Europe Tourism Vehicle Rental Market Size

Europe Tourism Vehicle Rental Market Analysis

The Europe Tourism Vehicle Rental Market size is estimated at USD 150.34 billion in 2024, and is expected to reach USD 366.29 billion by 2029, growing at a CAGR of 16% during the forecast period (2024-2029).

The COVID-19 pandemic had a mixed impact on the market during the forecast period as initial lockdowns and shutdown of transportation and rental companies resulted in reduced demand; as restrictions eased, consumers started inclining towards rental services, especially as countries started allowing tourists across the world the demand anticipated to pick up during the forecast period.

The demand for tourism vehicle rentals is expected to grow as Europe is home to many famous tourist destinations. Further, growing awareness and flexibility of rental services owing to their advantages of low maintenance and investment costs are expected to have a positive impact on consumers. Moreover, rental eliminates the cost of services, vehicle replacement as well as the risks associated with the demand. Many players are also focusing on increasing electric fleets for the services.

For instance, in September 2022, SIXT approved a comprehensive package of measures to electrify the fleet and establish its own charging infrastructure. The global SIXT fleet's electrified vehicle share (including PHEV and MHEV) is expected to reach 12 to 15% by the end of 2023. By 2030, 70 to 90% of the company's vehicles in Europe will be electrified, and all of them will be bookable through the SIXT App. SIXT will be able to provide its customers with 20 new electric and plug-in models by the end of 2022, giving them the most variety possible, including models from Audi, Opel, Renault, BMW, Peugeot, and Tesla.

February 2022: Inzile and the Spanish OK Mobility Group formed a joint venture company to commercialize electric vehicles (EV) for the European rental car sector. With the assistance and experience of OK Mobility Group and its marketing organization, Inzilewill design, homologate, and manufacture compact electric cars for delivery to this sector.

Rising online rental platforms have enabled customers to rent various passenger cars and commercial vehicles based on demand, and as an additional offering, they are being provided with the latest technologies like ADAS, telematics, and others. The growth of the market will be enhanced during the forecast period.

Moreover, key rental companies are implementing cost-cutting strategies to offer cost-efficient rental services. With reductions in cost, demand is expected to grow during the forecast period. Apart from cost cutting, rental companies are offering vehicular modifications as per customer needs, which is enabling companies to serve a wide variety of customers. The eastern and southern European countries are significantly spending on transport and business infrastructure development, which is attracting executives, investors, and professionals from across the world, influencing demand related to commercial vehicles.

Germany, the United Kingdom, France, and Italy are some of the major countries across Europe and are anticipated to witness optimistic growth during the forecast period owing to the presence of key companies and their stronghold in these regions. In addition, promotional strategies like discounts, offers, etc., at major tourist places in these regions by some vehicle rental companies to drive demand in the market during the forecast period.