- Summary
- Table Of Content
- Methodology
Electric Car Rental Market Size:
Electric Car Rental Market size is estimated to reach over USD 33,925.58 Million by 2032 from a value of USD 12,496.86 Million in 2024 and is projected to grow by USD 13,914.01 Million in 2025, growing at a CAGR of 14.8% from 2025 to 2032.
Electric Car Rental Market Scope & Overview:
An electric car rental service refers to a business that offers electric vehicles (EVs) for temporary use by customers. These services typically enable individuals or businesses to rent electric cars for short-term periods, which can range from a few hours to several days or longer. The rise of electric mobility and growing concerns regarding environmental sustainability is encouraging several car rental companies to incorporate EVs into their fleets. Moreover, electric car rentals provide a range of benefits such as cost savings, environmental sustainability, reduced carbon footprint, and others.
Electric Car Rental Market Dynamics - (DRO) :
Key Drivers:
Growing demand for economical and sustainable transportation solutions is propelling the electric car rental market growth
The growing demand for economical and sustainable transportation solutions is among the primary factors driving the electric car rental market. As public awareness regarding climate change and environmental issues has increased, consumers and businesses are actively seeking ways to reduce their carbon footprints. Electric vehicles offer a cleaner alternative to traditional gasoline-powered cars, which makes it appealing to eco-conscious renters who want to contribute to sustainability efforts. Moreover, renting electric cars enables individuals to avoid high upfront vehicle costs while benefiting from lower operating costs of EVs. As a result, the growing consumer preference for sustainable and eco-friendly transportation options along with lower upfront costs has encouraged individuals and businesses to explore electric car rentals, further boosting the market demand.
- For instance, Xanh SM, a Vietnam-based car rental service provider, launched its self-driving electric car rental services with average costs starting at 720,000 VND (USD 28.25) per day. The car rental service offers flexible rental packages with a large number of new electric cars to meet its growing demand.
Therefore, the rising preference for economical and sustainable transportation solutions is increasing the adoption of EV rentals, in turn proliferating the electric car rental market size.
Key Restraints:
Availability of alternative solutions is restraining the electric car rental market
There are several alternative solutions to renting electric cars including conventional gasoline or diesel car rental, motorbike or scooter rentals, and others. Moreover, the alternative solutions have similar benefits and applications in comparison to electric car rental, which is a key factor restricting the market.
For instance, conventional fuel vehicles have a well-established infrastructure for fuel stations, making them readily available for long-distance travel. There is a prevalence of several rental companies that offer a broader range of gasoline and diesel vehicles, including luxury cars and SUVs for rent. Additionally, several consumers often prefer renting motorbikes and scooters in comparison to renting electric cars as bike/scooter rentals are typically available at a much lower costs than car rentals, making them an attractive option for budget-conscious travelers, particularly for short trips. Hence, the availability of several alternative solutions to renting electric cars is hindering the electric car rental market expansion.
Future Opportunities :
Rising investments in EV charging infrastructure are expected to drive the electric car rental market opportunities
The rising investments in EV charging infrastructure are creating significant opportunities for the car rental market. The increasing investment in development of EV charging infrastructure increases the convenience of charging electric cars. The availability of several EV charging infrastructure facilitates the consumer shift towards renting electric vehicles, in turn boosting the market demand for electric vehicle rental services.
- For instance, in December 2024, the California Energy Commission (CEC) approved an investment of USD 1.4 billion for accelerating the progress on the state’s EV charging stations among others. The investment aims at deploying EV charging infrastructure and hydrogen refueling stations for light, medium, and heavy-duty zero-emission vehicles across California over the next four years.
Hence, as per the analysis, the increasing investments in EV charging infrastructure are projected to boost the electric car rental market opportunities during the forecast period.
Electric Car Rental Market Segmental Analysis :
By Vehicle Type:
Based on vehicle type, the market is segmented into battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV).
Trends in the vehicle type:
- Rising trend towards adoption of battery electric vehicles due to its several benefits including zero emissions and availability of a wide range of models.
- Factors including the increasing need for eco-friendly and sustainable mobility solutions along with accessibility of subsidies and tax rebates are among the major aspects driving the plug-in hybrid electric vehicles (PHEV) segment.
Battery electric vehicle segment accounted for the largest revenue share in the total electric car rental market share in 2024, and it is anticipated to register fastest CAGR growth during the forecast period.
- Battery electric vehicles (BEVs) refer to a type of electric vehicle integrated with only rechargeable batteries.
- BEVs utilize motor controllers and electric motors instead of internal combustion engines for propulsion. The energy required to run BEVs comes from the battery pack which is recharged from the grid.
