Europe Tourism Vehicle Rental Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 150.34 Billion |
| Market Size (2029) | USD 366.29 Billion |
| CAGR (2024 - 2029) | 16.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Tourism Vehicle Rental Market Analysis
The Europe Tourism Vehicle Rental Market size is estimated at USD 150.34 billion in 2024, and is expected to reach USD 366.29 billion by 2029, growing at a CAGR of 16% during the forecast period (2024-2029).
The COVID-19 pandemic had a mixed impact on the market during the forecast period as initial lockdowns and shutdown of transportation and rental companies resulted in reduced demand; as restrictions eased, consumers started inclining towards rental services, especially as countries started allowing tourists across the world the demand anticipated to pick up during the forecast period.
The demand for tourism vehicle rentals is expected to grow as Europe is home to many famous tourist destinations. Further, growing awareness and flexibility of rental services owing to their advantages of low maintenance and investment costs are expected to have a positive impact on consumers. Moreover, rental eliminates the cost of services, vehicle replacement as well as the risks associated with the demand. Many players are also focusing on increasing electric fleets for the services.
For instance, in September 2022, SIXT approved a comprehensive package of measures to electrify the fleet and establish its own charging infrastructure. The global SIXT fleet's electrified vehicle share (including PHEV and MHEV) is expected to reach 12 to 15% by the end of 2023. By 2030, 70 to 90% of the company's vehicles in Europe will be electrified, and all of them will be bookable through the SIXT App. SIXT will be able to provide its customers with 20 new electric and plug-in models by the end of 2022, giving them the most variety possible, including models from Audi, Opel, Renault, BMW, Peugeot, and Tesla.
February 2022: Inzile and the Spanish OK Mobility Group formed a joint venture company to commercialize electric vehicles (EV) for the European rental car sector. With the assistance and experience of OK Mobility Group and its marketing organization, Inzilewill design, homologate, and manufacture compact electric cars for delivery to this sector.
Rising online rental platforms have enabled customers to rent various passenger cars and commercial vehicles based on demand, and as an additional offering, they are being provided with the latest technologies like ADAS, telematics, and others. The growth of the market will be enhanced during the forecast period.
Moreover, key rental companies are implementing cost-cutting strategies to offer cost-efficient rental services. With reductions in cost, demand is expected to grow during the forecast period. Apart from cost cutting, rental companies are offering vehicular modifications as per customer needs, which is enabling companies to serve a wide variety of customers. The eastern and southern European countries are significantly spending on transport and business infrastructure development, which is attracting executives, investors, and professionals from across the world, influencing demand related to commercial vehicles.
Germany, the United Kingdom, France, and Italy are some of the major countries across Europe and are anticipated to witness optimistic growth during the forecast period owing to the presence of key companies and their stronghold in these regions. In addition, promotional strategies like discounts, offers, etc., at major tourist places in these regions by some vehicle rental companies to drive demand in the market during the forecast period.
Europe Tourism Vehicle Rental Market Trends
Rising Tourism Activities is Likely to Drive Leisure/Tourism Application Segment of the Market
- The outstanding growth industry of tourism-supplementing business, professional, and student travel-brings employment and foreign exchange to many Europeans, especially in the Mediterranean countries, with their combination of sunshine, beaches, scenery, and historical monuments. The world-renowned cities of Europe attract large numbers of tourists as well. In fact, European countries are consistently among the top tourist destinations of the world; they draw visitors from within Europe as well as from other continents.
- In July 2023, The European Commission announced the 2024 European Capital of Smart Tourism and European Green Pioneer of Smart Tourism competitions, inviting cities to submit their leading examples of smart and sustainable tourism practices in Europe.
- The Spanish government has authorized a total expenditure of EUR 110 million from Next Generation EU funding to strengthen tourist competitiveness in numerous territories, including the Balearic Islands, Canary Islands, Ceuta, and Melilla. The government stated on June 14 that the Council of Ministers had also enacted a Royal Decree permitting the government to pay EUR 50 million to each of the autonomous island communities and EUR 5 million to each of the autonomous cities.
- According to an industry association, Spain's tourist sector has witnessed an increase in revenues above pre-pandemic levels, while inflation might trigger a downturn in activity for the remainder of 2022. Domestic visitors led the significant recovery, offsetting a drop in arrivals from certain important overseas markets.
- The administration has also stated that these special subsidies for the island, as well as Ceuta and Melilla, are designed to satisfy the Spanish government's obligation. It further states that by the second quarter of 2025, at least 400 off-peninsular territory beneficiaries must have completed initiatives to strengthen their competitiveness and capacity to respond to changes in international markets.
- Based on such developments, the market is expected to boom during the forecast period.
Online Booking Segment Likely to Drive Demand in the Market
- The online booking segment of the market studied is anticipated to contribute significantly during the forecast period. As online rental services have the advantage of reliability, convenience of use, vehicle and data management, fast payments, and better sales management over conventional new ones, the demand for rental vehicles, especially by tourists, is expected to rise over the forecast period. The concern of paying expenses associated with possessing the ownership of a car is reduced due to vehicle rental services.
- With the advent of digital and sharing economies, the online tourism vehicle rental industry is witnessing positive growth, and the pandemic aggravated the necessity and benefits of its offline booking services. The presence of vehicle rentals on online platforms has increased sales significantly. Besides, the agencies are offering seasonal offers, group discounts, etc., attracting a lot of consumers. Additionally, the reach of tourism vehicle rentals has increased drastically due to digitization. For example, companies such as Enterprise Holdings Inc. are offering customers an interactive tool for vehicle modification, helping customers reduce procurement time.
- In addition, rental service providers are also entering into collaborations with airlines to attract consumers, especially tourists, through online booking mediums, as it is expected to ease the process of booking vehicles for rental purposes.
