Europe Van Rental Market Size

Europe Van Rental Market Analysis

The Europe Van Rental Market size is estimated at USD 7.19 billion in 2024, and is expected to reach USD 9.44 billion by 2029, growing at a CAGR of 5.60% during the forecast period (2024-2029).

• The COVID-19 pandemic had a mixed impact on the van rental market. With the production halt across the original equipment manufacturers (OEMs) for new vans, the demand for vans for various cargo and last-mile delivery purposes was fulfilled by using rental schemes across the European region. However, with restricted cash flow, a significant reluctance of people towards utilizing new rental services over the existing vehicles has negated the positive impact due to the pandemic.
• Over the long term, the increasing electrification could potentially reduce the opportunities for van rentals. Huge incentives offered by governments of different countries in the European region for the purchase of electric vehicles and commercial electric vehicles could potentially reduce the need for rental services if the products are offered at a lucrative price for the buyers. This factor could reduce market opportunities and hinder market growth.
• However, major players in the market are focusing on electrifying their rental fleets. For instance, in January 2023, by 2025, rental giant Hertz plans to make up to 25,000 electric vehicles (EVs) accessible for rent to Uber drivers in European capitals. During 2023, the program will be expanded to other European capitals, including Paris and Amsterdam.
• In addition, European Van rental companies cater majorly to tourists looking to explore the destinations in their own time, with online and walk-in booking services makinqg van rental more simple, accessible, and efficient. Relaxation of travel restrictions post-pandemic and increasing inflow of tourists into the market to create a positive outlook for the market during the forecast period.