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Car Rental in Australia Industry Data and Analysis
The Car Rental industry has experienced pronounced revenue swings in recent years. The industry’s performance rebounded sharply in 2021-22 and 2022-23 from pandemic-era collapses as air travel and tourism recovered. Air passenger movements and international arrivals have risen sharply, boosting demand from tourists relying on rental cars for airport transfers, regional touring and self-drive holidays. Fleet shortages linked to global vehicle supply chain disruptions and semiconductor constraints have tightened vehicle availability, pushing up average daily rates and lifting revenue per vehicle. Higher prices have supported revenue but also risked pushing price-sensitive travellers towards substitutes like car-sharing, public transport and organised tours. Conditions have softened more recently, with revenue expected to fall 1.3% in 2025-26 as demand normalises and competition intensifies. Overall, industry revenue is expected to have surged at an annualised 8.0% over the five years through 2025-26 to $1.48 billion.
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What's included in this industry analysis
IBISWorld's research coverage on the Car Rental industry in Australia includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released March 2026.
About this industry
What's this industry report about?
The Car Rental industry in Australia operates under the ANZSIC industry code OD5485. Industry firms rent out cars. The industry includes car rental companies that also rent out trucks, vans and buses. Related terms covered in the Car Rental industry in Australia include suv, aggregator websites and hybrid.
What's included in this industry?
Products and services covered in Car Rental industry in Australia include Small passenger cars, Medium and large passenger cars and Trucks.
What companies are included in this industry?
Companies covered in the Car Rental industry in Australia include Hertz, Avis Australia and Europcar.
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 Australia.
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 Australia.
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 Australia.
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 Australia. 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 Australia. 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 Australia. 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 Australia. 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 Australia.
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Frequently Asked Questions
What is the market size of the Car Rental industry in Australia in 2026?
The market size of the Car Rental industry in Australia is $1.5bn in 2026.
How many businesses are there in the Car Rental industry in Australia in 2026?
There are 1,664 businesses in the Car Rental industry in Australia, which has grown at a CAGR of 2.9 % between 2021 and 2026.
How may import tariffs affect the Car Rental industry in Australia?
The Car Rental industry in Australia 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 Australia?
The Car Rental industry in Australia 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 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 8.0 % between 2021 and 2026.
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 industry in Australia?
The biggest companies operating in the Car Rental industry in Australia are Hertz, Avis Australia and Europcar
What does the Car Rental industry in Australia include?
Medium and large passenger cars and Small passenger cars are part of the Car Rental industry in Australia.
Which companies have the highest market share in the Car Rental industry in Australia?
The company holding the most market share in the Car Rental industry 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.
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