With a global market accelerating past $100 billion and transforming how we move, the car rental industry is shifting gears into an era defined by electric fleets, digital convenience, and explosive post-pandemic growth.
Key Takeaways
- The global car rental market size was valued at USD 95.62 billion in 2023 and is projected to grow from USD 102.84 billion in 2024 to USD 152.46 billion by 2032, exhibiting a CAGR of 5.1% during the forecast period.
- In the US, the car rental industry market size reached USD 37.1 billion in 2023, with a projected CAGR of 6.8% from 2024 to 2030.
- Europe's car rental market generated revenue of EUR 12.5 billion in 2023, expected to reach EUR 18.2 billion by 2028 at a CAGR of 7.8%.
- Enterprise Holdings reported USD 35 billion in revenue for 2023, dominating 45% US market share.
- Hertz Global Holdings net income reached USD 1.2 billion in 2023, up from losses in 2022.
- Avis Budget Group revenue grew 12% to USD 12.0 billion in 2023.
- 65% of US car rental customers are millennials or Gen Z as of 2023.
- Leisure travelers account for 58% of global car rentals in 2023.
- 42% of business travelers prefer car rentals over rideshares in 2023 surveys.
- Global car rental fleet totals 4.8 million vehicles in 2023.
- US rental fleet averaged 2.9 million cars in 2023.
- Average fleet age 14.2 months for major operators 2023.
- Enterprise holds 32% US market share in 2023.
- Hertz 24% US airport market share Q4 2023.
- Avis Budget Group 20% North America share 2023.
The global car rental industry is growing robustly, driven by post-pandemic recovery and tourism.
Customer Demographics
- 65% of US car rental customers are millennials or Gen Z as of 2023.
- Leisure travelers account for 58% of global car rentals in 2023.
- 42% of business travelers prefer car rentals over rideshares in 2023 surveys.
- Women represent 48% of car rental customers in Europe 2023.
- 72% of US renters aged 25-44 book online/mobile in 2023.
- International tourists comprise 35% of airport car rentals globally 2023.
- Gen Z (18-24) car rental usage up 28% YoY in 2023.
- 55% of corporate rentals by small businesses (<500 employees) 2023.
- Urban dwellers 62% more likely to rent cars than rural in US 2023.
- 38% of renters have household income >USD 100k in 2023.
- Families with children under 12 account for 24% of leisure rentals 2023.
- Solo travelers 19% of total bookings, up 15% post-2022.
- 67% of frequent flyers (4+ trips/year) use car rentals 2023.
- Hispanic/Latino customers 22% of US market share 2023.
- Baby boomers (55+) prefer economy cars 41% of their rentals 2023.
- 51% of renters influenced by loyalty programs in 2023.
- Digital natives (under 35) 76% book via apps 2023.
- Business executives average 12 rentals/year vs 4 for leisure 2023.
- 29% of renters are first-time users post-pandemic 2023.
- Couples without kids 18% of leisure segment 2023.
- 44% of international renters from Europe to US 2023.
- Average renter age 41 years globally in 2023.
- Students/young professionals 15% of urban rentals 2023.
- Repeat customers 68% of total revenue base 2023.
- Low-income renters (<50k) prefer budget brands 52% 2023.
- Global average rental duration 4.2 days in 2023.
- Female business travelers up 22% to 37% share 2023.
Customer Demographics Interpretation
While the future of car rentals is evidently being booked online by younger urbanites who see them as essential for both weekend getaways and gig-economy hustles, the industry’s backbone remains a loyal, diverse, and surprisingly traditional mix of business travelers, families, and globe-trotters who still appreciate the wheel deal.
Fleet and Operations
- Global car rental fleet totals 4.8 million vehicles in 2023.
- US rental fleet averaged 2.9 million cars in 2023.
- Average fleet age 14.2 months for major operators 2023.
- EVs comprise 8.5% of global rental fleet in 2023, up from 3% in 2021.
- Enterprise fleet size 2.2 million vehicles worldwide 2023.
- Hertz added 100,000 Tesla EVs to fleet by end-2023.
- Average vehicle utilization 68 days rented per year 2023.
- SUVs 32% of US rental fleet composition 2023.
- Fleet maintenance costs averaged USD 1,200 per vehicle annually 2023.
- Airport locations host 55% of total fleet globally 2023.
