Car rentals, including the increasingly popular car dolly rental option, have been a convenient and efficient mode of transportation for many years now, and their popularity continues to rise. The industry generates significant revenue annually and is expected to grow further in the coming years. According to Statista, the car rental industry’s revenue is projected to reach US$104.00bn in 2023. It is expected to show an annual growth rate (CAGR 2023-2027) of 3.49%, resulting in a projected market volume of US$119.30bn by 2027. With these projections in mind, this article will take a deep dive into car rental statistics and provide you with 80 must-know facts.
Hertz
J.D. Power ranks Hertz as the best car rental company in North America, and for good reason. Their focus on customer satisfaction means you’ll have a great time renting from them – from start to finish.
Enterprise
Enterprise Rent-A-Car has locations all over the world, so they’re bound to have one close by. Plus, they offer a wide selection of cars – from economy to luxury – so you can find the perfect ride for your trip.
Fox Rent-A-Car
Fox Rent-A-Car is the perfect solution for budget-minded travelers. They offer low rates on all of our vehicles, so you can hit the open road without breaking the bank.
* With Expedia member prices, you could save 10% or more right now on thousands of cars.
#1 The US car rental market generated $56.3B in revenue in 2022.
The US has the largest car rental market in the world and generated $56.3 billion in revenue in 2022. It is expected to grow further in the coming years, with a projected market volume of US$29,940.00m in 2023.
Takeaway: The car rental industry is a significant contributor to the US economy and shows no signs of slowing down.
Bottom line:
- The US car rental market generated $56.3B in revenue in 2022.
- It is expected to continue to grow in the coming years.
#2 In 2022, the car rental industry had a 9.8% market growth compared to 2021.
Despite the COVID-19 pandemic’s devastating effects, the car rental industry grew by 9.8% in 2022 compared to the previous year. This growth is attributed to the increase in demand for domestic travel, and car rentals became a popular mode of transportation for many Americans.
Takeaway: Despite the pandemic’s effects, the car rental industry managed to grow in 2022.
Bottom line:
- The car rental industry grew by 9.8% in 2022 compared to the previous year.
- Domestic travel played a significant role in the industry’s growth.
#3 The global car rental market could nearly double by 2031, reaching $121.1B.
The car rental market’s global revenue is expected to reach $121.1B by 2031, nearly double what it was in 2022. This growth is attributed to the rise in international travel and the increased popularity of car rentals as a mode of transportation.
Takeaway: The global car rental market is expected to nearly double by 2031.
Bottom line:
- The global car rental market could reach $121.1B by 2031.
- International travel and car rental’s popularity contribute to this growth.
#4 As of 2022, the luxury car rental market stood at $29.5B globally. By 2028, it’ll almost triple, exceeding $80B and enjoying a compound annual growth rate (CAGR) of 20%.
Luxury car rentals have become increasingly popular among consumers, and as of 2022, the luxury car rental market stood at $29.5 billion globally. By 2028, it is projected to almost triple and exceed $80B, with a CAGR of 20%. This growth is attributed to the rise in disposable income and the desire for luxurious experiences.
Takeaway: The luxury car rental market is growing rapidly and is expected to triple by 2028.
Bottom line:
- The luxury car rental market stood at $29.5B globally in 2022.
- It is expected to almost triple and exceed $80B by 2028.
- The rise in disposable income and the desire for luxurious experiences are contributing factors.
#5 Over 25% of car rental bookings are made through mobile devices.
Mobile devices have become a popular medium for making car rental bookings, with over 25% of all bookings made through mobile devices. This trend is expected to continue as more consumers prefer the convenience of booking on-the-go.
Takeaway: Mobile devices are a popular medium for making car rental bookings.
Bottom line:
- Over 25% of car rental bookings are made through mobile devices.
- This trend is expected to continue in the future.
#6 The average daily cost of renting a car in the US is $66.58.
