| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 175.15 Million |
| Market Size (2030) | USD 280.04 Million |
| CAGR (2025 - 2030) | 9.84 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Singapore Car Rental Market Analysis
The Singapore Car Rental Market size is estimated at USD 175.15 million in 2025, and is expected to reach USD 280.04 million by 2030, at a CAGR of 9.84% during the forecast period (2025-2030).
Over the long term, the car rental market in Singapore is anticipated to exhibit significant expansion due to factors like the rising cost of owning and maintaining a car, which is helping the market. Favorable government initiatives are also expected to drive the market.
The Government of Singapore uses several quotas and fees to limit traffic growth. These measures have the potential to increase a car's on-road cost to five times its wholesale price in the place of manufacture. The Certificate of Entitlement, which is determined in a twice-monthly auction, carries the highest fee. For ten years, the COE grants permission to operate a car in Singapore. Once it runs out, the customer must either export the vehicle, junk it, or get a new COE.
Singapore Car Rental Market Trends
Tourism Sector Driving the Car Rental Market
The tourism sector has played a pivotal role in fueling the growth of the car rental market in Singapore. As a renowned travel destination, Singapore attracts millions of visitors annually, both for business and leisure purposes.
- In 2023, international tourist arrivals to Singapore more than doubled, surging to 13.6 million compared to the figure of 6.3 million in 2022.
This influx of tourists has created a significant demand for convenient and flexible transportation options, with car rentals becoming an increasingly popular choice.
Moreover, this growth in the tourism sector has led to an increase in business travel to Singapore. With the city's reputation as a global business hub, it hosts numerous conferences, exhibitions, and corporate events throughout the year. Business travelers often prefer the convenience and privacy of rental cars, enabling them to efficiently navigate between meetings, appointments, and other professional engagements.
The rise of the sharing economy and the popularity of ride-sharing services like Grab and Gojek have indirectly contributed to the growth of the car rental market in Singapore. While these services offer transportation alternatives for short-term needs, many tourists still prefer the autonomy and exclusivity provided by rental cars, especially for longer stays or when traveling in larger groups.
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Online Booking Segment is Leading the Way
The online booking system has emerged as the leading booking type in the car rental market in Singapore, driven by the increasing adoption of digital technologies and the convenience it offers.
The widespread use of smartphones and the internet has facilitated the growth of online booking platforms. With a few taps on their devices, consumers can easily browse through various car rental options, compare prices, and make reservations from the comfort of their homes or while on the go. This convenience factor has made online booking systems highly appealing, as they eliminate the need for physical visits to rental offices or lengthy phone calls.
- In 2022, the mobile phone penetration rate in Singapore stood at 169.60% in 2022, compared to 152.70% in 2021.
Furthermore, online booking systems offer a wide range of payment options, including credit cards, mobile wallets, and other digital payment methods. This flexibility caters to the preferences of modern consumers, who increasingly favor cashless and contactless transactions. In addition, many online platforms provide the option to modify or cancel bookings, adding to the overall convenience and customer-centric approach.
Moreover, the integration of online booking systems with other digital services has further enhanced their appeal. For instance, some car rental companies in Singapore have partnered with travel booking platforms, allowing customers to bundle their car rental reservations with flight and hotel bookings. This level of integration streamlines the entire travel planning process, making online booking systems even more attractive to consumers.
By offering convenience, transparency, payment flexibility, and integration with other digital services, the online booking system has become the leading booking type in the car rental market in Singapore, catering to the evolving preferences of tech-savvy consumers and meeting the demand for seamless and efficient travel experiences.
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Singapore Car Rental Industry Overview
The Singaporean car rental market consists of international companies such as Avis-Budget, Sixt, and Hertz, as well as local companies such as Ride Now and Motorist. International car rental companies charge 50% more than local car rental companies like Sixt, RideNow, Motorist.sg, and Aka. International car rental companies, on the other hand, typically have a larger selection of luxury and imported cars than local car rental companies. The players are engaging in partnerships with foreign players to launch car rental services in Singapore.
