Australia Car Rental & Mobility Services Market

Australia car rental & mobility services market, valued at AUD 3.8 billion, is growing due to tourism, business travel, and EV incentives, focusing on flexible options and sustainability.

Region:Asia

Author(s):Rebecca

Product Code:KRAB5860

Pages:88

Published On:October 2025

About the Report

Base Year 2024

Australia Car Rental & Mobility Services Market Overview

  • The Australia Car Rental & Mobility Services Market is valued at approximately AUD 3.8 billion, based on a five-year historical analysis. This growth is primarily driven by a robust rebound in both domestic and international tourism, increased business travel, and a rising demand for flexible transportation options among consumers. The market has seen a notable uptick in rental services, especially in urban centers, as individuals increasingly opt for rental vehicles over ownership due to convenience, cost-effectiveness, and the availability of digital booking platforms .
  • Key cities such as Sydney, Melbourne, and Brisbane continue to dominate the market, reflecting their roles as major tourist destinations and business hubs. The concentration of airports and commercial districts in these cities drives a high volume of car rental transactions, making them central to overall market dynamics. The presence of multiple rental service providers in these regions further intensifies competition and enhances service availability .
  • The Electric Car Discount Act 2022, issued by the Parliament of Australia, introduced targeted incentives for electric vehicle (EV) adoption, including fringe benefits tax exemptions for eligible EVs. This policy encourages car rental companies to expand their EV fleets, supporting the national target of 30% of new vehicle sales being electric by 2030. Rental operators are increasingly aligning with these sustainability goals by integrating more EVs into their offerings .
Australia Car Rental & Mobility Services Market Size

Australia Car Rental & Mobility Services Market Segmentation

By Service Type:The service type segmentation includes a diverse range of rental options tailored to evolving consumer needs. Short-term airport rentals remain the most popular among travelers seeking immediate convenience, while city/off-airport rentals attract both local residents and tourists. Corporate operating leasing and novated leasing are favored by businesses for their flexibility, fleet management, and cost control. Subscription services are gaining momentum as consumers seek flexible, commitment-free alternatives to traditional vehicle ownership, reflecting broader shifts toward mobility-as-a-service .

Australia Car Rental & Mobility Services Market segmentation by Service Type.

By Vehicle Class:The vehicle class segmentation highlights consumer preferences for different vehicle types. Economy and compact cars are most in demand due to their affordability and fuel efficiency. Mid-size vehicles are preferred by families and groups, while SUVs and crossovers are chosen for their versatility and suitability for both urban and regional travel. Vans and utes address commercial and group transport needs, and premium and luxury vehicles appeal to high-end clientele seeking comfort and status .

Australia Car Rental & Mobility Services Market segmentation by Vehicle Class.

Australia Car Rental & Mobility Services Market Competitive Landscape

The Australia Car Rental & Mobility Services Market is characterized by a dynamic mix of regional and international players. Leading participants such as Hertz Australia, Avis Australia, Budget Rent a Car, Europcar Australia, Thrifty Car Rental, Redspot Car Rentals, Sixt Australia, GoGet Carshare, Car Next Door, East Coast Car Rentals, Apollo Car Rentals, Jucy Rentals, Ace Rental Cars, Bayswater Car Rental, Alpha Car Hire contribute to innovation, geographic expansion, and service delivery in this space.

Hertz Australia

1967

Melbourne, Australia

Avis Australia

1955

Melbourne, Australia

Budget Rent a Car

1965

Melbourne, Australia

Europcar Australia

1949

Paris, France

Thrifty Car Rental

1958

Melbourne, Australia

Company

Establishment Year

Headquarters

Market Share (%)

Fleet Size

Revenue (AUD Million)

Fleet Utilization Rate (%)

Average Daily Rate (ADR)

Geographic Coverage (Number of Locations)

