Market Trends of Europe Van Rental Industry
Business Rental Segment Anticipated to Hold Major Share in the Market
- The rise in commercial activities in the European region and the increasing logistics sector are expected to help Europe's van rental market grow during the forecast period. It will likely continue to grow during the forecast period as it helps European businesses meet the peaks and troughs of seasonal demand by providing suitable vans for the job at short notice, without any penalties or commitments.
- Vehicle rental firms generally serve customers who need a temporary vehicle, such as those who do not own a vehicle, out-of-town tourists, or owners of damaged or destroyed automobiles awaiting repair or insurance settlement. Furthermore, with the growing logistics industry and the emergence of new e-commerce enterprises, rentals are the greatest way to lower their initial investment in purchasing delivery vans. Many Logistics company rents vans to lower their investments instead of purchasing new vehicle.
- Vans find usage in several applications and segments of the European economy, i.e., construction, postal and courier services, law enforcement, and light-duty passenger transport applications. The demand has significantly grown owing to the logistics and last-mile delivery needs of e-commerce giants like Amazon expanding its fleet.
- Also, due to stringent emission norms active in the European region, many companies are switching their fleets to electric. Several rental platforms partner with EV manufacturers to procure vehicles for their fleets.
- For instance, in March 2022, the Science Based Targets initiative validated Europcar Mobility Group's corporate greenhouse gas emissions reduction targets, which were deemed to be in accordance with the Science Based Targets initiative (SBTi) criteria and recommendations. The Group's strategy of actively contributing to the low-carbon transition by encouraging the shift from vehicle ownership to usage while empowering its customers to use green mobility solutions is reinforced by the approval of these carbon reduction targets.
- Also, Europe's fast-expanding e-commerce market, which is seeing growth, is pushing the demand for a more modern distribution network, which is growing as the e-commerce business expands across Europe, pushing demand for van rentals for business purposes.
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United Kingdom Expected to Play Significant Role in the Market
- According to the financial service provider, compared to the same period in 2022, it experienced a parabolic rise in van rental bookings in November. It is due in part to increased "festive demand" for larger vehicles as customers plan family vacations and an increase in van rentals to meet home delivery demands, according to the financial service provider.
- According to them, the semiconductor shortage limits new vehicles available to the UK market, forcing Brits to hire vehicles that are either larger or more dependable than their current automobiles.
- The van rental sector is also experienced a winter boom, which Volkswagen Financial Services blames on customers shopping for Christmas gifts online. According to the business, the global chip scarcity is also affecting the van industry, which claims that rental vehicles are assisting fleet operators in expanding their ranks to meet the rising demand.
- The UK van rental market has a strong presence of key players like Enterprise, Europcar, Hertz, Avis Budget, and others. For instance, in January 2022, in the United Kingdom, the London Electric Vehicle Company (LEVC) formed a new relationship with Europcar to deliver a fleet of 100 electric vans.
- The LEVC VN5 is now available in eleven cities at Europcar Vans and Trucks rental locations. The LEVC van is available for rent at Europcar locations. The agreement is part of Europcar's 'One Sustainable Fleet' initiative, which focuses on Clear Air zones, which are becoming increasingly common in UK cities. Based on these factors, the UK market is expected to grow significantly during the forecast period.
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