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Europe Vehicle Rental Market - Segmented By Application Purpose, Vehicle Type, Booking Type, Engine Type, And Country - Growth, Trends, And Forecast (2018 - 2023)

Published on: Feb 2018 | From USD $4250 | Published By: MORDOR INTELLIGENCE | Number Of Pages: 77

In light of the strong competitive scenario in Europe, the vehicle rental market is expected to grow at a CAGR of around 6% during the forecast period. The market accounted for USD 14.8 billion in 2017.

Market Dynamics

Companies in Europe have already risen close to USD 50 billion from IPOs (compared to around USD 32 billion in the U.S.) in 2016, with investors confident of the growth potential in the region. European cars are rented for a 24-hour period, usually with a 59-minute grace period. However, vehicles are most economical when rented for a week, or for a duration of more than five days with unlimited mileage.


Some of the factors driving the growth of the vehicle rental market in Europe are the rising number of foreign visitors in countries such as Germany and the United Kingdom. Increase in population as well as resurging economic sentiment is also helping the market register a healthy growth rate.


As a consequence of the vehicle emission scandal of Volkswagen, the residual values of diesel vehicles (and not just Volkswagen Group vehicles) are bound to weaken to some extent in Europe. The vehicle rental companies would thereby face higher costs to finance their fleet purchases because of higher TCO (for other alternative vehicles) and these costs will either be passed on to consumers or simply erode profits. As a noted fact, Volkswagen constituted one of the major vehicle brands in the fleet portfolio of the vehicle rental service providers (especially for Europcar). Hence, the vehicle emission scandal has had a significant impact on the cost structure model of these companies.

Competitive Landscape

Europcar, a leading player in Europe’s vehicle rental market, made a major move by launching a new brand – InterRent in 2013 and entering into a partnership with the US car rental provider, Advantage. The company also made a strategic acquisition of a majority stake in Ubeeqo, a French startup specializing in car sharing. The vehicle rental market in the region has undergone a lot of mergers and acquisitions, making the top 5 players contribute around 70% of the market. Most of the big-time US rental agencies have their presence in the market throughout Europe. These companies are among the most demanded ones in the region, due to their presence throughout Europe and readily available vehicles in nearly all the areas.

Market Segmentation

The market is segmented on the basis of booking type – offline access, mobile application, other online access; vehicle type- small and medium, premium and luxury, vans and trucks, buses, motorhomes and others; application purpose– leisure/tourism, business, and others; engine type- gasoline, electric vehicles, hybrid vehicles and others; end users- fleet operators, tour operators, governments; and country- Germany, Italy, Portugal, the UK, Spain, France and others.

Vehicles with manual transmissions are more easily available for rent than the automatic ones. Automatics are generally more expensive (usually by about 45%-55%) and are available only when there is a demand for a bigger, expensive vehicle (SUV). Among the vehicle types, compact cars are the more demanded vehicles compared to large SUV models, since maneuverability on the narrow, winding roads of Europe is an issue with these models. In addition, vehicle rental for the purpose of airport pickups generates more revenue in the European market than that for downtown trips.

The UK had the maximum share in the Europe vehicle rental market by the end of 2017. France is the second-largest market in the region, with increased demand for vehicles for leisure and tourism purposes. The market has evolved over the years to emerge as one of the most developed markets in the region. According to a press conference with CNPA, (the car rental branch of the trade association of cars and related activities in France), the number of car rental transactions increased by 9% in 2015, with further growth recorded in 2016-17. The market for car sharing in Germany has also shown a booming trend over the last 2 years and is further expected to continue growing during the forecast period. The sharing of operating and maintenance costs reduces the burden significantly among the consumers in a vehicle rental system and is one of the primary reasons for the growth inclination of the German market.


Reasons to Purchase this Report:
• The report analyses how the economic scenario will affect the Europe vehicle rental market.
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
• Study on the product type that is expected to dominate the market.
• Study on the regions that are expected to witness fastest growth during the forecast period.
• Identify the latest developments, market shares and strategies employed by the major market players.
• 3 months analyst support along with the Market Estimate sheet (in excel).

Customization of the Report:
• This report can be customized to meet the desired requirements. Please connect with our analyst, who will ensure that you get a report that suits your needs.

1. Introduction
1.1 Study Deliverables
1.2 General Study Assumptions
2. Research Methodology
2.1 Introduction
2.2 Analysis Methodology
2.3 Study Phases
2.4 Econometric Modelling
3. Executive Summary
4. Market Overview and Trends
4.1 Introduction
4.2 Market Trends
4.3 Porter√ēs Five Force Framework
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products and Services
4.3.5 Competitive Rivalry within the Industry
5. Market Dynamics
5.1 Drivers
5.1.1 Improvement in Economic Scenario
5.1.2 Increase in Number of Inbound and Domestic Travelers
5.2 Restraints
5.2.1 Increasing Rental Prices
5.2.2 Insufficient Maintenance of the Fleet Vehicles
5.3 Opportunities
5.3.1 Sharing of Maintenance Costs with Consumers to Reduce Burden
5.3.2 Improving Tourism Scenario
6. Europe Vehicle Rental Market, Segmentation by Purpose
6.1 Leisure/Tourism
6.2 Business
7. Europe Vehicle Rental Market, Segmentation by Vehicle Type
7.1 Entry-Level Vehicles
7.2 Premium Vehicles
7.3 Vans and Trucks
7.4 Others
8. Europe Vehicle Rental Market, Segmentation by Country
8.1 Germany
8.2 Italy
8.3 Portugal
8.4 United Kingdom
8.5 France
8.6 Spain
8.7 Others
9. Competitive Landscape
9.1 Introduction
9.2 Market Share Analysis
9.3 Developments of Key Players
10. Key Vendor Analysis (Overview, Products & Services, Strategies)
10.1 Advantage Rent-A-Car
10.2 Alamo
10.3 Autolib
10.4 Avis
10.5 Buchbinder
10.6 Enterprise Rent-A-Car
10.7 Europcar
10.8 Global Drive
10.9 Hertz
10.10 Inter-Rent
10.11 Peugeot Open-Europe
10.12 Sixt Rent-A-Car
10.13 Thrifty
11. Future Outlook of the Market
12. Disclaimer

Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.

Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.

The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

The market engineered data is verified and validated by a number of experts, both in-house and external.

After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.

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