U.S. Car Rental Market: The Impact of Technology on Booking

U.S. Car Rental Market Overview

The U.S. car rental market was valued at USD 37.88 billion in 2024 and is projected to reach USD 56.27 billion by 2030, expanding at a CAGR of 7.5% from 2025 to 2030. A key growth driver is the rising demand for tourism-related travel, with both domestic and international tourists increasingly opting for rental vehicles to explore destinations with greater flexibility and comfort. This demand is further bolstered by increased leisure and business travel, particularly in urban areas, tourism hotspots, and business districts.

Following the easing of pandemic-related restrictions, the U.S. has experienced a resurgence in travel activity. According to the U.S. Travel Association, domestic travel spending exceeded pre-pandemic levels in 2023, and inbound international tourism continues to recover. This has positively impacted airport-based and leisure-centric car rental services, especially in high-traffic cities like Orlando, Las Vegas, and Los Angeles.

In urban settings, vehicle ownership costs—including insurance, parking, and depreciation—have risen considerably. As a result, consumers are increasingly prioritizing mobility flexibility over ownership, a shift especially notable among younger demographics and business travelers. Companies like Hertz and Enterprise have seen growing interest in short-term and subscription-based rentals, often booked through mobile apps for convenience.

As business travel gradually returns, rental agencies are observing increased demand from corporate clients for regional and intercity travel. Rental fleets are also being used to support employee transportation in hybrid work settings. For example, Avis Budget Group has reported that corporate travel is contributing to revenue stability and growth in key metropolitan markets.

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Key Market Trends & Insights

• By Vehicle Type: In 2024, economy cars accounted for 29.6% of the total revenue. Their popularity is driven by affordability and fuel efficiency, aligning with both budget-conscious consumers and those seeking more sustainable travel options, especially during periods of economic uncertainty.
• By Application: The local usage segment held a 46.7% revenue share in 2024. Growing urban populations and the need for short-term mobility solutions are key drivers. Many individuals now use rental vehicles for daily commutes, errands, or occasional trips, often eliminating the need for owning a personal vehicle.
• By Booking Mode: Online bookings represented 70.1% of the market in 2024. The ease and accessibility of digital platforms allow consumers to compare prices, read reviews, and secure reservations from any location. The growing use of smartphones and internet access, combined with online-exclusive deals and promotions, continues to strengthen this channel.

Market Size & Forecast

• 2024 Market Size: USD 37.88 Billion
• 2030 Projected Market Size: USD 56.27 Billion
• CAGR (2025-2030): 7.5%

Key Companies & Market Share Insights

The U.S. car rental market remains fragmented, with a mix of international giants and regional operators. Key players include:

• Enterprise Holdings, Inc. – Operates major brands such as Enterprise Rent-A-Car, Alamo Rent-A-Car, and National Car Rental, with over 6,000 locations and a fleet of approximately 1.1 million vehicles. With an estimated revenue of USD 30 billion, the company emphasizes customer service and sustainability, offering an expanding range of eco-friendly vehicles.
• The Hertz Corporation – Owns rental brands including Dollar and Thrifty, and operates in over 5,500 locations, including 1,900 airport branches. A significant portion (68%) of Hertz’s rentals are tied to leisure travel, positioning it strongly in tourist-heavy regions.
• Avis Budget Group – While not detailed in this section, is also a major player contributing to market stability through its business travel segment and widespread service network.

Key Players

• Enterprise Holdings, Inc.
• The Hertz Corporation
• Avis Budget Group
• Sixt
• Fox Rent A Car
• Turo
• Getaround
• Midway Car Rental
• Dollar
• Europcar

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Conclusion

The U.S. car rental market is poised for solid growth through 2030, driven by increased travel demand, evolving consumer preferences, and a growing focus on convenience and flexibility over traditional vehicle ownership. Rising usage among urban dwellers, the adoption of digital booking channels, and the resurgence of corporate and leisure travel are all contributing factors. As rental companies continue to innovate through subscription models, eco-friendly fleets, and technology integration, the market is well-positioned to expand and meet the changing mobility needs of both individuals and businesses.