Electric Car Rental Market to Reach USD 21.37 Billion by 2031, Driven by Fleet Electrification, Reports Mordor Intelligence
HYDERABAD, India, Aug. 20, 2026 /PRNewswire/ -- According to the latest report by Mordor Intelligence, the electric car rental market size is projected to grow from USD 9.71 billion in 2025 to USD 10.90 billion in 2026, reaching USD 21.37 billion by 2031 at a 14.41% CAGR. Growth is being supported by rapid fleet electrification, stronger partnerships between automakers and rental companies, and the expansion of airport fast-charging infrastructure. Battery electric vehicles continue to account for a major share of rental fleet orders, supported by measures that help reduce depreciation risks. At the same time, peer-to-peer rental platforms and digital-first operators are intensifying competition, while improved charging networks are helping rental companies reduce vehicle turnaround times.
Electric Car Rental Market Trends and Drivers
Growing Government EV Fleet Requirements for Rental Companies: Government policies are encouraging rental operators to shift toward zero-emission fleets, while stricter regulations are reducing the appeal of internal-combustion vehicles. Rising EV costs are putting pressure on smaller operators, whereas companies with established charging infrastructure can strengthen their market position and gain an advantage in airport and other strategic contracts.
Narrowing Total Cost Gap Between BEVs and ICE Vehicles in Rental Fleets: Stricter emission rules are prompting rental companies to adopt zero-emission vehicles and gradually reduce reliance on conventional cars. While higher EV investment costs can challenge smaller operators, businesses with strong charging infrastructure are better positioned to compete for major contracts.
"Mordor Intelligence combines structured market assessment with transparent research practices to provide a consistent view of electric car rental market developments. Its approach supports decision-makers in evaluating reported trends, market dynamics, and growth opportunities with greater confidence than less structured market assessments, " says Phani Kumar, Senior Research Manager, Mordor Intelligence.
Electric Car Rental Market Share by Region
Asia-Pacific is emerging as a key growth region for electric car rentals, supported by government electrification initiatives, airport programs, and rising EV adoption. North America also continues to expand, although charging infrastructure gaps in some areas remain a challenge. Increasing EV depreciation and repair costs are also prompting rental companies to reassess their fleet strategies.
Europe benefits from well-developed charging networks that support electric car rental adoption, although varying incentives can make cross-border operations more complex. Meanwhile, emerging markets in South America and the Middle East are gradually expanding electric rental fleets, but infrastructure gaps, import costs, and hot weather conditions remain key challenges.
Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/electric-car-rental-market?utm_source=prnewswire
Electric Car Rental Industry Segmentation
By Vehicle Type
- Battery Electric
- Plug-in Hybrid Electric
- Extended-Range Electric (REEV)
- Fuel-Cell Electric
By Body Style
- Hatchback
- Sedan
- Sport Utility Vehicle (SUV)
- Multi-Utility Vehicle (MUV)/Multi-Purpose Vehicle (MPV)
- Sports Coupe
By Customer Type
- Leisure / Tourism
- Business / Corporate
- Peer-to-Peer Host
- Ride-hailing Driver Subscription
By Booking Channel
- Online
- Offline
By Rental Duration
- Short-Term (Less than 7 days)
- Medium-Term (7 to 30 days)
- Long-Term (More than 30 days, subscription)
By Price Tier
- Budget / Economy
- Mid-Range
- Luxury / Premium
By End-Use Purpose
- Local Commute
- Airport Transport
- Inter-City / Outstation
- Last-Mile Delivery
Electric Car Industry Companies
- Enterprise Holdings, Inc.
- The Hertz Corporation
- Avis Budget Group, Inc.
- Sixt SE
- Europcar Mobility Group
- Zoomcar Inc.
- Green Motion International
- Turo Inc.
- UFODrive S.A.
- DriveElectric (UK)
Get More information on Electric Car Rental Report: https://www.mordorintelligence.com/industry-reports/electric-car-rental-market?utm_source=prnewswire
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SOURCE Mordor Intelligence Private Limited
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