Europe Van Rental Market Size (2024 - 2029)

The European van rental market is projected to experience growth over the forecast period, driven by various factors despite challenges posed by the COVID-19 pandemic. The market's expansion is influenced by the demand for rental services for cargo and last-mile delivery, although financial constraints have limited the uptake of new rental services. The increasing electrification of vehicles, supported by government incentives, poses a potential challenge to market growth by reducing the need for rentals. Nonetheless, major market players are actively electrifying their fleets, and the relaxation of travel restrictions has boosted tourism-related van rentals, contributing to a positive market outlook.

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Market Size of Europe Van Rental Industry

Europe Van Rental Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 7.19 Billion
Market Size (2029) USD 9.44 Billion
CAGR (2024 - 2029) 5.60 %
Market Concentration Medium

Major Players

Europe Van Rental Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Van Rental Market Analysis

The Europe Van Rental Market size is estimated at USD 7.19 billion in 2024, and is expected to reach USD 9.44 billion by 2029, growing at a CAGR of 5.60% during the forecast period (2024-2029).

  • The COVID-19 pandemic had a mixed impact on the van rental market. With the production halt across the original equipment manufacturers (OEMs) for new vans, the demand for vans for various cargo and last-mile delivery purposes was fulfilled by using rental schemes across the European region. However, with restricted cash flow, a significant reluctance of people towards utilizing new rental services over the existing vehicles has negated the positive impact due to the pandemic.
  • Over the long term, the increasing electrification could potentially reduce the opportunities for van rentals. Huge incentives offered by governments of different countries in the European region for the purchase of electric vehicles and commercial electric vehicles could potentially reduce the need for rental services if the products are offered at a lucrative price for the buyers. This factor could reduce market opportunities and hinder market growth.
  • However, major players in the market are focusing on electrifying their rental fleets. For instance, in January 2023, by 2025, rental giant Hertz plans to make up to 25,000 electric vehicles (EVs) accessible for rent to Uber drivers in European capitals. During 2023, the program will be expanded to other European capitals, including Paris and Amsterdam.
  • In addition, European Van rental companies cater majorly to tourists looking to explore the destinations in their own time, with online and walk-in booking services makinqg van rental more simple, accessible, and efficient. Relaxation of travel restrictions post-pandemic and increasing inflow of tourists into the market to create a positive outlook for the market during the forecast period.

Europe Van Rental Industry Segmentation

Van rental is the service of hiring vans for short-term use, providing flexibility and convenience for transportation needs. Customers can choose from various van sizes and configurations, making it cost-effective and practical. Rental companies offer online booking services, ensuring a hassle-free experience.

The Europe van rental market is segmented by application type (leisure/tourism and business), booking type (offline and online), rental duration (short-term and long-term), and geography (Germany, United Kingdom, France, Spain, Italy, Belgium, Netherlands, Austria, Ireland, Luxembourg, and Rest of Europe). 

The report offers market size and forecast in value (USD) for all the segments mentioned above.

By Application Type
Leisure/Tourism
Business
By Booking Type
Offline
Online
By Rental Duration
Short-term
Long-term
By Geography
Germany
United Kingdom
France
Spain
Belgium
Netherlands
Austria
Ireland
Luxembourg
Rest of Europe
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Europe Van Rental Market Size Summary

The European van rental market is poised for significant growth over the forecast period, driven by increasing commercial activities and the expanding logistics sector. The market is characterized by a moderate level of consolidation, with key players such as Hertz Global Holdings Inc, Enterprise Holdings Inc, and Europcar Mobility Group actively engaging in strategies to enhance their market share. The demand for van rentals is bolstered by the need for temporary vehicles among businesses and tourists, as well as the growing e-commerce industry, which requires a modern distribution network. The relaxation of travel restrictions post-pandemic has further contributed to a positive market outlook, as more tourists seek flexible travel options. Additionally, the market is witnessing a shift towards electrification, with major rental companies investing in electric vehicle fleets to meet stringent emission norms and cater to environmentally conscious consumers.

Despite the challenges posed by the COVID-19 pandemic, such as production halts and cash flow restrictions, the van rental market has adapted by fulfilling demand through rental schemes. However, the increasing electrification of vehicles, supported by government incentives for electric vehicle purchases, could potentially limit the growth of van rental services. To counter this, rental companies are focusing on expanding their electric vehicle offerings, as seen in initiatives by Hertz and Europcar. The market's growth is also supported by the ongoing semiconductor shortage, which has led to increased demand for rental vehicles as businesses seek to expand their fleets without significant capital investment. Overall, the European van rental market is expected to continue its upward trajectory, driven by strategic investments, technological advancements, and a growing emphasis on sustainability.

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Europe Van Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Logistics Company may Drive the Growth of the Market

    2. 1.2 Market Restraints

      1. 1.2.1 Government Incentives for Buying New EV May Hamper the Market

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Application Type

      1. 2.1.1 Leisure/Tourism

      2. 2.1.2 Business

    2. 2.2 By Booking Type

      1. 2.2.1 Offline

      2. 2.2.2 Online

    3. 2.3 By Rental Duration

      1. 2.3.1 Short-term

      2. 2.3.2 Long-term

    4. 2.4 By Geography

      1. 2.4.1 Germany

      2. 2.4.2 United Kingdom

      3. 2.4.3 France

      4. 2.4.4 Spain

      5. 2.4.5 Belgium

      6. 2.4.6 Netherlands

      7. 2.4.7 Austria

      8. 2.4.8 Ireland

      9. 2.4.9 Luxembourg

      10. 2.4.10 Rest of Europe

Europe Van Rental Market Size FAQs

The Europe Van Rental Market size is expected to reach USD 7.19 billion in 2024 and grow at a CAGR of 5.60% to reach USD 9.44 billion by 2029.

In 2024, the Europe Van Rental Market size is expected to reach USD 7.19 billion.

Europe Van Rental Market Report Snapshots

Van Rental in Europe Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)