Electric Car Rental Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|CAGR:||> 14.36 %|
*Disclaimer: Major Players sorted in no particular order
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Electric Car Rental Market Analysis
Electric Car Rental Market was valued at USD 9.13 billion in 2021, and it is expected to reach USD 20.42 billion by 2027, registering a CAGR of 14.36% over the forecast period.
With the outbreak of COVID-19, many new habits emerged, including social isolation, cleanliness, sanitation, and working from home. Many routine tasks, such as taking public transportation to work, were unsafe due to the risk of coronavirus. Additionally, it has had also an impact on the global electric car rental business. The number of people traveling has decreased significantly as a result of the outbreak. People have been staying indoors due to strict lockdown requirements and to avoid becoming ill. As a result, demand for electric car rental services has decreased. However, a few leading rental companies such as Hertz, Enterprise Holdings, and Avis Budget Group have declared plans to phase out internal combustion engines with electric cars.
Over the long term, there is a huge increase in the number of individuals traveling for business and pleasure around the world is driving the demand for zero-emission electric car rental services, fueling the industry's growth. Factors such as increased demand for fuel-efficient, high-performance, and low-emission rental vehicles, stringent government rules and regulations on vehicle emissions, as well as lower battery costs, and rising gasoline prices, all contribute to the rise of the electric car rental market. Rising internet penetration in both emerging and developed countries has enabled enterprises in the sector to attract a wider consumer base through the use of dedicated mobile apps for customer convenience. Technology is regarded as a critical component driving market expansion. The effect of technical breakthroughs has recently transformed the sector. Improved customer and company information management, as well as simple internet booking apps, are two important ways that vehicle rental service companies can provide better services to their clients.
However, the market faces challenges from restraining factors like the lack of charging infrastructure in emerging countries which may hamper the market growth.
Asia-Pacific region is expected to be the fastest-growing market owing to the presence of OEMs and changing consumer preference toward electric rental cars. Additionally, a few OEMs are using different strategies such as partnerships with car rental companies, which will positively impact the market growth during the forecast period. For instance,
- In July 2022, XPeng Motors formed a strategic alliance with local car rental company eHi Car Services to supply vehicles to the latter. Over the next three years, XPeng and eHi will continue to improve their cooperation in vehicle procurement and operation, as well as in the building of the supercharging system, vehicle operation, and user service experience. This is the first time a new Chinese automaker has teamed with a travel rental company that will only operate electric vehicles in large numbers.
Electric Car Rental Industry Segments
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, which are usually located around airports or major areas of the city and are supplemented by a website that allows online reservations.
Electric Car Rental Market has been segmented by Vehicle Type, Application, Booking Type, End-Use, and Geography.
Electric Car Rental is segmented by Vehicle Type 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 the Rest of the World. The report covers the market size and forecast in value (USD Billion) for all the above segments.
|By Vehicle Type|
|Plug-in Hybrid Electric|
|By Body Style|
|Sports Utility Vehicles (SUVs)|
|Multi Utility Vehicle (MUV)|
Electric Car Rental Market Trends
This section covers the major market trends shaping the Electric Car Rental Market according to our research experts:
Online Booking Type Is Expected To Have High Market Share
Electric Car Booking is offered through a cab company's mobile app or website. In addition, the availability of an online payment option has streamlined the process. The affordability and ease of access to services are the major drivers of this ecosystem. Customers' needs for convenience and cost-effectiveness are driving the demand for electric car rentals. Online booking has various advantages as well as numerous transparency challenges that organizations are continually examining and correcting. The day-to-day activities of electric car rental companies are managed via a uniform system. Compliance policies, rules, regulations, and terms and conditions, which differ from firm to company, are followed.
- In November 2021, a beta group is testing Joulez's Tesla rentals as the business works to complete its booking smartphone app. Joulez is building not just an EV rental fleet, but a full support system to help clients realize the power of driving an EV. The company is now working on designing and developing the smartphone app, and it has a beta test group of clients renting Teslas. Joulez will rent apartments in New York City at competitive rates ranging from $75 to $200 per day. Bergdale also mentioned plans to collaborate with EV manufacturers, airport authorities, airlines, EV charging firms, cities, and anybody else interested in accelerating the transition to an EV future.
- In October 2021, Carzonrent, a car rental company, established an electric vehicle (EV) platform to provide its clients with clean and sustainable mobility alternatives. The company intends to offer a fleet of EVs under the banner of Plug Mobility in order to develop a uniform EV ecosystem in order to reduce its carbon footprint. Plug Mobility plans to introduce 20,000 electric vehicles (EVs) across India to serve corporate, hotel, airline, government, PSU, and SME clients, with the goal of saving 389 million tonnes of CO2 emissions over the next five years.
