The Europe car rental market reached USD 14.88 Billion in 2024. The market is expected to grow at a CAGR of 11.00% between 2025 and 2034, reaching USD 42.25 Billion by 2034.
Offline modes of booking involve visiting physical offices, using intermediary services, or making reservations over the phone. This approach is a more traditional one and provides a personal touch to the process. Offline methods still cater to cohorts that value physical interactions. There is also a rising inclination among consumers towards more sustainable options prompting companies to invest in electric vehicles.
In December 2021, German mobility startup Vay secured $95 million from investors like Kinnevik, Coatue, and Eurazeo. It debuted its first car-rental service in Hamburg the following year. Customers could book electric cars via a mobile app, delivered by remote drivers. Vay's approach differed from companies employing costly sensors for autonomous vehicles, opting instead for camera-based systems to facilitate remote driving.
Online modes of booking such as applications and websites are gaining popularity considering advancements in technology owing to a rising need for better customer experience. Reservations made via third-party websites, mobile applications and rental websites are online modes of reservation that are considered more convenient. They provide real-time availability and flexibility.
Europe Car Rental Market Growth
The Europe car rental market growth is boosted by offline modes of booking as a more traditional means of booking and online modes as being more convenient.Offline modes of booking involve visiting physical offices, using intermediary services, or making reservations over the phone. This approach is a more traditional one and provides a personal touch to the process. Offline methods still cater to cohorts that value physical interactions. There is also a rising inclination among consumers towards more sustainable options prompting companies to invest in electric vehicles.
In December 2021, German mobility startup Vay secured $95 million from investors like Kinnevik, Coatue, and Eurazeo. It debuted its first car-rental service in Hamburg the following year. Customers could book electric cars via a mobile app, delivered by remote drivers. Vay's approach differed from companies employing costly sensors for autonomous vehicles, opting instead for camera-based systems to facilitate remote driving.
Online modes of booking such as applications and websites are gaining popularity considering advancements in technology owing to a rising need for better customer experience. Reservations made via third-party websites, mobile applications and rental websites are online modes of reservation that are considered more convenient. They provide real-time availability and flexibility.
Europe Car Rental Market Segmentation
Europe Car Rental Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:Market Breakup by Booking Type
- Offline
- Online
Market Breakup by Rental Length Type
- Short-Term
- Long-Term
Market Breakup by Application Type
- Leisure/Tourism
- Business
Market Breakup by Vehicle Type
- Luxury/Premium Cars
- Economy/Budget Cars
- SUVs
- MUVs
Market Breakup by Country
- Germany
- United Kingdom
- France
- Italy
- Others
Europe Car Rental Market Share
Growth in the car rental market comes from the rising popularity of typically high end vehicles from premium brands known for their superior performance, comfort, and features. These appeals to individuals seeking luxury travel experiences, business trips or special occasions where comfort and prestige are considered a priority.Leading companies in the Europe Car Rental Market
Major market players are expanding their outreach through mergers, acquisitions, and rising investment in sustainable practices and ease of access through investments in remote and online methods of booking through mobile applications and websites.- Avis Budget Group Inc.
- Enterprise Holdings, Inc.
- Hertz Global Holdings, Inc.
- Sixt SE
- Europcar International S.A.S.U
- Economy Car Hire Ltd.
- ALD Automotive Limited
- Edel & Stark AG
- Booking Holdings Inc.
- fourdrive GmbH
- Wucherpfennig & Krohn GmbH
- Others
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Car Rental Market Overview
6 Europe Car Rental Market Overview
7 Europe Car Rental Market by Booking Type
8 Europe Car Rental Market by Rental Length Type
9 Europe Car Rental Market by Application Type
10 Europe Car Rental Market by Vehicle Type
11 Europe Car Rental Market by Country
12 Market Dynamics
13 Competitive Landscape
Companies Mentioned
- Avis Budget Group Inc.
- Enterprise Holdings, Inc. (Alamo)
- Hertz Global Holdings, Inc.
- Sixt SE
- Europcar International S.A.S.U
- Economy Car Hire Ltd. (Zest Car Rental)
- ALD Automotive Limited
- Edel & Stark AG
- Booking Holdings Inc. (Momondo)
- fourdrive GmbH
- Wucherpfennig & Krohn GmbH
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 117 |
| Published | May 2025 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value ( USD | $ 14.88 Billion |
| Forecasted Market Value ( USD | $ 42.25 Billion |
| Compound Annual Growth Rate | 11.0% |
| Regions Covered | Europe |
| No. of Companies Mentioned | 11 |