- In July 2023, Electric vehicle subscription service Onto raised USD 60 million in funding for its European expansion. Because of the innovative business model, people can subscribe to an electric car on a monthly basis. With no upfront deposit or long-term commitment, the subscriptions include public transportation, insurance, and breakdown coverage. By offering consumers a truly flexible subscription option, Onto is upending traditional ownership models.
- Hence, such developments are expected to rise, and hence, the demand in the market is anticipated to increase with influx of travelers across the region during the forecast period.
Europe Tourism Vehicle Rental Industry Overview
The Europe Tourism Vehicle Rental market is moderately consolidated and the majority share of the market is dominated by major players, such as Enterprise Holdings Inc, Hertz Global Holdings Inc, Sixt SE, Europcar Mobility Group, and Others. Various players across the region are investing in making joint ventures, strategies, and partnerships for being ahead of the competition. Europe. For instance,
In April 2022, Hertz and Polestar, a Swedish premium electric performance car manufacturer, announced a new global partnership today that includes the purchase of up to 65,000 electric vehicles (EVs) over a five-year period. In Europe, availability is expected to begin in the spring of 2022. The collaboration is part of Hertz's ongoing commitment to lead in electrification, shared mobility, and digital-first customer experience.
Europe Tourism Vehicle Rental Market Leaders
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Sixt SE
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Avis Budget Group, Inc
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Hertz Corporation
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Enterprise Holdings Inc.
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Auto Europe
*Disclaimer: Major Players sorted in no particular order
Europe Tourism Vehicle Rental Market News
- October 2022: Hertz and Palantir Technologies Inc. announced a multi-year partnership to use real-time, data-driven insights to drive operational excellence at Hertz and improve the customer experience. This investment is part of Hertz's ongoing commitment to modernize its technology platforms in order to lead in electrification, shared mobility, and customer experience. Hertz is using the Palantir Foundry operating system to build a platform that will help the company manage and operate its nearly 500,000-vehicle fleet, which includes tens of thousands of EVs, more efficiently.
- February 2022: Hertz announced an investment to expand electric vehicle commitment with a new UFODRIVE partnership. As Hertz's commitment to lead the future of mobility, the company invested in UFODRIVE - the leading self-service electric vehicle rental company and mobility service provider in Europe.
- January 2022: SIXT partnered with itTaxi, an Italian taxi operator, to provide on-demand taxi services in Rome using the SIXT application. The company is advancing the internationalization of its mobility platform ONE by growing its network in Italy and improving its ride-hailing and transfer service, offering SIXT rides.
Europe Tourism 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
4.1.1 Rising Tourism Activities is Likely to Drive Demand in the Market
4.2 Market Restraints
4.2.1 Low Cost of Public Transport May Hamper the Growth of the Market
4.3 Industry Attractiveness - Porter's Five Forces 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
5.1 By Application type
5.1.1 Leisure/Tourism
5.1.2 Business
5.2 By Booking Type
5.2.1 Online
5.2.2 Offline
5.3 By Rental Duration type
5.3.1 Short - term
5.3.2 Long-term
5.4 By Geography
5.4.1 United Kingdom
5.4.2 Germany
5.4.3 Italy
5.4.4 France
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 Enterprise Holdings Inc.
6.2.2 Avis Budget Group
6.2.3 Europe Car Mobility Group
6.2.4 Hertz Global Holdings Inc.
6.2.5 Fraikin SA
6.2.6 Booking Holdings Inc. (Rentalcars.com)
6.2.7 Rentloox
6.2.8 Auto Europe
6.2.9 Driverso Ltd
6.2.10 Drivy (Part of Getaround)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Tourism Vehicle Rental Industry Segmentation
A tourist vehicle is a self-propelled vehicle capable of being used for the temporary living, sleeping, or eating accommodation of persons. Tourism vehicle rental services, in general, means rental agencies primarily serving people who require a temporary vehicle.
The Europe tourism vehicle rental market is segmented by application type (leisure/tourism and business), booking type (online and offline), rental duration type (short-term rental and long-term rental), and geography (United Kingdom, Germany, Italy, France, Sapin, and Rest of Europe).
The report offers market size and forecasts for the European tourism vehicle rental market in value (USD) for all the above segments.
| By Application type | |
| Leisure/Tourism | |
| Business |
| By Booking Type | |
| Online | |
| Offline |
| By Rental Duration type | |
| Short - term | |
| Long-term |
| By Geography | |
| United Kingdom | |
| Germany | |
| Italy | |
| France | |
| Spain | |
| Rest of Europe |
Europe Tourism Vehicle Rental Market Research FAQs
How big is the Europe Tourism Vehicle Rental Market?
The Europe Tourism Vehicle Rental Market size is expected to reach USD 150.34 billion in 2024 and grow at a CAGR of 16% to reach USD 366.29 billion by 2029.
What is the current Europe Tourism Vehicle Rental Market size?
In 2024, the Europe Tourism Vehicle Rental Market size is expected to reach USD 150.34 billion.
Who are the key players in Europe Tourism Vehicle Rental Market?
Sixt SE, Avis Budget Group, Inc, Hertz Corporation, Enterprise Holdings Inc. and Auto Europe are the major companies operating in the Europe Tourism Vehicle Rental Market.
What years does this Europe Tourism Vehicle Rental Market cover, and what was the market size in 2023?
In 2023, the Europe Tourism Vehicle Rental Market size was estimated at USD 126.29 billion. The report covers the Europe Tourism Vehicle Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Tourism Vehicle Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Tourism Vehicle Rental Industry Report
Statistics for the 2024 Europe Tourism Vehicle Rental market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Europe Tourism Vehicle Rental analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Europe Tourism Vehicle Rental Market Report Snapshots