The average daily cost of renting a car in the US is $66.58, according to a survey by CheapCarRental.net. This cost varies based on factors such as location, season, car type, and rental company.
Takeaway: The average daily cost of renting a car in the US is $66.58.
Bottom line: The average daily cost of renting a car in the US is $66.58. This cost can vary based on several factors.
#7 The most rented car type in the US is the intermediate car.
According to a study by Enterprise, the most rented car type in the US is the intermediate car, accounting for 29% of all rentals. This is followed by the standard car (28%), SUV (14%), and compact car (13%).
Takeaway: The intermediate car is the most rented car type in the US.
Bottom line: The intermediate car is the most rented car type in the US, accounting for 29% of all rentals. The standard car, SUV, and compact car follow closely.
#8 The average rental duration in the US is four days.
The average rental duration in the US is four days, according to the 2019 J.D. Power Rental Car Satisfaction Study. However, this duration can vary based on several factors, including the purpose of the rental and the rental location.
Takeaway: The average rental duration in the US is four days.
Bottom line: The average rental duration in the US is four days. Several factors can influence the rental duration.
#9 The US car rental market generated $56.3B in revenue in 2022.
The US car rental market is one of the largest markets globally, generating $56.3 billion in revenue in 2022. This figure represents a growth rate of 9.8% compared to 2021, which is a positive sign for the industry’s recovery from the pandemic’s effects.
Bottom line: The US car rental market’s growth rate in 2022 indicates that the industry is recovering from the pandemic’s effects.
#10 The global car rental market could nearly double by 2031, reaching $121.1B.
The global car rental market is expected to grow significantly over the next few years. It is estimated that by 2031, the industry could nearly double its revenue, reaching $121.1 billion. This growth will be driven by factors such as increasing tourism and business travel, rising disposable incomes, and the growing popularity of car-sharing services.
Bottom line: The global car rental market is expected to grow significantly in the next few years, driven by increasing tourism and business travel, rising disposable incomes, and the growing popularity of car-sharing services.
#11 As of 2022, the luxury car rental market stood at $29.5B globally.
Luxury car rentals are becoming increasingly popular, and as of 2022, the luxury car rental market stood at $29.5 billion globally. By 2028, it is expected to almost triple, exceeding $80 billion, and enjoying a compound annual growth rate (CAGR) of 20%.
Bottom line: The luxury car rental market is growing at a significant rate, and it is expected to almost triple by 2028.
#12 Over 25% of the car rental sector’s revenue comes from corporate customers.
Corporate customers are a crucial segment of the car rental market, and over 25% of the car rental sector’s revenue comes from them. The business travel segment has been significantly affected by the pandemic, but it is expected to recover in the coming years.
Bottom line: Corporate customers are a crucial segment of the car rental market, and they contribute significantly to the sector’s revenue.
#13 North America dominates the global car rental market, accounting for over 37% of the total market share before the pandemic.
North America is the largest car rental market globally, accounting for over 37% of the total market share before the pandemic. The US is the largest car rental market in North America, followed by Canada and Mexico.
Bottom line: North America is the largest car rental market globally, and the US is the largest car rental market in North America.
#14 The car rental industry is growing at above-average levels in the Middle East and Africa.
The car rental industry is growing at above-average levels in the Middle East and Africa. The growth is driven by increasing tourism, rising disposable incomes, and the growing popularity of car-sharing services.
Bottom line: The car rental industry is growing at above-average levels in the Middle East and Africa, driven by increasing tourism and rising disposable incomes.
#15 The COVID-19 pandemic caused the biggest crisis in the history of the car rental market, accounting for a -31.7% decline in global revenue in 2020.
The COVID-19 pandemic had a significant impact on the car rental industry worldwide. With the global travel restrictions and lockdown measures, the demand for rental cars plummeted, resulting in a -31.7% decline in global revenue in 2020. The pandemic caused the biggest crisis in the history of the car rental market, leading to massive losses for rental car companies and suppliers.
