The Car Rental industry in Australia has exhibited very high volatility over recent years, with revenue recovering strongly from steep slumps during the pandemic. Air passenger movements and international travel to Australia have risen sharply, heightening demand as tourists rent cars for their stay. Fleet shortages resulting from vehicle supply chain issues have raised the average daily rates for rental cars. These price hikes can support revenue but also steer consumers away to alternatives. Ride-sharing services and price-comparison websites have become increasingly popular, which has created intense price competition. This has forced car rental companies to keep their prices in check to maintain market share, eroding profitability. Revenue is expected to have climbed at an annualised 1.0% over the five years through 2024-25 to $1.49 billion, with no expected change anticipated in 2024-25. Major players like Hertz and Avis dominate the Car Rental industry, which is highly concentrated. Smaller players struggle to capture market share since there are significant entry costs and it’s difficult to become entrenched in airports, which is essential for success. Consumer preferences have shifted from smaller passenger vehicles to medium and large ones because of their space and versatility. Car rental businesses are mainly located in high-population states and popular tourist destinations, as this provides easy access to customers. Looking ahead, economic recovery and expanded aviation routes between Australian cities and South-East Asia will drive increased international travel, benefiting industry demand. Price competition from aggregator websites and the rising popularity of substitutes will continue to pressure the industry, tempering rental prices. Car rental companies will keep developing their digital platforms, providing consumers with a more seamless hiring process. Revenue is forecast to climb at an annualised 2.4% over the five years through 2029-30 to $1.67 billion.

We asked Australian consumers about "Car rental bookings by brand" and found that ******** takes the top spot, while **************** is at the other end of the ranking.These results are based on a representative online survey conducted in 2025 among 560 consumers in Australia.

The Australia car rental market size was valued at USD 3.62 Billion in 2024. The market is further projected to grow at a CAGR of 2.20% between 2025 and 2034, reaching a value of USD 4.50 Billion by 2034.

Australia Recreational Vehicle Rental Market is segmented by Rental Supplier Type (Private/Individual Owners and Fleet Operators), by Booking type (offline booking and online booking), and by Product type (Caravans and Motorhomes). The report offers market size and forecast in value (USD Million) for all above segments.

The Passenger Car Rental and Hiring industry has bounced back in recent years after COVID-19 disruptions challenged its operations. The pandemic significantly restricted international and domestic movement, leading to far less traffic through capital city airports and reduced general spending on car rentals because of lockdowns. Despite this, recent rising levels of short-term car renting, the growing popularity of innovative car-sharing services and steady government demand for fleet leasing have acted to counteract the slump. Overall, revenue is expected to have increased at an annualised 0.9% over the five years through 2024-25 to $3.8 billion, which includes an anticipated 0.5% drop in 2024-25. Despite a volatile operating environment, the industry’s profitability has grown over the past five years. Companies’ effective deployment and continued development of online booking platforms, payment systems and mobile apps that improve the rental process have supported margins. This, combined with major car rental companies’ adoption of dynamic pricing models, has reduced operational costs and strengthened industry profitability. The industry has also benefited from shrinking depreciation costs because companies have reduced their fleet sizes in response to the pandemic and decreased demand. Companies have increased their marketing and R&D investments to improve the customer experience, incorporate new technology and differentiate themselves in a competitive market, resulting in a spike in innovation. Looking ahead, rising immigration and tourism are set to bolster spending on industry services, especially short- and long-term car rentals. Business confidence is forecast to improve, stimulating private sector expansion and investment. Even so, car sharing, as opposed to conventional leasing and renting, will reshape the industry’s landscape and create more competition for traditional car renting, limiting growth. To adapt to a shifting competitive landscape, traditional rental companies will adopt digital platforms and subscription-based services and integrate flexible rental options, focusing on convenience. Revenue is forecast to climb at an annualised 1.5% over the five years through 2029-30 to $4.1 billion.

SIXT Australia (NRMA):Accelerating EV adoption supported by access to NRMA charging infrastructure; promoting road-trip and leisure bundles; broadening SME agreements using salary-packaged and subscription-style offers. Enterprise Rent-A-Car (incl. Redspot):Leveraging global corporate accounts into Australia; widening presence at off-airport business parks for weekday demand; building rideshare-ready weekly packages in major cities. Europcar Australia:Pushing premium and SUV categories at gateway airports; scaling corporate mid-term offers for project and relocation use cases; enhancing loyalty integrations and OTA connectivity to raise international capture.

