The car rental market - Italy

The global car rental market, valued at approximately $98.14 billion in 2020, is anticipated to witness a growth with a CAGR of 4.6% from 2021 to 2028. Despite the pandemic-induced setbacks, particularly in the short-term rental segment, the industry shows resilience and is expected to recover as tourism and business travel resume. In Italy, while the short-term market suffered losses in 2020. Current trends in the car rental space include a shift towards electric and autonomous vehicles, the emergence of medium-term rentals (exceeding 30 days but less than a year), the growth of the used car rental market, and significant digitalization with a focus on small and medium-sized enterprises as key clientele. Major players in the market include Arval, Ald Automotive, Leasys, Volkswagen, and Mercedes Benz CharterWay.

Car Rental Market Trends and Key Figures in Italy

The Italian car rental market has witnessed varied trends due to the impact of recent global events. Notably, the long-term rental sector has demonstrated resilience with a notable increase of approximately 2.4% in the number of cars rented in 2020 compared to the previous year. However, the short-term rental sector suffered losses primarily due to the pandemic's restrictions on travel and tourism. Despite these challenges, the market is anticipated to revive as travel for work and tourism gradually returns to pre-pandemic levels. Four core trends are currently shaping the Italian car rental market. First, there is a growing interest in electric cars that boast autonomous driving features. Second, the rental of used cars is becoming a more common practice. Third, a new niche for medium-term rentals has emerged, catering to needs that span beyond 30 days but are still less than a year. Lastly, there is a significant push towards the digitalization of services, especially with a focus on small and medium-sized enterprises, which are now viewed as the most profitable customer segment.

On the global scale, the car rental industry holds a substantial market value estimated to be between $95 and $100 billion as of 2020, with a projected compound annual growth rate of approximately 4.5% to 4.7% from 2021 to 2028. Within this industry, various vehicles are on offer, including cars, motorbikes, and vans, accompanied by additional services that enhance customer experience such as child seats, telepass, or GPS. As the market recovers and evolves, the positioning of key players will be crucial. Companies like Arval, Ald Automotive, Leasys, Volkswagen, and Mercedes Benz CharterWay stand as recognizable entities in the industry. Their success and adaptability will likely hinge on how well they align with the emerging trends and respond to the changing dynamics of the car rental landscape in Italy.

Major Players Shaping the Car Rental Landscape

The car rental market is characterized by the presence of several established and influential firms that have been shaping the industry through innovative services and strategic market positioning. Below we take a closer look at some of these key players:

•  Arval specializes in full-service vehicle leasing and new mobility solutions. A subsidiary of BNP Paribas, this company has cemented its presence in the car rental landscape by offering long-term rentals to corporate clients. Arval's services include not just the leasing, but also the management of vehicle fleets, with particular attention paid to offering sustainable and technologically advanced mobility solutions. Their commitment to environmental sustainability is evident in their push towards a fleet comprising electric and hybrid vehicles.
•  ALD Automotive As a global leader in mobility solutions, ALD Automotive provides both long-term leasing and fleet management services across multiple countries. Their focus on innovation elevates their stature within the market as they offer tailor-made products and services that cater to changing consumer and corporate needs. Their fleet not only includes cars but also covers other types of vehicles, ensuring a comprehensive approach to mobility.
• Leasys Owned by the Italian automotive giant Fiat Chrysler Automobiles, Leasys stands out with its full-service leasing programs that make it a favorably positioned actor in the car rental domain, particularly in Italy. They offer a wide range of services that extend beyond traditional car rental, such as used car rental and medium-term rental solutions. The company continuously adapts to market demands with new initiatives such as Leasys Mobility Stores, which provide an integrated mobility experience.
• Volkswagen Financial Services The financial arm of the Volkswagen Group, Volkswagen Financial Services, not only provides financing for car purchases but also offers competitive leasing and car rental services through its various subsidiaries. Their rental services are imbued with the reliability of the Volkswagen brand, and they cater to both individual customers and corporate clients who seek quality and efficiency.
• Mercedes Benz CharterWay With immaculate brand recognition, Mercedes Benz CharterWay offers dedicated rental and leasing solutions that combine luxury with utility. Targeting a premium segment of the market, their services are synonymous with the high standards associated with the Mercedes-Benz brand. They offer a range of customizable solutions that cater to different transportation needs, including a selection of commercial vehicles for more heavy-duty operations.

Together, these market players have adapted to the change in consumer preferences by diversifying their offerings, integrating sustainable practices, and leveraging technology to provide enhanced services in the complex realm of car rentals.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 10/08/2021

Summary and extracts