The global electric car rental market size is estimated to grow by USD 11246.65 mn from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of almost 12.64% during the forecast period. The electric car rental market experienced significant growth in 2021 due to the surge in international tourism, particularly in MEA and APAC regions. Key drivers include online booking, environmental awareness, urbanization, and innovative pricing models. Challenges include rising fuel prices, range anxiety, and charging infrastructure. Companies like Zipcar, Carzonrent, and OEMs are investing in eco-friendly transport mediums, such as EVs and alternative energy vehicles, to cater to this demand.
Segment Overview
This electric car rental market report extensively covers market segmentation by Type (Economy cars, Luxury cars) Distribution Channel (Offline, Online) Geography (Europe, North America, APAC, South America, Middle East and Africa)
Market segmentation by Type
The electric car rental market is experiencing a significant shift towards online rent-a-car services due to the prevailing trend of contactless transactions. Booking engines have become essential tools for consumers to secure their preferred electric vehicles (EVs) with incentives, while ensuring minimal contact. The automotive industry’s transition towards alternative energy vehicles is accelerating, with battery-swapping technology and hot-swappable batteries gaining traction to mitigate range anxiety. OEMs are investing in cost-effective items, such as replacement costs and charging stations, to expand their product lines and engage in strategic activities like new product launches, contractual agreements, mergers and acquisitions, and collaborations. The rising market climate, driven by environmental sustainability and reducing carbon emissions, is compelling travel rental companies to expand their EV rental fleets. Airports, airlines, and electric vehicle manufacturers are collaborating to offer convenient charging infrastructure for EVs. Despite the challenges posed by battery costs and gasoline prices, the internet penetration and emerging countries’ growing interest in EVs are expected to fuel the market’s growth.
Geography Overview
The Electric Car Rental Market in Europe is experiencing significant growth, driven by the tourism industry’s economic contribution and the European Commission’s sustainability initiatives. Fuel-efficient, zero-emission EVs are becoming the preferred transport medium for travelers, with rising fuel prices and environmental concerns fueling the trend. Companies like Zipcar and Carzonrent lead the market, offering online rent-a-car services, booking engines, and in-car infotainment systems. Predictive maintenance and battery-swapping technology address range anxiety, while strategic activities such as new product launches, contractual agreements, mergers and acquisitions, and investments in charging stations ensure convenience and cost-effectiveness. OEMs collaborate to offer hot-swappable batteries and expand product lines, addressing replacement costs and planning for the rising market climate. The automotive industry’s shift toward alternative energy vehicles and environmental sustainability continues, with carbon emissions and fuel emissions at the forefront of concerns.
Insights on the market contribution of various segments including country and region wise, historic (2017 – 2021) and forecast market size-
- The electric car rental market is driven by advancements in battery technology, with silicon anodes set to replace graphite for increased energy density. Rentals cater to various durations and vehicle types, including hybrids and plug-ins. Zero-emission vehicles align with environmental awareness, urbanization, and sustainability initiatives. Innovative pricing models, contactless services, and predictive maintenance are key trends. Key players include Zipcar, Carzonrent, and others in the travel, economic, and tourism sectors.
- The electric vehicle (EV) rental market is expanding, driven by the rise of EV manufacturers and hybrid vehicles. Europe’s 25% EV adoption reduces crude oil consumption by 13 million barrels daily but increases global power demand by 11%. Asia, particularly India and Japan, face power crises, exacerbated by Japan’s 50% share of the global hybrid vehicle market. EV rental firms, like Plug Mobility, offer convenience through online booking, payment, and charging infrastructure. Cost-effective solutions, mergers, and investments in EV technology are crucial in addressing affordability and accessibility challenges.
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