Europe Vehicle Rental Industry Overview
| Study Period: | 2017-2027 |
| CAGR: | 11 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Vehicle Rental Market Analysis
The Europe vehicle rental market was valued at over USD 13.0 billion in the current year. It is expected to grow to USD 25.0 billion by the next 5 years, registering a CAGR of 11% during the forecast period.
The COVID-19 pandemic caused the region's vehicle rental market to slow down completely due to the sudden and complete suspension of transportation. The European countries' rental vehicle demand continued to decline as a result of the region's declining preference for shared mobility. However, in the aftermath of the pandemic, as the number of tourists has significantly increased, the demand for vehicle rentals has significantly increased. It is anticipated to continue over the forecast period.
Over the medium term, Rising electrification could potentially reduce the opportunities for vehicle rentals. Huge incentives offered by governments of different countries in the European region for the purchase of electric vehicles and commercial electric vehicles furthermore could potentially reduce the need for rental services if the products are offered at a lucrative price for the buyers. This could, in turn, reduce market opportunities and hinder market growth.
The rise in online rental platforms has enabled customers to rent vehicles based on demand. As an additional offering, they are being provided with telematics, which is helping the business achieve faster deliveries and fleet management.
The advantage of rentals is that customers don't have to buy vehicles, which drastically reduces the upfront investment for businesses. Moreover, rental eliminates the cost of services, maintenance, and vehicle replacement, as well as the risks associated with the demand.
Europe Vehicle Rental Industry Segments
Vehicle Rentals contains a vehicle that has been booked in person, by mobile through the mobile application, or offline. A vehicle rental service is a service that helps customer to rent a vehicle for short periods or longer duration. A short period generally ranges from a few hours to a few weeks.
Europe's Vehicle rental market has been segmented by application type, booking type, rental type, and country.
Based on the application type, the market has been segmented into leisure/tourism and Business.
Based on the booking type, the market has been segmented into online booking and offline booking.
Based on the Rental type, the market has been segmented into short-term and long-term.
Based on the country, the market has been segmented into Germany, the United Kingdom, France, Italy, Spain, and the Rest of Europe.
For each segment, the market sizing and forecast have been done based on the value (USD Billion).
| By Application Type | |
| Leisure/Tourism | |
| Business |
| By Booking Type | |
| Offline Booking | |
| Online Booking |
| By Rental Type | |
| Short-term | |
| Long-term |
| By Country | |
| Germany | |
| United Kingdom | |
| France | |
| Italy | |
| Spain | |
| Rest of Europe |
Europe Vehicle Rental Market Trends
This section covers the major market trends shaping the Europe Vehicle Rental Market according to our research experts:
Offline booking dominating the market
Offline Booking holds a significant market share in terms of revenue in 2021 and is expected to grow during the forecast period. As rental companies cater to a wide variety of customers, they offer vehicular modifications according to the customer's needs. With the rising logistics sector, this requirement for modified rental vehicles is expected to grow, which will raise the demand for offline booking.
Renting a vehicle in good condition with the desired features at a low cost is the most preferred choice of many customers across Europe. Also, the facility of comparing various rental prices offered in a particular area has always been a growing concern among most customers.
However, the online service providers are providing their service for the offline segment as well when they are booking vehicles at the last moment when the customer arrives in their office. For instance, Outdoorsy provides an option for its customers to get their rental RVs through offline mode.
Yet, the share of offline booking is decreasing as customer preferences are changing to online booking, where a customer gets the option to choose from a wide range of recreational vehicles from different service providers at a place of their convenience.
In Europe, the offline vehicle rental service category is dominated by many small players. However, major global players and a few local companies tend to offer both online and offline services. The demand for offline agencies is decent, as there has been an increase in the number of corporate travelers who generally book through calls and make prior arrangements before arrival.
For short-term rentals, the inclination toward online bookings is, whereas, for long-term rentals, offline booking is preferred. Offline bookings provide the advantage of meeting the service provider, as well as knowing the terms and conditions for the booking, and allow the service provider to customize the package according to the customers' needs.
The demand for offline services is expected to decrease in the coming years as app-based rental companies are offering various benefits to customers booking through their apps.
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Germany witnessing Major Growth
Germany is a concentrated market, with the key players accounting for roughly 70-80 percent of the market. Such as Europcar, Avis Budget, Hertz, and Enterprise. The country witnessed a cumulative growth in demand as the vehicle Rental market is considered not only as an alternative to other shared rides but also as a complementary service.
To realize the zero-emission goal, German startups are working on electric van rental space. For instance, UZE Mobility, an open-source e-mobility platform, is providing clients with free van rentals from their electric Street Scooter fleet. Because they've adopted various types of funding, they've been able to take this unique strategy. Digital screens serve as mobile billboards on the sides of the vans. USE wants to sell enough advertising to cover the cost of renting electric vans.
