France Car Rental Market Size (2024 - 2029)

France Car Rental Market Analysis

France car rental was valued at USD 1.10 billion in 2021 and expected to surpass a net valuation of USD 2.25 billion by 2027 end, registering a solid CAGR growth of 12.7% during the forecast period.

During the pandemic, demand for car rental services in France has witnessed a downfall amid the lockdown measures instructed by the government. The country's one of the economic booster sector remains the tourism witnessed a decline in revenue generation. This was attributed to reduced tourist crowds at several tourist spots in France. Although, the market has regained its growth phase again amid the lifting of covid-19 measures across the globe.

Digitalization, changing consumer preferences, and expansion in the fleet has been key growth propeller for the rising car rental business in France. In the long run, the demand is likely to be driven by the planned expansion of the France tourist industry. Key player investments, existing robust infrastructure, and a big customer base may help the industry swiftly recover from the pandemic and capitalize on the sector's development possibilities.

Internet penetration among the generation has been identified as a key pivot role in driving the demand for the car rental market in France. Several players in the car rental business operating in the segment are expanding their roots in countries to elevate the demand for the same. Players are offering electric vehicles for car renting to gauze consumer prefernces. For instance;

• In Jul 2022, Stellantis auto maker introduced electric as you go which is longer term car rental programm offered in Frnace to lease and rent electric cars to consumers. Company introduced Peugeot e-208, Opel Corsa-e and Opel Mokka-e EV's for the same.

Thus, rising leisure and tourism activties in the country has helped market to grow positively during the forecast period.

France Car Rental Industry Segmentation

Car renting refers to the business of leasing and renting a car from rental service providers based on some valuation. This renting can be on an hourly basis or for a longer time span.

The car renting market is segmented by rental duration type, booking type, application type, driving type, and vehicle type. By rental duration type, the market has been segmented into short-term and long-term. By booking type, the market has been segmented into online and offline. By application type, the market has been segmented into leisure/tourism and business and by vehicle type, the market is segmented into budget/economy and premium/luxury. For each segment, the market sizing and forecasting are based on value (USD billion).