- Sixt fleet 650,000 vehicles across 105 countries 2023.
- Sedans down to 28% of fleet from 45% in 2018.
- Global fleet acquisition spend USD 120 billion in 2023.
- Avis fleet 700,000 vehicles, 45% under 12 months old 2023.
- Hybrids 12% of European rental fleet 2023.
- Off-airport fleet turnover rate 85% annually 2023.
- Luxury vehicles 7% of total fleet, generating 22% revenue 2023.
- Europcar fleet 500,000+ vehicles, average age 10 months 2023.
- Pick-up trucks 11% of US fleet in leisure markets 2023.
- Digital fleet management adoption 92% among top 20 firms 2023.
- Minivans 9% fleet share, down 5% since 2020.
- Global fleet insurance claims averaged USD 2,500 per incident 2023.
- Convertibles 2.1% of fleet, mostly warm climates 2023.
- Telematics-equipped vehicles 78% of major fleets 2023.
- Average miles driven per rental 450 miles in US 2023.
- China fleet size 1.1 million vehicles 2023.
Fleet and Operations Interpretation
The rental car industry is running a surprisingly tight ship, preferring its massive, rapidly modernizing fleet of SUVs and EVs—which are either brand new or strategically aging—to mostly sit at airports while generating wild revenue from a small luxury contingent, proving that in this business, it’s not about how many miles you drive, but how cleverly you manage the parking lot.
Market Size and Growth
- The global car rental market size was valued at USD 95.62 billion in 2023 and is projected to grow from USD 102.84 billion in 2024 to USD 152.46 billion by 2032, exhibiting a CAGR of 5.1% during the forecast period.
- In the US, the car rental industry market size reached USD 37.1 billion in 2023, with a projected CAGR of 6.8% from 2024 to 2030.
- Europe's car rental market generated revenue of EUR 12.5 billion in 2023, expected to reach EUR 18.2 billion by 2028 at a CAGR of 7.8%.
- The Asia-Pacific car rental market is anticipated to grow at a CAGR of 9.2% from 2023 to 2030, driven by rising tourism.
- North American car rental revenue hit USD 45.3 billion in 2022, with leisure travel contributing 52%.
- Global car rental bookings increased by 15.4% year-over-year in Q3 2023.
- The luxury car rental segment is expected to grow at 8.5% CAGR globally from 2024-2030.
- US car rental industry revenue grew 12.7% to $35.4 billion in 2022 post-pandemic recovery.
- Corporate car rental accounts for 28% of global market share in 2023.
- Electric vehicle rentals grew 45% globally in 2023, boosting market expansion.
- Latin America car rental market valued at USD 4.2 billion in 2023, CAGR 6.1% to 2030.
- Airport car rentals comprised 62% of total US industry revenue in 2023.
- Global peer-to-peer car rental market to reach USD 12.5 billion by 2028 at 18.2% CAGR.
- Middle East & Africa car rental market grew 7.3% annually from 2018-2023.
- Subscription-based car rentals expected to capture 15% market share by 2030 globally.
- US leisure car rental segment revenue up 18% to USD 19.2 billion in 2023.
- Global car rental market penetration rate stands at 2.8% of total vehicle miles traveled in 2023.
- China's car rental market valued at CNY 150 billion in 2023, CAGR 12.5% forecast.
- Off-airport rentals grew 22% faster than airport in Europe 2022-2023.
- Global car rental industry employs over 1.2 million people as of 2023.
- India car rental market to grow at 10.4% CAGR to USD 3.2 billion by 2028.
- Pandemic recovery led to 25% global market rebound in 2022.
- US business car rental revenue $16.2 billion in 2023, up 9% YoY.
- Australia car rental market size AUD 2.8 billion in 2023.
- Global van and truck rental segment CAGR 6.7% to 2030.
- UK car rental revenue £3.4 billion in 2023.
- Brazil car rental market valued at BRL 12 billion in 2023, growth 8.2%.
- Sustainable car rentals to grow at 11% CAGR globally 2024-2030.
- Global car rental app downloads surged 35% in 2023.
- Canada car rental industry revenue CAD 4.1 billion in 2023.
Market Size and Growth Interpretation
With over a trillion dollars in motion and the very definition of 'car' shifting under them, the rental industry is wisely betting on everything from business trips to beach trips and gasoline to electrons, proving that sometimes the quickest way to get ahead is to not actually buy the car.
