Market Trends of Electric Car Rental Industry
The Online Booking Segment is Expected to Record High Market Share
The online segment of the electric car rental market is experiencing significant growth due to several key factors. Firstly, the increasing prevalence of online booking platforms and mobile applications has made it easier for consumers to search for, compare, and book electric rental cars from the comfort of their homes or on the go.
Such digital platforms provide users with convenient access to a wide selection of electric vehicles, allowing them to browse available options, check pricing and availability, and make reservations with just a few clicks or taps. This convenience and accessibility drive the growth of the online segment by attracting tech-savvy consumers who prefer the convenience of online booking. For instance,
- In December 2023, Kalamazoo, Michigan, introduced a new online ride-sharing program aimed at reducing the financial and environmental impacts of car ownership, providing an affordable and sustainable transportation alternative.
- In October 2023, Vietnam's Green and Smart Mobility (GSM) launched its electric taxi service on its online application, Green SM, in Laos, introducing 1,000 electric cars manufactured by Vinfast, a subsidiary of Vingroup. The expansion reflects the company's broader ambitions to offer eco-friendly transportation services across multiple markets.
Post-pandemic developments have accelerated the shift toward online transactions and digital services across various industries, including transportation and mobility. Concerns about personal safety and hygiene have prompted many consumers to avoid physical interactions and opt for contactless transactions whenever possible. As a result, online booking platforms for electric car rentals have seen increased adoption and usage as consumers seek ways to minimize in-person interactions and adhere to social distancing guidelines. This trend has propelled the growth of the online segment as more consumers are embracing digital solutions for their transportation needs.
Asia-Pacific is Expected to Witness a Considerable Share in Target Market
Asia-Pacific is set for tremendous growth in the coming years due to several key factors. The region is experiencing rapid urbanization and population growth, leading to increased demand for various goods and services, including transportation solutions. As urban centers expand and populations continue to rise, there is a growing need for efficient and sustainable mobility options to address congestion, pollution, and other challenges associated with urban living. This increasing demand for transportation infrastructure and services creates significant opportunities for growth across the automotive, public transportation, and mobility sectors in the region.
Governments and policymakers in many Asia-Pacific countries are prioritizing investments in infrastructure development to support economic growth, improve connectivity, and enhance the quality of life for their citizens. This includes investments in transportation infrastructure such as roads, railways, airports, and public transit systems. Additionally, there is a growing emphasis on sustainability and environmental protection, leading governments to promote the adoption of clean and green transportation technologies, including electric vehicles (EVs) and public transit systems powered by renewable energy sources.
In China, the surge in independent travel in 2024 has propelled significant growth in car rentals during this year’s Spring Festival, with a remarkable 186% year-on-year increase in car rental bookings, a tenfold surge compared to the Spring Festival in 2019. The rise in demand has also led to increased spending per capita and a surge in orders for premium car models. Electric vehicle rental orders have surged over 16 times compared to 2023, reflecting a growing trend towards sustainability.
Also, in June 2023, the Government of Goa announced that starting from January 2024, all newly introduced tourist vehicles, taxis, and motorcycles available for rent in Goa must be electric vehicles as part of the state's significant efforts to encourage the adoption of EVs. Additionally, the Goan government planned to convert 30% of the existing fleet for permit holders into electric vehicles by June 2024.
The region is home to some of the world's leading technology companies and automotive manufacturers, who are increasingly investing in research and development to develop next-generation transportation solutions. This includes advancements in electric and autonomous vehicles, digital mobility platforms, connected infrastructure, and smart transportation systems. As these technologies mature and become more affordable and accessible, they are expected to revolutionize the way people and goods are transported in Asia-Pacific, fueling further growth and expansion of the market.
