Europe Car Rental Market Size was valued at USD 15.8 Billion in 2022. The Global Europe Car Rental market industry is projected to grow from USD 17.56 Billion in 2023 to USD 41.07 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.20% during the forecast period (2023 - 2032). rising Demand for mobility services, a rise in tourism, and an increase in business travel are the key market drivers propelling the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increasing inclination for eco-friendly and electric rental cars is one notable trend. In response to growing environmental consciousness and sustainability concerns, European automobile rental firms are adding electric and hybrid vehicles (EVs) to their fleets. This pattern is consistent with the region's drive to impose stringent emission regulations and reduce emissions. Low-emission zones are being established in many European cities, which promotes the use of electric vehicles (EVs) and fuel-efficient cars. This, in turn, propels the Market CAGR of the car rental market toward environmentally friendly solutions. Emphasizing digitalization and online booking systems is another major development in the European vehicle rental business. A growing number of clients are looking for contactless and easy rental and booking processes due to the COVID-19 epidemic and technological advancements. In order to facilitate online booking, payment, and vehicle access for their clients without requiring in-person interaction, car rental firms are investing in user-friendly applications and websites. This trend is a key driver in the development of the market because it improves client experiences and simplifies operations for rental providers.
Furthermore, health and safety precautions are receiving more attention in the European car rental sector. Car rental companies have responded to the worldwide health problem by improving cleaning methods, implementing touchless pick-up and drop-off procedures, and transparently disclosing their sanitation practices. Particularly in light of growing health concerns and travel limitations, these steps are crucial to regaining consumer trust and guaranteeing that automobile rental services continue to be a dependable and safe means of transportation. For the foreseeable future, it is anticipated that the emphasis on safety will continue to be a major trend in the European vehicle rental industry. Thus boosting the Europe Car Rental market revenue.
The Europe Car Rental market segmentation, based on type, includes Leisure/Tourism and Business. The leisure/tourism category is larger than the commercial segment in the European automobile rental market. The dominance of leisure and tourism is a result of multiple reasons. Europe welcomes millions of travelers each year and is a popular travel destination worldwide. Renting a car is the ideal way for tourists to see new places and cultures while looking for easy and adaptable modes of transportation.
The Europe Car Rental market segmentation, based on Booking Type, includes Offline Booking and Online Booking. Online booking category account for a larger share of the European automobile rental market than offline ones. This supremacy is the result of multiple reasons. Customers are using online booking platforms more and more due to the ease of use and broad adoption of digital technology. Online booking satisfies customers' increasing demands for frictionless and quick rental experiences by providing the freedom to compare pricing, verify vehicle availability, and complete reservations from the convenience of a smartphone.
Figure 1: Europe Car Rental Market by Booking Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Europe Car Rental market segmentation, based on Rental Type, includes Short-term and Long-term. The short-term rental segment outpaces the long-term rental segment in size within the European automobile rental market. Multiple variables lead to the prevalence of short-term rentals. Europe is a well-liked travel destination for tourists looking for affordable, short-term transit options for journeys both personal and professional. Short-term rentals' ease and adaptability fit the temporary character of these trips. Short-term rentals are also popular for weekend getaways, city exploration, and airport pickups, which serve to meet the needs of infrequent travelers and contribute to their segmental growth in the European car rental industry.
By region, the study provides market insights into European region. Germany dominates the European car rental market as the largest region, owing to its robust economy, thriving tourism sector, and inclination towards efficient transportation. Due to its strategic location in Europe, Germany serves as a hub for both domestic and foreign passengers, which stimulates demand for car rental services and propels the expansion of the area. Spain is the most rapidly expanding region in the European vehicle rental market due to its thriving cultural attractions, pleasant climate, and robust tourism industry. Due in large part to its attractiveness as a travel destination, Spain has a rapidly expanding car rental business. Demand for rental cars is particularly high during leisure and vacation travel.
Figure 2: Europe Car Rental Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players in the European vehicle rental sector compete fiercely with one another. Players are concentrating on market developments such as technology developments, contactless services, and user-friendly booking platforms as the market changes. New entrants in the Europe Car Rental industry are gaining ground by emphasizing online platforms and digitalization.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 15.8 Billion |
| Market Size 2023 | USD 17.56 Billion |
| Market Size 2032 | USD 41.07 Billion |
| Compound Annual Growth Rate (CAGR) | 11.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Booking Type, and Region |
| Countries Covered | Germany, UK, France, Italy, Spain, and the Rest of Europe |
| Key Companies Profiled | Avis Budget Group Inc., Enterprise Holdings Inc., Europcar International, The Hertz Corporation, InterRent Car Rental, Peugeot Open-Europe, SIXT SE, OK Mobility Group, Fraikin SAS, and Budget Truck Rental LLC |
| Key Market Opportunities | Expansion of electric and eco-friendly vehicle rental options |
| Key Market Dynamics | Offering long-term and subscription-based car rental models Enhancing customer experience through digitalization and convenience |
Europe Car Rental Market Highlights:
Frequently Asked Questions (FAQ) :
The Europe Car Rental market size was valued at USD 15.8 Billion in 2022.
The global market is projected to grow at a CAGR of 11.20% during the forecast period, 2023-2032.
Germany had the largest share of the global market in 2022.
The key players in the market are Avis Budget Group Inc., Enterprise Holdings Inc., Europcar International, The Hertz Corporation, and Budget Truck Rental LLC.
The leisure/tourism category dominated the market in 2022.
The online booking had the largest share in the global market in 2022.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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