Chicago, Oct. 23, 2025 (GLOBE NEWSWIRE) -- The global car rental market was valued at US$ 141.8 billion in 2024 and is expected to reach US$ 337.1 billion by 2033, growing at a CAGR of 10.1% during the forecast period 2025–2033.
Customer satisfaction is a pivotal battleground where brand loyalty is won or lost. In 2024, National Car Rental distinguished itself by achieving the highest customer satisfaction score in North America, posting an impressive 736 out of a possible 1,000 points. Its sister company, Enterprise, followed closely with a strong score of 729, while Sixt secured a competitive position at 708. These figures stand notably above the industry's average overall satisfaction score of 688, which was determined from a comprehensive survey of 8,379 business and leisure travelers who rented a vehicle at an airport location between August 2023 and July 2024.
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Other established brands demonstrated solid performance, contributing to a varied competitive landscape. Advantage Rent a Car recorded a score of 702, with Hertz at 692, ACE Rent a Car at 690, and Alamo at 701. However, several major players fell below the industry benchmark, indicating areas for improvement. These include Payless with a score of 683, Avis at 669, and Fox Rent a Car at 655. Further down the list, Thrifty registered a score of 653, followed by Budget at 647 and Dollar at 634, highlighting the diverse levels of customer experience within the market.
Key Findings in Car Rental Market
| Market Forecast (2033) | US$ 337.1 billion |
| CAGR | 10.1% |
| Largest Region (2024) | North America (52%) |
| By Vehicle Type | Economy cars (41%) |
| By Application | Airport Transport (45%) |
| By Duration | Short Term (Largest) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Significant Seasonal and Geographic Pricing Fluctuations Define Current Rental Rate Trends
Rental rates across the United States car rental market exhibit profound seasonality and regional variation. In the summer of 2024, from June to August, the average daily rental rate across 100 U.S. airports stood at $82.50. A noticeable drop occurred in the fall of 2024, with the average daily rate from September to November decreasing to $64.50. Looking forward, projections for the winter of 2024-2025 anticipate a further dip, with the average daily rate expected to be $61.50. Projections for 2025 suggest the average daily cost for an economy-class car rental will settle between $49 and $78.
Specific airport locations reveal dramatic pricing disparities in the car rental market. During summer 2024, Anchorage (ANC) topped the charts with an average daily rate of $187, followed by Bozeman (BZN) at $165 and Baltimore (BWI) at $134, while Palm Beach (PBI) offered the most affordable option at $43. For the fall of 2024, Little Rock (LIT) was the most expensive at $95, with Charleston (CHS) at $91 and Madison (MSN) at $87; Raleigh-Durham (RDU) was the least expensive at $41. Winter 2024-2025 forecasts place Maui's Kahului (OGG) as the priciest at $101, followed by Little Rock (LIT) at $93 and Palm Springs (PSP) at $90, with Washington Dulles (IAD) at $36 and San Diego (SAN) at $39 being the most economical.
A Resilient Rebound in User Growth Points Toward a Strong Future Growth in Car Rental Market
The global car rental user base is on a remarkable upward trajectory. After a strong recovery, the number of users worldwide is expected to reach 567.2 million in 2024. This figure represents a substantial increase from the 512.2 million users recorded in 2023. Forecasts for the coming years remain highly optimistic, with the user base projected to expand to 585.5 million in 2025. The positive trend is anticipated to continue, reaching 601.4 million users in 2026 and an impressive 616.5 million by 2027.
Growth is not confined to a single region; it is a global phenomenon. In the Americas alone, the number of users is forecasted to climb to 108.50 million by 2027, signaling sustained demand in a mature market. Simultaneously, the Asian market is set for a significant expansion, with an anticipated user base of 348.9 million by 2027. Such robust growth projections across continents underscore the enduring relevance and expanding reach of the global Car rental market, promising a vibrant period of opportunity for service providers.
Fleet Transformation Accelerates With the Strategic Adoption of Electric Vehicle Technology
A pivotal trend reshaping the operational landscape is the integration of electric vehicles (EVs) into rental fleets. In the United Kingdom, as of 2024, nearly 30,000 electric vehicles have been officially registered as rental cars, marking a significant commitment to sustainable mobility. Within the global electric car rental market, battery electric vehicles (BEVs) have emerged as the dominant and preferred technology. This shift reflects both growing consumer demand for greener travel options and corporate initiatives aimed at reducing carbon footprints.
However, the transition to electric fleets is not without its challenges. In a notable strategic move in 2024, Hertz made the decision to sell off one-third of its global EV fleet. The company cited difficulties with parts shortages and extended vehicle downtime as primary reasons for the fleet reduction. This action highlights the operational complexities and supply chain issues that rental companies must navigate as they incorporate advanced vehicle technologies and work toward a more sustainable future.
Digital Channels and Strategic Booking Windows Are Reshaping Consumer Engagement
The methods through which customers book vehicles continue to evolve, with a clear and accelerating shift toward online platforms. In 2024, it is projected that online bookings will represent a significant majority of all rental transactions. This digital migration corresponds with a steady decline in traditional offline sales channels. Projections for the coming years indicate that this trend will only intensify, making a robust digital presence and seamless online user experience essential for success in the modern Car rental market.