Other driving factors of the vehicle rental market are comfort, quality of life, affordability, and low cost of traveling. The luxury vehicles are also likely to grow over the forecast period owing to increased travel budgets of tourists in the country and such developments to have positively lucrative opportunities for rental service providers.
Berlin-based Daimler subsidiary Mercedes-Benz Vans Mobility (MBVM) has launched Mercedes-Benz Van Rental, a flexible rental service aimed at LCV users. Part of the strategic advance scheme, the new service is another step towards MBVM becoming a provider of holistic system solutions.
Such developments are expected to have a positive impact on the market in focus during the forecast period.
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Europe Vehicle Rental Market Competitor Analysis
The European vehicle rental market is dominated by major players, like Avis Budget Group Inc., Enterprise Holdings Inc., Europcar, The Hertz Corporation, and SIXT SE.
The vehicle rental market in the region has undergone a lot of mergers and acquisitions, making the top-five players a significant contributors in the vehicle rental market. Most of the big-time US rental agencies have a presence in the market throughout Europe. These companies are among the most demanded ones in the region, due to their presence throughout Europe, and readily available vehicles, in nearly all areas. For instance,
- In September 2022, Autonom Service, a car rental company, invested Euro 15 million (USD 16.01 Million) for the expansion of electric and hybrid car rental services across Romania.
- 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 at Europcar Vans and Trucks rental locations in eleven cities.
- In April 2021, Free2Move, a Stellantis-owned rental platform, launched its short-term rental service in the UK using a wide network of agencies. Via the online platform or the Free2Move App, the customer can book a vehicle at any time with complete autonomy without waiting at a counter.
Europe Vehicle Rental Market Top Players
Avis Budget Group Inc.
SIXT SE
Enterprise Holdings Inc.
Europcar International
The Hertz Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Vehicle Rental Market Recent Developments
- October 2022: Sixt SE signed an agreement with BYD Co. Ltd to buy 1,00,000 electric vehicles by 2028. These electric vehicles are used to offer rental services throughout Europe.
- February 2022: Hertz announced an investment to expand electric vehicle commitment with a new UFODRIVE partnership. As Hertz's commitment to leading the future of mobility, the company invested in UFODRIVE - the leading self-service electric vehicle rental company and eMobility service provider in Europe.
- September 2021: the Stellantis brand Leasyslaunched a long-term commercial vehicle rental system, LeasysPro, designed for companies, small and medium-sized enterprises, and self-employed professionals, LeasysPro enables customers to rent a commercial van with all the services included.
- March 2021: Europcar Mobility Group launched a brand-new range of subscription offers for companies, allowing fully flexible vehicle rentals with 3 offers – "Flex", "Superflex", and "DuoFlex"- which are alternatives to fixed-term leasing or ownership, offering the convenience of a monthly subscription.
Europe Vehicle Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter Five Forces
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD Billion)
5.1 By Application Type
5.1.1 Leisure/Tourism
5.1.2 Business
5.2 By Booking Type
5.2.1 Offline Booking
5.2.2 Online Booking
5.3 By Rental Type
5.3.1 Short-term
5.3.2 Long-term
5.4 By Country
5.4.1 Germany
5.4.2 United Kingdom
5.4.3 France
5.4.4 Italy
5.4.5 Spain
5.4.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Avis Budget Group Inc.
6.2.2 Enterprise Holdings Inc.
6.2.3 Europcar International
6.2.4 The Hertz Corporation
6.2.5 InterRent Car Rental
6.2.6 Peugeot Open-Europe
6.2.7 SIXT SE
6.2.8 OK Mobility Group
6.2.9 Fraikin SAS
6.2.10 Budget Truck Rental LLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Vehicle Rental Market Research FAQs
What is the study period of this market?
The Europe Vehicle Rental Market market is studied from 2017 - 2027.
What is the growth rate of Europe Vehicle Rental Market?
The Europe Vehicle Rental Market is growing at a CAGR of 11% over the next 5 years.
What is Europe Vehicle Rental Market size in 2017?
The Europe Vehicle Rental Market is valued at 13 Billion USD in 2017.
What is Europe Vehicle Rental Market size in 2027?
The Europe Vehicle Rental Market is valued at 25 Billion USD in 2027.
Who are the key players in Europe Vehicle Rental Market?
Avis Budget Group Inc., SIXT SE, Enterprise Holdings Inc., Europcar International, The Hertz Corporation are the major companies operating in Europe Vehicle Rental Market.
Europe Vehicle Rental Industry Report
In-depth industry statistics and market share insights of the Europe Vehicle Rental Market sector for 2020, 2021, and 2022. The Europe Vehicle Rental Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Europe Vehicle Rental Market report PDF.