Car Rental Market in Australia like Market share leading companies Australia Cab Aggregators, Hertz Investment (Holdings) Pty Limited Fleet Size online at Ken Research

In 2024, the arpu in the 'Car Rentals' segment of the shared mobility market in Australia was modeled to amount to ****** U.S. dollars. Between 2017 and 2024, the figure dropped by ***** U.S. dollars, though the decline followed an uneven course rather than a steady trajectory. From 2024 to 2030, the arpu will rise by ***** U.S. dollars, showing an overall upward trend with periodic ups and downs.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

Market Size statistics on the Car Rental industry in Australia

Leveraging AI & Analytics:AI-driven pricing, demand sensing, and fleet rebalancing will become standard. Models ingest aviation schedules, event calendars, weather, and road conditions to set rates, forecast length-of-rental, and position vehicles ahead of peaks. Telematics and computer vision enhance preventative maintenance, EV energy planning, and damage adjudication. For corporate mobility, analytics will quantify utilization, idle time, and emissions, enabling evidence-based renewal decisions and outcome-linked contracts that improve total cost of mobility and user experience. Expansion of Sector-Specific Programs:Specialized solutions will scale across distinct demand pools: (i) Corporate & government—novated and operating leases with bundled maintenance and charging; (ii) Insurance replacement—short-cycle rentals integrated with repairer networks and claim systems; (iii) Rideshare driver packages—weekly EV/HEV bundles with mileage and downtime protections; (iv) Projects & regional—4×4/ute fleets for resources, construction, and events. Expect tailored SLAs, fit-for-purpose vehicles, and location-specific logistics (regional airports, fly-in/fly-out corridors). Focus on Outcome-Based Mobility:Large enterprise, government, and insurance partners are demanding measurable outcomes from mobility spend. Procurement will weight KPIs such as on-time vehicle availability, turnaround time, EV uptime, damage ratio, and customer recovery time after disruptions. Contracts will increasingly embed service credits/bonuses, API-level data sharing, and auditable compliance (consumer law disclosures, privacy, add-on products). This pushes operators to standardize processes, elevate fleet health monitoring, and align pricing with verified performance.

Comprehensive dataset of 103 Car rentals in Australia as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.

Major urban centres such as Sydney, Melbourne, and Brisbane dominate market activity due to dense corporate and business travel demand, high tourist footfall, and well-developed airport infrastructures that favour large-scale rental fleets and leasing operations. In addition, vast regional and rural zones, particularly over in Queensland and Western Australia, bolster vehicle demand for remote travel, holidays, and mining‑sector mobility. These hubs benefit from both concentrated economic activity and essential connectivity, creating unmatched market traction. The Australia car rental and leasing market is valued at AUD 3.4 billion (total rental + leasing) for the most recent full-year estimate. This figure is grounded in industry‑level data rather than extrapolation. The market expansion has been propelled by surging inbound tourism and recovering domestic travel following easing of mobility restrictions, alongside rising popularity of novated leases and flexible rental formats. Together, these have driven both short‑term hires and medium‑/long‑term lease options, underpinning substantial revenue resilience across segments. Australia Car Rental and Leasing Market Overview and Size

The Australia recreational vehicle rental market size is projected to grow at a CAGR of 6.95% between 2025 and 2034.

Car Rental (hiring of a passenger vehicle for self drive, which includes cars and small vans, by both business and leisure travelers for short term duration; excluding leasing and long term rentals) market has evolved intensely in the very recent years and is also expected to evolve in similar fashion in the near future. The report Car Rentals (Self Drive) Market in Australia to 2022: Fleet Size, Rental Occasion and Days, Utilization Rate and Average Revenue Analytics provides deep dive data analytics on wide ranging Car Rental market aspects including overall market value by customer type – Business and Leisure, by point of rental – Airport and Non-Airport, Insurance / Temporary Replacement Revenue, Car Rental Occasion, Days and Length for the period 2013 to 2017. Read More

This report covers Australia Cab Aggregator Market, Australia Ride Hailing Market, Car Rental Space in Australia, Car Leasing Industry of Australia, How Ola Entered Australia.

