North America Car Rental Market Size, Share And Forecast 2025-2034.

The North America car rental market reached a value of USD 48.55 Billion in 2024 and is projected to grow steadily at a CAGR of 6.60% between 2025 and 2034, ultimately reaching USD 91.99 Billion by 2034. Car rentals in North America have become an essential part of the transportation ecosystem, catering to both business and leisure travelers. The market is primarily driven by factors such as increasing travel activity, rising urbanization, digital booking platforms, and the growing demand for affordable mobility solutions.

Additionally, the adoption of electric vehicles (EVs) and advanced fleet management technologies is transforming the rental industry. With ride-hailing companies, airports, and tourism fueling demand, the car rental market is expected to experience robust growth in the coming decade.

North America Car Rental Market Size

The North American car rental industry has seen consistent expansion, thanks to its vast travel and tourism sector. In 2024, the market size stood at USD 48.55 Billion, accounting for a major share of the global rental car industry. The United States leads the market, followed by Canada and Mexico, with airports and urban centers being the largest revenue-generating hubs.

The increasing use of digital platforms such as apps and websites for car bookings has simplified access, while subscription-based car rental services have expanded the customer base. Looking ahead, the market is projected to reach USD 91.99 Billion by 2034, supported by growing consumer preference for cost-efficient and flexible mobility solutions.

North America Car Rental Market Trends

Several key trends are shaping the North America car rental market:

1. Electrification of Fleets – Rental companies are increasingly introducing electric and hybrid vehicles to meet sustainability goals and rising consumer demand for eco-friendly travel.

2. Digitalization and Smart Booking Platforms – Online and mobile-based rental platforms are streamlining booking processes, offering contactless rentals, and improving customer convenience.

3. Subscription-Based Rentals – Monthly and long-term car subscription models are gaining popularity among customers who prefer flexibility over ownership.

4. Airport Rentals Domination – Airports remain the largest distribution channel, with millions of travelers choosing rentals over traditional taxis and ride-hailing services.

5. Partnerships with Tourism & Hospitality – Car rental companies are collaborating with hotels, airlines, and travel platforms to provide bundled mobility services.

These trends highlight how the industry is adapting to changing consumer preferences, sustainability needs, and digital transformation.

North America Car Rental Market Growth

The growth of the car rental market in North America is fueled by multiple factors:

• Strong Travel & Tourism Sector – Business travel, leisure tourism, and domestic trips continue to drive demand.

• Urbanization & Lifestyle Changes – Increasing urban population prefers renting vehicles instead of owning, especially in crowded cities.

• Economic Factors – Affordable rental options and loyalty programs encourage repeat customers.

• Corporate Partnerships – Companies are increasingly renting cars for employee mobility and business travel.

• Growing Demand for EVs – Car rental companies offering electric vehicles are attracting environmentally conscious customers.

With these factors, the industry is set for steady growth, making car rentals a preferred mobility solution for millions across North America.

North America Car Rental Market Forecast

Looking ahead, the North America car rental market is expected to grow from USD 48.55 Billion in 2024 to USD 91.99 Billion by 2034, at a CAGR of 6.60%. The forecast is supported by:

• Adoption of Technology – Use of AI, IoT, and telematics in fleet management.

• Shift Towards Electric Mobility – Growing EV adoption will reduce costs and improve sustainability.

• Expansion of Subscription Models – More consumers will opt for flexible car subscriptions instead of traditional ownership.

• Increased Tourism & Business Travel – Rising disposable income and post-pandemic recovery in tourism will fuel demand.

• Government Policies – Regulations supporting EV adoption and sustainable transportation will positively impact the market.

By 2034, the industry is expected to witness significant transformation, with digital platforms, EVs, and customer-centric services becoming the backbone of the rental ecosystem.

Market Segmentation: North America Car Rental Market

   Breakup by Product Type

• Wired

• Wireless

   Breakup by Application

• Smartphones

• Laptops

• Electric Vehicles

• Tablets

• Digital Cameras

• Others

   Breakup by Category

• OEM

• Replacement

Competitive Landscape of the North America Car Rental Market

The North America car rental industry is highly competitive, with both global leaders and regional players striving to expand their fleet, strengthen their digital presence, and introduce new services. Major players include:

• Enterprise Holdings, Inc. (Alamo) – One of the largest car rental companies with a strong airport and urban presence.

• Avis Budget Group, Inc. – Known for premium service offerings and expanding EV rental options.

• Hertz Global Holdings Inc. – A leader in innovative mobility services with a growing EV fleet.

• Advantage Rent A Car Company – Focuses on affordable rentals with a diverse customer base.

• SIXT SE – Rapidly expanding in North America with competitive pricing and premium fleets.