Summary

The North American car rental market is witnessing substantial expansion driven by evolving mobility trends, changing consumer preferences, and the growing importance of flexible transportation options across the United States, Canada, and Mexico. The region remains one of the most mature and technologically advanced car rental markets globally, supported by widespread travel infrastructure, extensive airport networks, and the steady resurgence of both leisure and corporate travel. As urbanization deepens and lifestyles shift toward shared and on-demand mobility solutions, consumers are increasingly prioritizing rental services over car ownership, especially in metropolitan areas characterized by high vehicle costs, limited parking, and growing environmental awareness. The integration of digital platforms, mobile-based rental systems, and app-driven booking solutions has enhanced accessibility and convenience for customers, fuelling continuous market engagement. Moreover, the rise in domestic tourism, cross-border travel, and short-term business trips has reinforced demand for rental services offering flexibility, transparency, and competitive pricing structures. Sustainability is emerging as a central theme in the market’s evolution, with rental operators across North America expanding their electric and hybrid vehicle fleets to align with regional decarbonization objectives and corporate sustainability mandates. Major cities such as Los Angeles, Toronto, and Mexico City are witnessing increased availability of eco-friendly rental options supported by expanding charging infrastructure and government-backed incentives promoting low-emission mobility. According to the research report, “North America Car Rental Market Outlook, 2031” published by Bonafide Research, the North America Car Rental market is expected to cross USD 46.09 Billion market size by 2031, by 2026-31. Multiple structural drivers are supporting strong momentum in the North American car rental market, including rapid recovery in leisure and business travel, surging inbound tourism, and growing urbanization. Major public and private investments in airport expansions, smart mobility infrastructure, and multimodal transport connectivity are expanding the operational footprint for both national and regional rental operators. Recent government incentives for fleet electrification, particularly in the U.S., are accelerating the adoption of electric and hybrid rental vehicles, enabling providers to target environmentally conscious customers and corporate clients with sustainability mandates. Mobile app-based reservations, contactless pick-up and return, and advanced telematics for vehicle monitoring are now standard offerings, enhancing convenience and cost efficiency. Segment growth is also influenced by the shift toward short-term subscriptions, long-term rentals, and peer-to-peer car sharing services, catering to evolving mobility preferences among urban consumers and gig economy workers. The market faces challenges such as volatile vehicle acquisition costs amid supply chain disruptions, tightening emission standards, and heightened competition from ride-hailing and car-sharing platforms. Operators are addressing these issues through dynamic pricing strategies, diversification of rental offerings, and partnerships with automakers and tech companies to access next-generation vehicles and digital services. Embracing data-driven fleet management and predictive maintenance supports higher utilization rates and operational resilience. The pivot toward sustainable, connected, and flexible mobility solutions positions North American car rental providers at the forefront of urban transportation transformation, meeting both customer expectations and regulatory goals for greener mobility. Market Drivers ? Urban Mobility and Tourism Recovery: The North American car rental market is being significantly influenced by expanding urbanization, a steady rebound in domestic and international tourism, and growing demand for flexible mobility solutions. Major cities across the United States, Canada, and Mexico are witnessing increased reliance on short-term rentals and on-demand mobility services as alternatives to vehicle ownership. The recovery of corporate travel, coupled with rising leisure trips and the expansion of airport infrastructure, continues to support consistent rental activity. The rise in population density, limited urban parking spaces, and changing consumer behavior favoring convenience and short-term access are reinforcing the importance of car rental services in meeting modern mobility requirements. ? Digital Transformation and Fleet Modernization : Rapid technological innovation and digitalization are reshaping the market through mobile-based booking platforms, seamless payment systems, and contactless rental processes that enhance customer experience. Car rental companies are heavily investing in system automation, data analytics, and fleet telematics to improve operational efficiency, reduce downtime, and ensure enhanced vehicular utilization. Fleet modernization initiatives, including the introduction of hybrid and electric vehicles, are gaining pace across major operators to comply with environmental regulations and meet rising consumer interest in sustainable transport options. Collectively, the combination of tourism recovery, digital mobility advancements, and sustainable fleet investment continues to propel the growth of the car rental market in North America. Market Challenges ? Fleet Procurement and Maintenance Costs: The North American car rental market faces ongoing challenges arising from fluctuating vehicle procurement costs, supply shortages, and rising maintenance expenses. The automotive industry’s transition toward electrification and advanced safety technologies has increased upfront fleet acquisition costs, while high interest rates and inflationary pressures further limit operator margins. Additionally, periodic shortages in vehicle availability from manufacturers since the pandemic have led to inconsistent fleet replenishment cycles and delayed deliveries, constraining supply for peak demand periods. ? Competitive Pressures and Mobility Alternatives: Heightened competition from ride-hailing, car-sharing, and subscription-based services continues to affect rental operators, particularly in urban and on-demand segments. Consumers increasingly seek alternatives that combine flexibility with cost efficiency, forcing traditional rental firms to diversify service offerings and invest heavily in digital platforms. Regulatory