By Service Type:The Australia car rental & leasing market is segmented into short-term rentals and long-term leasing, including novated leases. Short-term rental holds a dominant share at around 65 %, owing to strong demand from tourists and business visitors who require flexibility and convenience for short durations. The prevalence of airport-based rental outlets, digital booking platforms, and competitive pricing further reinforce the preference for short-term rentals. Long-term leasing, although smaller at around 35 %, is gaining traction with novated lease schemes common among corporate and government employees seeking tax-efficient vehicle access. These arrangements appeal to individuals prioritizing cost predictability and access to newer models through structured lease contracts. Australia Car Rental and Leasing Market Segmentation EV FBT exemption rules:The Electric Car Discount exempts eligible EVs from FBT when first “held and used” on or after 1 July 2022, subject to the LCT fuel-efficient threshold test; associated car expenses including registration, insurance, repairs, and electricity are also exempt when linked to the eligible car. For plug-in hybrids, the exemption ceases from 1 April 2025, except where a binding commitment and prior use existed before that date. These dated, numeric tests are central to novated EV programs run by fleet lessors for employer clients.

Snapshot img

Self Drive Market Size 2025-2029

The self drive market size is forecast to increase by USD 2.36 billion, at a CAGR of 30.6% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. One notable trend is the increasing interest in self-driving vehicles, which offer travellers greater convenience and flexibility. Another trend is the integration of telematics technology in self-drive car rentals, enabling real-time vehicle tracking and monitoring. However, the high cost of self-driving car rentals remains a challenge for market growth. Despite this, the market is expected to continue expanding as technology advances and becomes more affordable. The use of telematics in self-drive car rentals offers numerous benefits, such as improved safety, reduced insurance costs, and enhanced customer experience. 
Car rental services cater to intercity and intracity travel, offering inexpensive alternatives to private automobiles for tourists and business travellers alike. However, the high initial investment required for implementing telematics technology and the high cost of self-driving vehicles are major obstacles for market growth. Overall, the self-drive car rental market is poised for growth, driven by the increasing popularity of self-driving vehicles and the integration of telematics technology.

What will be the Size of the Self Drive Market During the Forecast Period?

Request Free Sample

The market represents a significant and dynamic sector within the global mobility industry. This market caters to both tourism and commuting needs, offering short-term and long-term rental options for various vehicle types, including hatchbacks, sedans, SUVs, MUVs, and standard, and luxury models. The market is organized and unorganized, with both online and offline channels serving customers' diverse preferences. Millennials, as a major demographic, are driving growth In the market due to their increasing demand for flexible, cost-effective, and convenient mobility solutions. The market's size is substantial, with millions of transactions occurring annually, especially at airports and tourist destinations.
Mobility infrastructure plays a crucial role In the market's development, with Wi-Fi networks, entertainment systems, GPS systems, and insurance plans enhancing the rental experience. The market's direction is towards greater customization and integration of technology, enabling customers to easily compare prices, book vehicles, and manage their rentals online. The market's continued expansion is driven by the evolving needs of consumers, who seek efficient, flexible, and affordable mobility solutions.

How is this Self Drive Industry segmented and which is the largest segment?

The self drive industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Vehicle Type

  Economic cars
  Luxury cars


Mode Of Booking

  Offline
  Online


Type

  Short-term rentals
  Long-term rentals


Application

  Leisure and vacation travel
  Corporate and business use
  Airport rentals
  Intercity and intracity rentals
  Subscription and leasing services


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Vehicle Type Insights

The economic cars segment is estimated to witness significant growth during the forecast period. Self-drive car rentals, particularly those offering economic cars, have gained significant traction in both the tourism and commuting sectors. Millennials, in particular, prefer this mobility option due to its convenience and affordability. Online and offline channels, including websites, mobile applications, and e-booking services, facilitate easy booking. New-age startups have disrupted the car rental sector with custom services, after-sale support, and complementary offerings such as Wi-Fi networks, entertainment systems, and GPS systems. The organized market dominates, but the unorganized sector also plays a role, especially in rural areas. Short-term and long-term rental options cater to various consumer needs. Tourists, service professionals, and corporate offices are significant consumers.

