North America Car Rental Market Research Report, 2028

North America expected to dominate the global car rental market in the forecast period. In the medium term, demand in the market is projected to be driven by growing awareness of benefits including time-saving and cost-effectiveness of vehicle rentals, as well as the growing popularity of online car rental booking applications. Additionally, expanding rental companies' vehicle rental portfolios with the newest and eco-friendly products will help the market grow even more throughout the course of the projection period. In addition to these, increased internet usage in developed nations will fuel market expansion during the projection period. Additionally, the expansion of the infrastructure in developing nations is creating new opportunities for market expansion. Given the attractive business opportunities and growth potential provided by this market, the aforementioned variables are anticipated to foster an upbeat environment and, as a result, encourage important organizations in the market to concentrate primarily on the corporate segment. The higher growth is attributed to the increasing number of business trips and local and international vacation trips across various countries in this region. According to the research report, “North America Car Rental Market Research Report, 2028” published by Actual Market Research, the market is projected to reach market size of USD 54.45 Billion by 2028. The rising number of leisure and business trips across the region, both locally and internationally, is among the prominent factors influencing the growth of the regional market. Additionally, a continuous shift in consumer preference toward rental services and the presence of prominent service providers in the region like Avis Budget Group and Enterprise Rent-a-Car is expected to accelerate the revenue generation prospects. Based on the country segmentations, the overall market is categorised into the United States of America, Canada and Mexico. Among them, more than 80% of market share is expected to be occupied by the USA in 2022 and is anticipated to continue its dominance during the forecast period as well. However, Mexico is projected to grow with higher CAGR by the upcoming timeframe. Due to significant market players operating in this region, the United States is anticipated to play a prominent role in the North American region. For instance, more than 250 Enterprise Rent-A-Vehicle airport rental car locations may be found in all the main US cities, from Los Angeles to New York City. With more than 1,600 airport facilities in the United States and more than 1,300 airport sites abroad, Hertz is one of the largest global providers of general-use airport car rentals. Therefore, it is projected that the aforementioned events and situations would increase the demand for car rental services throughout the United States over the projection period. On the other hand, Enterprise Rent-A-Car is the largest rental car company in the United States, with more than 9,000 "home city" locations, and around 420 airport locations. The rise of the vehicle rental business in the North American region is being driven by market participants who have integrated automobile rental software into mobile applications. Recently, the use of these services has expanded in various economies, owing to increasing initiatives by service providers. Hence, these aspects would open new growth avenues for the North America car rental market during the forecasting period. Based on the report, the market is segmented into various car types including economy car, executive car, luxury car, sports utility vehicle car and multi utility vehicle car. Among them, economy car and luxury car are registering for more than 66% of market share in 2022. On the basis of constantly increasing demands for renting a car for business trip or leisure is projected to boost the demands for an economy car for daily use. However, the major drivers of the luxury car market expected to aid the market growth are an increase in company collaborations, heightening purchasing power, rising trend of electric luxury cars, and an increase in demand for comfortable driving experiences. The factor which is likely to fuel the demand of the automotive luxury car market in North America is the growing production of electric vehicles backed by many established players and new start-ups such as Tesla, Rivian, and Lucid Motors. Major automotive OEMs have their plan for launching various electric vehicle models. Further, based on application type, business segment is dominating the market in 2022. Major players across the North America include Avis Budget Group, Enterprise Rent-A-Car, and Hertz Global Holdings Inc. The COVID-19 pandemic had negatively impacted the growth of the market as initial lockdowns and travel restrictions resulted in decreased demand for rental vehicles. However, post-pandemic as restrictions eased, demand for rental services started picking up pace in wake of growing consumer inclination towards rental vehicles over public transportation. This trend is likely to continue over the forecast period. Over the medium term, growing popularity of online car rental booking applications and rising awareness about the features such as time-saving and cost-effectiveness of vehicle rentals are likely to drive demand in the market. In addition, growing focus of rental companies to expand their vehicle rental portfolio with the latest and eco-friendly products is expected to further enhance the growth of the market during the forecast period. Besides these rise in internet penetration across developed regions will help market to grow during the forecast period. Moreover, the infrastructure development in the developing regions is paving new way for the growth of market. These market