variations across states, differing insurance mandates, and challenges in managing multi-jurisdictional operations further complicate business operations. These structural and operational challenges require strategic scaling, robust digital adoption, and resilient supply partnerships to maintain profitability and service reliability. Market Trends ? Electrification and Green Mobility Expansion: A prominent trend shaping the North American car rental market is the rapid expansion of electric and hybrid vehicle fleets driven by rising sustainability expectations and supportive government policies. Major rental companies are introducing extensive EV lineups supported by partnerships with charging infrastructure providers to make sustainable travel more accessible. This shift aligns with broader decarbonization goals and growing consumer preference for environmentally responsible mobility options. ? Integration of Telematics and Connected Mobility: Advanced telematics, fleet analytics, and connected car technologies are transforming fleet management by enabling predictive maintenance, real-time tracking, and enhanced safety and performance monitoring. These solutions not only optimize fleet utilization but also elevate transparency and customer service quality. Furthermore, subscription rental models offering flexible, long-term leasing arrangements are gaining popularity among corporate clients and digital-native consumers seeking convenience and affordability. The convergence of electrification, connectivity, and digital service innovation is setting the pace for a technology-driven transformation of the North American car rental market. Luxury cars dominate the North American car rental market as consumers increasingly seek premium vehicles offering comfort, brand value, and advanced technology for business and leisure travel. Luxury cars form a high-value segment of the North American car rental market, appealing primarily to affluent consumers, corporate clients, and international tourists seeking superior driving experiences. Major urban centers such as New York, Los Angeles, Toronto, and Mexico City serve as strongholds for luxury rentals due to high corporate activity, international travel traffic, and lifestyle-oriented demand. These vehicles are often rented for business meetings, special occasions, or personal leisure, reflecting a shift toward experience-based consumption over ownership. Rental companies increasingly stock premium brands including BMW, Mercedes-Benz, Audi, Tesla, and Lexus, meeting customer expectations for design, comfort, safety, and advanced connectivity. The growing trend toward sustainability in mobility has led to the gradual inclusion of high-end electric and hybrid luxury models, supported by rapidly expanding EV charging infrastructure across airports and metropolitan hubs. Enhanced services such as chauffeur-driven options, loyalty memberships, and customized experiences reinforce customer retention. Despite higher rental prices and maintenance costs, the luxury car segment sustains strong profitability driven by brand image and exclusivity. The integration of telematics systems and digital platforms that allow online selection and pre-delivery customization further enhances user convenience. Given rising disposable income levels and recovering tourism across the region, luxury cars remain a strategic priority for fleet diversification among major operators in North America. Leisure and tourism applications dominate the regional car rental market because of the sustained revival of domestic and cross-border travel, alongside growing demand for flexible mobility solutions among tourists. The leisure and tourism segment represents the major share of car rental activity in North America, supported by a strong travel infrastructure and the increasing preference for independent mobility during vacations. The United States remains one of the world’s top travel destinations, and road trips continue to constitute a prominent part of domestic tourism. Car rentals enable convenient transportation for travelers exploring large geographic areas and remote locations inaccessible by public transit. Seasonal surges in demand during holiday periods, coupled with major events and festivals in Canada and Mexico, further boost fleet utilization rates. Rental operators are expanding partnerships with airlines, hotels, and travel agencies to create bundled mobility packages integrated into vacation itineraries. The rise of short-term tourism, especially post-pandemic, has accelerated digital platform usage for real-time bookings and flexible returns. The inclusion of electric and hybrid vehicles caters to eco-conscious tourists seeking sustainable transportation in national parks and urban centers with environmental regulations. Car rental companies are also leveraging data analytics to predict peak tourism flows and optimize fleet allocation. Additionally, the expansion of cross-border travel corridors between the U.S. and Canada, as well as within Mexico’s urban tourism hubs, is generating consistent revenue opportunities. As travel restrictions ease and discretionary spending rises, the leisure and tourism segment continues to anchor the North American car rental industry’s long-term growth trajectory. Self-driven rentals are the leading end-user category due to their convenience, autonomy, and suitability for short-term trips, reflecting shifting consumer preferences toward personalized and flexible mobility options. Self-driven rentals constitute the dominant mode of vehicle usage within North America’s car rental market, favored by both leisure travelers and business users seeking independence and control over travel schedules. Advancements in GPS navigation, vehicle connectivity, and app-based booking systems have made self-drive options accessible and user-friendly. Customers can select, unlock, and return vehicles through digital platforms, minimizing physical interaction and paperwork. This model suits a wide spectrum of use cases including road trips, local commutes, and temporary vehicle replacement during maintenance periods. The growing popularity of route-based tourism and long-distance intercity drives further supports growth in this category. Rental operators continuously expand fleet diversity across economy, executive, and SUV categories to meet self-drive demand. The flexibility to choose rental duration, vehicle type, and pick-up location positions self-driven services as the preferred format compared with chauffeur-driven offerings that primarily serve premium clientele and corporate