Italy Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Italy Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Italy Car rental market was valued at USD 0.77 Billion in 2021 and is projected to grow to USD 1.14 Billion by 2027, registering a CAGR of 5.04% in terms of revenue during the forecast period (2022-2027).

The rapid expansion of COVID-19 has disrupted car rental growth across the country. The strict travel restrictions and quarantine rules across the country have adversely affected the car rental market. The car rental market registered around 50% lower revenue in 2020 as compared to 2019. However, the market is displaying a decent recovery post severe COVID-19 pandemic outbreaks as the market revenue is surging by around 48% in 2021 as compared to 2020.

Over the medium term, The rise in domestic and international tourism across the country is likely to witness major growth in the market. In 2021, Domestic expenditure accounts for around 84% of total tourism spending. The contribution of travel and tourism spending is the key factor toward the Italian GDP. Such an increase in travel and tourism sectors across the country is witnessing major demand for car rental services, which in turn witnessing major growth for the market.

Rising internet penetration across the country and increase in use of smart phone application for online car rental booking is likely to witness significant growth for the market. For instance, In 2021, the number of active internet user in Italy counted more than 50 million, such increase in use of internet will help to boost the market.

Key Market TrendsOnline Booking Segment Likely to Drive Demand in the Market

Online booking is dominating the Italy car rental market in terms of revenue in 2021 and is registering a notable growth in terms of revenue during the forecast period. The rise in the use of internet and mobile phone applications across the country is likely to enhance the use of online booking platforms. The rising dependence of users on smartphones for carrying out a variety of activities traditionally done by personal computers has significantly helped transform the car rental experience for customers.

Currently, online booking serves a variety of purposes, such as verification of documents of the renter, offering information to the renter regarding the car, and services like drop and pick-up of the rented car at a certain place, e-signing contracts, and cashless transactions.

Introduction to innovative business models such as car sharing benefiting new players in revenue growth. New startup players across the companies are using mobile technologies and devices to better meet consumers’ personal transportation needs. These initiatives are contributing to the disruption of the car rental industry.

Growing Electric Vehicles Adoption to Offer Lucrative Opportunities to Players in the Market

Growing electric car sharing across the country is likely to witness major growth for the market. The rising strategic partnership between the existing players for electric car sharing has significantly boosted the market. For instance,

• In July 2021, Enel X and Volkswagen Group jointly developed electric mobility in Italy. The two companies will establish a full-function joint venture of equal partners aimed at deploying, owning, and operating more than 3,000 high-power charging points in Italy of up to 350 kW each.
• In June 2021, LeasysGO! launched car sharing company across Italy. The company has ordered a fleet of electric Fiat 500 vehicles for rental service.

The rise in popularity of electric car rental services among travelers across the country is witnessing major growth in the market.

• In 2020, WeShare is partnering with Volkswagen to provide e-Golf1 and other vehicles. The company has plannd to provide a fleet of 8,400 electric vehicles across the country.

Competitive Landscape

Italy Car rental market is dominated by major players such as Europcar, Avis, Hertz, Rentalcars.com, Easycar.com, and many others. Further expansion of car rental companies across the country is witnessing major growth for the market. For instance,

• In June 2022, Virtuo announced car rental services across Italy. This expansion makes a gradual integration of compact vehicles and those that can accommodate up to seven people.
• In May 2021, Leasys launched a new e-commerce feature that will make it possible to complete the purchase of used cars online, in an even easier and faster way in Italy.
• In February 2021, Virtuo has expanded its rental services across Italy. The company also dealt with several car manufacturers, offering high-end vehicles, to customers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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