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Car Rental in Canada Industry Data and Analysis
The Canadian car rental industry is currently facing several challenges, despite a 2.2% climb in passenger traffic at key airports in 2025. Despite the boost in air travel, car rental revenue is dwindling, primarily attributed to changes in traveler behavior, including shorter stay durations and less frequent car rentals, alongside a growing attraction to ride-sharing and public transit. Industry giants like Avis Budget Group and Hertz traditionally derive substantial revenue from the airport market but are now retooling pricing strategies because of evolving traveler habits. Car rental companies are grappling with rising insurance and maintenance costs, driven by inflation, technological advancements in vehicles and increasing accident claims. Revenue is expected to climb at a CAGR of 5.2% to $6.2 billion through the end of 2025, despite a 3.6% drop in 2025, when profit will reach 8.4%. The gain in revenue through the end of 2025 can be mainly attributed to the high rental rates and strong utilization rental providers enjoyed in 2022 and 2023.
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What's included in this industry analysis
IBISWorld's research coverage on the Car Rental industry in Canada includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released November 2025.
About this industry
What's this industry report about?
The Car Rental industry in Canada operates under the NAICS industry code 53211CA. 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. Related terms covered in the Car Rental industry in Canada include airport rentals, car sharing, concession, off-airport and residual value.
What's included in this industry?
Products and services covered in Car Rental industry in Canada include Airport rental services, Off-airport rental services and Leasing services.
What companies are included in this industry?
Companies covered in the Car Rental industry in Canada include Enterprise Mobility, Avis and Hertz.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Car Rental industry in Canada.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Car Rental industry in Canada.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Car Rental industry in Canada.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Car Rental industry in Canada. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Car Rental industry in Canada. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Car Rental industry in Canada. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Car Rental industry in Canada. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Car Rental industry in Canada.
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Frequently Asked Questions
What is the market size of the Car Rental industry in Canada in 2026?
The market size of the Car Rental industry in Canada is $6.2bn in 2026.
How many businesses are there in the Car Rental industry in Canada in 2025?
There are 2,225 businesses in the Car Rental industry in Canada, which has grown at a CAGR of 2.9 % between 2020 and 2025.
How may import tariffs affect the Car Rental industry in Canada?
The Car Rental industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Car Rental industry in Canada?
The Car Rental industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Car Rental industry in Canada grown or declined over the past 5 years?
The market size of the Car Rental industry in Canada has been growing at a CAGR of 5.2 % between 2020 and 2025.
What is the forecast growth of the Car Rental industry in Canada over the next 5 years?
Over the next five years, the Car Rental industry in Canada is expected to grow.
What are the biggest companies in the Car Rental industry in Canada?
The biggest companies operating in the Car Rental industry in Canada are Enterprise Mobility, Avis and Hertz
What does the Car Rental industry in Canada include?
Airport rental services and Off-airport rental services are part of the Car Rental industry in Canada.
Which companies have the highest market share in the Car Rental industry in Canada?
The company holding the most market share in the Car Rental industry in Canada is Enterprise Mobility.
How competitive is the Car Rental industry in Canada?
The level of competition is high and increasing in the Car Rental industry in Canada.
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