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Germany car rental was valued at USD 2.04 billion in 2021 and expected to surpass a net valuation of USD 4.44 billion by 2027 end, registering a solid CAGR growth of 13.01% during the forecast period.
Recent COVID-19 has disrupted the market growth. With lockdowns and travel restrictions, the demand for car rentals has declined. The majority of car rental consumers avoided the usage of rental cars during the pandemic owing to the virus's spread. This has moreover, reduced the revenue-generating capacity of the business. However, shifting consumer preferences have been the key growth propeller for the market. In addition, these car renting in Germany are deeply acknowledged for inter travel between the cities and sightseeing in the tourist spots.
Moreover, the passenger car segment in Germany has witnessed immense growth historically thus fueling the market for car rental as well. Germany the epi-center of tourism in Europe is witnessing improved renting services for passenger cars for years and consistently helping the maret to register sales bars.
Short-term leasing is likely to continue to grow during the forecast period. These short leasing helps the consumer and families to visit the local sites of cities with additional seasonal offers and discounts. Based on regulation and framework of government, these short term leasing has helped the passengers to save their fuel expenses and travel hassel free a different places in the cities. Considering these fcators, demand is seen to remian on the positive side during the forecast period.
Scope of the Report
Car renting refers to the business of leasing and renting a car from rental service providers based on some valuation. This renting can be on an hourly basis or for a longer time span.
The car renting market is segmented by application type, booking type, and rental length. By application type, the market has been segmented into leisure/tourism and Business. By booking type, the market has been segmented into online and offline. By length type, the market has been segmented into short-term and long-term. For each segment, the market sizing and forecasting are based on value (USD Billion).
|Rental Length Type|
Key Market Trends
Increasing Demand for Online Car Rental Services
Online tourist vehicle bookings are increasing in the country and globally due to the rising usage of smartphones, and the growth in the number of users preferring online channel.
With the growing trend in technology, renting a vehicle through online booking has become the most preferred choice for customers over the past few years. Moreover, it provides additional facilities to monitor a rental vehicle’s operation, performance, and maintenance in real-time. Such features are tremendous assets for drivers and fleet managers, enabling them to better and more efficiently identify risks and implement timely improvements to their rental services.
Most renters prefer renting cars online during peak seasons. As the car rental market experiences an increase in demand during peak holiday seasons, people tend to book cars in advance. Only a handful of cars are booked through rental stores, mostly during the off-season. Online booking services include booking cars via internet sites and mobile applications, among which booking-via-sites is the most common method opted for by renters.
Furthermore, the trend of online renting a car through apps has improved over the period. App developers have been designing mobile rental applications with more advanced booking features that offer more vehicle availability and comparable rental costs on a single platform. For instance:
- In July 2022, The massive German vehicle rental company SIXT launched its first Canadian office in Vancouver's Library Square and intends to expand to Toronto by the end of the year. The facility will have a fleet of BMW and Mercedes vehicles.
- In December 2021, A German firm offering automobile rental services raised $95 million for more reliable and better car rental platforms. Customers can reserve electric vehicles for rental businesses via smartphone apps.
Considering these development, demand is expected high growth rate during the forecast period.
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Long Term Car Renting to Gain Momentum
Considering the fact of the cost associated with buying a new vehicle and its maintenance, this longer-term car renting market is expected to witness elevated demand during the forecast period.
With the outbreak of the COVID-19 pandemic, the demand fell drastically as most of the offices shifted their work to a work-from-home policy, and tourists were not allowed in the country to restrict the virus from spreading. However, with the gradual opening of the economy and businesses, the demand is returning to the market, and it is expected that the market may grow at a high rate during the forecast period.
After covid, the passenger car segment witnessed increased pricing which deeply affected the middle-income group levels. In addition, the longer-term car renting segment is also dominated, by corporate demand especially from the industries such as logistics, construction, and oil and gas, with considerable demand for transportation of equipment and employee mobility. The logistics industry has the biggest share in terms of demand, followed by FMCG and the e-commerce industry.
Car dealers who rent for a long time may conclude rental contracts at a relatively low price compared to car rental companies. The main target customers of car dealers are government agencies that are very price sensitive.
SIXT SE, Enterprises Holdig Inc., Europcar, and AVIS are the leading market players in the German car rental market owing to their wide connectivity network across various cities in Germany. This company operates its key segment both online and offline to address consumers' attention and offer them discounts during ride booking.
Moreover, several strategies have been adopted by the players to robust their connectivity for car rental and update their present fleet with more vehicles to address rising consumers demand in Germany.
In July 2022, Sixt announced that it is expanding its electric vehicle (EV) lease offerings in Germany. The Company has now German-made Tesla Model Y Performance available for lease to the users of the electric vehicle in Germany.
Table of Contents
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 Porters Five Force Analysis
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 in Value USD Billion)
5.1 Application Type
5.2 Booking Type
5.3 Rental Length Type
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Avis Budget Group Inc.
6.2.2 Alamo (Enterprise Holdings Inc.)
6.2.3 Europcar International
6.2.4 The Hertz Corporation
6.2.5 SIXT SE
6.2.7 Thrifty Car Rental Inc
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Germany Car Rental Market market is studied from 2018 - 2027.
What is the growth rate of Germany Car Rental Market?
The Germany Car Rental Market is growing at a CAGR of 13.1% over the next 5 years.
What is Germany Car Rental Market size in 2018?
The Germany Car Rental Market is valued at 2 Billion USD in 2018.
What is Germany Car Rental Market size in 2027?
The Germany Car Rental Market is valued at 4 Billion USD in 2027.
Who are the key players in Germany Car Rental Market?
Avis Budget Group Inc., SIXT SE, Europcar International, Alamo (Enterprise Holdings Inc.), The Hertz Corporation are the major companies operating in Germany Car Rental Market.