Many car rental companies had to downsize their operations, reduce their fleet sizes, and cut jobs to survive the pandemic. They also had to implement new health and safety measures to reassure customers and employees that it was safe to rent cars during the pandemic.
However, with the gradual easing of travel restrictions and the rollout of COVID-19 vaccines, the car rental industry is slowly recovering. Some rental car companies are now reporting increased demand and rising revenue as more people start traveling again.
Bottom line: The COVID-19 pandemic caused the biggest crisis in the history of the car rental market, leading to a significant decline in global revenue in 2020. However, the industry is slowly recovering as travel restrictions ease and more people start traveling again.
#16 The most popular pickup location for rental cars in the US is at an airport, with 72% of all rentals starting at an airport location.
Renting a car at an airport location is often convenient for travelers who need transportation upon arrival. Many car rental companies have locations at major airports, making it easy for customers to rent a car and begin their trip immediately.
Takeaway: If you’re planning to rent a car in the US, consider booking a rental car at an airport location for maximum convenience.
#17 The average length of a car rental in the US is 5 days.
The length of a car rental can vary depending on the purpose of the rental, such as for business or leisure travel. The 5-day average suggests that many car rentals are used for longer trips, such as vacations.
Takeaway: When planning a trip that requires a car rental, keep in mind that the average rental period is 5 days, and adjust your plans accordingly.
#18 The global car rental market is dominated by a few major players, with the top 5 companies accounting for more than 60% of the market share.
The global car rental industry is highly concentrated, with a small number of companies controlling the majority of the market. This can make it difficult for smaller companies to compete.
Takeaway: When searching for a car rental, it’s likely that you’ll be dealing with one of the major players in the industry. Keep this in mind when comparing prices and services.
#19 The average age of a rental car in the US is 2 years.
Rental car companies often update their fleets to ensure that their cars are reliable and up-to-date. The 2-year average suggests that rental cars in the US are generally well-maintained and in good condition.
Takeaway: When renting a car in the US, you can expect to receive a vehicle that is relatively new and in good condition.
#20 In the US, the most popular car rental companies are Enterprise, Hertz, and Avis.
These three companies are the most well-known and widely used car rental companies in the US, and they offer a range of vehicles to suit different needs and budgets.
Takeaway: Consider these three companies when looking for a car rental in the US, as they are likely to have the widest selection of vehicles and the best prices.
#21 The US car rental industry is highly concentrated in terms of ownership, with the top 3 companies (Enterprise, Hertz, and Avis) accounting for almost 95% of the market share.
The dominance of these three companies in the US car rental industry can make it difficult for smaller rental companies to compete. It also means that consumers may have fewer choices when it comes to renting a car.
Takeaway: While the top 3 companies in the US car rental industry may offer a range of vehicles and competitive pricing, it’s also worth considering smaller, independent rental companies. They may offer more personalized service and better deals.
#22 In 2021, the US car rental market had a total fleet size of 1.8 million vehicles, a significant decrease from pre-pandemic levels.
The COVID-19 pandemic had a major impact on the car rental industry, as travel restrictions and reduced demand led to a decrease in the number of rental cars available.
Takeaway: When planning a trip that requires a rental car, be aware that there may be fewer cars available than usual, and you may need to book well in advance to secure a vehicle.
#23 In the US, the revenue per rental day (RPD) for car rentals increased by 32% in 2021 compared to pre-pandemic levels.
The increase in revenue per rental day can be attributed to a combination of factors, including higher demand for rental cars due to reduced air travel, a decrease in the number of rental cars available, and higher prices due to supply and demand dynamics.
Takeaway: If you’re planning to rent a car in the US in the near future, be prepared to pay higher prices than usual due to the increase in demand and limited supply. Consider booking well in advance and being flexible with your travel dates to get the best deal possible.
#24 Over 17K car rental businesses operated in the US in 2022.
The car rental industry in the US is a significant contributor to the country’s economy, providing transportation services to both domestic and international customers.
