The 37-year-old was killed when he was hit by a van close to his home during a training ride on Saturday, just days after he had finished fourth overall in the Tour of the Alps.
Members of Scarponi's Astana team, led by Fabio Aru, were joined by others including former team-mate Vincenzo Nibali and world champion Peter Sagan at his funeral.
Gazzetta dello Sport, which streamed the service live, also report that Italian Cycling Federation president Renato Di Rocco and Bahrain-Merida rider Enrico Gasparotto, who withdrew from this week's Tour de Romandie in order to attend, were present, as well as former Inter Milan and Manchester City manager Roberto Mancini, a friend and occasional training partner of Scarponi's.
There was loud applause as Scarponi's coffin was carried into the town's football stadium, where a mass was held before Scarponi's body was taken to a nearby cemetery.
Scarponi, who was awarded 2011 Giro d'Italia victory when Alberto Contador was stripped of the title, won the opening stage of the Tour of the Alps last week, and was slated to lead Astana at the 2017 Giro.
He leaves behind a wife and two children.
Read the original article on Eurosport: Thousands turn out for funeral of Italian cyclist Michele Scarponi