Car Rental in Canada - Industry Market Research Report

Behind the wheel: Industry growth will be bolstered by growth in personal income

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. 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. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.