players had adopted car rental software in smart-phone applications, which is driving the growth of vehicle rental market in North America region. With several growth strategies vehicle rental companies are likely to cater to the increasing demand, and further ensure competitive effectiveness; these players are designing strategies like developing innovative products, mergers, acquisitions, etc. with a focus on expanding their customer base. For instance, in September 2020, Enterprise Holdings' Canadian subsidiary announced the acquisition of Discount Car and Truck Rentals, a Canadian car and truck rental company serving customers across Canada. The acquisition expanded the company's ability to fulfil the unique mobility requirements of Canadian customers and provide more efficient service. The market leaders tried to maintain their strong presence by acquiring other well-known brands such as Dollar, Thrifty, National, and Alamo. Car rental companies in the United States also adopted car-sharing models, which acted as a new product offering and source of competition from entrants as well. Enterprise and Hertz had the first-move advantage with their CarShare and OnDemand services in the country. Also, major car rental company Hertz is launching an initiative to help pave the way for EVs in American cities, and part of that is providing 5,200 vehicles for consumers and rideshare operators in Colorado. This growth in revenue share can be primarily attributed to the increased usage of car rental services in the United States, the rising adoption of electric cars, and growing concerns and awareness of lower emissions among consumers in the region. Recent Developments: • In April 2022, SIXT, one of the leading global mobility providers, is continuing its rapid expansion across the US and announces the opening of new branches in Charlotte and Baltimore, offering customers more rental choices on the East Coast. • In May 2021, Uber has launched a new car rental service called Uber Rent in Washington DC, as well as announcing an expansion to its Uber Reserve option to some of the US’ biggest airports. As the announcement mentioned, the service is only launching in the US capital initially, though it is expected to be rolled out across the country later. • In June 2022, Hertz Company announced a USD 4.2 billion deal to purchase 100,000 Tesla fully electric vehicles (EVs) by the end of 2022 set off a race among rental car agencies. Hertz did not state the overall number of vehicles in its fleet so it’s unknown how many Teslas are available in the more than 30 markets currently offering EVs, which now also include the first of the 65,000 Polestar 2s — an EV brand jointly owned by Volvo and its Chinese parent Geely which has planned to go public through a SPAC deal. • In September 2021, Enterprise Holdings announced its collaboration with Microsoft for bringing connected car technology to the former company's car rental, commercial trucks, and exotic vehicle rental fleets in the United States and soon the UK and Canada. Through this collaboration, Enterprise Holding is expected to advance the streamlined rental experience of the future. • In October 2021, the Enterprise Holdings subsidiary announced an agreement to acquire Walker Vehicle Rentals, a commercial vehicle rental company. Enterprise has its presence in the commercial vehicle rental market in Ireland and the acquisition helped the business to enhance the choice and value of vehicles and services it delivers to organizations. Major sites for Car Rental in North America: Alamo, AVIS, Budget, Enterprise, Hertz, CarRentalExpress, City Rent-A-Car, Dollar Rent A Car Inc., E-Z-Rent-A-Car, Economy Car Rentals, FindExotic.com, Mayfair Rent-A-Car, National Car Rental, Payless Car Rental, Reliable Rent-A-Car, Rent A Vette, Thrifty Car Rental, Uber, Discount Car, Enterprise, Visit Mexico, Let's Go2Mexico, Alamo Nicaragua, Budget Belize, Budget Costa Rica, Car Rental Costa Rica, Hertz Guatemala, Payless Car Rental, Travel Nicaragua, Fox Rental Car, Specialty Rentals, Tierra del Sol Most Popular Airport for Rental Car Locations in North America: Atlanta Airport, Boston Airport, Cancun Airport, Chicago O'Hare Airport, Dallas Fort Worth Airport, Denver Airport, Houston Airport, JFK Airport, Las Vegas Airport, Los Angeles Airport, Mexico City Airport, Miami Airport, Newark Airport, Orlando Airport, Phoenix Airport, San Francisco Airport, Seattle Airport, Toronto Airport Most Popular City for Rental Car Locations in North America: Austin, Denver, Philadelphia, Phoenix, San Francisco, New York, Los Angeles, San Francisco, Las Vegas, Chicago, Toronto, Orlando, Miami, Washington, D.C., Calgary, Newark, Vancouver, San Jose, Seattle, Dallas, Boston, Houston, Tampa, San Diego, Atlanta, Banff National Park, Mont Sainte-Anne, Algonquin Provincial Park, Laurentides, Sunshine Coast Most popular car rental agents in North America: Enterprise, Hertz, Budget, Avis, National car, Thrifty, Dollar, Alamo, VIPCars, Europcar, Payless, Sixt Major Companies present in the market: Avis Budget Group Inc, Hertz Global Holdings Inc, Enterprise Holdings Inc, Sixt SE, Europcar Mobility Group, Renault Eurodrive, Uber Technologies, Inc, Budget Rent A Car System, Inc Considered in this report • Geography: North America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • North America Car Rental market with its value and forecast along with its segments • Country-wise Car Rental market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • United States • Canada • Mexico By Car Type: • Luxury car • Executive car • Economy car • Sports utility vehicle (SUV) car • Multi utility vehicle (MUV) car By Application Type: • Leisure/Tourism • Business The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Car Rental industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.