Car Rental Market in Europe 2017-2021
About Car Rental
Car rental services operate in a network of pick-up/drop-off points and offer a range of vehicles. The vehicles are owned by an organization or firm that rents them to users for short periods of time, based on daily, monthly, or annual plans. Car rental has grown from a basic service provided by popular organizations to a widely recognized component of the urban transport market. It is also swiftly developing into a globalized industry that can provide many transportation, land use, environmental, and social benefits.
Technavio’s analysts forecast the car rental market in Europe to grow at a CAGR of 17.94% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the car rental mark et in Europe for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Car Rental Market in Europe 2017-2021
Technavio recognizes the following companies as the key players in the car rental market in Europe: Avis Budget, Enterprise, Europcar, Hertz, and Sixt.
Other Prominent Vendors in the market are: Alphabet, Arval, Hermes, Irish Car Rental, and Maggiore.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is electric cars in rental industry. Electric vehicles entered the automotive scene in 2010, and some car rental companies immediately adopted them as part of corporate environmental initiatives. In 2015, Hertz and Enterprise added electric vehicles to their respective fleets in the US, and started introducing plug-in vehicles for rental and car-sharing services.”
According to the report, one driver in the market is rising consolidation. Over 35% of the car rental market in Europe was fragmented, and was far less consolidated than the North American market in 2015. The car rental market in Europe has undergone various mergers and acquisitions, making the top five players contribute around 70%. Most of the US rental agencies have a presence throughout Europe. These companies have a high demand in Europe, owing to their presence and readily available vehicles in nearly all areas. For example, Enterprise had franchises in 18 countries in Europe in 2016.
Further, the report states that one challenge in the market is stringent rules for car rental in Europe. Europe experiences high taxes; moreover, a multitude of local policies impede operations and sometimes lead to customer service chaos. The standard retail tax in the eurozone went from 19% to 21% in 2012, and from 23% to 25% in 2016. In addition, renters in Italy must buy the collision damage waiver (CDW). This comes with a huge deductible, and rental companies sell insurance products to cover that gap. In Ireland, rental companies can levy a surcharge for renters older than 75.
Avis Budget, Enterprise, Europcar, Hertz, Sixt, Alphabet, Arval, Hermes, Irish Car Rental, and Maggiore.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook