Electric Car Rental Market Size (2024 - 2029)

Electric Car Rental Market Analysis

The Electric Car Rental Market size is estimated at USD 9.52 billion in 2024, and is expected to reach USD 21.75 billion by 2029, growing at a CAGR of greater than 14.5% during the forecast period (2024-2029).

The electric car rental market is experiencing rapid growth as the demand for sustainable transportation solutions continues to rise globally. With increasing concerns about environmental pollution and climate change, more consumers are opting for electric vehicles (EVs) as a cleaner and greener alternative to traditional gasoline-powered cars. Electric car rental services offer an accessible and convenient way for individuals to experience driving EVs without the need for long-term commitments or ownership. This flexibility attracts a wide range of customers, including tourists, business travelers, and local residents, driving the expansion of the electric car rental market.

• Turo, a peer-to-peer car rental platform, observed a surge in the use of electric vehicles in 2023 for summer road trips, with a 139% increase in users filtering listings by "electric" on the platform.

Government incentives and regulations aimed at promoting electric mobility are fueling the growth of the electric car rental market. Many countries and cities around the world offer subsidies, tax credits, and other financial incentives to encourage the adoption of electric vehicles. In addition, regulatory measures such as low-emission zones and restrictions on the use of fossil fuel-powered vehicles in urban areas are creating favorable conditions for the expansion of electric car rental services. These supportive policies and regulations not only incentivize consumers to choose electric rental cars but also encourage rental companies to expand their EV fleets.

• In October 2023, the Uruguayan government introduced a program that offers companies free rental of electric vehicles. Under the initiative, companies benefit from a one-month rental test, with the program covering rental costs up to USD 700, including value-added tax (VAT).
• In September 2023, Schiphol Airport in the Netherlands transformed five buildings across a total surface area of 40,000 m2 into facilities for car rental companies to conduct maintenance, repairs, and washing of their vehicles.

Also, advancements in EV technology, including improvements in battery performance, charging infrastructure, and range, are driving the growth of the electric car rental market. Modern electric vehicles offer longer driving ranges, faster charging times, and enhanced features compared to earlier models, making them more appealing to rental customers. Rental companies are increasingly investing in EV fleets equipped with the latest technology to meet the growing demand for electric rental cars.

Electric Car Rental Industry Segmentation

Electric car rental companies hire cars for a set amount of time at a set rate. This service is frequently structured with several local branches, usually located around airports or major areas of the city, and supplemented by a website that allows online reservations.

The electric car rental market is segmented by vehicle type, application, booking type, end use, and geography. By vehicle type, the market is segmented into battery electric, hybrid electric, and plug-in hybrid electric. By body style, the market is segmented into hatchback, sedan, sports utility vehicle (SUV), and multi-utility vehicle (MUV). By type, the market is segmented into luxury and budget/economy. By booking type, the market is segmented into online and offline. By end use, the market is segmented into local usage, airport transport, and outstation. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. The report covers the market sizes and forecasts in terms of value (USD) for all the above segments.