The tourism sector, with international, tourist, and foreign tourist arrivals, drives demand for car rentals at tourist destinations. National highways and road transportation infrastructure development further boost the market. Insurance options are crucial for consumers. Self-drive car rental services offer a range of ownership and lease contracts, allowing customers to choose based on their requirements. Companies provide a diverse car portfolio, including hatchbacks, sedans, SUVs,

The Australian recreational vehicle (RV) rental market, valued at approximately $150 million in 2025, is experiencing robust growth, projected to maintain a compound annual growth rate (CAGR) of 11.5% from 2025 to 2033. This expansion is fueled by several key factors. Increasing disposable incomes among Australians, coupled with a growing preference for experiential travel and outdoor activities, is driving demand for RV rentals. The rise of online booking platforms offers greater convenience and transparency, further stimulating market growth. Furthermore, the diversification of RV types available for rent, including caravans and motorhomes catering to various needs and budgets, contributes to market expansion. The popularity of road trips and exploring diverse landscapes across Australia enhances the appeal of RV rentals, especially among younger demographics and families. However, the market also faces certain challenges. Fluctuations in fuel prices and the overall economic climate can impact consumer spending on leisure travel. Seasonal variations in demand, with peak seasons experiencing higher rental rates and limited availability, present operational complexities for rental companies. Addressing sustainability concerns within the RV rental industry, such as waste management and environmental impact, is becoming increasingly important and presents both a challenge and an opportunity for innovative businesses. Competition among established players and the emergence of new entrants will continue to shape market dynamics. The market segmentation, with private/individual owners alongside fleet operators, and the mix of online and offline booking methods, also plays a significant role in overall market performance and competition. Continued innovation in vehicle design, technology integration within rentals (e.g., booking apps, GPS navigation), and improved customer service will be crucial for companies to thrive in this competitive yet expanding market. Recent developments include: May 2023: RedSands Campers and Roev, an electric vehicle (EV) conversion company, unveiled a partnership aimed at developing Australia's inaugural fully electric 4WD camper tailored for the recreational hire sector. RedSands specializes in offering 4WD Campers and 4WD vehicles to the inbound tourism sector, with depots located in Western Australia, the Northern Territory, and South Australia., April 2022: Hyundai forayed into the RV market with the 4- and 11-seat Staria camper vans. Hyundai's Staria Lounge Camper 4 comes fully equipped with two beds, indoor and outdoor dining areas, an indoor kitchen, and a smart home control touchscreen.. Key drivers for this market are: Rising Tourism Activity Drive Demand in the Market. Potential restraints include: Rising Tourism Activity Drive Demand in the Market. Notable trends are: Rising Tourism Activity Drive Demand in the Market.

The car rental service market size is projected to reach a value of USD 3,09,703.4 million in 2024, at a CAGR of 7.3% from 2024 to 2034. Car rental service sales are likely to be USD 6,25,867.4 million by 2034.

Attributes	Description
Estimated Global Car Rental Service Market Size (2024E)	USD 3,09,703.4 million
Projected Global Car Rental Service Market Value (2034F)	USD 6,25,867.4 million
Value-based CAGR (2024 to 2034)	7.3%

Semi-annual Market Update

Particular	Value CAGR
H1	23.5% (2023 to 2033)
H2	-6.9% (2023 to 2033)
H1	8.8% (2024 to 2034)
H2	5.8% (2024 to 2034)

Country-wise Insights

Countries	CAGR 2024 to 2034
India	10.1%
Germany	2.4%
Spain	5.9%
Australia	5.8%
United States	3.7%
Canada	4.0%
China	9.3%

Category-wise Insights

Segment	Economy Cars (Car Type)
Value Share (2024)	32.4%

Segment	On-Airport (End Use)
Value Share (2024)	43.2%

Comprehensive dataset of 8 Car rental agencies in TAS, Australia as of July, 2025. Includes verified contact information (email, phone), geocoded addresses, customer ratings, reviews, business categories, and operational details. Perfect for market research, lead generation, competitive analysis, and business intelligence. Download a complimentary sample to evaluate data quality and completeness.