Electric Car Rental Market size was valued at USD 11.45 billion in 2023 and is set to cross USD 55.44 billion by 2036, registering more than 12.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of electric car rental is evaluated at USD 12.63 billion. Technology is a critical aspect expected to accelerate the market growth. Growing adoption of information technology in the industry is enabling operators to deliver enhanced services to the customers. This is usually done by utilizing optimized corporate and customer information management, which in turn is predicted to provide momentum to market expansion in the forthcoming years. Furthermore, increasing emphasis of consumers on the adoption of green products, coupled with their shifting preference towards electric vehicles for short rides are projected to offer profitable opportunities to the market in the near future.
The growth of the electric car rental market can also be attributed to the rapid expansion of travel and tourism sector across the globe, and rising demand for cheaper means of transportation. According to the United Nations World Tourism Organization (UNWTO), the international tourism expenditure around the world raised to USD 1,397.2 billion in 2018, up from USD 1,301.2 in the year 2017.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12.9% |
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Base Year Market Size (2023) |
USD 11.45 billion |
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Forecast Year Market Size (2036) |
USD 55.44 billion |
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Regional Scope |
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The market is segmented by vehicle type into battery, hybrid, and plug-in electric vehicle, out of which, the battery electric vehicle segment is anticipated to hold the largest share in the global electric car rental market. This can be accounted to the increase in production of battery-operated electric vehicles around the world, and rising technological innovations by market players for developing new and improved batteries, including graphene aluminum-ion and Li-ion batteries. Additionally, on the basis of booking type, the online access segment is assessed to gather the largest share over the forecast period owing to the growing dependence of users on smartphones, and escalating availability of demand-oriented mobility solutions. Apart from these, surge in development of applications aimed at offering car rentals is also considered to propel the growth of the market segment in the imminent time.
Our in-depth analysis of the global electric car rental market includes the following segments
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By Vehicle Type |
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By Category |
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By Booking Type
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By Rental Length
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By Application
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On the basis of geographical analysis, the global electric car rental market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. North America industry is poised to dominate majority revenue share by 2036, propelled by growing usage of car rental services, and increasing number of leisure and business trips across the region, both internationally and locally. In addition, strong presence of prominent market players is also anticipated to boost the region’s market growth in the future. Moreover, the market in Europe is also projected to acquire a notable share during the forecast period, which can be credited to the rise in government investments for green transportation facilities, and upsurge in adoption of electric vehicles in the region. As per a report published by the International Council of Clean Transportation or ICCT, a total of 564,000 electric vehicles were registered were made in 2019 in Europe. The EV sales across the region observed a growth of 3.6 percent in the same year.
June 2021- SIXT added new electric vehicle, the Volvo Recharge, to its range of new line of pure-electric and plug-in hybrid cars for rental services in the United Kingdom.
April 2021- Eco Europcar and GoAir announced a partnership and launched car rental services across 100 Indian cities, including 25 airports, offering Chauffeur-driven cars from mid to luxury car segments.
Author Credits: Dhruv Bhatia
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