events. The rise of contactless service models introduced during the pandemic has permanently reshaped consumer behavior, prioritizing convenience and safety. Insurance coverage, roadside assistance, and flexible cancellation policies reinforce consumer confidence in self-driven rentals. This segment is expected to maintain leadership as digital integration and vehicle-sharing technologies continue to evolve, supporting a culture of independent and affordable mobility across North America. Online bookings dominate the North American car rental market, driven by digital transformation, mobile accessibility, and integration of real-time inventory management systems. Online booking has revolutionized the global car rental industry by becoming the preferred method of vehicle rental across short- and long-term durations. The widespread penetration of smartphones, secure and flexible payment gateways, and advanced user interfaces that allow instant reservations and vehicle upgrades have dramatically transformed how customers interact with rental services. Leading operators like Hertz, Enterprise, Avis, and Budget have developed dedicated mobile applications and introduced self-service kiosks worldwide, providing convenient, contactless rental experiences that cater to modern user preferences. Online platforms deliver price transparency, virtual fleet previews, real-time customer reviews, and geolocation-based recommendations that simplify traveller decision-making. Integration with major global travel platforms such as Expedia, Booking.com, and TripAdvisor allows seamless itinerary management and boosts rental visibility. The adoption of artificial intelligence and big data analytics powers personalized offers that consider customer history, preferences, and seasonal demand patterns, enhancing loyalty and repeat business. Social media marketing and targeted digital advertising have increased brand visibility among younger, tech-savvy renters. While offline bookings at airports and physical outlets remain relevant, the ongoing shift toward online-first platforms accelerates due to operational efficiency, improved customer convenience, and the growing e-commerce culture. As the digital transformation deepens, online booking ecosystems will continue to define the competitive landscape of car rental operators across North America, Europe, and emerging markets globally, positioning the industry for a fast, flexible, and customer-centric future. Short-term rentals dominate the market as they address the majority of tourism, business, and urban mobility needs requiring flexibility and immediate availability. Short-term rental services, typically ranging from a few hours to less than a month, account for the largest revenue share within North America’s car rental market. This segment benefits from both leisure and corporate demand, where travelers seek mobility solutions that avoid long-term financial commitments. Airports and city centers serve as high-traffic nodes for short-term rentals, supported by streamlined pick-up and return systems. The flexibility to accommodate spontaneous travel, weekend trips, and temporary commutes makes short-term offerings suitable for today’s fast-paced urban lifestyles. Rental companies use dynamic pricing strategies and real-time fleet optimization to manage seasonal and location-based fluctuations. Integration with mobile applications allows customers to extend rentals, modify bookings, and switch vehicle categories without administrative barriers. In contrast, long-term rentals, often structured as monthly or multi-month contracts, cater primarily to corporate fleets, expatriates, and relocated professionals seeking cost-effective mobility. Although interest in long-term subscriptions and leasing alternatives is growing, short-term rentals retain a commanding presence due to their accessibility, lower upfront costs, and alignment with post-pandemic travel recovery patterns. Ongoing innovation in fleet connectivity and customer experience applications is expected to further strengthen the role of short-term rentals as the core operational model for car rental providers in North America. The United States stands as the leading market for car rental services in North America, supported by advanced infrastructure, strong tourism activity, widespread urban mobility demand, and a well-established network of rental operators. The United States region features a highly dynamic transportation ecosystem integrating car rental, ride-sharing, automotive leasing, and public transit systems within a robust service economy that caters to both domestic and international travelers. A mature highway network, numerous airports, and expansive urban centers form the backbone of this sector, allowing smooth connectivity across states and strong integration with logistics and hospitality industries. Major airports in cities such as Los Angeles, New York, Atlanta, and Chicago serve as key operational hubs for leading car rental providers, facilitating a constant flow of short-term and long-term rental demand. The market benefits from a solid consumer base spanning corporate clients, travelers, and local users relying on rental vehicles for flexible mobility solutions. Continued growth in business travel, leisure tourism, and temporary vehicle replacement services further reinforces sectoral stability. Innovation is a central element of the U.S. car rental industry, shaped by digital booking platforms, contactless rental systems, loyalty programs, and fleet modernization through electric and hybrid vehicles. Strategic alliances between manufacturers, rental firms, and technology startups support efficiency and sustainability through telematics, fleet management software, and connected mobility solutions. The competitive environment remains strong, with major global and regional brands maintaining extensive service networks and introducing subscription-based models and app-driven rentals to meet changing customer preferences. Consumer expectations for convenience, flexibility, and transparent pricing drive continuous service improvement and personalization. Despite challenges related to fluctuating fuel prices, operational costs, and regulatory standards across states, the United States car rental market continues to display resilience. Its scale, innovation capacity, and digital transformation initiatives maintain the country’s leading position within the global car rental industry and ensure ongoing expansion aligned with evolving travel and mobility trends. ***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.

