Electric Car Rental Market size is set to grow by USD 18.00 billion from 2024-2028, Increasing demand for rental cars due to rise in international tourism boost the market, Technavio

NEW YORK, July 3, 2024 /PRNewswire/ -- The global electric car rental market size is estimated to grow by USD 18.00 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 16.68% during the forecast period. Increasing demand for rental cars due to rise in international tourism is driving market growth, with a trend towards technological advancements in battery technology. However, global power crisis hindering the growth of ev market poses a challenge. Key market players include 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 Driver

The electric car rental market is experiencing significant growth due to advancements in battery technology. Li-ion batteries, while important, do not follow the trend of Moore Law and have complex chemistry, limiting faster advancements. New compounds are being explored to enhance battery performance. Silicon anodes, which can store more lithium ions than graphite, are the next step in energy density. However, silicon's expansion during charging weakens the anode and can cause dissolution. Companies like Enovix and Samsung SDI are addressing these challenges with innovative battery designs, such as porous silicon anodes and quick charging capabilities. The Joint Center for Energy Storage Research is also developing multivalent-ion and lithium-sulfur batteries, which can store twice the energy of Li-ion batteries. These advancements will drive the growth of the electric car rental market during the forecast period. 

The electric car rental market is experiencing significant growth with an increasing number of consumers opting for eco-friendly transportation solutions. According to recent trends, the demand for electric cars in rental services is on the rise. This shift is driven by several factors including the reduction in battery costs, government incentives, and the growing awareness of environmental concerns. Additionally, technological advancements in battery technology and charging infrastructure are making electric cars more convenient and accessible. Companies are responding to this trend by expanding their electric vehicle fleets and investing in charging stations. Overall, the electric car rental market is poised for continued growth in the coming years. 

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Market Challenges

• The electric car rental market faces challenges due to increasing power demand for electric vehicles, particularly in developing countries. For instance, Europe's shift to electric vehicles reduces crude oil consumption but increases global power demand by 11%. In Asia, power crises in countries like India and Japan, driven by high hybrid vehicle adoption in Japan, exacerbate the issue. Japan's power crisis, caused by the 2011 Fukushima disaster and reliance on imports, increases electricity costs and hinders EV market growth. These power crises pose significant hurdles for the electric car rental market expansion during the forecast period.
• The electric car rental market is experiencing significant growth, with an increasing number of consumers opting for eco-friendly transportation solutions. However, challenges persist in this sector. One major issue is the high cost of electric vehicles (EVs) compared to traditional cars. Additionally, the limited range of EVs and the lack of charging infrastructure in some areas can deter potential renters. Furthermore, the high cost of battery replacement and maintenance can also be a concern. To address these challenges, rental companies must invest in expanding their EV fleets, improving charging infrastructure, and offering competitive pricing to attract customers. Collaborations with charging station providers and government incentives can also help mitigate these issues. Overall, the electric car rental market presents both opportunities and challenges, requiring strategic planning and innovation to succeed.

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Segment Overview 

This electric car rental market report extensively covers market segmentation by

1. Type 
• 1.1 Economy cars
• 1.2 Luxury cars
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Economy cars- The electric car rental market is experiencing significant growth due to increasing environmental consciousness and advancements in technology. Companies are investing in electric fleets to cater to the rising demand. Cost-effective batteries and government incentives are boosting the industry. Electric cars offer lower operating costs and reduced emissions, making them an attractive option for both businesses and individuals. The market is expected to continue expanding, driven by continuous innovation and consumer preference.

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Research Analysis

The Electric Car Rental Market is experiencing significant growth due to the increasing popularity of electric vehicles (EVs) and the convenience of online rent-a-car services. Renting electric cars on a short-term basis, such as hourly or for a few days, is becoming increasingly common for travel trips. For longer periods, weekly or monthly rentals are also available, providing an affordable and eco-friendly alternative to traditional gasoline cars. Battery cars and hybrid cars are the primary offerings in this market, with incentives from governments and organizations promoting their use for environmental sustainability. Internet connectivity and in-car infotainment systems are essential features, allowing for seamless booking engines and online payment options. The rental service industry is adapting to the changing automotive landscape, addressing transparency challenges and expanding charging infrastructure to accommodate the growing demand for electric car rentals. The market's future looks bright, with the potential to reduce carbon emissions and contribute to a more sustainable transportation sector.

Market Research Overview

The Electric Car Rental market is experiencing significant growth as more individuals and businesses seek sustainable transportation solutions. With the increasing awareness of environmental concerns and the availability of advanced technology, electric cars have become a popular choice for short-term vehicle rentals. These vehicles offer numerous benefits, including reduced emissions, lower operating costs, and the convenience of not having to refuel with traditional gasoline. Additionally, the rise of ride-sharing and car-sharing services has further boosted the demand for electric car rentals. The future of this market looks promising, as technological advancements continue to improve battery life and charging infrastructure becomes more widespread. Overall, the Electric Car Rental market is poised for continued growth and innovation in the coming years.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Economy Cars
• Luxury Cars
• Distribution Channel
• Offline
• Online
• Geography
• Europe
• North America
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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