France Car Rental Market Size (2024 - 2029)

The France car rental market is experiencing significant growth, driven by the recovery from pandemic-related declines and the resurgence of the tourism sector. The market's expansion is fueled by digitalization, changing consumer preferences, and fleet expansion, which are key factors in the industry's recovery and growth. The planned expansion of the tourism industry in France is expected to further drive demand. Additionally, the increasing internet penetration and the introduction of electric vehicle rental options are pivotal in attracting consumers. Overall, the market is poised for continued growth, supported by robust infrastructure and strategic investments.

Market Size of France Car Rental Industry

France Car Rental Market Overview
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 12.70 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

France Car Rental Market Analysis

France car rental was valued at USD 1.10 billion in 2021 and expected to surpass a net valuation of USD 2.25 billion by 2027 end, registering a solid CAGR growth of 12.7% during the forecast period.

During the pandemic, demand for car rental services in France has witnessed a downfall amid the lockdown measures instructed by the government. The country's one of the economic booster sector remains the tourism witnessed a decline in revenue generation. This was attributed to reduced tourist crowds at several tourist spots in France. Although, the market has regained its growth phase again amid the lifting of covid-19 measures across the globe.

Digitalization, changing consumer preferences, and expansion in the fleet has been key growth propeller for the rising car rental business in France. In the long run, the demand is likely to be driven by the planned expansion of the France tourist industry. Key player investments, existing robust infrastructure, and a big customer base may help the industry swiftly recover from the pandemic and capitalize on the sector's development possibilities.

Internet penetration among the generation has been identified as a key pivot role in driving the demand for the car rental market in France. Several players in the car rental business operating in the segment are expanding their roots in countries to elevate the demand for the same. Players are offering electric vehicles for car renting to gauze consumer prefernces. For instance;

  • In Jul 2022, Stellantis auto maker introduced electric as you go which is longer term car rental programm offered in Frnace to lease and rent electric cars to consumers. Company introduced Peugeot e-208, Opel Corsa-e and Opel Mokka-e EV's for the same.

Thus, rising leisure and tourism activties in the country has helped market to grow positively during the forecast period.

France Car Rental Industry Segmentation

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 rental duration type, booking type, application type, driving type, and vehicle type. By rental duration type, the market has been segmented into short-term and long-term. By booking type, the market has been segmented into online and offline. By application type, the market has been segmented into leisure/tourism and business and by vehicle type, the market is segmented into budget/economy and premium/luxury. For each segment, the market sizing and forecasting are based on value (USD billion).

Rental Duration
Short Term
Long Term
Booking Type
Online
Offline
Application Type
Leisure/Tourism
Business
Vehicle Type
Budget/Economy
Premium/Luxury
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France Car Rental Market Size Summary

The France car rental market is poised for significant growth, driven by the resurgence of tourism and the easing of pandemic-related restrictions. The sector, which experienced a downturn during the COVID-19 pandemic due to reduced tourist activity and travel restrictions, has rebounded as global measures have been lifted. Key factors propelling this recovery include digitalization, changing consumer preferences, and fleet expansion. The introduction of electric vehicles and innovative rental programs, such as Stellantis's "electric as you go," highlights the industry's adaptation to evolving consumer demands. The market's growth is further supported by France's status as a leading tourist destination, which continues to attract visitors and drive demand for car rental services.

The car rental industry in France is increasingly leveraging online platforms to enhance customer convenience and accessibility. The rise in internet penetration has facilitated a shift towards online bookings, which are becoming the preferred choice for consumers, especially during peak travel seasons. This trend has prompted significant investments in digital infrastructure and strategic partnerships, such as the alliance between Accor and SIXT, to bolster online rental operations. As competition intensifies, major players are focusing on expanding their service offerings and enhancing customer experiences to capture a larger market share. The ongoing demand for both online and offline rental services is expected to sustain the market's positive trajectory in the coming years.

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France Car Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION ( Market Size in Value USD Billion)

    1. 2.1 Rental Duration

      1. 2.1.1 Short Term

      2. 2.1.2 Long Term

    2. 2.2 Booking Type

      1. 2.2.1 Online

      2. 2.2.2 Offline

    3. 2.3 Application Type

      1. 2.3.1 Leisure/Tourism

      2. 2.3.2 Business

    4. 2.4 Vehicle Type

      1. 2.4.1 Budget/Economy

      2. 2.4.2 Premium/Luxury

France Car Rental Market Size FAQs

The France Car Rental Market is projected to register a CAGR of 12.70% during the forecast period (2024-2029)

SIXT SE, Avis Budget Group, The Hertz Corporation, Europcar Mobility Group and Enterprise Holdings, Inc. are the major companies operating in the France Car Rental Market.

France Car Rental Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)