The United States car rental market is estimated to grow steadily, with a market size of USD 35.4 billion in 2025, increasing to USD 56.9 billion by 2035. The industry will grow at a CAGR of 4.85% between 2025 and 2035 due to the growth in demand for dynamic transportation alternatives and the integration of digital rental platforms.
Local and international travel are the key drivers, particularly post-pandemic. The increased desire for rented vehicles over self-owned vehicles, particularly among business visitors and travelers, is leading to demand. Besides, increased demand for app-based rentals and cross-platform compatibility with ridesharing facilities is increasing convenience for customers, driving the industry even more.
Second, car rentals are a desirable alternative to car ownership that saves on the expense of maintenance, insurance, and depreciation and can thus be easily considered by residents of urban centers. Notwithstanding its potential, there are industry inhibitors in the form of high running costs and varying fuel prices.
An increase in the cost of fleet maintenance and vehicle acquisition decelerates the operations of auto rental service providers and hurts profitability. In addition, the popularity of ride-hailing and car subscription plans increases competition, which can restrain growth.
Moreover, concerns related to the environment and stricter emission regulations are pushing rental companies to adopt electric vehicle (EV) fleets, which will be a capital-intensive proposition. Key opportunities center predominantly on technology innovation and sustainability initiatives. Increased expansion of electric and hybrid cars offered for rental with increasing environmental concerns is likely to grow in size.
Moreover, the application of artificial intelligence (AI) and analytics to manage the fleet is streamlining operational performance and enhancing the customer experience. Expansion to the suburban and rural areas where current rental facilities are limited represents an additional area for growth, providing last-mile-connected travelers with solutions.
Trendsetters are the growing demand for contactless rental services enabled by mobile apps and self-service kiosks. Another trend that is picking up steam is a move towards subscription-based rental plans, providing tailored, long-term rental solutions.
In addition, collaborations between motor manufacturers and rental companies to develop autonomous rental cars will define the future of transportation in the United States, providing customers with seamless and innovative transportation solutions.
Value metrics
| Metrics | Data |
|---|---|
| Valuation (2025) | USD 35.4 billion |
| Valuation (2035) | USD 56.9 billion |
| CAGR (2025 to 2035) | 4.85% |
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The United States car rental market has been undergoing critical changes due to changing consumer choices, technological progress, and ecological sustainability principles. Business travelers who highly value efficiency and subscription-based rental options favor digital booking solutions. Leisure travelers actively contribute to the overall revenue generation as they express their curiosity about the number of car models available for rent and the cheaper rates of car rentals.
Ride-hailing companies have made it a point to provide sustainable alternatives such as electric cars and fuel-saving vehicles to steer towards ecological goals. At the same time, corporate fleets tend to lean towards long-term agreement plans that stress reliability and cost efficiency.
Subscription models have been used more in different areas, which has brought the benefits of flexibility and savings. On top of that, the innovation of AI algorithms in car pricing, mobile reservations, and touch-free rental processes have influenced the industry the most. With the increased government support for electric vehicles and the change in consumer demands, the industry is turning to a more environmentally friendly and digitized integrated future.
From 2020 to 2024, the USA car rental market experienced a rebound, driven by post-pandemic travel recovery, growing tourism, and short-term car rental demand. Key players like Enterprise Holdings, Hertz, and Avis Budget Group grew their fleets and digital platforms, providing greater convenience for customers through contactless rentals, mobile app connectivity, and AI-driven pricing.
The emergence of peer-to-peer car-sharing sites like Turo gave consumers the option to choose alternative rentals, while corporate leasing experienced renewed attention with workforce mobility trends. The increasing demand for eco-friendly transportation translated into higher penetration of electric vehicles (EVs) and hybrid rental fleets.
Economic uncertainty, increased costs of vehicle purchases, and supply chain fluctuations were obstacles affecting fleet expansion and rental rate strategies. The industry was strong in spite of the setbacks sustained by urban transportation trends, airport rentals, and vacation travel.
The car rental industry will transition toward AI-managed fleets, self-driving car rentals, and blockchain-based rental contracts between 2025 and 2035.
Firms will implement predictive analytics and dynamic pricing schemes to maximize usage and profitability. EV-only rental fleets will be supplemented by government green programs under which firms will invest in charging points as well as carbon-zero mobility solutions. Self-drive car rental, particularly in urban areas, will be a disruptor for the conventional rental automobile industry, with autonomous automobile sharing being the standard in the future.
Subscription rental schemes will be the talk of the town, with flexible on-demand use of vehicles without long-term commitments. Peer-to-peer platforms will integrate with ridesharing and MaaS platforms, making it hard to distinguish between traditional rentals and shared mobility. By 2035, the industry will be a highly digitized, autonomous, and sustainable transport system for both personal and corporate mobility needs.
