast period (2024-2029)
Who are the key players in United States Vehicle Rental Market?
Alamo, Advantage Rent-a-car, Avis Budget Group Inc., Enterprise Holdings Inc. and The Hertz Corporation are the major companies operating in the United States Vehicle Rental Market.