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Table of Contents

Table of Contents

1. Executive Summary
2. Market Dynamics
2.1. Market Drivers & Opportunities
2.2. Market Restraints & Challenges
2.3. Market Trends
2.4. Supply chain Analysis
2.5. Policy & Regulatory Framework
2.6. Industry Experts Views
3. Research Methodology
3.1. Secondary Research
3.2. Primary Data Collection
3.3. Market Formation & Validation
3.4. Report Writing, Quality Check & Delivery
4. Market Structure
4.1. Market Considerate
4.2. Assumptions
4.3. Limitations
4.4. Abbreviations
4.5. Sources
4.6. Definitions
5. Economic /Demographic Snapshot
6. North America Car Rental Market Outlook
6.1. Market Size By Value
6.2. Market Share By Country
6.3. Market Size and Forecast, By Car Type
6.4. Market Size and Forecast, By Application Type
6.5. Market Size and Forecast, By End User
6.6. Market Size and Forecast, By Booking Type
6.7. Market Size and Forecast, By Rental Length Type
6.8. United States Car Rental Market Outlook
6.8.1. Market Size by Value
6.8.2. Market Size and Forecast By Car Type
6.8.3. Market Size and Forecast By Application Type
6.8.4. Market Size and Forecast By End User
6.8.5. Market Size and Forecast By Booking Type
6.8.6. Market Size and Forecast By Rental Length Type
6.9. Canada Car Rental Market Outlook
6.9.1. Market Size by Value
6.9.2. Market Size and Forecast By Car Type
6.9.3. Market Size and Forecast By Application Type
6.9.4. Market Size and Forecast By End User
6.9.5. Market Size and Forecast By Booking Type
6.9.6. Market Size and Forecast By Rental Length Type
6.10. Mexico Car Rental Market Outlook
6.10.1. Market Size by Value
6.10.2. Market Size and Forecast By Car Type
6.10.3. Market Size and Forecast By Application Type
6.10.4. Market Size and Forecast By End User
6.10.5. Market Size and Forecast By Booking Type
6.10.6. Market Size and Forecast By Rental Length Type
7. Competitive Landscape
7.1. Competitive Dashboard
7.2. Business Strategies Adopted by Key Players
7.3. Key Players Market Positioning Matrix
7.4. Porter's Five Forces
7.5. Company Profile
7.5.1. Avis Budget Group, Inc.
7.5.1.1. Company Snapshot
7.5.1.2. Company Overview
7.5.1.3. Financial Highlights
7.5.1.4. Geographic Insights
7.5.1.5. Business Segment & Performance
7.5.1.6. Product Portfolio
7.5.1.7. Key Executives
7.5.1.8. Strategic Moves & Developments
7.5.2. Hertz Global Holdings Inc
7.5.3. Enterprise Holdings Inc
7.5.4. Sixt SE
7.5.5. Europcar
7.5.6. Uber Technologies, Inc.
7.5.7. Renault Eurodrive
7.5.8. Movida Loca??o de Ve?culos S.A.
7.5.9. Lyft Rentals
7.5.10. Getaround
7.5.11. Advantage Rent A Car
7.5.12. Company 12
8. Strategic Recommendations
9. Annexure
9.1. FAQ`s
9.2. Notes
10. Disclaimer