Comparative Market Shift Analysis from 2020 to 2024 vs. 2025 to 2035
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Post-pandemic travel recovery, increasing tourism, and business mobility. Growth of digital booking platforms. | AI-powered fleet management, autonomous car rentals, and sustainable mobility solutions. |
| Contactless rental, price models based on AI, and mobile app-enabled integration. EV and hybrid fleet adoption in rentals. | Predictive analytics-based fleet optimization, blockchain -enabled rental agreements, and autonomous rental services. |
| Increased vehicle purchase cost, supply chain disruption, and fuel price uncertainty. | The complexity of autonomous car rentals, data protection, and mobility competition sharing. |
| Increased peer-to-peer car-sharing sites and electric vehicle rental. Increased corporate car leasing and airport car rentals. | Increased independent car or fleet rentals, subscription services, and low-carbon mobility services. |
| Pivotal firms driving digital engagement and fleet diversity. Customer interaction and pricing driven by AI. | Widespread application of autonomous rentals, blockchain payments, and AI-enabled predictive analytics within fleets. |
During economic turbulence, consumers generally reduce their discretionary spending, which in turn directly influences the travel and rental demand. Recession in the tourism and corporate sectors could lead to underutilization of the fleet, affecting the rental companies' profitability.
Other alternatives, such as Uber and Lyft, make the scenario competitive. For example, Uber was able to report 161 million active monthly users in 2024, and it is difficult to compete with the low price and convenience of ride-hailing services. This might result in cars not being rented, especially in the cities. Similarly, peer-to-peer car-sharing platforms such asTuro are a new alternative for price-conscious and tech-savvy households.
Fleet management issues such as vehicle maintenance, insurance coverage, and customer vetting issues are still other major risk factors. The rental companies have to lay down thorough security measures by applying strict maintenance measures to cut down their liabilities. Disruptions in the supply chain, such as the delayed manufacturing of the cars and shortages of car parts, could greatly affect fleet availability, thereby leading to inconsistent service and customers leaving dissatisfied.
Environmental regulators are another ever-changing risk factor as car rental companies are pushed to use more sustainable vehicular technology by stricter emission regulations. Adopting hybrid or electric car fleets involves some high initial costs and infrastructure changes, which might weaken profit margins for a brief period.
In order to manage these risks, rental services should have strategic diversification, digital development, and fleet optimization, and they should be ahead of the regulation's change.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 5.0% |
The USA is anticipated to grow consistently over the forecast period from 2025 through 2035. The market, valued at approximately USD 35.2 billion in 2025, is expected to expand at a compound annual growth rate (CAGR) of 5% over the period. The pattern of growth shows that the market will keep growing, underpinned by several drivers of demand and services.
One of the most powerful drivers for the development is the expanding demand for travel linked to tourism. With a growing number of individuals vacationing, going on business trips, and sightseeing, demand for rental cars has increased accordingly. This indicates a shift from public to private car use, as travelers desire greater convenience and comfort during their journeys.
Digital platform usage has also been the determining factor in constructing a business. Car hire companies have integrated online reservation software and smartphones to maximize customer usability and satisfaction. New technologies empower customers to pick, reserve, and even access vehicles with cellular devices, rent quicker and easily and pursue a technologically savvy client marketplace.
Additionally, the diversification of automobile fleets into electric vehicles and SUVs has created a market for automobile rentals. Companies have been responding to customers' needs for environmentally friendly cars and space-friendly vehicles suitable for family holidays, thereby offering services to a wider customer base.
Economy Cars have a leading share of 32.4%, and Intermediate Cars hold a share of 20.3%.
Economy cars remain the most sensible category in value, economy, and being available. Enterprise, odds, and ends of 'rent-a-car' are also among the cheapest options, and they offer a wide economical choice the customers can choose, so if you are short on budget and are going for several business trips, it would be a good idea to hire one of such cheap transfers. Another factor that fuels the growth of this segment is increasing consumer demand for fuel-efficient and eco-friendly vehicles, such as electric and hybrid economy cars.
Intermediate Cars own 20.3% of the market and are popular among customers when it comes to comfort, space, and cost per kilometer. Popular uses of rental vehicles include family travel, business travel, and long-distance rentals. Midsize sedans and hybrid vehicles are in rental fleets to meet demand, car rental companies like National Car Rental and Alamo say.
Whereas in the USA, online booking platforms, car-sharing services, and airport rentals have fundamentally transformed the auto rental space. Companies are investing heavily in fleet management, dynamic pricing strategies, or loyalty programs aided by AI technology, as it offers better efficiency and results in customer retention. Economy and intermediate vehicles are expected to control large shares into the next decade, with price, convenience, and sustainability as the key considerations among travelers who will need mobility.
By 2025, the On-Airport segment is poised to occupy the largest share of the vehicle rental industry in the United States, with approximately 43.2% of the total share, while the Intercity segment is expected to comprise 25.4%.
