Europe Vehicle Rental Market Size

Europe Vehicle Rental Market Analysis

The Europe Vehicle Rental Market size is estimated at USD 14.34 billion in 2024, and is expected to reach USD 22.02 billion by 2029, growing at a CAGR of 8.96% during the forecast period (2024-2029).

Over the long term, the increasing number of tourists across European countries, the expansion of the corporate sector, and consumers' growing preference for availing rental services for short leisure and traveling purposes will serve as major determinants for the growth of the car rental market in Europe.

• According to the United Nations World Tourism Organization (UNWTO), the number of international tourist arrivals in Europe touched 595.75 million in 2022 compared to 301.12 million in 2021, representing a Y-o-Y growth of 97.8%.

• France, Spain, Turkey, and Italy were the leading countries in Europe with the highest number of international tourist arrivals in 2022. France welcomed 79.4 million international tourists in 2022, followed by Spain, which welcomed 71.66 million, and Turkey, which welcomed 50.45 million.

The rise in online rental platforms has enabled customers to rent vehicles based on demand. As an additional offering, they are being offered telematics, which is helping businesses achieve faster deliveries and fleet management. Moreover, rising investments and improvements in airport infrastructure across European countries are further catalyzing the demand for car rental services, owing to the preference of foreign visitors in the county to avail of airport rental services.

• In December 2023, Liege Airport in Belgium announced its plan to invest EUR 500 million (USD 548 million) in additional facilities to benefit both long-haul services and maintenance operations as part of its 2030-2040 development plan. The ambitious initiative aims to double flight frequency and job opportunities, reaching 55,000 flights and 25,000 jobs, respectively.

• In February 2023, the Airports Council of Europe (ACI Europe) called on the Armenian government to approve a project to expand the capacity of Zvartnots Airport due to the increase in passenger traffic in Armenia. The investment is valued at EUR 400 million (USD 437 million), which will be disbursed for the expansion of the airport's capacity for both passenger and cargo traffic.

Moreover, the advantage of rentals is that customers do not have to buy vehicles, which drastically reduces their upfront costs. Further, due to a strong business climate across Europe, there exist massive requirements for car rental services from corporate offices to ensure an efficient transportation medium for their employees. With the expanding tourism industry and increasing investments in the corporate industry across Europe, the car rental market is expected to register surging growth during the forecast period.