Australia Car Rental & Mobility Services Market Industry Analysis

Growth Drivers

  • Increasing Tourism and Travel Demand:In future, Australia is expected to welcome a significant number of international visitors, contributing to the car rental sector. The tourism industry is anticipated to generate substantial revenue, with a portion allocated to transportation services. This influx of tourists drives demand for rental vehicles, as visitors often prefer the flexibility of self-driving to explore diverse attractions across the country, enhancing the overall market growth.
  • Rise in Urbanization and Population Mobility:In future, urbanization in Australia is expected to continue, with major cities like Sydney and Melbourne experiencing significant population growth. This urban shift increases the need for efficient mobility solutions, including car rentals. Urban residents are more likely to utilize rental services, as they seek convenient transportation options to navigate congested urban environments, thus driving market expansion.
  • Growth of Ride-Sharing and Car-Sharing Services:The ride-sharing market in Australia is growing, reflecting a trend towards shared mobility solutions. This growth complements traditional car rental services, as consumers increasingly prefer flexible transportation options. The rise of platforms like Uber and GoGet encourages car rental companies to adapt their offerings, integrating car-sharing models to meet evolving consumer preferences, thereby enhancing market dynamics.

Market Challenges

  • Intense Competition Among Service Providers:The Australian car rental market is characterized by fierce competition among numerous service providers. Major players face pressure from emerging local firms and ride-sharing services. This competitive landscape leads to price wars, which can erode profit margins. In future, the average rental price is expected to stabilize, reflecting the need for differentiation through service quality and customer experience.
  • Regulatory Compliance and Safety Standards:The car rental industry in Australia is subject to stringent regulations, including safety standards and environmental compliance. In future, operators must adhere to emission regulations aimed at reducing carbon footprints, which may require significant investment in fleet upgrades. Compliance costs can impact operational efficiency, posing a challenge for profitability in the sector.

Australia Car Rental & Mobility Services Market Future Outlook

The future of the Australia car rental and mobility services market appears promising, driven by technological advancements and changing consumer preferences. The integration of electric vehicles into rental fleets is expected to gain momentum, aligning with sustainability goals. Additionally, the rise of subscription-based models will likely reshape consumer engagement, offering flexible options that cater to diverse mobility needs. As urbanization continues, the demand for innovative mobility solutions will further enhance market dynamics, fostering growth and adaptation in the industry.

Market Opportunities

  • Expansion of Electric Vehicle Rental Options:In future, the demand for electric vehicle rentals is set to rise as governments target sustainability goals. Rental companies have a significant opportunity to diversify their fleets and attract environmentally conscious consumers.
  • Development of Integrated Mobility Solutions:The trend towards integrated mobility solutions, combining public transport with car rentals, is gaining traction. In future, partnerships with public transport providers could enhance accessibility and convenience for users, potentially increasing rental service utilization. This integration will cater to the evolving needs of urban populations seeking seamless travel experiences.

Scope of the Report

SegmentSub-Segments
By Service Type

Short-term airport rentals

City/off-airport rentals

Corporate operating leasing

Novated leasing

Subscription services

By Vehicle Class

Economy & compact

Mid-size

SUVs & crossovers

Vans & utes

Premium & luxury

By Powertrain

Petrol

Diesel

Hybrid

Battery electric

Plug-in hybrid

By Tenure

Daily

Weekly

Monthly/mid-term

Long-term operating lease

Finance/balloon & novated

By End User

Leisure individuals

Corporate SME

Corporate enterprise

Government & public sector

Insurance replacement

Rideshare programs

By Booking Type

Online booking

Offline booking

By Region

NSW

VIC

QLD

WA

SA

TAS

ACT

NT

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Australian Competition and Consumer Commission, Department of Infrastructure, Transport, Regional Development and Communications)

Car Rental Fleet Operators

Automobile Manufacturers

Insurance Companies

Technology Providers (e.g., telematics and mobility software developers)

Tourism and Travel Agencies

Logistics and Delivery Service Providers

Players Mentioned in the Report:

Hertz Australia

Avis Australia

Budget Rent a Car

Europcar Australia

Thrifty Car Rental

Redspot Car Rentals

Sixt Australia

GoGet Carshare

Car Next Door

East Coast Car Rentals

Apollo Car Rentals

Jucy Rentals

Ace Rental Cars

Bayswater Car Rental

Alpha Car Hire

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Australia Car Rental & Mobility Services Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Australia Car Rental & Mobility Services Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Australia Car Rental & Mobility Services Market Analysis