The On-Airport car rental segment held a significant share; this is due to the high demand from business and leisure travelers for easy transportation as they arrive at the airport. Big companies like Hertz, Avis, Enterprise, and National Car Rental control many of the airport locations nationwide, and they all have premium, economy, and specialty vehicles.
Air travel growth, frequent business tourism activities, and airport infrastructure development are the main factors contributing to this segment's parent industry dominance. Additionally, increasing preference for contactless rental services, loyalty programs, and digital booking platforms are enhancing customer convenience.
The intercity rental segment holds a 25.4% share and is continuing to grow steadily, with long-distance business travelers and tourists traveling multiple stops and ride-sharing services providing a boost. Companies like Budget and Alamo benefit from this trend, offering one-way rentals, unlimited mileage options, and flexible return locations. After public transport bans were imposed, road trips also went up, with a greater number of people looking for alternatives to public transport, which has helped the segment grow.
On-airport and intercity rentals will continue to play a key role in driving the future of the USA car rental industry as technology adoption, electric vehicle integration, and contactless rental solutions evolve.
The car rental market in the USA remains competitive, as the well-known and long-standing fleets of the big three companies in the industry have established digital platforms for bookings and loyalty customer programs. The remaining large players, who control most of the industry, including Enterprise Holdings, Hertz Global Holdings, and Avis Budget Group, get the most benefits from their well-connected airports and urban rental networks.
These companies also extend their offers to premium services and vehicle subscription models. Sustainable fleet initiatives also pave the way for the companies. The presence of Sixt SE in the high segment and the peer-to-peer rental model from Turo clearly establishes competition.
Manufacturers are embracing AI-driven fleet management, keyless rentals, and dynamic real-time pricing to improve customer experience, as well as operational efficiency. Firms are also investing in electrification strategies, with top players launching electric vehicles (EVs) and hybrid models to achieve sustainability objectives. Strategic acquisitions and partnerships are also redefining the competitive landscape as companies aim to increase their brand portfolios as well as enter new segments.
The industry is transforming with new mobility solutions such as peer-to-peer car-sharing, long-term rental subscriptions, and luxury rental offerings. The rise of online-first rental platforms, app-based reservations, and contactless pick-up/drop-off services has begun flowing into the changing consumer preferences. With intensifying competition, key players present tech-enabled solutions for differentiation, a flexible rental policy, and a tailor-made customer experience.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Enterprise Holdings | 45-50% |
| Hertz Global Holdings | 25-30% |
| Avis Budget Group | 18-22% |
| Turo | 2-5% |
| Getaround | 1-3% |
| Other Traditional Rentals | 5-7% |
| Company Name | Key Offerings & Market Focus |
|---|---|
| Enterprise Holdings | Dominates with Enterprise Rent-A-Car, National, and Alamo, leveraging an extensive airport and urban network. |
| Hertz Global Holdings | Aggressively adopting electric vehicles, forming partnerships with Tesla, Polestar, as well as GM. |
| Avis Budget Group | Operates Avis, Budget, and Zipcar, focusing on urban mobility and contactless rental experiences. |
| Turo | A leading P2P car-sharing platform, allowing individual car owners to rent vehicles directly to consumers. |
| Getaround | Another major P2P rental platform focuses on short-term, app-based rentals in urban markets. |
Key Company Insights
Enterprise Holdings (45-50%)
It is the largest fleet in the USA and has the widest reach, from airport locations to suburban branches to corporate leasing solutions.
Hertz Global Holdings (25-30%)
Hertz is investing heavily in fleet electrification, with a commitment to purchase 100,000 Teslas and expanding EV infrastructure at major locations.
Avis Budget Group (18-22%)
Avis offers a contactless rental experience powered by mobile app bookings and AI kiosks. Zipcar, its car-sharing brand, competes against Turo and Getaround in urban mobility.
Turo (2-5%)
Turo's peer-to-peer car-sharing platform is picking up steam, particularly among younger consumers seeking distinctive or luxury rental experiences.
Getaround (1-3%)
Getaround stands out as an app-based model of instant rentals, with users able to lease cars by the day or by the hour.
Other Key Players (5-7% Combined)
The industry is expected to reach USD 35.4 billion in 2025.
The market is projected to grow to USD 56.9 billion by 2035.
The Economy Cars segment is one of the most popular categories in the market.
Leading companies include Enterprise Holdings, Hertz Global Holdings, Avis Budget Group, Turo, Getaround, Sixt, Fox Rent A Car, Silvercar by Audi, Maven, and Kyte.
The segmentation is into Economy Cars, Compact Cars, Intermediate Cars, Premium Cars, Luxury Cars, and Others.
The segmentation is into Intercity, Intracity, On-Airport, and Others.
The segmentation is into Offline Access, Mobile Application, and Other Internet Access.
The segmentation is into Organized and Unorganized sectors.
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United States Car Rental Market
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