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What is the market size of the car rental industry in Australia?
The car rental industry in Australia generated AUD $1.49 billion in revenue in 2024. When leasing is included, the total industry size (rental+leasing) reached AUD $3.4 billion in 2023.
How has the Australian car rental market grown over the years?
- The market saw steady growth from 2016 to 2019, with revenue increasing from AUD $1.3 billion in 2016 to AUD $1.43 billion in 2019.
- Due to COVID-19, revenue declined in 2020 to AUD $0.8–0.9 billion, reflecting a severe drop in demand and limited international visitors.
- The industry began recovering in 2021 (AUD $1.0 billion) and reached pre-pandemic levels by 2023 (AUD $1.4 billion).
- In 2024, the market stands at AUD $1.49 billion, showing an average annual growth of approximately 0.8% since 2019.
How many car rental companies operate in Australia?
As of 2024, there are 1,629 car rental businesses in Australia. This represents an 8% increase from 2022 (1,508 companies). The estimated number of companies in 2025 is 1,662 (IBISWorld 2024).
How large is the total rental car fleet in Australia?
Over 90,000 cars are in the rental fleet in Australia as of 2024.
- The total fleet size peaked at 100,000 vehicles in 2019 before declining due to COVID-19.
- Fleet numbers fell to 73,400 in 2020 and gradually increased to over 90,000 in 2024.
- By late 2024, rental car availability has mostly normalised, but demand trends continue to impact pricing.
Car Rental Demographics in Australia: Who rents cars the most?
What is the age demographic of car renters in Australia?
The 25-34 age group accounts for the largest share of renters, making up 28% of all car rentals in 2024.
- People aged 55 and older (55-64 and 65+ years old) make up 20% of renters, highlighting a portion of older adults utilising rental services.
What is the gender distribution of car renters in Australia?
The car rental industry in Australia remains male-dominated, with 70% of renters being male and 30% female (IBISWorld 2024). However, female renters have steadily increased over the past decade.
What are the most common reasons for renting a car in Australia?
- Leisure travel & road trips: The top reason for car rentals in Australia, especially among domestic and international tourists.
- Business travel: A major contributor, with professionals renting cars for work-related travel.
- Insurance replacements: Many rentals occur when customers’ personal vehicles are being repaired.
- Avoiding wear and tear on personal vehicles: Around 23% of renters choose to rent instead of using their own car for long-distance trips.
- Trying a different or premium vehicle: About 19% of renters prefer a rental for a luxury experience or specific needs.
What are the top car rental companies in Australia?
Hertz is the leading car rental company in Australia with a market share of 25.6% and revenue of AUD $384.2 million in 2024.
- Avis is second on the list with AUD $353.2 million revenue and a market share of 23.5%.
| Major Car Rental Companies in Australia | ||
|---|---|---|
| Company | Market Share (%) | Revenue (AUD million) |
| Hertz | 25.6% | 384.2 |
| Avis | 23.5% | 353.2 |
| Europcar | 18.9% | 283.3 |
| Budget | 15.2% | 227.5 |
| Sixt | 10.1% | 151 |
How much does it cost to rent a car in Australia?
The average daily rate for a mid-size car in Australia is around AUD $90 to $120 in 2024.
- Price changes are seen during peak holiday times, with rates up to AUD $150+ per day for SUVs or larger vehicles.
- Airport rental fees are typically higher due to premium location charges.
- The average weekly rental cost was AUD $725 in 2024, up 8.6% from 2023 (AUD $667).
- Insurance add-ons such as full damage waivers, can cost an additional AUD 20-30 per day.
Do rental cars in Australia have cameras?
- Rental cars typically include rear-view cameras as part of modern safety features.
- Some may have dash cams for incident recording, but these only capture external footage.
- No rental company installs surveillance cameras inside vehicles due to privacy laws.
- Many vehicles have GPS tracking for fleet management.
More Statistics
How long do rental companies keep their cars before selling them?
- Major rental companies keep vehicles for 12–18 months before selling them as ex-rentals.
- Budget rental agencies may keep vehicles for up to 3 years.
- Due to vehicle shortages during 2020–2022, some companies temporarily extended fleet ages.
What is the future of the car rental industry in Australia?
- The industry is projected to grow at an annual rate of 3.5% through 2025.
- Tourism recovery will drive demand, particularly from international visitors.
- Expansion of electric vehicles (EVs): More rental companies are adding EVs to their fleets.
- Increase in car-sharing models: Platforms like Uber Carshare and Turo are disrupting traditional rentals.
- AI-driven pricing and digital self-service check-ins will enhance efficiency and reduce wait times.
References
- Australian Car Rental Market Size and Growth Report 2024 · ibisworld.com
- Australian Rental Fleet Vehicle Purchases Data 2024 · fcai.com.au
- Car Rental Usage and Preferences Survey 2024 · canstarblue.com.au