3.1 Growth Drivers

3.1.1 Increasing tourism and travel demand
3.1.2 Rise in urbanization and population mobility
3.1.3 Growth of ride-sharing and car-sharing services
3.1.4 Technological advancements in fleet management

3.2 Market Challenges

3.2.1 Intense competition among service providers
3.2.2 Regulatory compliance and safety standards
3.2.3 Fluctuating fuel prices impacting operational costs
3.2.4 Economic downturns affecting consumer spending

3.3 Market Opportunities

3.3.1 Expansion of electric vehicle rental options
3.3.2 Development of integrated mobility solutions
3.3.3 Partnerships with local businesses for promotions
3.3.4 Increasing demand for sustainable transportation

3.4 Market Trends

3.4.1 Growth of subscription-based rental models
3.4.2 Adoption of mobile apps for seamless booking
3.4.3 Focus on customer experience and personalization
3.4.4 Integration of AI and data analytics in operations

3.5 Government Regulation

3.5.1 Emission standards for rental vehicles
3.5.2 Licensing requirements for operators
3.5.3 Insurance regulations for rental services
3.5.4 Safety regulations for passenger transport

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Australia Car Rental & Mobility Services Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Australia Car Rental & Mobility Services Market Segmentation

8.1 By Service Type

8.1.1 Short-term airport rentals
8.1.2 City/off-airport rentals
8.1.3 Corporate operating leasing
8.1.4 Novated leasing
8.1.5 Subscription services

8.2 By Vehicle Class

8.2.1 Economy & compact
8.2.2 Mid-size
8.2.3 SUVs & crossovers
8.2.4 Vans & utes
8.2.5 Premium & luxury

8.3 By Powertrain

8.3.1 Petrol
8.3.2 Diesel
8.3.3 Hybrid
8.3.4 Battery electric
8.3.5 Plug-in hybrid

8.4 By Tenure

8.4.1 Daily
8.4.2 Weekly
8.4.3 Monthly/mid-term
8.4.4 Long-term operating lease
8.4.5 Finance/balloon & novated

8.5 By End User

8.5.1 Leisure individuals
8.5.2 Corporate SME
8.5.3 Corporate enterprise
8.5.4 Government & public sector
8.5.5 Insurance replacement
8.5.6 Rideshare programs

8.6 By Booking Type

8.6.1 Online booking
8.6.2 Offline booking

8.7 By Region

8.7.1 NSW
8.7.2 VIC
8.7.3 QLD
8.7.4 WA
8.7.5 SA
8.7.6 TAS
8.7.7 ACT
8.7.8 NT

9. Australia Car Rental & Mobility Services Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Market Share (%)
9.2.3 Fleet Size
9.2.4 Revenue (AUD Million)
9.2.5 Fleet Utilization Rate (%)
9.2.6 Average Daily Rate (ADR)
9.2.7 Geographic Coverage (Number of Locations)
9.2.8 Electric Vehicle Fleet Percentage (%)
9.2.9 Customer Satisfaction Score
9.2.10 Digital Platform Adoption Rate (%)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Hertz Australia
9.5.2 Avis Australia
9.5.3 Budget Rent a Car
9.5.4 Europcar Australia
9.5.5 Thrifty Car Rental
9.5.6 Redspot Car Rentals
9.5.7 Sixt Australia
9.5.8 GoGet Carshare
9.5.9 Car Next Door
9.5.10 East Coast Car Rentals
9.5.11 Apollo Car Rentals
9.5.12 Jucy Rentals
9.5.13 Ace Rental Cars
9.5.14 Bayswater Car Rental
9.5.15 Alpha Car Hire

10. Australia Car Rental & Mobility Services Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government procurement policies
10.1.2 Budget allocation for transportation
10.1.3 Preference for local suppliers
10.1.4 Evaluation criteria for contracts

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in fleet upgrades
10.2.2 Budget for sustainability initiatives
10.2.3 Expenditure on technology integration

10.3 Pain Point Analysis by End-User Category

10.3.1 High rental costs for consumers
10.3.2 Limited availability of vehicles in peak seasons
10.3.3 Inconsistent service quality

10.4 User Readiness for Adoption

10.4.1 Awareness of mobility solutions
10.4.2 Acceptance of technology in rentals
10.4.3 Willingness to switch to electric vehicles

