Electric Car Rental Market size is set to grow by USD 11.24 billion from 2023-2027, Increasing demand for rental cars due to rise in international tourism boost the market, Technavio

NEW YORK, April 10, 2024 /PRNewswire/ -- 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. 

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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. 

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• 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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Research Analysis

The Electric Car Rental Market is experiencing significant growth as consumers seek more sustainable travel options. Renting Electric Vehicles (EVs) on a Short Period or Extended Period basis is now an accessible and affordable choice for travel trips. Online rent-a-car services offer Hourly Basis, Weekly Basis, and Monthly Basis rental plans for Battery Cars and Hybrid Cars. Incentives from travel rental companies and the automotive industry further boost the appeal of Electric Car Rentals. In-car Infotainment Systems and Internet connectivity are essential features for modern travelers. Online payment options ensure ease of access and transparency in Electric Car Booking. Environmental sustainability and reducing Carbon Emissions are key concerns driving the demand for Electric Vehicles. Charging Infrastructure development is crucial to support the growing Electric Car Rental Market. Despite these advantages, transparency challenges persist, including hidden fees and unclear rental terms. Addressing these issues will further enhance the appeal and convenience of Electric Car Rentals.

Market Research Overview

The Electric Car Rental market is a growing sector in the transportation industry. With the increasing awareness of environmental concerns and the need for sustainable energy solutions, the demand for electric cars is on the rise. Companies offer various models of electric cars for rent, providing an affordable alternative to purchasing one outright. These cars are charged using renewable energy sources, making them an eco-friendly choice. The rental process is seamless, with online booking and delivery options available. Additionally, some companies offer additional services such as installation of charging stations at home or office. The market for electric car rentals is expected to continue expanding, offering consumers a convenient and sustainable transportation solution.

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio