$6.3bn
$XX.Xbn
12,116
1,992
$XXX.Xm
Car rental services have expanded at a steady rate over the five years to 2023. However, the industry still endured a significant decline in revenue in 2020 due to the COVID-19 pandemic. Despite this, the industry has performed well during most of the period. However, the number of air travellers, the industry's primary source of revenue, has decreased alongside losses in tourism expenditure. More travellers and increased spending on tourism before and after the pandemic has enabled industry revenue to grow during the period. Revenue is expected to grow at a CAGR of 1.3% to $6.0 billion through the end of 2023, including a 5.1% increase in 2023, when profit will reach 10.9%. This increase in 2023 can be mainly attributed to the recovering domestic economy after the adverse economic effects of the pandemic.During the period, the industry has continued to consolidate, leaving three dominant global brands, including Enterprise Holdings Inc. (Enterprise Holdings), Hertz Global Holdings Inc. (Hertz) and Avis Budget Group Inc. (Avis), with various degrees of strong market share. The industry has experienced several acquisitions over the past decade, including the acquisition of Dollar Thrifty by Hertz to gain market share in the leisure budget travel market. Additionally, since the number of car rental companies has expanded throughout 2023, so has the number of establishments. However, due to the pandemic, the average industry profit margin has still endured a decline from 2018.Rising domestic travel, bolstered by an expanding Canadian economy, is projected to increase demand for industry services over the five years to 2028. In addition to rising air travel, industry growth will likely be bolstered by growth in personal income and generous corporate travel budgets. As a result of these trends, industry revenue is expected to grow at a CAGR of 2.4% to $6.8 billion over the five years to 2028.
Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated $6.3bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Enterprise Holdings Inc. | 2,892.2 | 307.6 | 10.6 | |
Avis Budget Group Inc. | 1,342.9 | 542.6 | 40.4 | |
Hertz Global Holdings Inc. | 259.9 | N/A | N/A |
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Car Rental in Canada
Industry revenue is measured across several distinct product and services lines, including Airport rental services, Off-airport rental services and Leasing services. Airport rental services is the largest segment of the Car Rental in Canada.
Airport rental services are the industry's largest segment
Operators in the Car Rental industry in Canada rent and lease passenger cars without drivers, which are often used for short periods of time. Car rental agencies provide hearses, limousines and passenger cars, including automobiles, minivans and sport-utility vehicles (SUVs). Car rentals typically last 30 days or fewer, while leasing agreements typically last 12 months or longer. The industry excludes the rental or leasing of cars with drivers.
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NAICS 53211 - Car Rental in Canada
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The industry has faced recent challenges like the pandemic and increased competition. However, domestic travel resurgence, economic recovery, market diversification have boos...
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Demand from business travellers still sits below pre-pandemic levels. Business travel is not anticipated to fully recover from lows endured in 2020 until late during the outl...
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Companies near popular tourist spots will enter agreements to offer specialized rental units for their business activities.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
The accelerating popularity of ride-share platforms has directly threatened car rental services. Ride-sharing makes accessing a ride simple with a mobile device and typically...
Learn about the performance of the top companies in the industry.
Large companies are increasingly relying on technology to remain competitive amid intense competition. Large car-renting establishments are using new technologies to differen...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The number of travellers is crucial to the growth of Canadian car rental companies. More people travelling expands demand for car rental services.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Purchases remain one of the highest cost for car rental companies. Partnerships and contracts with suppliers help ease expenses.
Including values and annual change:
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Key data sources in Canada include:
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These sources include:
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The market size of the Car Rental industry in Canada is $6.3bn in 2024.
There are 1,992 businesses in the Car Rental industry in Canada, which has grown at a CAGR of 1.4 % between 2019 and 2024.
The market size of the Car Rental industry in Canada has been growing at a CAGR of 0.5 % between 2019 and 2024.
Over the next five years, the Car Rental industry in Canada is expected to grow.
The biggest companies operating in the Car Rental market in Canada are Enterprise Holdings Inc. , Avis Budget Group Inc. and Hertz Global Holdings Inc.
Passenger car rental and Passenger car leasing are part of the Car Rental industry.
The company holding the most market share in Canada is Enterprise Holdings Inc. .
The level of competition is high and increasing in the Car Rental industry in Canada.