Regional Statistics and Competition
- Enterprise holds 32% US market share in 2023.
- Hertz 24% US airport market share Q4 2023.
- Avis Budget Group 20% North America share 2023.
- Sixt expanded to 30% Europe market presence 2023.
- US dominates 40% of global car rental revenue 2023.
- Europe 28% global market share by revenue 2023.
- Asia-Pacific fastest growing region at 9.1% CAGR 2023-2030.
- Florida leads US states with 12% national rentals 2023.
- Germany car rental market leader in EU, EUR 4.1B 2023.
- Mexico 15% Latin America market share 2023.
- UAE car rentals grew 18% YoY, 22% Middle East share 2023.
- California 18% US revenue concentration 2023.
- UK 25% Western Europe market 2023.
- India 12% APAC emerging market growth driver 2023.
- Atlanta airport top US location, 4.2% national share 2023.
- France car rentals EUR 2.8B, 3rd in Europe 2023.
- Brazil 35% South America revenue 2023.
- Australia 8% Oceania market, AUD 2.8B 2023.
- Orlando international top leisure hub 5.1% US 2023.
- Spain tourism drives 18% Mediterranean rentals 2023.
- Canada 85% North America non-US share 2023.
- Italy 14% EU leisure rentals 2023.
- Saudi Arabia 28% MENA growth leader 2023.
- Texas 11% US business rentals 2023.
- China 45% APAC fleet dominance 2023.
- Netherlands high density 250k rentals/year per capita 2023.
Regional Statistics and Competition Interpretation
The world map is practically paved with rental cars, with Enterprise holding a firm grip stateside while Hertz controls the terminals, but everyone is watching the high-octane growth in Asia-Pacific as the future of the industry shifts decisively into the fast lane.
Revenue and Financials
- Enterprise Holdings reported USD 35 billion in revenue for 2023, dominating 45% US market share.
- Hertz Global Holdings net income reached USD 1.2 billion in 2023, up from losses in 2022.
- Avis Budget Group revenue grew 12% to USD 12.0 billion in 2023.
- Sixt SE's car rental revenue EUR 2.9 billion in 2023, EBITDA margin 22.4%.
- Global car rental industry average profit margin 8.5% in 2023.
- US car rental operators' average EBITDA USD 2.5 million per firm in 2023.
- Europcar Mobility Group revenue EUR 4.2 billion in 2023, up 15% YoY.
- Average daily rental rate (ADR) in US rose to USD 92 in 2023 from USD 78 in 2022.
- Fleet utilization rate averaged 72% globally in 2023.
- Enterprise fleet costs USD 18 billion in depreciation and maintenance 2023.
- Hertz average revenue per unit (RPU) USD 45 daily in Americas 2023.
- Industry-wide operating expenses 65% of revenue, mainly fleet-related in 2023.
- Sixt net profit EUR 250 million in 2023, ROE 15.2%.
- US car rental transaction fees averaged 12% of revenue in 2023.
- Avis Budget adjusted EBITDA USD 4.1 billion in 2023, margin 34%.
- Global ancillary revenue from insurance upsells 18% of total in 2023.
- Budget Rent a Car revenue USD 2.8 billion in 2023.
- Average cost per rental transaction USD 15 in digital bookings 2023.
- Europcar EBITDA EUR 450 million in 2023.
- US industry capital intensity ratio 2.8 in 2023 (fleet heavy).
- Alamo Rent a Car revenue USD 3.1 billion 2023.
- Global car rental debt-to-equity ratio averaged 1.9 in 2023.
- National Car Rental revenue USD 4.5 billion 2023.
- Thrifty Car Rental operating margin 11.2% in 2023.
- Dollar Rent a Car revenue USD 1.9 billion 2023.
- Industry average return on assets 7.1% in US 2023.
- Payless Car Rental revenue USD 800 million 2023.
- Fox Rent a Car revenue USD 450 million 2023.
- Global car rental M&A deals totaled USD 5.2 billion in 2023.
Revenue and Financials Interpretation
While Enterprise practically owns the American road and everyone else is chasing higher prices for their underused metal, the real profit seems to be found in the fine print of your rental agreement and a fleet that's leveraged to the hilt.
Sources & References
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