The car rental market on a Europe scenario was valued at US$ 14.17 Bn in 2018 to US$ 24.00 Bn by 2027; it is expected to grow at a CAGR of 6.2% during the forecast period.
The car rental services market is characterized by strong competition with the presence of local, regional, as well as global players. The success of the market players is based on price and customer service quality, which includes the ease of vehicle reservation, accessibility, and returning vehicles; reliability; the locality of rental stations; and product innovation. Additionally, competitive positioning is further influenced by marketing, advertising, as well as brand reputation. Moreover, the use of technology has improved pricing transparency among car rental services providers by empowering customers to compare the service rates of various companies via the internet, for any given vehicle.
Further, the car rental services market in European countries is not as homogeneous and fully integrated as the other developed countries, such as the US. Consumer expectations across the region differ regarding car preferences that signify an actual challenge while operating across the continent. The variance in the global market is one of the key factors contributing to the existing fragmentation as well as lack of consolidation, compared to the US.
In recent years, the Europe car rental services market has noticed the development of economical offers to fulfill augmented demand for more reasonably priced services. The low-cost services segment comprises all low-price rental offers, including a reduced number of offerings and services along with a narrower choice of brands, categories, and car models. Several well-recognized market players have acquired car rental companies offering services to the customers who are conscious about the rent. For instance, Europcar acquired Goldcar and InterRent, low-cost car rental services providers. Further, it also acquired Fox Rent A Car, a US-based low-cost rental service provider, to gain the US low-cost car rental market share. The emergence of such services offers a lucrative opportunity to the car rental services providers to target more budget-conscious customers, including SMEs.
The car rental market has been derived from market trends and revenue generation factors from five different countries across the Europe. France acquires the largest European car rental market share. The country’s market is characterized by a substantial number of local players with nation-wide presence. The country has about a dozen key car rental players. Some of the renowned players operating in major towns throughout France include Avis, Europcar, Hertz, Budget, and Sixt. Apart from these, Alamo, National, Enterprise, and Dollar Thrifty, are some players operating in the French market.
Also, the rest of European countries estimated to hold a significant market share in 2018. In October 2019, Carwiz Rent-a-car Company, a Croatian company, signed new franchise partnerships extending its operations in Malta, Ireland, Iceland, and Poland. The company has collaborated with Icerental 4x4 (Iceland), Fugazi Car Rentals Limited (Ireland), and Inter Fleet Franchise Sp (Poland). Also, Kwako, an electric rent-a-car service provider, started its operations in Albuferia, Portugal. In April 2019, UFODrive, an electric car rental services provider, expanded its operations in Ireland.
The car rental service providers are facing high competition from various mobility service providers. Also, increasing technological advancements are resulting in the rise in fleet and maintenance costs for car rental service providers. Thus, to generate new revenue streams, car rental companies are opting for new business models, such as corporate mobility and car-sharing schemes.
Some of the other notable players in the Europe car rental market include Avis Budget Group, Inc., Europcar Mobility Group S.A., DriveNow GmbH & Co. KG, Green Motion, Sixt SE, The Hertz Corporation, National Car Rental (Enterprise Holdings), and ALD Automotive, among others.
Europe Car Rental Market - Country Breakdown, 2018
The report segments the Europe car rental market as follows:
Europe Car rental Market - By Rental Location
Europe Car rental Market - By Car Category
Europe Car rental Market - By Customer Type
Europe Car rental Market - By Countries
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