- Moreover, BEVs are zero-emissions vehicles that do not generate any harmful emissions or air pollution hazards as compared to traditional gasoline-powered vehicles. The above benefits of BEVs are primary determinants for driving its adoption for car rental services.
- For instance, Avis Rent a Car System LLC is a car rental service provider that offer several models of battery electric cars such as Chevrolet Bolt, and others for rental purpose.
- According to the analysis, the rising advancements associated with battery-operated car rental services are driving the market.
By Vehicle Category:
Based on vehicle category, the market is segmented into economy cars and luxury cars.
Trends in the vehicle category
- Increasing adoption of economy cars due to its lower rental rates and diverse applications.
- There is a rising trend towards renting luxury cars, attributing to its superior driving experience, enhanced comfort, and high performance.
Economy cars segment accounted for the largest revenue share in the overall market in 2024.
- Economy electric cars typically include smaller, more affordable EV models that are designed for budget-conscious consumers.
- Moreover, economy electric cars are generally cheaper to rent in comparison to luxury models. Similarly, economy electric cars are usually optimized for efficiency while providing excellent range.
- For instance, Selfdrives, a wholly owned subsidiary of Pannu Car Rental Pvt. Ltd. offers a wide range of economy cars for rental purpose in its rental fleet offerings.
- According to the electric car rental market analysis, the rising adoption of economy cars for rental purpose is driving the electric car rental market growth.
Luxury cars segment is anticipated to register a substantial CAGR growth during the forecast period.
- Luxury electric cars offer premium features, superior performance, and advanced technology, catering to consumers who intend to attain a premium driving experience.
- Luxury cars are typically equipped with high-quality materials, spacious interiors, and a range of comfort features, including adjustable seating, high-end audio systems, and advanced climate control. Moreover, luxury cars offer superior driving experience and performance, which are key determinants for increasing its adoption for rental services.
- For instance, Avis Rent A Car System LLC is a car rental service provider that offers a range of luxury cars for rental services in its offerings.
- Therefore, the increasing availability of luxury electric cars for rental services is anticipated to boost the electric car rental market size during the forecast period.
By Booking Type:
Based on booking type, the market is segmented into online and offline.
Trends in the booking type:
- Increasing adoption of online booking platforms for renting electric cars, attributing to its increased convenience, ease of price comparisons, 24/7 accessibility, and instant confirmations.
- Rising advancements in online car rental platforms for easy booking and enhanced customer experience.
Online segment accounted for a significant revenue in the overall electric car rental market share in 2024, and it is anticipated to register a substantial CAGR growth during the forecast period.
- Online booking involves using digital platforms such as rental company websites, mobile applications, or third-party booking sites for reserving/renting an electric car. This method has become increasingly popular due to its convenience.
- Moreover, online booking platforms allow users to compare prices, vehicle types, and rental terms across multiple companies easily, which helps customers in finding the best deal.
- Additionally, online booking offers several benefits including increased convenience, 24/7 accessibility, ease of price comparisons, instant confirmation, ease of modification/cancellation, and others.
- For instance, Zepaste is a car rental service provider that offers several electric cars for rent through online booking platform, wherein the users can book the desired car for rent through the company website or its dedicated mobile app.
- Therefore, increasing advancements related to fuel cell vehicles integrated with all-wheel drive system are driving the electric car rental market trends.
By Application:
Based on the application, the market is segmented into leisure & travel, business, and others.
Trends in the application:
- Factors including increased awareness regarding environmental sustainability, availability of EV charging infrastructure in popular travel destinations, and attractive rental packages for tourists are among the primary factors driving the leisure & travel segment.
- Growing adoption of electric car rental services for business/corporate applications, as part of a company’s sustainability initiatives and CSR (corporate social responsibility) policies.
Leisure & travel segment accounted for the largest revenue share of 49.87% in the total market in 2024.
- Leisure & travel segment includes individual and family travellers who rent electric cars for vacations, weekend trips, sightseeing, or other recreational activities.
- Moreover, the growing interest in sustainable and eco-friendly travel options is driving the adoption of electric cars for rental purpose for leisure and travel applications.
- For instance, Hertz System Inc. provides a broad of electric cars for rental purpose in its rental fleet offerings for several applications including leisure and travel activities.
- According to the analysis, the rising utilization of car rental services for leisure & travel activities are driving the electric car rental market trends.
Business segment is anticipated to register a significant CAGR growth during the forecast period.
- Business segment covers corporate rentals for business travel, including client meetings, conferences, and events. Several companies are adopting electric cars, as part of their sustainability initiatives and CSR (corporate social responsibility) policies.
- Moreover, renting electric cars for business/corporate trips allows them to demonstrate commitment to environmental sustainability.
- For instance, in March 2024, Eco Mobility, an India-based car rental service provider, launched its corporate car rental offerings in additional 10 cities across India.