Consumer booking behavior also reveals insights into optimal timing for securing favorable rates. An August 2024 analysis suggests that booking within one month of the pickup date may yield the best prices. For example, a rental for May 2024 booked in January 2024 cost an average of $152 per day, but that price dropped to $99 per day when booked in mid-April. Conversely, for peak travel periods, booking four to six months in advance is often recommended. Another perspective for a seven-day rental shows booking 91 days out costs an average of $589, while booking just seven days prior has a lower average cost of $513, suggesting last-minute deals are possible.
Evolving Rental Durations in the Collision Repair Segment Reflect New Efficiencies
The average length of a rental (LOR) is a critical metric, particularly in the collision-related segment, and recent data on the car rental market shows a clear trend toward shorter durations. In the first quarter of 2025, the overall LOR for collision-related rentals was 16.7 days. This marks a notable decrease of 0.9 days compared to the first quarter of 2024. For rentals linked to drivable claims, the LOR was 15.2 days in Q1 2025, down from 15.8 days in the same period of the previous year, suggesting improvements in repair cycle times for less severe damages.
These efficiencies are also visible in more complex repair scenarios. For non-drivable vehicles, the LOR was 22.8 days, a significant 2.2-day reduction from Q1 2024. Furthermore, total loss claims had an LOR of 14.9 days in Q1 2025, which is a 1.5-day decline from the year prior. Such trends are vital for the insurance and repair sectors of the Car rental market, indicating progress in streamlining vehicle servicing and claims processing across the industry.
State-by-State Rental Duration Variances Reveal Significant Regional Operational Differences
A deeper look at rental durations reveals substantial variations at the state level. In the first quarter of 2025, Alaska recorded the longest LOR in the nation at 20.8 days. West Virginia followed closely with an average of 20.7 days, and New Mexico registered a high LOR of 19.8 days. These longer durations can be attributed to a combination of factors, including logistical challenges related to parts delivery, technician availability, and regional repair capacity, all of which impact the broader car rental market ecosystem.
In stark contrast, several states demonstrated much greater efficiency. North Dakota had the lowest LOR in the country at just 12.0 days. Hawaii also posted a short duration at 12.6 days, followed by the District of Columbia at 13.0 days. These significant regional differences in rental duration highlight the localized nature of the vehicle repair industry and underscore the importance of state-specific operational strategies for companies managing replacement vehicle fleets.
Flexible Subscriptions and Corporate Cost Management Are Defining New Frontiers in the Car Rental Market
Car subscription services are rapidly gaining traction as a modern, flexible alternative to traditional vehicle ownership and leasing. The 6 to 12-month subscription segment, in particular, dominated this niche in 2024. This model holds strong appeal for consumers who desire convenient, hassle-free vehicle access without the burden of long-term financial commitments. Key target demographics for these services include expatriates, mobile business professionals, and corporate clients seeking adaptable mobility solutions for their employees, signaling a new growth area for the car rental market.
Meanwhile, cost management remains a paramount concern for corporate clients. In 2024, the average daily rate for business travelers globally is forecasted to be $45.40, with a projected increase to $46.50 in 2025. In the EMEA region, the average daily rate is expected to be $57.60 in 2024, rising slightly to $58.10 in 2025. Beyond these base rates, corporate travel budgets are also impacted by a variety of ancillary costs, including city surcharges, weekday rental surcharges, vehicle licensing fees, and energy recovery charges, all of which require careful management.
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Legacy Giants Face a Peer-to-Peer Revolution in the Car Rental Arena
The U.S. car rental market is a dynamic battleground where sheer scale competes with customer experience and disruptive models. Enterprise Mobility dominates, commanding over 40% of the market with its colossal 1.3 million vehicle fleet. Within its portfolio, National leads the industry in customer satisfaction with a score of 736, proving service can create a powerful brand advantage. Legacy players like Hertz maintain a vast physical presence with 2,909 locations, while Avis struggles with a below-average satisfaction score of 669. German competitor Sixt emerges as a formidable challenger, securing the third-highest satisfaction score at 708 and attracting premium customers.
This traditional structure in the car rental market faces a powerful disruptor in Turo. The peer-to-peer platform leverages a community of 3.5 million active guests and an inventory of 340,000 unique vehicles. Turo generated an impressive $2.5 billion in gross booking value in 2024, demonstrating its significant economic impact. Its upcoming integration with Uber will expose its offerings to 150 million users, fundamentally reshaping market access and challenging the incumbents' airport-centric model. Turo's asset-light, high-variety approach presents the most significant evolution in the competitive landscape, promising a future of increased consumer choice and platform-based competition.
Global Car Rental Market Major Players:
- Al-Futtaim Group
- Avis Budget Group, Inc.
- ALD Automotive
- Bettercar Rental LLC
- Beijing CAR Inc. (CAR Inc.)
- Carzonrent India Pvt. Ltd.
- ECO Mobility
- Enterprise Holdings Inc. (The Crawford Group, Inc.)
- Europcar Mobility Group
- GIG Car Share
- Lyft Rental
- Fastrental India Private Limited
- Localiza
- Sixt SE
- Ola Drive
- The Hertz Corporation
- Zoomcar
- TT Car Transit
- Uber Rentals
- Silvercar
- Renault Eurodrive
- Other Prominent Players
Key Market Segmentation:
By Vehicle Type
- Economy Cars
- SUVs
- Luxury Cars
- Executive Cars
- MUVs
By Application Type
- Local Usage
- Outstation
- Airport Transport
- Others
By Rental Duration
- Long-term
- Short-term
By End User
- Chauffeur-Drive
- Peer-to-Peer Rental
- Self-Drive Individual
- Corporate Fleet Subscription
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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