Germany Car Rental Market Report and Forecast 2025-2034

Germany Car Rental Market Size

The Germany car rental market is estimated to be valued at USD 3.55 billion in 2023. The market is expected to grow at a CAGR of 4.65% to reach USD 5.38 billion in 2032.

Germany Car Rental Market Outlook

• The World Travel & Tourism Council's 2023 Economic Impact Research reveals Germany's travel & tourism sector is recovering to 95% of its pre-pandemic level.

• According to the Federal Minister for Economic Institutional support for the German National Tourist Board (GNTB), amounting to around €30.6 million per year.

• Key players in the market are expanding their fleets to improve their market position.

Germany Car Rental Market Growth

Germany has a large automobile rental market due to its strong economy, substantial transportation infrastructure, and high levels of domestic and international tourism. The market has grown steadily over the years, owing to rising demand for flexible mobility solutions, corporate travel, and leisure tourism. The automobile rental sector in Germany is increasingly relying on technology and innovation to improve client experiences and optimise operations. Customers may easily book, change, and manage their rentals online via digital platforms and mobile apps, while technologies like keyless entry systems and connected vehicles enhance convenience and efficiency.

Key Trends and Developments

The Germany Car Rental market is enhanced by maintaining a well-road network and efficient transportation infrastructure making it easy for travellers to navigate the country.

April 2024

SIXT announced that it has expanded its fleet which now includes customers Porsche vehicles Germany, including models from the 911, Panamera, and Taycan series.

September 2023

TIP Group acquired Mezger Rent & Service, a family-owned commercial vehicle rental company in southern Germany, expanding its presence in the German market.

March 2024

SIXT managed to expand its fleet to a record size of 169,100 rental vehicles on average, compared to 138,400 vehicles in the previous year.

January 2020

Avis Budget Group and Fiat Chrysler Automobiles signed a new connected car agreement, enhancing the rental experience in Europe with streamlined, self-serve, and on-demand options.

Electric Vehicle: With increasing environmental awareness and government incentives, there is a growing demand for electric and hybrid vehicles in Germany car rental market. The German government offers various incentives to promote electric vehicles, including tax incentives.

Digitalization and Online Booking: The digitalization of services is transforming the car rental process, making it more convenient and accessible for consumers. Online booking platforms and mobile apps allow customers to easily compare prices.

Environmental Awareness: Concerns about climate change and air pollution have led to great awareness of the environmental benefits of electric vehicles. it helps to reduce greenhouse gas emissions and improve air quality in urban areas.

Consumer Demand: There is increasing consumer demand for electric vehicles in Germany, driven by factors such as lower fuel costs, government incentives, and the desire to reduce environmental impact.

Germany Cars Rental Market Trends

As per the Germany car rental market report, various factors such as increased tourism, business travel, or a shift in consumer preferences towards flexible transportation options. It might also be influenced by the availability of new services or innovations within the industry.

Car rental services provide flexibility in terms of choosing the right vehicle like many industries, car rental services in Germany are embracing digitalization. This includes online booking platforms, mobile apps for reservation and payments, and digital checks for a smoother customer experience.

Germany Car Rental Industry Segmentation

“Germany Car Rental market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Booking Type

• Offline

• Online

Market Breakup by Rental Length Type

• Short-Term

• Long-Term

Market Breakup by Application Type

• Leisure/Tourism

• Business

Market Breakup by Vehicle Type

• Luxury/Premium Cars

• Economy/Budget Cars

• SUVs

• MUVs

Market Breakup by Region

• North Rhine-Westphalia

• Bavaria

• Baden-Wurttemberg

Germany Car Rental Market Share

The rise of the Germany car rental market can be attributed to both online and offline convenience, competition and customer preferences and needs.

Online booking platforms offer unmatched convenience, allowing customers to browse through various car rental options, compare prices, and make reservations from the comfort of their homes or on the go.

Some customers prefer the offline booking methods. Visiting a rental office or contacting a rental agent allows customers to discuss their specific needs and preferences.

Growing tourism sector is driving Germany car rental market growth.

Rental automobiles are frequently used by leisure visitors to explore tourist sites, visit attractions, and navigate unfamiliar terrain during vacations and holidays. Renting a car gives you the flexibility and freedom to explore at your leisure.

Business travellers regularly rent cars to get to meetings, conferences, and client visits when on business trips. Rental cars provide flexibility and efficiency, allowing travellers to stick to tight timetables, visit several places, and successfully manage their time while on the road for business.

Premium travel experiences, comfort, and convenience is driving the Germany car rental market share for SUV.

SUVs are designed with roomy interiors, raised sitting positions, and enhanced features to improve passenger comfort and convenience while travelling. Renting an SUV provides a premium driving experience, climate control, and entertainment systems to ensure passengers' comfort and enjoyment.

Luxury vehicles are frequently sought after for special occasions such as weddings, anniversaries, birthdays, and business functions. Renting a luxury car adds a sense of sophistication and elegance to such occasions.

Leading Players in Germany Car Rental Market

The Germany car rental market competitiveness has due to the growing focus on increasing the fleet size while simultaneously increasing the number of locations where the services are offered.

Avis Budget Group Inc: In 1946, Avis was founded by Warren Avis at Willow Run Airport. It is a provider of car and truck rental and sharing services.

Enterprise Holding Inc. is an American company holding company headquartered in Clayton, Missouri, in Greater St Louis. It operates as a holding company producing goods or services in exchange for commercial and financial benefits.

SIXT SE: It was founded in 1912, with headquarters in Pullach Germany is an international mobility service provider with about 2,000 locations in more than 100 countries.

Other Germany car rental market key players are Hertz Global Holdings, Inc., Europcar International S.A.S.U, CarVia GmbH, Wucherpfennig & Krohn GmbH, Edel & Stark AG, and fourdrive GmbH   among others.

Germany Car Rental Market Analysis by Region

The growing tourism sector is positively driving the demand for car rental services in Germany. Bavaria, with its stunning landscapes, rich cultural heritage, and vibrant cities, attracts millions of visitors each year.

Simultaneously, with the use of cutting-edge artificial intelligence (AI) technologies, Munich airport has enhanced customer service for those renting cars. Customer wait times are minimized and transparency is maintained thanks to software that is deployed in a scanning tunnel at the automobile rental centre.

Key Highlights of the Report