North America Car Rental Market Report and Forecast 2025-2034

North America Car Rental Market Growth

In the North America car rental market, significant trends are shaping the industry. Digitalisation is driving rental companies to invest in friendly user interface platforms and mobile apps, enhancing booking procedures and offering contactless services. Moreover, there is a growing preference for sustainable options, with companies expanding fleets to include electric vehicles in response to consumer demand.

ANNUAL TOURISM SPENDING IN CANADA, 2019-2023

Growing tourism spending in the domestic region is driving demand for rental vehicles, the solution to which is the significant number of registered vehicles in both Canada and the United States. The car rental market plays a vital role in assisting travel and mobility. Moreover, strong sales in the auto industry underline the importance of car rental services in meeting diverse transportation needs across the region.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

North America Car Rental Market Trends

As per the North America car rental market report, increased demand, fuelled by recovering tourism post-COVID, is a primary driver of growth. The rise in tourism numbers signals a resurgence in travel, boosting demand for rental vehicles and driving market growth. Companies are digitalizing to meet this demand, investing more in user-friendly platforms for better access and enhancing the overall user experience.

Partnerships and increased funding facilitate market expansion, enabling companies to scale operations and better cater to evolving market demands. Additionally, strategic partnerships and increased investment bolster market competitiveness, fostering innovation within the North America car rental industry.

North America Car Rental Segmentation

North America Car Rental Share

The North America car rental market is dominated by offline modes of booking which involve the more traditional method of reserving car rentals through rental offices, travel agencies, or call centres.

Making car rental reservations through physical locations or over the phone, such as rental counters at airports or standalone offices is referred to as offline booking.

Online booking involves making car rental reservations through digital platforms like the rental company's website or mobile apps and is a relatively novel way of offering more convenience.

North America car rental market growth comes from short-term car rentals that last from a few hours to a few days, catering to travellers and individuals needing temporary transportation solutions

Short-term rentals are where rented cars are used from a few hours to a few days for vacations, business trips, and short-term needs, often at airports and for city travel.

However, extended rentals that range from weeks to years are often favoured by businesses and individuals that have prolonged need for rented transportation also referred to as long-term rental arrangements.

North America car rental market growth based on vehicle types that are available for consumers to choose from in the domestic market is led by luxury/premium cars, economy/budget cars, SUVs, and MUVs

Used for urban travel, short trips, and by budget-conscious travellers in North America, economy/budget cars are popular choices for city exploration, commuting, and quick getaways.

Sport Utility Vehicles (SUVs) are popular for family trips, road adventures, and outdoor excursions, catering to the demand for spacious and capable vehicles among travellers.

Leading Manufacturers in the North America Car Rental Market

Other North America car rental market key players are Fox Rent A Car, Ecos (I) Mobility & Hospitality Pvt. Ltd., Getaround Inc., ACE Rent A Car, Inc., Booking Holdings Inc. (Momondo), and Advantage Rent A Car company among others.

North America Car Rental Market Analysis by Region

The car rental industry in both the United States and Canada has been experiencing growth, driven not only by an increase in domestic tourism but also by the efforts made by companies to enhance user experience and improve user-friendliness.

The number of miles travelled by vehicles in the United States and Canada has been on the rise, as per the United States Department of Energy , 3.19 trillion miles were travelled in the US (expressed as a moving 12-month count) in the year 2023.