Takeaway: With so many car rental businesses operating in the US, there are many options to choose from when looking for a rental car.
#25 Most car rental companies are in California (1,355), Florida (1,050), and Texas (960).
These three states have the highest number of car rental companies, likely due to their large populations and status as popular travel destinations.
Takeaway: If you’re planning to rent a car in California, Florida, or Texas, you’re likely to have many options to choose from.
#26 More than half of all rental cars in the US (54%) belong to domestic brands.
Domestic car brands like Ford, General Motors, and Chrysler are well-represented in the US car rental market.
Takeaway: If you prefer to rent a car from a domestic brand, you’ll have plenty of options to choose from in the US.
#27 The US car rental market has 2M economy-class vehicles.
Economy-class vehicles are a popular choice for rental cars, as they are typically affordable and fuel-efficient.
Takeaway: When looking for a rental car in the US, consider an economy-class vehicle to save money on fuel and rental costs.
#28 55% of global car rentals are for leisure travel.
Many people rent cars for vacations or other leisure activities, rather than for business purposes.
Takeaway: If you’re planning a leisure trip that requires a rental car, you’re not alone. Most car rentals around the world are for leisure travel.
#29 Almost half of all luxury car rentals worldwide occur in the US.
The US is a popular destination for luxury car rentals, with many high-end rental car companies offering exotic and luxury vehicles to customers.
Takeaway: If you’re interested in renting a luxury or exotic car, the US may be a great place to do it, with many options available.
#30 Underage driver’s license holders can rent a car in New York and Michigan.
In some states in the US, drivers under the age of 21 can rent a car if they have a valid driver’s license and pay an additional surcharge.
Takeaway: If you’re under 21 and need to rent a car, consider looking for rental car companies in New York or Michigan, where it may be possible to rent a car despite your age.
#31 Drivers under 25 must pay a surcharge to rent a car.
Many rental car companies in the US require drivers under the age of 25 to pay a surcharge to cover the increased risk associated with young drivers.
Takeaway: If you’re under 25 and need to rent a car, be prepared to pay a surcharge to cover the additional risk that rental car companies face when renting to young drivers.
#32 People over 70 or 80 aren’t allowed to rent a car in some countries regardless of having a valid driving license.
In some countries, there are age restrictions on renting cars, with older drivers not allowed to rent a car regardless of their driving record.
Takeaway: If you’re an older driver and plan to rent a car while traveling abroad, be sure to check the rental car company’s policies regarding age restrictions.
#33 Most car rental agents are female and speak Spanish.
The car rental industry in the US has a high proportion of female employees, and a significant portion of these employees are bilingual in English and Spanish. This is likely due to the industry’s customer base, which includes many Spanish-speaking travelers.
Takeaway: If you speak Spanish and need to rent a car in the US, you may have an easier time communicating with car rental agents, as many of them speak the language.
#34 The US car rental sector experienced a 12.1% growth in employees in 2021 and 18.4% in 2022 compared to the COVID-19 pandemic times.
The COVID-19 pandemic led to a significant decrease in travel demand and had a major impact on the car rental industry. However, as travel restrictions have eased and more people have started to travel again, the industry has seen a significant increase in employment.
Takeaway: The growth in the car rental sector’s employment is a positive sign for the industry and may indicate a rebound in travel demand.
#35 Over the past five years, the average car rental worker’s wage has been increasing by 1%.
Despite the overall growth in the car rental industry, wages for car rental workers have only increased by a small margin over the past five years.
Takeaway: If you’re considering a job in the car rental industry, keep in mind that wage growth has been relatively stagnant in recent years.
#36 There were ~150K employees in the US car rental industry in 2022.
The car rental industry is a significant employer in the US, with a large number of people working in various roles across the sector.
Takeaway: The car rental industry provides many job opportunities, particularly for those who are bilingual in English and Spanish.
#37 Most car rental agents are female (50.5%). Their average salary is $22,759, which is lower than what their male counterparts bring home: $25,100.
