Europe Car Rental Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 33.66 Bn

Forecast Year, 2035

USD 74.71 Bn

CAGR, 2026 - 2035

8.30%

Report Coverage

Europe

The Europe car rental market size was evaluated at USD 33.66 billion in 2025 and is expected to grow around USD 74.71 billion by 2035, registering a CAGR of 8.30% from 2026 to 2035. The market in Europe is mainly driven by the recovery of leisure and business tourism, the rise of mobile-first digital bookings, a growing preference for flexible short-term mobility, and the outsourcing of corporate fleets.

Europe Car Rental Market Statical Scope

The European car rental market is a key economic contributor, driven by significant international tourism, extensive corporate travel, and a shift among consumers from owning cars to seeking flexible, on-demand mobility. Millions of visitors each year depend on rental cars to visit regional attractions, coastal regions, and rural areas that lack adequate public transport. Companies are outsourcing their travel and fleet needs, utilizing rentals for regional offices, executive transport, and employee travel.

Urban dwellers favor short-term rentals and subscription services to avoid the high expenses of car ownership and city parking. Strict emissions regulations in Europe position the market as a leading global testing ground for electric and hybrid vehicle adoption. Innovative booking platforms, mobile applications, and self-service kiosks establish global standards for contactless, data-driven travel logistics.

Europe Car Rental Market, By Vehicle Type, 2025 (%)

• Economy Cars - The economy car segment, with a share of 42.00% in 2025, is the biggest revenue source in the Europe Car Rental Market. It thrives due to its suitability for narrow European city streets, high fuel prices, budget-friendly leisure travel, and the rise of low-cost regional airlines.
• SUVs - The SUV segment, with a share of 24.00% in 2025, plays a crucial role in the Europe car rental market as it meets the growing demand for space, comfort, and versatility for leisure and family road trips. Major companies like Sixt and Europcar depend on SUVs to achieve higher average daily rental rates compared to standard economy cars.
• Luxury Cars - The luxury car segment, with a share of 12.00% in 2025, is important to the Europe car rental market as it generates significantly higher revenue and profit per rental day, caters to strong corporate and VIP travel needs in financial centers like Germany and the UK, and takes advantage of the increasing trend in experiential tourism.

Europe Car Rental Market, By Application Type, 2025 (%)

• Local Usage - The local usage segment, with a share of 45.00% in 2025, accounts for the largest revenue share of the European car rental market. It offers essential services for daily commuting, short trips, and running errands within city limits. This segment flourishes because high urban living costs, limited parking, and strict low-emission zones make owning a car impractical for many city dwellers.
• Outstation - The outstation segment, with a share of 27.00% in 2025, is essential in the Europe car rental market as it leads to high average revenue per rental day, supports long-distance leisure tourism and cross-border road trips, and optimizes vehicle use across various regional destinations.
• Airport Transport - The airport transport segment, with a share of 21.00% in 2025, is crucial in the Europe car rental market as it attracts the highest initial volume of international tourists and business travelers, acting as the main entry point for high-value rentals, corporate accounts, and cross-border trips within Europe right upon arrival.

Europe Car Rental Market, By Rental Duration, 2025 (%)

• Short-term - The short-term segment, with a share of 72.00% in 2025, leads in the European car rental market by directly facilitating significant cross-border leisure tourism, airport arrivals, and flexible corporate project mobility. It enables millions of travelers and businesses to obtain temporary access to a vehicle without the burdens of high fixed costs and depreciation associated with car ownership.
• Long-term - The long-term rental and subscription segment, with a share of 28.00% in 2025, is essential in the European car rental market as it generates consistent revenue, reduces the impact of seasonal tourism downturns, aligns with the trend of consumers moving from ownership to access, and assists businesses and city residents in avoiding high vehicle depreciation, insurance costs, and strict urban emissions regulations.

Competitive Landscape

The European car rental market is well-established and competitive, fueled by significant tourism, business travel, and a growing preference for digital bookings and electric vehicles (EVs). Major players like Europcar, Sixt, Hertz, and Enterprise Holdings dominate the market with their extensive networks in airports and urban areas.

• Europcar Mobility Group has a strong presence in Europe. It specializes in regional services, corporate mobility, and flexible car subscriptions in key EU areas.
• Sixt SE is a premium provider based in Germany. It is recognized for its luxury vehicle offerings (BMW, Mercedes, Audi), digital app features, and excellent customer service.
• Hertz Global Holdings focuses on fleet electrification, loyalty programs like Hertz Gold Plus, and strategic partnerships with corporations.
• Enterprise Holdings operates the Enterprise, National, and Alamo brands, prioritizing neighborhood and airport service, high customer satisfaction, and consistent growth in Western Europe.
• Avis Budget Group employs a dual-brand approach, with Avis catering to premium and commercial markets, while Budget focuses on affordable short-term rentals.

Segments Covered in the Report

By Vehicle Type

• Economy Cars
• SUVs
• Luxury Cars
• Executive Cars
• MUVs

By Application Type

• Local Usage
• Outstation
• Airport Transport
• Others

By Rental Duration

• Short-term
• Long-term