Car Rental Market in Europe 2017-2021

Overview of the car rental market in Europe

Technavio’s market analysis has identified the rise in inbound tourists to Europe to be one of the primary factors having a positive impact on the growth of the car rental market in Europe during the net few years. With the growth in international tourism, the airport transportation segment will witness considerable growth in the car rental market. Key car rental vendors such as Europcar, Hertz, and Avis Budget, will witness exponential growth due to their strong presence in the prominent European countries such as France, the UK, Germany, Spain, and Italy. Our market analysts estimate that the market will grow steadily at a CAGR of close to 18% by 2021.

To comply with the stringent environmental regulations and initiatives, car rental companies are focusing on adopting electric cars. Hertz and Enterprise have already added electric vehicles and have started introducing plug-in vehicles for rental and car-sharing services. The usage of plug-in vehicles helps decrease the cost of buying an electric car significantly and the reduction in price of these cars influences the sales of more electric cars. According to our industry research report, the adoption of electric cars will be one of the key trends that will gain traction in the car rental market in Europe.

Competitive landscape and key vendors

The car rental market in Europe has the presence of few international players and several regional players. The large players are acquiring smaller players in the car rental industry to enhance their geographical presence and product portfolio and to upgrade their technological abilities. With the increase in product extensions and technological innovations, the market’s competitive environment wil intensify in the coming years.

The leading vendors in the market are

• Avis Budget
• Enterprise
• Europcar
• Hertz
• Sixt

The other prominent vendors in the market are Alphabet, Arval, Hermes, Irish Car Rental, and Maggiore.

Segmentation by rental type and analysis of the car rental market in Europe

• Airport transport
• Local transport
• Outstation transport

The airport transport segment will be the major contributor to the car rental market in Europe due to the presence of several vendors offering convenient services to car rental customers, including complimentary vehicle insurance. The large and small-scale vendors in this segment compete intensely based on innovation, processes, and technologies.

Growth drivers, challenges, and upcoming trends: Subscription model

Upcoming trends such as the advent of subscription model in rental cars are gaining traction that enables the customers to suit various needs. The car start-up Revv, has already made plans to launch an annual subscription scheme that will put the car at the customers’ disposal for a year and will provide car maintenance support, give roadside assistance, and annual insurance. Such trends will give tough competition to car ownership and provide fuel to car rental.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the car rental market in Europe. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the car rental market in Europe?
• What are the key market trends impacting the growth of the car rental market in Europe?
• What are the challenges to market growth?
• Who are the key vendors in the car rental market in Europe?
• What are the market opportunities and threats faced by the vendors in the car rental market in Europe?
• Trending factors influencing the market shares of Europe.
• What are the key outcomes of the five forces analysis of the car rental market in Europe?

Technavio also offers customization on reports based on specific client requirement.