Despite the high proportion of female employees in the car rental industry, there is still a gender wage gap, with male employees earning more on average than female employees.
Takeaway: If you’re a female considering a job in the car rental industry, be aware that there may be a wage gap compared to male employees.
#38 The most popular ethnicities in the car rental sector are Caucasian (57%), Hispanic or Latino (22%), and Afro (12%), with the average age of a car rental worker being 40+.
The car rental industry is diverse, with employees from various ethnic backgrounds working in the sector. Additionally, the average age of a car rental worker is slightly higher than the overall workforce.
Takeaway: The car rental industry provides job opportunities for a diverse range of individuals, regardless of ethnicity or age.
#39 36% of car rental workers have a high school diploma.
While a high school diploma is not always required for employment in the car rental industry, a significant proportion of workers do have this level of education.
Takeaway: If you’re considering a job in the car rental industry, keep in mind that a high school diploma may be beneficial, but not always required.
#40 62.5% of car rental agents speak Spanish.
Given the high proportion of Spanish-speaking travelers who use car rental services in the US, it’s not surprising that many car rental agents are bilingual in English and Spanish.
Takeaway: If you speak Spanish and need to rent a car in the US, there is a good chance that you will be able to communicate with car rental agents in your native language.
#41 In 2021, economy cars accounted for 36.07% of the total number of cars rented.
More specifically, out of all the cars rented in 2021, more than a third were economy cars, making them the most requested option in the car rental market.
Takeaway: Economy cars are in high demand in the car rental market, making up the largest share of rentals.
#42 Between 2021 and 2028, the executive cars market is projected to grow at a CAGR of more than 5.5%.
This projection suggests that the demand for executive cars in the car rental industry will increase at a compound annual growth rate of over 5.5% between 2021 and 2028.
Takeaway: The demand for executive cars is expected to grow steadily over the next few years in the car rental industry.
#43 Over 36% of the global car rental market share in the last year was accounted for by North America.
In 2021, North America had the largest share of the global car rental market, accounting for more than a third of all car rental activity worldwide.
Takeaway: North America is the biggest car rental market in the world.
#44 Millennials opt for environmentally-friendly options and short-term cost reductions. That’s why the demand for rental cars has skyrocketed, with private car ownership rates dropping by up to 80% in developed countries.
Millennials are driving the increase in demand for rental cars, as they prioritize environmentally friendly options and short-term cost savings over owning a car. This has led to a significant drop in private car ownership rates in developed countries.
Takeaway: Millennials are changing the car rental industry by driving demand for eco-friendly and cost-effective options.
#45 The car rental industry will be worth $144.21B worldwide by 2027.
By 2027, the global car rental industry is projected to be worth $144.21 billion, indicating strong growth over the next few years.
Takeaway: The car rental industry is expected to continue growing, reaching a significant value by 2027.
#46 The global car rental market is expected to experience a CAGR of 6.7% by 2026 and 7.5% by the end of the decade, in part thanks to the increased use of car rental booking apps.
The car rental market is expected to grow at a compound annual growth rate of 6.7% by 2026 and 7.5% by the end of the decade, with technology playing a role in driving growth.
Takeaway: The use of technology is driving growth in the car rental industry, leading to strong projections for the future.
#47 In the US, the CAGR of the car rental market is estimated to be 5.27% between 2022 and 2026, generating over $31B in revenue annually.
The US car rental market is expected to grow at a compound annual growth rate of 5.27% between 2022 and 2026, generating more than $31 billion in annual revenue.
Takeaway: The US car rental market is expected to continue growing, with a significant impact on the economy.
#48 Asia Pacific is expected to experience the highest CAGR of almost 8%. This is due to the rise in the average citizen’s business travel expenses, government restrictions on buying cars, and the region’s economic expansion.
The Asia Pacific region is expected to have the highest compound annual growth rate in the car rental market, driven by factors such as rising business travel expenses, government restrictions on car ownership, and economic expansion in the region.
