European Car Sharing Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the European Car Sharing Market is expected to record a CAGR of 19.1% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 3.7 Billion. By 2032, the valuation is anticipated to reach USD 18.2 Billion.

The European car sharing market is a dynamic sector that provides short-term access to vehicles, offering a flexible alternative to traditional car ownership. Shaped by trends such as urbanization, environmental awareness, and technological advancements, leading companies like SHARE NOW, Free2Move, and Zipcar have played pivotal roles.

The market facilitates access to diverse fleets, including electric and hybrid vehicles, and embraces innovations like mobile app integration. Post-pandemic, a heightened focus on safety, hygiene measures, and sustainable practices has further shaped the landscape, reflecting the industry’s resilience and adaptability to evolving consumer needs and market conditions.

European Car Sharing Market – Significant Growth Factors

The European Car Sharing Market presents significant growth opportunities due to several factors:

• Urbanization and Congestion: The increasing urban population and congestion in European cities drive the demand for car sharing services as a convenient and sustainable mobility solution, offering flexibility to users without the need for personal vehicle ownership.

• Environmental Consciousness: Growing awareness of environmental issues and the need for sustainable transportation options propel the adoption of car sharing, especially with the integration of electric and hybrid vehicles, contributing to reduced carbon emissions.

• Technological Advancements: Continuous technological innovations, such as advanced mobile applications, keyless entry systems, and real-time GPS tracking, enhance the user experience and convenience, attracting a tech-savvy customer base to car sharing services.

• Regulatory Support for Sustainable Mobility: Supportive regulations and incentives from governments and local authorities encourage the growth of car sharing, especially when aligned with sustainable and eco-friendly practices, contributing to a more favorable operating environment for service providers.

• Integration with Public Transportation: Opportunities exist for car sharing services to integrate seamlessly with existing public transportation networks, offering users a comprehensive and interconnected mobility solution. Strategic partnerships with public transit agencies can enhance the overall accessibility and convenience of shared mobility options.

• Expansion into Underserved Markets: There is an opportunity for car sharing companies to expand their services into underserved markets, both in terms of geographical coverage and catering to specific demographics. Identifying and addressing the unique mobility needs of diverse communities can unlock new customer segments and drive market growth.

• Cultural Shift Towards Mobility as a Service (MaaS): A cultural shift in consumer attitudes, driven by the desire for more convenient and efficient transportation solutions, encourages the adoption of Mobility as a Service (MaaS). Car sharing services, as integral components of MaaS, benefit from the evolving mindset that prioritizes access over ownership and values the seamless integration of various transportation modes for a comprehensive mobility experience.

European Car Sharing Market – Mergers and Acquisitions

The European Car Sharing Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the European Car Sharing Market include:

• In 2023, Hertz partnered with Uber to provide 25,000 electric vehicles (EVs) to Uber drivers across European capital cities by 2025. This collaboration aligns with Hertz’s plan to establish one of the world’s largest rental EV fleets and supports Uber’s goal to achieve a zero-emissions platform in Europe and North America by 2030.

• In 2022, Continental expanded its collaboration with SHARE NOW Denmark, following a successful pilot project on tread-depth monitoring for the car-sharing service’s fleet. This partnership ensures that SHARE NOW Denmark’s car-sharing fleet benefits from intelligent tire management solutions, enhancing safety and performance through advanced technology provided by Continental.

• In 2021, Wuddi and Ridecell Inc. joined forces in a partnership to expand car-sharing operations. Leveraging the Ridecell Fleet IoT Automation Platform, Wuddi aims to enhance efficiency and digital transformation within its fleet-based enterprise, utilizing Ridecell’s advanced technologies for streamlined and automated car-sharing services.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the European Car Sharing Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

European Car Sharing Market – Significant Threats

The European Car Sharing Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Economic Downturns and Uncertainties: Economic downturns can lead to reduced disposable income and increased financial caution among consumers. In such circumstances, people may opt for more cost-effective transportation alternatives or defer spending on non-essential services like car sharing, posing a threat to the market.

• Competition from Ride-Hailing Services: Intense competition from ride-hailing services, which offer convenient point-to-point transportation, poses a threat to car sharing. The flexibility and door-to-door service provided by ride-hailing companies may divert potential car-sharing users, impacting the market share of car-sharing providers.

• Changing Attitudes Toward Car Ownership: If there is a resurgence in the desire for car ownership, driven by factors such as a perceived increase in personal safety or changing societal attitudes, the car sharing market could face a decline as consumers prioritize owning personal vehicles over shared mobility options.

