Electric Car Rental Global Market Report 2024

The electric car rental market size has grown rapidly in recent years. It will grow from $9.82 billion in 2023 to $11.39 billion in 2024 at a compound annual growth rate (CAGR) of 16.0%. The growth observed during the historic period in the electric car rental industry can be attributed to various factors. These include the increasing awareness of environmental issues, concerns related to urbanization and congestion, government incentives and subsidies encouraging electric vehicle adoption, growing consumer interest in sustainable transportation options, and the implementation of corporate sustainability initiatives. These factors collectively contributed to the expansion of electric car rental services during that time.

The electric car rental market size is expected to see rapid growth in the next few years. It will grow to $20.07 billion in 2028 at a compound annual growth rate (CAGR) of 15.2%. The anticipated growth in the forecast period for the electric car rental industry can be attributed to various factors. These include the expansion of electric vehicle models available for rental, a global rise in eco-tourism leading to increased demand for sustainable transportation options, a focus on green certification for rental services, integration with Mobility-as-a-Service (MaaS) platforms, and global efforts to reduce carbon emissions. Major trends expected in the forecast period encompass partnerships with ride-hailing services, the implementation of innovative pricing models, the adoption of contactless rental services, the use of data analytics and predictive maintenance practices, and the incorporation of autonomous features in electric car rental offerings.

The anticipated rise in demand for fuel-efficient vehicles is set to drive growth in the electric car rental market. Electric cars are increasingly recognized as environmentally friendly transportation options, emitting zero emissions. This trend is notably supported by a 66% surge in interest for electric vehicle purchases among Americans, as reported by Kelly Blue Book in January 2022. As fuel prices soar, the appeal of electric rental cars grows, contributing to environmental protection efforts.

The expansion of the tourism industry is poised to significantly boost the electric car rental market. This sector, encompassing various travel-related activities and services, is driving demand for eco-friendly transportation among environmentally conscious tourists. In December 2022, New Zealand's Ministry of Business, Innovation, and Employment reported a substantial 2.7% growth in tourism spending, reaching $26.5 billion. With a surge in overseas visitor arrivals by 335.3%, the tourism sector's direct contribution to the country's GDP expanded to $10.0 billion, marking a 1.3% growth. This growth underscores the tourism industry's pivotal role in propelling the electric car rental market forward.

A noteworthy trend in the electric car rental market is the emergence of innovative plug mobility technology. Leading market players are focusing on developing advanced plug mobility solutions to solidify their market positions. For instance, Carzonrent, an India-based car rental company, introduced a plugin mobility platform in October 2021. This platform offers a chauffeur-driven electric vehicle fleet for diverse transportation needs, including SME services, airport taxis, business travel, and employee transfers. The emphasis on emission-free and noiseless commutes through plug mobility solutions aligns with environmental sustainability goals, reducing carbon footprints in transportation services.

Leading players within the electric car rental market are intensifying their efforts to introduce luxury electric car rental services, aiming to secure a competitive advantage. Luxury electric car rental services encompass the provision of high-end, premium electric vehicles available for temporary use or rental. An illustration of this strategic direction occurred in December 2021 when the National Roads and Motorists' Association (NRMA), an organization based in Australia, introduced the SIXT car rental brand in the country. This launch unveiled one of the largest electric vehicle (EV) fleets for rental in Australia, featuring 40 MG EVs and 25 Tesla Model 3 vehicles. This initiative marks a significant shift towards EVs and is anticipated to drive the adoption of electric vehicles across Australia. The NRMA's adoption of the SIXT brand aligns with its expansion of the electric vehicle fleet, aiming to offer more cost-effective, environmentally friendly, and efficient rental options.

In January 2022, Uber, a prominent US-based mobility as a service company, acquired Car Next Door for an undisclosed sum. This strategic acquisition is consistent with Uber's commitment to sustainable electric vehicle initiatives, forming a part of its broader investments geared towards enhancing environmental sustainability within the transportation sector. Car Next Door, an Australian-based electric car rental company, was the subject of this acquisition, further underlining Uber's dedication to promoting and expanding sustainable mobility options, particularly in the realm of electric vehicles.

Major companies operating in the electric car rental market report are Zipcar, Avis Budget Group Inc., Enterprise Holdings Inc., Europcar Mobility Group, The Hertz Corporation, AutoLib, BlueIndy, Chefenxiang, DriveElectric, Easirent, Green Motion International, Sixt SE, Wattacars, Zoomcar, Blink Mobility, Share Now GmbH, DriveNow, E-Car Club, Eco Rent a Car, Ecomilhas, Ecomobix, Ekar, Electric Car Rentals, Emov Limited, EVision Electric Car Hire, E-Wheels, GIG Car Share, Green Cabs, Greenz Car Rental, MILES Mobility, Oply, Spark Rentals, Sparky, Wattmobile.

North America was the largest region in the electric car rental market in 2023. Asia-Pacific is expected to be the fastest-growing region in the electric car rental market during the forecast period. The regions covered in the electric car rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric car rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of electric car rental vehicles include battery cars, hybrid cars, and plug-in electric cars. Battery cars utilize a battery pack to power one or more electric motors, producing zero tailpipe emissions. Electric car rental options often span different categories such as economy cars and luxury cars, catering to both leisure/tourism and business needs. The service is accessible through both online and offline booking modes.

The electric car rental market research report is one of a series of new reports that provides electric car rental market statistics, including electric car rental industry global market size, regional shares, competitors with a electric car rental market share, detailed electric car rental market segments, market trends and opportunities, and any further data you may need to thrive in the electric car rental industry. This electric car rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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