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Europe Van Rental Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)
The Europe Van Rental market was valued at USD 6. 11 billion in 2021 and is expected to reach USD 8. 47 billion by 2027 registering a CAGR of 5. 60% during the forecast period (2022 – 2027).
New York, May 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Europe Van Rental Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)" - https://www.reportlinker.com/p06272914/?utm_source=GNW
The COVID-19 pandemic had a mixed impact on the van rental market. With the production halt across the OEMs for new vans, the demand for vans to be used 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.
However, the increasing electrification could potentially reduce the opportunities for van rentals. Huge incentives offered by governments of different countries in the European region for purchase of electric vehicles and commercial electric vehicles, could potentially reduce the need for rental services if the products are offered at lucrative price for the buyers. This could in turn reduce the market opportunities and hinder the market growth.
In addition, The European Van rental companies cater majorly to tourists, looking to explore the destinations in their own time, with online and walk-in booking services making van rental more simple, accessible, and efficient. Relaxation of travel restrictions post-pandemic and increasing inflow of tourists into the market to create positive outlook for the market during the forecast period.
Key Market Trends
Business Rental Segment Anticipated to Hold Major Share in the Market
The rise in commercial activities in the European region and the increasing logistics sector are expected to help the van rental market growth in Europe during the forecast period. It is likely to continue to grow during the forecast period, as it helps European businesses meet the peaks and troughs of seasonal demand by providing suitable vans for the job at short notice, without any penalties or commitments.
Vehicle rental firms generally serve customers who need a temporary vehicle, such as those who do not own a vehicle, out-of-town tourists, or owners of damaged or destroyed automobiles who are awaiting repair or insurance settlement. Furthermore, with the growing logistics industry and the emergence of new e-commerce enterprises, rentals are the greatest way for them to lower their initial investment in purchasing delivery vans.
Vans find usage in several applications and segments of the European economy, i.e., construction, postal and courier services, law enforcement, and light duty passenger transport applications. The demand has significantly grown owing to the logistics and last mile delivery needs from e-commerce giants like Amazon expanding its fleet.
Also, due to stringent emission norms active in the European region, many companies are switching their fleets to electric. Several rental platforms are partnering EV manufacturers to procure vehicles for their vehicle fleets. For instance,
In October 2021, Europcar in the UK has launched an intriguingly flexible vehicle subscription service called DuoFlex, the subscription is based on a minimum 28-day rental but also adds a second vehicle for two days, twice a month. DuoFlex has been developed to take the crystal ball gazing out of fleet planning, providing companies with the flexibility to tackle fluctuating business mobility needs without financial penalty.
In July 2021, Arrival and LeasePlan, announced that LeasePlan would be the preferred operational leasing partner for Arrival electric vans as a part of its ambition is to achieve net zero emissions from its funded fleet by 2030. The cooperation is predicated on a 3,000-vehicle first purchase, with the sales agreement set to be completed in Q3 2021.
In June 2021, Enterprise Rent-A-Car UK Enterprise Flex-E-Rent has added 100 plug-in electric vans to its rental fleet. The electric vans will be available for daily rental as well as for longer-term flexible rental at 14 Enterprise Flex-E-Rent depots in the South of England and the Midlands.
Also, Europe’s fast expanding e-commerce market which is seeing the growth is pushing the demand for a more modern distribution network, which is growing as the e-commerce business expands across Europe in turn pushing demand for van rentals for business purposes.
United Kingdom Expected to Play Significant Role in the Market
According to the financial service provider, when compared to the same period in 2020, it has experienced a parabolic rise in van rental bookings in November. This is due in part to increased "festive demand"for larger vehicles as customers plan family vacations, as well as an increase in van rentals to meet home delivery demands, according to the financial service provider. According to them, the semi-conductor shortage is limiting new vehicles available to the UK market, forcing Brits to hire vehicles that are either larger or more dependable than their current automobiles.
The van rental sector is also experienced a winter boom, which Volkswagen Financial Services blames on customers shopping for Christmas gifts online. The global chip scarcity is also affecting the van industry, according to the business, which claims that rental vehicles are assisting fleet operators in expanding their ranks to meet the rising demand.
The UK van rental market has strong presence of key players like Enterprise, Europcar, Hertz, Avis Budget, and others. For instance, in January 2022, in the United Kingdom, the London Electric Vehicle Company (LEVC) has formed a new relationship with Europcar to deliver a fleet of 100 electric vans. The LEVC VN5 is now available at Europcar Vans and Trucks rental locations in eleven cities. The LEVC van is available for rent at Europcar locations, and the agreement is part of Europcar’s ’One Sustainable Fleet’ initiative, which focuses on Clear Air zones, which are becoming increasingly common in UK cities.
On basis of aforementioned factors, UK expected to grow significantly during the forecast period.
Competitive Landscape
The Europe Van Rental market is moderately consolidated market with presence of key players like Hertz Global Holdings Inc, Enterprise Holdings Inc, Europcar mobility, Fraikin SA, Lease Pln, Sixt SE, etc. and some of the local players. These players are activekly enagaged in the market and are focused on designing growth strategies like fleet expansion, colloborative agreements, etc. to improve their considerable share in the market. For instance,
In April 2021, Europcar Mobility Group entered into a strategic partnership with FREE2MOVE - STELLANTIS GROUP for the Connected Vehicles” Program. Which enables direct access to vehicle data, for an enhanced consumer experience and improved fleet management capacities. Over this international partnership, Free2Move will offer the Group with unified access to vehicle telemetry data like fuel level, geolocation, mileage and maintenance alerts in accordance with data protection regulations.
In September 2020, Chronopost, the French specialist in quick delivery of parcels weighing less than 30 kilograms, renewed its trust in FRAIKIN, its long-term partner. The delivery company was given the duty of providing over a hundred electric utility cars by the inventive leader in industrial and commercial vehicle fleet management. The Nissan brand, the world leader in 100% electric mobility, was chosen by the two partners and converted to the Voltia Van.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06272914/?utm_source=GNW
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