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List of Tables/Graphs

List of Figures

Figure 1: Global Car Rental Market Size (USD Billion) By Region, 2025 & 2031F
Figure 2: Market attractiveness Index, By Region 2031F
Figure 3: Market attractiveness Index, By Segment 2031F
Figure 4: North America Car Rental Market Size By Value (2020, 2025 & 2031F) (in USD Million)
Figure 5: North America Car Rental Market Share By Country (2025)
Figure 6: US Car Rental Market Size By Value (2020, 2025 & 2031F) (in USD Million)
Figure 7: Canada Car Rental Market Size By Value (2020, 2025 & 2031F) (in USD Million)
Figure 8: Mexico Car Rental Market Size By Value (2020, 2025 & 2031F) (in USD Million)
Figure 9: Porter's Five Forces of Global Car Rental Market

List of Tables

Table 1: Global Car Rental Market Snapshot, By Segmentation (2025 & 2031F) (in USD Billion)
Table 2: Influencing Factors for Car Rental Market, 2025
Table 3: Top 10 Counties Economic Snapshot 2024
Table 4: Economic Snapshot of Other Prominent Countries 2022
Table 5: Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars
Table 6: North America Car Rental Market Size and Forecast, By Car Type (2020 to 2031F) (In USD Million)
Table 7: North America Car Rental Market Size and Forecast, By Application Type (2020 to 2031F) (In USD Million)
Table 8: North America Car Rental Market Size and Forecast, By End User (2020 to 2031F) (In USD Million)
Table 9: North America Car Rental Market Size and Forecast, By Booking Type(2020 to 2031F) (In USD Million)
Table 10: North America Car Rental Market Size and Forecast, By Rental Length Type (2020 to 2031F) (In USD Million)
Table 11: United States Car Rental Market Size and Forecast By Car Type (2020 to 2031F) (In USD Million)
Table 12: United States Car Rental Market Size and Forecast By Application Type (2020 to 2031F) (In USD Million)
Table 13: United States Car Rental Market Size and Forecast By End User (2020 to 2031F) (In USD Million)
Table 14: United States Car Rental Market Size and Forecast By Booking Type(2020 to 2031F) (In USD Million)
Table 15: United States Car Rental Market Size and Forecast By Rental Length Type (2020 to 2031F) (In USD Million)
Table 16: Canada Car Rental Market Size and Forecast By Car Type (2020 to 2031F) (In USD Million)
Table 17: Canada Car Rental Market Size and Forecast By Application Type (2020 to 2031F) (In USD Million)
Table 18: Canada Car Rental Market Size and Forecast By End User (2020 to 2031F) (In USD Million)
Table 19: Canada Car Rental Market Size and Forecast By Booking Type(2020 to 2031F) (In USD Million)
Table 20: Canada Car Rental Market Size and Forecast By Rental Length Type (2020 to 2031F) (In USD Million)
Table 21: Mexico Car Rental Market Size and Forecast By Car Type (2020 to 2031F) (In USD Million)
Table 22: Mexico Car Rental Market Size and Forecast By Application Type (2020 to 2031F) (In USD Million)
Table 23: Mexico Car Rental Market Size and Forecast By End User (2020 to 2031F) (In USD Million)
Table 24: Mexico Car Rental Market Size and Forecast By Booking Type(2020 to 2031F) (In USD Million)
Table 25: Mexico Car Rental Market Size and Forecast By Rental Length Type (2020 to 2031F) (In USD Million)
Table 26: Competitive Dashboard of top 5 players, 2025