Electric Car Rental Market Overview:
Electric Car Rental Market Size is expected to cross USD $ 34.83 billion by 2032 at a CAGR of 15% during the forecast period 2023-2032
The electric car rental market has experienced significant growth and transformation in recent years, driven by the increasing global awareness of environmental sustainability and a shift towards greener transportation solutions. As governments and consumers alike become more conscious of the environmental impact of traditional combustion engine vehicles, the demand for electric cars has surged. This trend has paved the way for the expansion of electric car rental services, offering individuals and businesses a convenient and eco-friendly alternative to traditional car rentals. The market has witnessed the emergence of various players, both established car rental companies integrating electric vehicles into their fleets and specialized startups focusing exclusively on electric car rentals, fostering healthy competition and innovation within the industry.
One of the key drivers of the electric car rental market is the growing infrastructure for electric vehicle charging stations. As governments and private entities invest in building a robust charging network, the range anxiety associated with electric cars is gradually diminishing, making them more appealing to renters. Additionally, advancements in battery technology have improved the range and performance of electric vehicles, addressing another concern for potential users. The electric car rental market is poised for further expansion as technology continues to evolve, costs decrease, and regulatory support for sustainable transportation gains momentum. As more consumers experience the benefits of electric cars through rental services, it is anticipated that the market will continue to play a pivotal role in the broader adoption of electric vehicles worldwide.
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Top Boosters and Main Deterrents
A trend gaining momentum in the car rental industry is the use of electric vehicles in these services. This is mostly owing to the surge in government-backed initiatives across countries in the form of policies and regulations that promote use of electric vehicles. An increasing number of car rental operators are now undertaking initiatives, aiming to increase the use of electric vehicles in their fleet. Electric cars generally outperform other types of vehicles, since they offer benefits like low carbon emission, higher fuel economy, comfortable drive, reduced sound from engine and convenience of charging at home, and more. Considering these factors, it is safe to predict that the demand for electric car rental market can increase rapidly in the following years.
The blossoming travel and tourism sector everywhere acts as an important growth booster in the electric car rental market. The electric car rental industry is scattered, with the preference of a massive number of organized as well as unorganized companies. The need to move from unorganized to organized sector has led to the prevalence of digital or online electric car rental system. The rising demand for online car rental services is touted to be a lucrative opportunity for the renowned market players and can help market gain huge impetus in the following years.
Frequent technological innovations in e-car rental service, evolving lifestyle, and the high demand from emerging nations also induce significant market growth. Other than this, the escalating adoption of smartphones, the expanding worldwide service sector, strict vehicle emission policies and regulations, and the rapidly burgeoning global population can also accelerate market growth over the next several years.
Electric Car Rental Market Notable Companies
· Zipcar (US)
· Avis Budget Group Inc. (the US)
· Enterprise Holdings Inc. (US)
· Europcar Mobility Group (France)
· The Hertz Corporation (US)
· Sixt SE (Germany)
· BlueIndy (US)
· DriveElectric (UK)
· Easirent (UK)
· Green Motion International (UK)
· Wattacars (Spain)
· Zoomcar (India)
· Europcar Group (France)
Electric Car Rental Market Segmentation
The market for electric car rental has been considered for segments like vehicle type, application and service.
The vehicle types taken into account for market study are hybrid, plugin hybrid and battery electric car.
The main application areas of electric car rental services are executive, economic, and others. The excellent fuel efficiency, spike in gasoline prices and the mounting environmental concerns have led to great demand for economic cars in the market.
With respect to services, the market has been narrowed down to online as well as offline. The online channel is the most preferred option across the world, on account of the rising smartphone penetration, expansion of the internet of things (IoT), combined with the enhanced experience it offers to the users.
Electric Car Rental Market Regional Outlook
The top markets for electric car rental are Europe, North America, APAC or Asia Pacific, and the rest of the world or RoW.
The maximum share in the global market belongs to APAC, with the rising sales of e-cars and an expansive consumer base deemed as the chief growth boosters. The high demand originating from the developing nations like India, the Philippines, Vietnam and China, also benefits the market. The region boasts of a lucrative car rental market as well as tourism industry, which results in market growth as well.
The second-lead has been taken by the European market, mostly due to the high concentration of leading automotive manufacturers like Audi AG and BMW AG. Strict vehicle emission policies and regulations in France, the UK and Germany discouraging the use of diesel engines also boost the use of electric cars in the region. France, Spain and Germany have been identified as the prime markets in the region, thanks to the surge in electric vehicle car rental services and the thriving tourism sector.
North America comes third in the global market for electric car rental, in view of the widespread presence of a massive number of electric car on rental service vendors in Canada and the US. There is a strong possibility that the US can emerge as the most successful market in the region, following the expanding population of migrants and the frequent technological developments in the automobile industry.
The African market for electric car rental services can perform well in the ensuing years, all because of the favorable growth of the tourism industry. Zambia is the third fastest-expanding tourism destination in the world, which contributes considerably to the country’s GDP as well as to the growth of the electric car rental market.
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