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Italy Car Rental Market Size (2024 - 2029)

The Italy car rental market is experiencing a recovery and growth trajectory following the disruptions caused by the COVID-19 pandemic. The market size is expected to expand significantly, driven by the resurgence in domestic and international tourism, which is a crucial contributor to the Italian economy. The increasing reliance on digital platforms for car rental bookings, facilitated by rising internet penetration and smartphone usage, is further propelling the market's growth. This combination of factors is set to enhance the market's scale and share in the coming years.

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Market Size of Italy Car Rental Industry

Italy Car Rental Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.04 %
Market Concentration High

Major Players

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*Disclaimer: Major Players sorted in no particular order

Italy Car Rental Market Analysis

Italy Car rental market was valued at USD 0.77 Billion in 2021 and is projected to grow to USD 1.14 Billion by 2027, registering a CAGR of 5.04% in terms of revenue during the forecast period (2022-2027).

The rapid expansion of COVID-19 has disrupted car rental growth across the country. The strict travel restrictions and quarantine rules across the country have adversely affected the car rental market. The car rental market registered around 50% lower revenue in 2020 as compared to 2019. However, the market is displaying a decent recovery post severe COVID-19 pandemic outbreaks as the market revenue is surging by around 48% in 2021 as compared to 2020.

Over the medium term, The rise in domestic and international tourism across the country is likely to witness major growth in the market. In 2021, Domestic expenditure accounts for around 84% of total tourism spending. The contribution of travel and tourism spending is the key factor toward the Italian GDP. Such an increase in travel and tourism sectors across the country is witnessing major demand for car rental services, which in turn witnessing major growth for the market.

Rising internet penetration across the country and increase in use of smart phone application for online car rental booking is likely to witness significant growth for the market. For instance, In 2021, the number of active internet user in Italy counted more than 50 million, such increase in use of internet will help to boost the market.

Italy Car Rental Industry Segmentation

Car rental is a service that allows users to use a vehicle for a certain period, generally from a few hours to a few days. Car rental services allow people to book a car through the internet or mobile application.

Italy's Car rental market is segmented by booking type, application, rental length, and car type. Based on the booking type, the market is segmented into Online Booking and Offline Booking. Based on the Application, the market is segmented into Leisure/Tourism and Business.

Based on the Rental Length, the market is segmented into Short Term and Long Term. Based on the car type, the market is segmented into Hatchback, Sedan, and Utility Vehicle. By Fuel type, the market is segmented into Diesel, Petrol, and Electric. For each segment, the market sizing has been done on the basis of value (USD Billion).

By Booking Type
Online Booking
Offline Booking
By Car Type
Hatchback
Sedan
SUV
By Rental Length
Short Term
Long Term
By Application
Business
By Fuel Type
Diesel
Petrol
Electric
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Italy Car Rental Market Size Summary

The Italy car rental market is experiencing a recovery and growth trajectory following the disruptions caused by the COVID-19 pandemic. The market, which faced significant revenue declines due to travel restrictions, is now benefiting from the resurgence of domestic and international tourism. This resurgence is a key driver of demand for car rental services, contributing positively to the market's expansion. The increasing penetration of the internet and the widespread use of smartphone applications for online bookings are further propelling market growth. These technological advancements are transforming the car rental experience, making it more convenient for users through features like document verification, e-signing contracts, and cashless transactions.

The market is also witnessing innovation through new business models such as car sharing, which are attracting new players and enhancing revenue growth. Strategic partnerships, particularly in the electric car sharing segment, are boosting the market's prospects. Companies like Enel X and Volkswagen Group are investing in electric mobility infrastructure, while others like LeasysGO! are expanding their electric vehicle fleets. The popularity of electric car rental services is on the rise, supported by initiatives from major players such as Europcar, Avis, and Hertz, who are expanding their offerings and integrating new technologies. This dynamic environment is fostering competition and growth, positioning the Italy car rental market for continued expansion in the coming years.

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Italy Car Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Industry Attractiveness - Porter's Five Forces 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 by Value (USD Billion)

    1. 2.1 By Booking Type

      1. 2.1.1 Online Booking

      2. 2.1.2 Offline Booking

    2. 2.2 By Car Type

      1. 2.2.1 Hatchback

      2. 2.2.2 Sedan

      3. 2.2.3 SUV

    3. 2.3 By Rental Length

      1. 2.3.1 Short Term

      2. 2.3.2 Long Term

    4. 2.4 By Application

      1. 2.4.1 Business

    5. 2.5 By Fuel Type

      1. 2.5.1 Diesel

      2. 2.5.2 Petrol

      3. 2.5.3 Electric

Italy Car Rental Market Size FAQs

The Italy Car Rental Market is projected to register a CAGR of 5.04% during the forecast period (2024-2029)

Europcar, Avis Rent A Car System, LLC, The Hertz System Inc., Rentalcars.Com and Easycar.com are the major companies operating in the Italy Car Rental Market.

Italy Car Rental Market Report Snapshots

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