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North America Is Expected To Witness A Considerable Share In Target Market
During the projection period, North America is expected to witness considerable growth. This is attributed to the existence of several of the region's largest vehicle rental companies, such as Avis Budget Group and Enterprise Rent-a-Car, which are expected to present attractive growth potential. The growing number of business and leisure visits across the region is also a key driver of regional growth. Furthermore, the region contains a variety of prominent tourist locations that attract a big number of people who demand vehicle rental services, hence driving the market growth.
Additionally, Soon after Hertz Global Holdings emerged from bankruptcy in 2021 summer, reformed after the COVID-19 outbreak paralyzed the global automobile rental sector, the Estero, Florida-based company boldly announced a $4.2 billion plan to buy 100,000 Tesla fully electric cars (EVs) by the end of 2022. Suddenly, the industry was racing to switch from internal combustion engine (ICE) models to EVs. While Hertz was the first to launch, its two main competitors, Enterprise Holdings and Avis Budget Group have subsequently followed suit. But, just as full-scale EV adoption among American drivers would take years, the rental car shift will be a marathon, not a sprint.
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Electric Car Rental Market Competitor Analysis
Collaborations, acquisitions, and partnerships are taking place in the automobile industry all over the world. To meet rising consumer demand for electric car rental services Such as geographical expansion, a few OEMs are establishing strategic alliances with car rental firms, and car rental companies are also purchasing electric cars in order to shift away from internal combustion engines. For instance,
- In October 2021, Carzonrent introduced Plug Transportation, an electric vehicle (EV) Mobility-as-a-Service (MaaS) platform, to provide businesses with sustainable mobility options. According to the startup, it would offer a chauffeur-driven EV fleet for various ground mobility needs such as business travel, airport taxi, SME services, limo and dedicated fleet, employee transfers, crew transfers, and government and PSU official travel.
- In August 2021, Avis Budget Group has launched new rental websites for its Avis and Budget brands. The refreshed websites will connect prospective clients to a growing network of independently operated Avis and Budget licensees located in over 90 emerging global markets.
Electric Car Rental Market Top Players
The Hertz Corporation
Avis Rent a Car Ltd
Enterprise Holdings, Inc.
Zoomcar India Private Ltd.
*Disclaimer: Major Players sorted in no particular order
Electric Car Rental Market Recent Developments
- In August 2022, UFODrive, an electric vehicle rental firm based in Europe, arrived in San Francisco on Thursday, marking the startup's first foray into the United States. Since its inception in 2018, UFODrive has expanded rapidly in 16 cities across Europe, including London, Paris, Berlin, Amsterdam, and Dublin. In addition, the business plans separate launches in New York and Austin in October.
Electric Car Rental Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Battery Electric
5.1.2 Hybrid Electric
5.1.3 Plug-in Hybrid Electric
5.2 By Body Style
5.2.3 Sports Utility Vehicles (SUVs)
5.2.4 Multi Utility Vehicle (MUV)
5.3 By Type
5.4 Booking Type
5.5.1 Local Usage
5.5.2 Airport Transport
5.6.1 North America
184.108.40.206 Rest of North America
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.6.4 Rest of World
126.96.36.199 South America
188.8.131.52 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Hertz Corporation
6.2.2 Avis Rent a Car Ltd
6.2.3 Enterprise Holdings, Inc.
6.2.4 Zoomcar India Private Ltd.
6.2.5 Zipcar, Inc.
6.2.6 Sixt SE
6.2.7 Europcar Group
6.2.9 Green Motion International
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Electric Car Rental Market Research FAQs
What is the study period of this market?
The Electric Car Rental Market is studied from 2018 - 2028.
What is the growth rate of Electric Car Rental Market?
The Electric Car Rental Market is growing at a CAGR of >14.36% over the next 5 years.
What is Electric Car Rental Market size in 2018?
The Electric Car Rental Market is valued at 9 Billion USD in 2018.
What is Electric Car Rental Market size in 2028?
The Electric Car Rental Market is valued at 20 Billion USD in 2028.
Which region has highest growth rate in Electric Car Rental Market?
Asia-Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Electric Car Rental Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Electric Car Rental Market?
The Hertz Corporation, Avis Rent a Car Ltd, Enterprise Holdings, Inc., Zoomcar India Private Ltd., Zipcar, Inc. are the major companies operating in Electric Car Rental Market.
Electric Car Rental Industry Reports
In-depth industry statistics and market share insights of the Electric Car Rental Market sector for 2020, 2021, and 2022. The Electric Car Rental Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Electric Car Rental Market report PDF.