• Infrastructure and Charging Concerns for Electric Vehicles: The reliance on electric and hybrid vehicles in the car sharing market could be hindered by inadequate charging infrastructure, range anxiety, and uncertainties related to EV technology. These challenges may limit the widespread adoption of electric car sharing, affecting market growth.

• Regulatory Challenges and Policy Changes: Evolving regulations and policy changes, especially those affecting shared mobility services, could pose a threat to the European car sharing market. Stringent regulations, increased taxes, or changes in legal frameworks may impact the cost-effectiveness and operational feasibility of car sharing services, affecting their market competitiveness.

Report Scope

Category-Wise Insights

By Vehicle Type

• Economy Cars: Economy cars, known for fuel efficiency and affordability, dominate the European car sharing market. Trend-wise, an increasing emphasis on compact and eco-friendly models aligns with cost-conscious urban users seeking economical options, contributing to the popularity of economy car sharing in urban centers.

• Mid-Range Cars: Mid-range cars in the European car sharing market offer a balance between affordability and comfort. A trend involves integrating more versatile models, appealing to users requiring additional space and features. This segment caters to a diverse range of mobility needs within the shared transportation landscape.

• Executive Cars: Executive cars, representing luxury and premium features, are gaining traction in the European car sharing market. A trend is observed in the integration of high-end, well-equipped models to cater to users seeking a more sophisticated and comfortable travel experience, expanding the market’s offerings and user base.

By Application

• Private: Car sharing for private use caters to individuals seeking convenient, occasional access to vehicles without ownership. The trend in Europe reflects a shift in urban lifestyles, with users valuing affordability and flexibility. Increasingly, private car sharing incorporates electric options, aligning with sustainability goals.

• Business: Business car sharing targets corporate users, offering flexible mobility solutions for professional needs. In Europe, the trend emphasizes cost-efficient, eco-friendly options, and integration with corporate travel policies. Companies are leveraging technology for seamless booking and expense management, enhancing the overall business mobility experience.

By Model

• Free Float: Free float car sharing allows users to pick up and drop off vehicles at any location within a designated area, promoting flexibility. The European market trends show an increased emphasis on electric and hybrid free float models, aligning with sustainability goals and meeting the growing demand for eco-friendly options.

• Stationary: Stationary car sharing involves designated pick-up and drop-off locations. The trend in Europe includes expanding stationary services in urban and suburban areas, offering convenient access to shared vehicles at strategic points such as transit hubs and residential complexes.

• Peer to Peer (P2P): Peer-to-peer car sharing enables individuals to share their privately-owned vehicles with others. In Europe, P2P models are evolving to incorporate advanced mobile platforms, enhancing user experience and trust. Regulatory developments also impact the growth of P2P car sharing, influencing its adoption across different regions.

By Area

• Intercity: Intercity car sharing in Europe involves the short-term rental of vehicles for travel between cities. This segment is characterized by the demand for one-way trips and flexibility. Trends include the integration of intercity services into broader mobility platforms and the adoption of electric vehicles for sustainable long-distance travel.

• Intracity: Intracity car sharing in Europe focuses on short-term vehicle rentals within city limits, providing users with convenient access to vehicles for local travel. Key trends include the emphasis on electric and hybrid vehicles, enhanced user experiences through advanced mobile applications, and strategic collaborations with public transportation systems.

Competitive Landscape – European Car Sharing Market

The European Car Sharing Market is highly competitive, with a large number of manufacturers and retailers operating in Europe. Some of the key players in the market include:

• Zipcar
• Free2Move
• SHARE NOW
• Sixt Share (Sixt SE)
• DriveNow
• Fleetster
• Ubeeqo
• Getaround
• Stadtmobil
• Cambio CarSharing
• Enjoy (ACI Global S.p.A.)
• Poppy (Operated by D’Ieteren Auto)
• Miles
• Dott
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the car-sharing market are adopting innovation to gain traction. Companies like Turo and Getaround leverage peer-to-peer models, while innovative startups such as Dott and Miles focus on electric and sustainable mobility solutions.

Key players dominating the market, including SHARE NOW, Free2Move, and Zipcar, lead through established brand recognition, extensive fleets, and strategic partnerships. They capitalize on technological advancements, such as app integration and diverse vehicle offerings, cementing their position as reliable and trusted providers, and setting high entry barriers for newcomers in the evolving European car-sharing landscape.

 The European Car Sharing Market is segmented as follows:

By Vehicle Type

• Economy cars
• Mid-Range cars
• Executive cars

By Application

• Private
• Business

By Model

• Free float
• Stationary
• Peer to Peer

By Area

• Intercity
• Intracity

Regional Coverage:

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe