The Europe car rental service market is expected to grow from US$ 14.17 Bn in 2018 to US$ 24.00 Bn by the year 2027. This represents a CAGR of 6.2% from the year 2019 to 2027.
Europe car rental service market– Key Growth Drivers
The Europe car rental service market is experiencing significant growth, fueled by several key factors. The increasing presence of car rental providers in the region, with established companies expanding their service offerings, is a major contributor. Additionally, rising consumer spending power and evolving lifestyles are driving demand for rental services. The growth of tourism, supported by higher travel budgets, further boosts the market.
Technological Advancements Enhancing Customer Experience
Car rental companies are increasingly adopting technology-driven solutions to improve customer service and gain a competitive edge. For example, in October 2019, Enterprise Holdings launched Entegral, a software solution designed to streamline post-accident processes, helping customers get back on the road faster. Similarly, Avis introduced a split-bill feature in its app, allowing users to divide rental costs between personal and business credit cards. Such innovations are expected to create substantial growth opportunities for market players between 2019 and 2027.
Rise of Low-Cost Car Rental Services
The Europe car rental service market has seen a surge in budget-friendly rental options, catering to cost-conscious consumers. Low-cost services typically offer fewer amenities and a limited selection of vehicle models and brands. Major industry players are expanding into this segment through acquisitions. For instance, Europcar strengthened its position by acquiring Goldcar and InterRent, two prominent low-cost rental providers. The company also purchased Fox Rent A Car, a U.S.-based budget rental service, to tap into the American market. The growing popularity of affordable rental solutions is a key factor propelling the Europe car rental service market forward.
Europe Car Rental Service Market – Market Segmentation
Europe Car Rental Service Market by Rental Location
- Non-Airport
- Outstation
- Inner City
- Country Side
- Inter City
- On-Airport & Train Station
Europe Car Rental Service Market by Car Category
- Mini & Economy
- Compact & Intermediate
- Standard
- Full size
- Premium
- Luxury
- Special
Europe Car Rental Service Market by Customer Type
- B2B
- Corporate
- SMEs
- Others
- B2C
Europe Car Rental Service Market by Countries
- Germany
- France
- Italy
- Spain
- UK
- Russia
- Poland
- Austria
- Switzerland
- Sweden
- Norway
- Belgium
- Netherlands
- Rest of Europe
Europe Car Rental Service Market – Key Companies Profiled
- Avis Budget Group, Inc.
- Europcar Mobility Group S.A.
- AB Car Rental Bonaire
- DriveNow GmbH & Co. KG
- Green Motion
- Sixt SE
- The Hertz Corporation
- National Car Rental (Enterprise Holdings)
- ALD Automotive
- Arval BNP Paribas Group
- Athlon International
- DriiveME
- Elite Rent-a-Car
- Indigo Car Hire
Europe Car Rental Service Market – Rental Location
A car rental services company rents automobiles for short periods of time for a charge. It is usually organized with several local branches that enable the user to return the vehicle at a different branch and primarily located on airports and or non-airport areas and often complemented by a website enabling online reservations. Today, car rental service companies made available various types of cars such as mini & economy, compact & intermediate, standard, full size, premium, luxury, and special at on-airports, railroad stations, hotels, and other locations. Previously business for car rental was operated on-airport location only. Nonetheless, from the last few years, the car rental service industry is also having non-airport locations as well, which includes outstation, inner-city, countryside, and intercity.
Europe Car Rental Service Market – Customer Type
The Europe car rental service market players in the region are continuously focusing on the introduction of low-cost services for rental cars. Various companies hugely prefer online platforms for strengthening their market presence and gaining a wide customer base for car rental services. Additionally, numerous prominent car rental service providers are introducing attractive schemes with reasonable prices, thus strengthening their customer base. To ensure the companies provide the right service to the prospective customer, car rental service providers need to focus on various aspects such as understanding customers, consider their existing customer records such as online and offline customer feedback, and various others.
Europe Car Rental Service Market - Car Category Insights
The growth of Europe car rental service market is due to the expansion and progression of the travel and tourism industry. Different types of rental cars can be categorized as mini & economy, compact & intermediate, standard, full size, premium, luxury, and special. The car category helps one easily find a rental car that suits their needs. Numerous different car rental agencies provide several types of rental vehicles to serve business or customer’s needs. Companies such as Europcar and others in the region provide a variety of cars suitable for any budget and occasion. Furthermore, rental cars offer a clearer idea of the vehicle class and characteristics. Hence, this helps makes sure that car rental would meet the expectations.
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Author’s Bio:
Suryakant Gadekar
Senior Market Research Expert at Business Market Insights
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