Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.0 % over the past five years, to reach an estimated $1.5bn in 2024.
Trends and Insights
Fleet supply chain issues are raising rental prices
- Companies in the Car Rental industry source vehicles from motor vehicle wholesalers. They're heavily reliant on global supply chains, which have faced significant supply shortages and delays amid a shortage of microchips, which are essential in vehicle production. These supply chain issues have resulted in vehicle demand outstripping supply, boosting costs.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Increasing international arrivals to Australia will drive demand for car rentals
- International travel to Australia will continue to increase, helping to boost revenue for the Car Rental industry. Rental car companies stand to benefit from the influx of overseas visitors needing transportation.
Biggest companies in the Car Rental in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Hertz | 384.2 | |
Avis Australia | 353.2 | |
Europcar | 283.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Small passenger cars, Medium and large passenger cars and Trucks. Small passenger cars is the largest segment of the Car Rental in Australia.
Trends and Insights
Consumer preferences have shifted towards medium and large passenger cars, boosting their popularity
- The medium and large passenger car segment generates the most revenue for the Car Rental industry. This segment includes cars with large engine capacities and boot spaces, like large sedans, people movers and SUVs.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry firms rent out cars. The industry includes car rental companies that also rent out trucks, vans and buses.
What's included in this industry?
Medium and large passenger carsSmall passenger carsTrucks VansBusesCompanies
HertzAvis AustraliaEuropcarPurchase this report to view all 4 major companies in this industry.
Related Terms
SUVAGGREGATOR WEBSITESHYBRIDIndustry Code
ANZSIC 6611 - Car Rental in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Fleet shortages resulting from global supply chain disruptions have led to higher average daily rates for rental cars. These increases can boost revenue but may also shift cu...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consumer preferences have shifted towards SUVs and large passenger vehicles. Small passenger car rentals have waned as medium and large vehicles, including SUVs, have surged ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The location of car rental establishments generally follows Australia’s population distribution. Establishing business locations according to population densities ensures eas...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
High start-up costs and the need for continual capital investment present significant barriers to entry. New entrants must purchase or lease a fleet of vehicles, develop digi...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Hertz rebounded strongly after significant financial challenges during the pandemic. The company emerged from bankruptcy in July 2021, recovering as restrictions eased and in...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Hertz's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Avis Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Europcar's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Hertz, and factors influencing its performance in the industry
- Description and key data for Avis Australia, and factors influencing its performance in the industry
- Description and key data for Europcar, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Air passenger movements and international travel to Australia are crucial for the Car Rental industry’s revenue. Rental establishments are often located in airports and benef...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages have fallen as the industry shifts towards digital rentals. The adoption of mobile applications and websites has reduced the need for labour-intensive in-person rental ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Car Rental industry in Australia in 2024?
The market size of the Car Rental industry in Australia is $1.5bn in 2024.
How many businesses are there in the Car Rental in Australia industry in 2024?
There are 1,662 businesses in the Car Rental industry in Australia, which has grown at a CAGR of 1.0 % between 2019 and 2024.
Has the Car Rental industry in Australia grown or declined over the past 5 years?
The market size of the Car Rental industry in Australia has been growing at a CAGR of 1.0 % between 2019 and 2024.
What is the forecast growth of the Car Rental industry in Australia over the next 5 years?
Over the next five years, the Car Rental industry in Australia is expected to grow.
What are the biggest companies in the Car Rental market in Australia?
The biggest companies operating in the Car Rental market in Australia are Hertz, Avis Australia and Europcar
What does the Car Rental in Australia include?
Medium and large passenger cars and Small passenger cars are part of the Car Rental industry.
Which companies have the highest market share in the Car Rental in Australia?
The company holding the most market share in Australia is Hertz.
How competitive is the Car Rental industry in Australia?
The level of competition is moderate and steady in the Car Rental industry in Australia.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Passenger Car Rental and Hiring in Australia
Complementors
- General Insurance in Australia
- Transport Equipment and Large Vehicle Rental in Australia
International industries
- Car Rental in the US
- Car Rental in Canada
- Passenger Car Rental and Hiring in New Zealand
- Car Rental & Leasing in the UK
- Vermietung von Pkw
View all industries in Australia
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