Singapore Car Rental Market Leaders
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SIXT SE
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Avis Budget Group
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Drive Sg
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Europcar Mobility Group
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Hertz Corporation
- *Disclaimer: Major Players sorted in no particular order
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Singapore Car Rental Market News
- March 2024: Car Chilli, a car-sharing marketplace in Singapore, and Lylo, a leading provider of short-term vehicle rental options, announced a strategic partnership to expand the availability of on-demand vehicle rental options to more users across Singapore. The partnership will allow the users of the Car Chilli app to select from Lylo's fleet.
- January 2024: Cycle & Carriage announced the opening of a new branch of its myCarriage car rental service, which has a reception counter located at Changi Airport Terminal 3. The expansion is part of the company's strategy to expand its footprint throughout Singapore.
Singapore Car Rental Industry Segmentation
Car rental refers to the service of providing vehicles for temporary use by individuals or organizations. This involves renting a car for a specific period, usually by the hour, day, or week, in exchange for a fee.
The Singaporean car rental market is segmented by vehicle type, booking type, rental duration type, and application type. By vehicle type, the market is segmented into economy and premium. By booking type, the market is segmented into offline and online. By rental duration type, the market is segmented into short-term and long-term. By application type, the market is segmented into tourism and general commuting. The report offers market size and forecasts for all the above segments in terms of value (USD).
| By Vehicle Type | Economy |
| Premium | |
| By Booking Type | Online |
| Offline | |
| By Rental Duration Type | Short-term |
| Long-term | |
| By Application Type | Tourism |
| General Commuting |
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Singapore Car Rental Market Research FAQs
How big is the Singapore Car Rental Market?
The Singapore Car Rental Market size is expected to reach USD 175.15 million in 2025 and grow at a CAGR of 9.84% to reach USD 280.04 million by 2030.
What is the current Singapore Car Rental Market size?
In 2025, the Singapore Car Rental Market size is expected to reach USD 175.15 million.
Who are the key players in Singapore Car Rental Market?
SIXT SE, Avis Budget Group, Drive Sg, Europcar Mobility Group and Hertz Corporation are the major companies operating in the Singapore Car Rental Market.
What years does this Singapore Car Rental Market cover, and what was the market size in 2024?
In 2024, the Singapore Car Rental Market size was estimated at USD 157.92 million. The report covers the Singapore Car Rental Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Singapore Car Rental Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Singapore Car Rental Industry Report
The car rental market in Singapore is experiencing significant growth, driven by rising car ownership costs and maintenance expenses. Favorable government initiatives are also contributing to this surge. The increasing popularity of car sharing companies is reshaping consumer expectations for flexibility, convenience, and variety in transportation solutions. Limited parking space and high vehicle costs make car rental a more viable option for both residents and tourists.
The rise of the sharing economy has introduced more competition, prompting traditional car rental services to innovate by integrating their offerings with technology-driven platforms. This enhances customer experience and operational efficiency. As tourism continues to recover, the demand for car rentals is expected to rise, offering opportunities for market expansion and diverse rental offerings.
For detailed insights, Mordor Intelligence™ provides a comprehensive analysis of the Singapore Car Rental market, including market share, market size, industry statistics, and a forecast outlook. The market report covers various segments such as booking type, rental duration type, and application type. The report also includes industry analysis, market trends, and market segmentation.
Get a free report PDF download for a sample of this industry analysis at Mordor Intelligence™ Industry Reports. The report provides valuable industry information, including industry growth, market growth, market forecast, and market outlook. The industry research includes market data, market value, and market review. Industry reports also highlight market leaders and market predictions.
This industry report offers a comprehensive market overview and a detailed market analysis. It provides a thorough understanding of the market trends and industry outlook, helping businesses and research companies make informed decisions. The report example and report pdf offer a detailed look into the industry statistics, industry size, and industry trends.
