Review of The U S Car Rental Market in 2025: Key Players and Implications for Vendors headed into 2026.

Khalil Saddiq
Nov 2
4 min read

Market Snapshot: The Big Picture

The U.S. car-rental sector is proving its resilience. The market was valued at approximately US $37.9 billion in 2024 and is forecast to grow at a compound annual growth rate (CAGR) of ~7.5% through 2030.

What’s driving this?

Strong leisure travel recovery and hybrid/remote work patterns breathing new life into short-term rentals.
A shift in booking behavior: online reservations dominate, with digital platforms accounting for around 70% of booking volume.
Fleet evolution: more SUVs, luxury models, and emerging electric-vehicle (EV) deployment — demanding new operations systems.

For vendors and third-party operators (like those working airport lots, shuttles, rapid turn operations), this means both opportunity and risk: higher demand equals more volume—but also more scrutiny, tighter margins, and fewer blind spots.

Major Players: Who’s Leading and Why

The US rental world is still dominated by a handful of major brands and holding companies.

Enterprise Holdings

The largest player by fleet size and footprint, with locations in thousands of sites.
Strengths: deep operational infrastructure (airport + off airport), strong brand loyalty, broad vehicle portfolio.
For vendors: aligning with Enterprise’s system means hitting high benchmarks for readiness, reliability, and structured throughput.

Avis Budget Group

Holds a substantial share of the U.S. market and is pushing hard on technology and membership programs.
Strengths: digital booking/management, brand recognition, EV ambition.
For vendors: this means your clients may demand higher data visibility, tighter metrics, and faster turn times.

Hertz Global Holdings

Once a leader, now facing headwinds: fleet cost pressures, EV strategy issues, residual-value erosion.
Warning sign for vendors: when a major client publicly struggles, it often translates into cost pressures issued downstream (floors/tiers, vendor audits, renegotiations).

Technology & Marketplace Shifts You Can’t Ignore

As a vendor coach, you’re well-positioned to see what many operators miss:

Data and Visibility Are Table Stakes

Online booking dominance means digital value chains: reservations → dispatch → fleet movement → turn-line → client KPI.
If your dispatch/prep systems operate in silos, you become a blind spot.
Market data: enterprise + Avis market share >40% indicate scale matters when systems are smooth.

Fleet Complexity Is Increasing

SUVs, premium models, EVs — each add a layer of operational complexity: charging, longer prep times, higher scrutiny.
Clients expect vendors to absorb those complexities without demand for commensurate margin increases.

Customer Experience & Loyalty Matter More

Business-vs-leisure mix shifting; loyalty programs (for example at Avis and Enterprise) are key retention levers.
Vendors who deliver delay-free, clean, ready inventory support their clients’ loyalty efforts.

Consolidation and Cost Pressure

The large players leverage economies of scale, vertical integration (fleet sales, servicing), and technology.
Smaller or mid-tier operators risk margin squeeze unless they deliver operational excellence that aligns with major client standards.

Who’s Winning — And Why

Winning Traits

High visibility operations: vendors who show real-time readiness, turn-line metrics, dispatch accuracy win.
Data-driven communication: clients want dashboards not excuses.
Workforce stability + training systems: consistent staffing reduces delays and supports client contract retention.
Adaptation to fleet complexity: prepping EVs, premium models, high-volume airport operations with no hiccups.

Examples

Enterprise: Leveraging scale, loyalty programs, off-airport network to soften airport cost pressures.
Avis Budget Group: Leveraging digital systems + EV ambition — vendors linked to Avis must match speed and flexibility.

Who’s Losing — And Why

Warning Signs for Vendors

Blind dispatch: no data on start/complete times, no visibility into prep backlog.
Prep bottlenecks: too many vehicles arriving without capacity to turn them, leading to idle inventory and client frustration.
Poor tech integration: legacy systems alone won’t survive client audits, or the data demands of major brands.
Workforce churn: high turnover means quality issues, inconsistency, and higher risk of fines/contract loss.

Case in point

In the public market, Hertz’s faltering results show what happens when fleet & cost moves aren’t matched by frontline execution.
A vendor at major airport reporting recurring readiness delays? You’re in the “losing zone” unless you change systems.

What That Means for You as a Vendor—or Vendor Coach

Align with client standards: Major brands are moving from “vendor as pass-through supplier” to “vendor as operational partner.”
Build visibility systems: Simple manual pilots (with timestamp tracking, hourly inventory snapshots) lead to dashboards that impress clients.
Measure what matters: On-Time %, prep time by class, idle inventory counts — these metrics matter more than just ‘how many moves did we make’.
Raise your value not just your volume: The premium today is fast, clean, ready - not just more cars moved.
Prepare for contract reviews: Large clients will audit vendor performance more deeply; your system readiness is part of your pitch.

Final Word

In the U.S. car-rental industry today, volume is no longer the only lever. The winning game is flow, supply-chain clarity, and data visibility. For vendors and operator partners, the path to contract retention and margin stability lies in aligning with the highest performing brands — by delivering clarity, compliance, and performance.

At 901 Consulting we help you build that alignment: making dispatch visible, prepping predictable, and performance measurable.

If you’re ready to turn your “moving cars” operation into a “trusted partner” operation, let’s talk. Contact us info@901consulting.net or explore our 30-for-30 Health Check and visibility framework, www.901consulting.org