Australia Car Rental Market Report and Forecast 2024-2032

Australia Car Rental Market Outlook

The Australia car rental market size was valued at USD 3.62 billion in 2023. The market is further projected to grow at a CAGR of 2.2% between 2024 and 2032, reaching a value of USD 4.43 billion by 2032.

Key Takeaways

• As the tourism sector expands, there is a corresponding rise in demand for car rental services, particularly as tourists seek vehicles for sightseeing.

• The Australian government has implemented favourable measures to bolster the tourism industry. For instance, the “THRIVE 2030” long-term national strategy aims to enhance tourism activities and achieve a visitor economy value of AUD 230 billion by 2031.

• As per industry reports, notable players in the market include Avis Rent a Car System LLC, The Hertz Corporation, Europcar International S.A.S.U., and Alpha Car Hire Trading Pty Ltd.

The increasing demand for car-sharing services, the adoption of advanced IT platforms to enhance service delivery, and the impact of traffic congestion have all contributed to the Australia car rental market growth.

The surge in international and domestic tourism in Australia, fuelled by attractions like the Great Barrier Reef and Sydney Opera House, is boosting the demand for car rentals. For example, the influx of tourists exploring the Outback, or the Great Ocean Road is driving the need for rental vehicles.

Companies like Redspot Car Rentals and East Coast Car Rentals are witnessing a significant shift towards online bookings due to the rise of platforms like Rentalcars.com and Kayak, offering seamless online reservation experiences. The transparency of online booking systems allows customers to compare rates, check service offerings, and experience better convenience.

Moreover, partnership between Europcar and Accor, where Accor hotel guests can access exclusive car rental deals with Europcar is positively impacting the Australia car rental market development as such collaborations enhance customer loyalty, provide integrated travel solutions, and drive business growth for the companies involved.

Companies like GoGet and Flexicar are expanding their services to include car-sharing and ride-hailing options alongside traditional car rentals. This diversification caters to changing consumer preferences for shared mobility solutions, reflecting a broader trend towards sustainable and flexible transportation choices in the market.

Companies like Hertz offer luxury car rentals such as BMWs and Mercedes-Benz models, targeting affluent travellers seeking a premium driving experience. Companies like Thrifty and Budget Car Rental, such as compact cars like Toyota Corolla or Hyundai Accent, provide reliable transportation at affordable rates, making them popular for everyday use or short trips. Avis and Enterprise Rent-A-Car offer a range of SUVs like Toyota RAV4 and Ford Escape, which are favoured by families, outdoor enthusiasts, and travellers needing extra cargo space.

Market Segmentation

Australia Car Rental Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Booking Type  

• Online Booking

• Offline Booking 

Market Breakup by Vehicle Type

• Luxury/Premium Cars

• Economy/Budget Cars 

• SUVs

• MUVs

Market Breakup by Application 

• Leisure/Tourism

• Business

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Competitive Landscape

Market players are increasingly providing car-rental services, upgrading their IT platforms, and diversifying their portfolios to stay ahead in the competition.

• Budget Rent a Car System Inc

• Avis Rent a Car System LLC 

• The Hertz Corporation 

• Europcar International S.A.S.U. 

• Alpha Car Hire Trading Pty Ltd. 

• Acorn Rentals  

• Enterprise Holdings, Inc. 

• Sixt SE  

• East Coast Car Rentals 

• JUCY GROUP Limited

• Others

Key Highlights of the Report