Europe Car Rental Market Size, Share Insights and Competitive Landscape to 2033

Europe Car Rental Market Size in 2025

Market Size in 2024: USD 23.0 Billion

Market Forecast in 2033: USD 59.0 Billion

Market Growth Rate 2025-2033: 11.1%

The Europe car rental market is projected to expand from USD 23.0 billion in 2024 to USD 59.0 billion by 2033, registering a CAGR of 11.1%. Rebound in leisure travel, corporate mobility budgets, and rising demand for flexible electric fleets underpin the robust outlook.

Growth Drivers Accelerating the Europe Car Rental Market

Tourism Rebound and Extended Seasonal Demand

Eurostat reports that nights spent at tourist accommodation surpassed pre-pandemic levels by 6% in early 2025, with Mediterranean coastal regions up 12%. Low-cost carriers added 8% seat capacity, feeding secondary airport rental desks. Operators are lengthening fleet holding periods to 14 months and negotiating turnkey cleaning contracts, ensuring vehicle availability during shoulder seasons and driving incremental utilization across the Europe car rental market.

Corporate ESG Targets Push Electric Fleet Adoption

The European Travel Commission states that 42% of multinational firms now mandate low-emission business trips. Rental companies added 55,000 BEVs in 2024, supported by EU Recovery Fund chargers at 3,000 hubs. Corporates booking EV rentals receive Scope 3 emission credits, while drivers benefit from congestion charge exemptions in London and Stockholm, accelerating BEV share within rental portfolios.

App-Based Subscription and One-Way Inter-City Models

The European Commission’s Digital Services Act streamlined cross-border identity verification, enabling 30-minute digital onboarding. Start-ups now offer month-to-month subscriptions with 48-hour cancellation windows and one-way drop fees as low as EUR 1 between major cities. Users grew 28% year-on-year, proving that flexible access models complement traditional daily rentals and expand addressable demand in the Europe car rental market.

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Europe Car Rental Market Segmentation

Analysis by Booking Type

• Offline Booking
• Online Booking

Analysis by Rental Length

• Short Term
• Long Term

Analysis by Vehicle Type

• Luxury
• Executive
• Economy
• SUVs
• Others

Analysis by Application

• Leisure/Tourism
• Business

Analysis by End-User

• Self-Driven
• Chauffeur-Driven

Analysis by Country

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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Europe Car Rental Market News

• France introduced a EUR 50 eco-bonus for electric rental cars picked up outside Paris in April 2025, aiming to disperse tourist traffic.
• Sixt partnered with Deutsche Bahn in March 2025 to place 500 rental EVs at major train stations, integrating rail-to-car mobility tickets.
• Italy’s Sicily region eliminated one-way drop fees for rentals ending at Palermo port in February 2025, boosting ferry-connected itineraries.
• Brussels added 250 on-street rental car parking bays in January 2025 reserved exclusively for car-sharing fleets, cutting operator parking costs by 15%.
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Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as part of the customization.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.