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The electric car rental market size is estimated to grow at a CAGR of 12.64% between 2022 and 2027. The size of the market is forecast to increase by USD 11,246.65 million. The growth of the market depends on several factors, including increasing demand for rental cars due to the rise in international tourism, the need for optimum performance and reduction in emissions, and growing government regulations, incentives, and subsidies on EVs.
This report extensively covers market segmentation by type (economy cars and luxury cars), distribution channel (offline and online), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing government regulations, incentives, and subsidies provided for EVs are notably driving the market growth. Increasing government standards, regulations, and standards in the autalignomotive industry aligns with the global focus on environmental sustainability. Global economies are constantly striving to reduce their carbon footprint worldwide.
As the automotive industry has contributed significantly to carbon dioxide emissions, automotive industry governing bodies and bodies have taken significant measures to combat this. Government regulators and councils are promoting the use of alternative energy vehicles, such as electric cars and ECVs, to reduce carbon emissions. Therefore, it acts as a marketing enabler.
The introduction of battery-swapping technology is the key trend impeding market growth. Range anxiety is a major problem that hinders the growth of electric cars. Battery manufacturers, suppliers, and OEMs are working on battery-swapping technology that allows batteries to be hot-swapped. Hot-swappable batteries allow you to change batteries in minutes, which solves the problem of remote alarms.
Changing the batteries allows you to travel 80 miles in 5 minutes, which is very useful for consumers. Replacement costs vary between batteries. It ranges from USD 80 to USD 100. Vendors plan to offer replaceable batteries for charging stations for an additional fee. The technology is currently being tested, but faster availability could help boost electric cars.
The global power crisis hindering the growth of the EV market is the major challenge impeding the market growth. Due to the growth of the hybrid and electric vehicle market, the demand for power to drive vehicles is also increasing worldwide. Developing countries and underdeveloped countries, where electricity production only covers the average daily consumption, cannot afford a greater number of electric cars. For example, in Europe, 25% of vehicles are electric cars, which reduces the consumption of about 13 million barrels of oil per day. However, it consumes about 11 percent of the global electricity demand. Asia has a huge power crisis in countries like India and Japan. In 2021, Japan accounted for more than 50 percent of the global hybrid car market, exacerbating an already prevailing power crisis.
In addition, the country's dependence on oil imports has increased, leading to higher electricity costs for customers. The growing power crisis in developing countries is a major obstacle to the growth of electric cars and, in turn, to the global electric car rental market.
The electric car rental market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electric Car Rental Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Current Vehicles Ltd. - The company offers electric car rentals such as Citroen Ami, and Renault Twizy. Through this segment, the company operates as an electric car rental company.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the economy cars segment will be significant during the forecast period. Major vendors such as Avis Budget Group, Enterprise Holdings, Europcar Group, Sixt and Hertz included a small set of economical electric cars such as the Nissan Folio, Chevrolet Bolt, Renault Zoe and BMW i3. These cars are aimed at consumers who want to try an electric car for the first time or are more inclined towards green products. It was observed that most of the tourists use electric cars for short trips ie. sightseeing and visiting nearby destinations.
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The economy cars segment was valued at USD 8046.93 million in 2017 and continued to grow until 2021. It has been observed that customers rent an electric car and trade it in for a more traditional car after an average of two days of use, compared to six to seven days for traditional cars. Even if customers do not use the cars for a long time, curiosity about electric cars attracts them to rent a car for a few days. As driving distance increases and charging infrastructure develops, customers are expected to use electric car rental services for longer.
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Europe is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Tourism is the biggest driver of the car rental business. In 2022, the tourism industry had a huge impact on EU GDP, creating many jobs. Europe has always been the most popular destination for tourists, attracting places like the Eiffel Tower, the Colosseum, and the Leaning Tower of Pisa. In order to increase employment and economic growth, the European Commission has launched various initiatives aimed primarily at promoting sustainability, accessibility, and culture, as well as promoting seasonal and coastal tourism. Electric car rental was one of the companies that supported the government's sustainable development initiative.
The market in Europe witnessed certain challenges due to the COVID-19 pandemic. However, the market is expected to register a steady growth rate during the forecast period due to the development and distribution of COVID-19 vaccines. The lifting of restrictions imposed on travel by various countries will also help in the growth of the market in focus in Europe during the forecast period.
The electric car rental market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Electric Car Rental Market Scope |
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Report Coverage |
Details |
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Page number |
157 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.64% |
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Market growth 2023-2027 |
USD 11,246.65 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
12.03 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 42% |
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Key countries |
US, China, Germany, Italy, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Avis Budget Group Inc, Blu Smart Mobility Pvt. Ltd., Blue Cars Ltd., Current Vehicles Ltd., DriveElectric, Enterprise Holdings Inc., Envoy Technologies Inc., ETO Motors Pvt. Ltd., Evoke Pty Ltd., Green Motion International, Hertz Global Holdings Inc., Plug N Drive, SIXT SE, Stellantis NV, UFODrive SA, Volkswagen AG, Volt Age Hire, Wattacars, ZERO Carbon Technologies Inc., and Zoomcar India Pvt. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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