The electrical rental car market is expected to register a CAGR of 15% from 2020 to 2028. The market was valued at USD 246.70 billion in 2020. It’s expected to be worth USD 1,318.22 billion in 2028.
The rapid growth of the market can be attributed to the resurgence of rental car sales, which are now approaching pre-pandemic levels. Additionally, there is a rising preference for electric cars in general due to their perceived environmental friendliness.
Overview of the Electric Car Rental Segment
When examining the Electric Car Rental segment, it becomes evident that it encompasses a variety of sub-categories based on different criteria:
- Vehicle Types: Within this segment, we can distinguish the following sub-categories:
- Battery-powered cars
- Hybrid vehicles
- Plug-in electric cars, categorized by their performance characteristics.
- Applications: The Electric Car Rental segment can also be further divided based on its various applications:
- Economic cars
- Exclusive or luxury cars
- Other categories that do not fall into these two groups.
- Service Modes: Lastly, in terms of service provision, the Electric Car Rental segment can be segmented into the following sub-divisions:
- Online services
- Offline services
This multifaceted segmentation provides a comprehensive view of the Electric Car Rental sector, highlighting its diverse offerings catering to different vehicle types, applications, and service delivery modes.
Electric Car Rental Market Regional analysis
The global electrical rental car market can be grouped into the following geographic regions:
- Asia-Pacific
- North America
- The European Union
- The Rest of the World
Currently, the Asia-Pacific region boasts the most substantial market share, a phenomenon primarily attributed to the remarkable economic growth experienced by many nations in this geographical area. This sustained economic expansion has given rise to a burgeoning middle class with increasing wealth. As a result, there is a growing demand among this middle-class demographic for upscale, environmentally-friendly rental cars. Electric cars align perfectly with these preferences.
Projections indicate that the Asia-Pacific region is poised to maintain its dominant market share throughout the duration covered by this report. Additionally, it is expected to exhibit the highest Compound Annual Growth Rate (CAGR) during this period.
Notably, the government of India has taken significant steps in this direction, enacting legislation that mandates reduced particulate emissions from cars during operation. Electric vehicles are known for their cleaner operation, making them an appealing choice for the average middle-class consumer in India.
Conversely, the European Union and the North American region are anticipated to record moderate CAGR figures and hold relatively moderate market shares within the timeframe under consideration.
Electric Car Rental Industry news
- Hertz grabbed a major chunk of the digital car rental market by offering electronic cars for rent in 2021.
- Companies that make electric cars for rental purposes have been working hard to integrate artificial intelligence into them. The intent is to make smart cars that are also safer for people to drive!
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