- Therefore, the increasing adoption of car rental services for business/corporate applications is expected to propel the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 3,246.65 Million in 2024. Moreover, it is projected to grow by USD 3,624.56 Million in 2025 and reach over USD 9,098.84 Million by 2032. Out of this, China accounted for the maximum revenue share of 32.4%. As per the electric car rental market analysis, the adoption of car rental service in the Asia-Pacific region is primarily driven by the increasing need for eco-friendly and sustainable transport solutions along with rising tourism & travel activities among others. Additionally, the rising tourism activities is driving the adoption of car rental services to provide convenient travel options for tourists and travelers to explore new destinations, which is further accelerating the electric car rental market expansion.
- For instance, according to the Singapore Tourism Board, Singapore witnessed approximately 6.3 million foreign tourists in 2022. The above factors are driving the adoption of car rental services for facilitating convenient travel options for tourists and travelers, in turn propelling the market in the Asia-Pacific region.
North America is estimated to reach over USD 12,209.82 Million by 2032 from a value of USD 4,501.82 Million in 2024 and is projected to grow by USD 5,011.94 Million in 2025.
In North America, the growth of electric car rental industry is driven by the growing investments in greener transportation industry and presence of multiple car rental companies among others. Moreover, the presence of a large number of corporate infrastructure in North America has encouraged businesses to rent vehicles for its employees in terms of their daily commute to work, which is further contributing to the electric car rental market demand.
The regional analysis depicts that prevalence of favorable government measures and initiatives for eco-friendly mobility solutions and rising consumer preference for electric vehicles are driving the electric car rental market demand in Europe. Furthermore, as per the market analysis, the market growth in Latin America, Middle East, and African regions is expected to grow at a considerable rate due to factors such as growing advancements in electric cars and increasing need for economical and eco-friendly transport solutions among others.
Top Key Players and Market Share Insights:
The global electric car rental market is highly competitive with major players providing services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the electric car rental market. Key players in the electric car rental industry include-
- Hertz System Inc. (US)
- Enterprise Holdings Inc. (US)
- Zoomcar (India)
- Easirent (US)
- Zepaste (India)
- Avis Rent a Car System LLC (US)
- ORIX Auto Infrastructure Services Ltd (India)
- Green Motor International (United Kingdom)
- Zipcar Inc. (US)
- Europcar Group (France)
Recent Industry Developments :
Partnerships & Collaborations
- In February 2024, Zoomcar Inc. announced partnership with Sparkcars, an India-based EV rental company, with the aim of introducing more than 1,000 electric vehicles in Zoomcar platform across India within the duration of upcoming two years.
- In January 2023, Hertz announced a new partnership initiative, Hertz Electrifies, which the aim of transforming the rental car industry and driving mainstream consumer adoption of electric vehicles.
Electric Car Rental Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 33,925.58 Million |
| CAGR (2025-2032) | 14.8% |
| By Vehicle Type |
|
| By Vehicle Category |
|
| By Booking Type |
|
| By Application |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the electric car rental market? +
The electric car rental market was valued at USD 12,496.86 Million in 2024 and is projected to grow to USD 33,925.58 Million by 2032.
Which is the fastest-growing region in the electric car rental market? +
Asia-Pacific is the region experiencing the most rapid growth in the electric car rental market.
What specific segmentation details are covered in the electric car rentals report? +
The electric car rentals report includes specific segmentation details for vehicle type, vehicle category, booking type, application, and region.
Who are the major players in the electric car rental market? +
The key participants in the electric car rental market are Hertz System Inc. (US), Enterprise Holdings Inc. (US), Avis Rent a Car System LLC (US), ORIX Auto Infrastructure Services Ltd (India), Green Motor International (United Kingdom), Zipcar Inc. (US), Europcar Group (France), Zoomcar (India), Easirent (US), and Zepaste (India).
How big is the electric car rental market? +
The electric car rental market was valued at USD 12,496.86 Million in 2024 and is projected to grow to USD 33,925.58 Million by 2032.
Which is the fastest-growing region in the electric car rental market? +
Asia-Pacific is the region experiencing the most rapid growth in the electric car rental market.
What specific segmentation details are covered in the electric car rentals report? +
The electric car rentals report includes specific segmentation details for vehicle type, vehicle category, booking type, application, and region.
Who are the major players in the electric car rental market? +
The key participants in the electric car rental market are Hertz System Inc. (US), Enterprise Holdings Inc. (US), Avis Rent a Car System LLC (US), ORIX Auto Infrastructure Services Ltd (India), Green Motor International (United Kingdom), Zipcar Inc. (US), Europcar Group (France), Zoomcar (India), Easirent (US), and Zepaste (India).