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of cost savings
10.5.2 User feedback for service improvement
10.5.3 Opportunities for upselling additional services

11. Australia Car Rental & Mobility Services Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market gaps identification

1.2 Value proposition development

1.3 Revenue model exploration

1.4 Customer segment targeting

1.5 Key partnerships and resources

1.6 Cost structure analysis

1.7 Competitive advantage assessment


2. Marketing and Positioning Recommendations

2.1 Branding strategies

2.2 Product USPs

2.3 Target audience engagement

2.4 Digital marketing initiatives

2.5 Customer loyalty programs


3. Distribution Plan

3.1 Urban retail strategies

3.2 Rural NGO tie-ups

3.3 Online vs offline distribution

3.4 Partnerships with travel agencies


4. Channel & Pricing Gaps

4.1 Underserved routes analysis

4.2 Pricing bands evaluation

4.3 Competitor pricing comparison


5. Unmet Demand & Latent Needs

5.1 Category gaps identification

5.2 Consumer segments analysis

5.3 Emerging trends exploration


6. Customer Relationship

6.1 Loyalty programs design

6.2 After-sales service enhancement

6.3 Customer feedback mechanisms


7. Value Proposition

7.1 Sustainability initiatives

7.2 Integrated supply chains

7.3 Unique service offerings


8. Key Activities

8.1 Regulatory compliance strategies

8.2 Branding initiatives

8.3 Distribution setup plans


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product mix considerations
9.1.2 Pricing band strategies
9.1.3 Packaging options

9.2 Export Entry Strategy

9.2.1 Target countries analysis
9.2.2 Compliance roadmap development

10. Entry Mode Assessment

10.1 JV opportunities

10.2 Greenfield investments

10.3 M&A considerations

10.4 Distributor model evaluation


11. Capital and Timeline Estimation

11.1 Capital requirements analysis

11.2 Timelines for market entry


12. Control vs Risk Trade-Off

12.1 Ownership vs partnerships analysis


13. Profitability Outlook

13.1 Breakeven analysis

13.2 Long-term sustainability strategies


14. Potential Partner List

14.1 Distributors identification

14.2 JVs exploration

14.3 Acquisition targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry


Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from Australian transport and mobility authorities
  • Review of market trends and statistics from government publications and transport agencies
  • Examination of consumer behavior studies related to car rental and mobility services

Primary Research

  • Interviews with executives from leading car rental companies in Australia
  • Surveys targeting frequent travelers and corporate clients utilizing mobility services
  • Focus groups with consumers to understand preferences and pain points in car rental experiences

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including industry reports and expert opinions
  • Triangulation of consumer insights with operational data from rental companies
  • Sanity checks conducted through expert panel reviews comprising industry veterans

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of market size based on national transportation expenditure and tourism statistics
  • Segmentation of the market by service type, including short-term rentals, long-term leases, and ride-sharing
  • Incorporation of growth factors such as urbanization and environmental policies promoting shared mobility

Bottom-up Modeling

  • Collection of data on fleet sizes and utilization rates from major car rental firms
  • Operational cost analysis based on pricing models and service offerings
  • Volume and revenue projections based on historical data and current market trends

Forecasting & Scenario Analysis

  • Multi-variable regression analysis incorporating economic indicators and consumer trends
  • Scenario modeling based on potential regulatory changes and shifts in consumer preferences
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Leisure Car Rentals120Frequent Travelers, Vacation Planners
Corporate Mobility Solutions90Corporate Travel Managers, HR Managers
Ride-Sharing Services60Urban Commuters, Ride-Sharing Users
Long-term Vehicle Leasing50Fleet Managers, Business Owners
Electric Vehicle Rentals40Environmentally Conscious Consumers, Tech Enthusiasts

Frequently Asked Questions

What is the current value of the Australia Car Rental & Mobility Services Market?

The Australia Car Rental & Mobility Services Market is valued at approximately AUD 3.8 billion, reflecting a significant rebound in both domestic and international tourism, increased business travel, and a growing demand for flexible transportation options.

Which cities dominate the Australia Car Rental Market?

What are the main service types in the Australia Car Rental Market?

How is the demand for electric vehicles impacting the car rental market in Australia?

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