Market Size of Spain Car Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.95 Billion |
| Market Size (2029) | USD 7.47 Billion |
| CAGR (2024 - 2029) | 10.13 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Spain Car Rental Market Analysis
The Spain Car Rental Market size is estimated at USD 5.95 billion in 2024, and is expected to reach USD 7.47 billion by 2029, growing at a CAGR of 10.13% during the forecast period (2024-2029).
Over the long term, the rising number of tourists in the country and the increasing car rental fleet size are driving the car rental market in Spain. The country has 47 UNESCO World Heritage Sites, numerous beaches on the Atlantic & Mediterranean, and many ongoing festivals across the year, which aid in gathering millions of international tourists, along with domestic tourists.
In June 2022, the Spanish government's announcement of EUR 110 million investment in tourism competitiveness indirectly benefited the car rental market by attracting more potential investors.
People's attitudes toward traveling light are changing, and they prefer renting a car to owning one, especially when traveling. This social mindset shift has contributed to an unusually high demand for rented cars. Spain is no longer a destination for visitors who arrive by car. Tourists are looking for car rentals for their vacations. As a result, the country is experiencing a car rental crisis.
The electric rental fleets in the country are also expected to grow in the coming years, encouraging the rental services offered across the country to attract customers and curb greenhouse emissions. Some of the prominent players in the Spanish airport car rental market are Europcar Mobility Group, Hertz Corporation, and Avis Budget Group.
However, tourist travel behavior and vacation expectations have been reset following the pandemic. Following three years of revenue decline (due to the pandemic), the car rental industry is expected to see an increase and a healthy profit.
Spain Car Rental Industry Segmentation
A car rental, hire car, or car hire agency is a company that rents automobiles to the general public for short periods, typically ranging from a few hours to a few weeks.
The Spanish car rental market is segmented by application type (leisure and business), price range (luxury/premium car and economy car), and booking type (offline access and online access). The report offers market size and forecast in value (USD) for the abovementioned segments.
| By Application | |
| Leisure | |
| Business |
| By Price Range | |
| Luxury/Premium Car | |
| Economy Car |
| By Booking | |
| Offline Access | |
| Online Access |
Spain Car Rental Market Size Summary
The Spanish car rental market is experiencing significant growth, driven by the country's status as a leading tourist destination and the evolving preferences of travelers. The influx of international and domestic tourists, attracted by Spain's rich cultural heritage, beautiful landscapes, and vibrant festivals, has led to a surge in demand for rental cars. This demand is particularly pronounced in regions with limited public transportation, where tourists seek the flexibility and convenience of exploring at their own pace. The market is further bolstered by the increasing popularity of electric rental fleets, as companies aim to attract environmentally conscious customers and reduce greenhouse emissions. Major players in the market, such as Europcar Mobility Group, Hertz Corporation, and Avis Budget Group, are expanding their offerings to meet this growing demand.
The shift in consumer behavior towards renting cars instead of owning them, especially during travel, has contributed to the market's expansion. The economy and budget car segments are particularly popular, offering cost-effective options for both tourists and business travelers. Online booking platforms are gaining traction, with technology playing a crucial role in enhancing customer service and streamlining the rental process. Initiatives like Uber's car rental service expansion and the renewal of self-drive vehicle rental leases at Spanish airports underscore the market's dynamic nature. Additionally, innovations such as the digital identification card for rental vehicles highlight the industry's commitment to modernization and improved customer experience. As the market continues to evolve, it is poised for robust growth, supported by strategic investments and technological advancements.
Spain Car Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Application
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2.1.1 Leisure
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2.1.2 Business
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2.2 By Price Range
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2.2.1 Luxury/Premium Car
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2.2.2 Economy Car
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2.3 By Booking
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2.3.1 Offline Access
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2.3.2 Online Access
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Spain Car Rental Market Size FAQs
How big is the Spain Car Rental Market?
The Spain Car Rental Market size is expected to reach USD 5.95 billion in 2024 and grow at a CAGR of 10.13% to reach USD 7.47 billion by 2029.
What is the current Spain Car Rental Market size?
In 2024, the Spain Car Rental Market size is expected to reach USD 5.95 billion.