Takeaway: The Asia Pacific region is poised for significant growth in the car rental industry.
#49 The number of cars rented in the US is expected to increase threefold by 2024, reaching about 46.8 million compared to the 2020 numbers.
As the travel industry continues to recover from the COVID-19 pandemic, the demand for rental cars is expected to increase significantly. The growth in car rentals is also driven by factors such as the rise of road trips and the popularity of car-sharing services.
Takeaway: If you’re planning to rent a car in the coming years, be prepared for higher demand and potential shortages. Consider booking in advance and exploring alternative rental options.
#50 Car rental user penetration in the US is expected to reach 7.6% by 2026, up from 5.5% in 2022, with a projected total of 602.2 million car rental users by 2026.
As more people travel domestically and internationally, the number of car rental users is expected to increase. The trend towards car rentals is also driven by the convenience of renting a car for short trips or vacations.
Takeaway: The car rental industry is expected to continue growing, making it an important player in the travel industry. Keep an eye out for deals and promotions to get the best value for your rental.
#51 By 2026, sales through online platforms are projected to account for 71% of the car rental industry revenue.
The rise of online booking platforms and the convenience of booking a car rental online has led to a significant shift in how consumers book their rentals. This trend is expected to continue, with more people opting for online bookings over traditional methods.
Takeaway: Consider booking your car rental online to take advantage of the convenience and potential cost savings. Keep an eye out for online-exclusive promotions and deals.
#52 Global car rental platforms are expected to generate over $107 billion by 2027.
The growth of the car rental industry is not limited to the US, as global car rental platforms are projected to experience significant growth in the coming years. This is driven by factors such as rising travel demand and the increasing popularity of online booking platforms.
Takeaway: Consider global car rental platforms when planning international trips, as they may offer a wider selection of rental cars and more competitive pricing.
#53 The SUV rental market is expected to generate over $13 billion in revenue by 2027.
The popularity of SUVs for both personal and business use is driving growth in the SUV rental market. This trend is expected to continue as more people prioritize space and comfort when renting a car.
Takeaway: Consider renting an SUV for your next trip if you need more space and comfort. Keep an eye out for deals and promotions to get the best value for your rental.
#54 Airport car rental is expected to experience a 7.2% growth by 2029, driven by the development of tourism globally, which will result in an increase in air traffic and the opening of new airports.
As air travel recovers from the COVID-19 pandemic, more people are expected to rent cars from airport locations for convenience. The opening of new airports and the growth of air travel globally is expected to drive growth in the airport car rental market.
Takeaway: If you’re flying to your destination, consider renting a car from an airport location for maximum convenience. Keep in mind that airport rentals may be more expensive than rentals from other locations.
#55 Enterprise Holdings is the preferred car rental company for 42% of Americans who have rented a car.
Enterprise Holdings is the leading car rental company in the US and has been voted as the favorite car rental brand by customers for several years in a row. The company operates several brands, including Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car. Enterprise Holdings has over 7,800 locations in more than 85 countries, making it one of the largest car rental companies in the world.
Takeaway: Enterprise Holdings is the most popular car rental company among Americans who have rented a car, with a market share of 42%. This can be attributed to its extensive network of locations, high customer satisfaction, and strong brand reputation.
Wrapping Up
In conclusion, the car rental industry is expected to experience significant growth in the coming years, driven by factors such as increasing tourism, preference for car rental services over public transportation, and the growth of online platforms. The number of car rental users is projected to reach over 600 million by 2026, while the SUV rental market is expected to generate over $13 billion in revenue by 2027. Additionally, the three major players in the US car rental industry – Hertz Group, Avis-Budget Group, and Enterprise Holdings – dominate the market, with Enterprise Holdings being the industry leader and the preferred choice for 42% of Americans who have ever rented a car. As the industry continues to evolve, it will be interesting to see how these trends play out and what new developments emerge.