The global electric vehicle rental market is estimated to garner a substantial revenue and grow at a CAGR of ~7% over the forecast period, i.e., 2022 – 2030. Technology is a critical aspect expected to accelerate the market growth. Growing adoption of information technology in the industry is enabling operators to deliver enhanced services to the customers. This is usually done by utilizing optimized corporate and customer information management, which in turn is predicted to provide momentum to market expansion in the forthcoming years. Furthermore, increasing emphasis of consumers on the adoption of green products, coupled with their shifting preference towards electric vehicles for short rides are projected to offer profitable opportunities to the market in the near future.
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The growth of the market can also be attributed to the rapid expansion of travel and tourism sector across the globe, and rising demand for cheaper means of transportation. According to the United Nations World Tourism Organization (UNWTO), the international tourism expenditure around the world raised to USD 1,397.2 billion in 2018, up from USD 1,301.2 in the year 2017.
The market is segmented by vehicle type into battery, hybrid, and plug-in electric vehicle, out of which, the battery electric vehicle segment is anticipated to hold the largest share in the global electric vehicle rental market. This can be accounted to the increase in production of battery-operated electric vehicles around the world, and rising technological innovations by market players for developing new and improved batteries, including graphene aluminum-ion and Li-ion batteries. Additionally, on the basis of booking type, the online access segment is assessed to gather the largest share over the forecast period owing to the growing dependence of users on smartphones, and escalating availability of demand-oriented mobility solutions. Apart from these, surge in development of applications aimed at offering car rentals is also considered to propel the growth of the market segment in the imminent time.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the global electric vehicle rental market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in North America is estimated to occupy the largest share over the forecast period on the back of the growing usage of car rental services, and increasing number of leisure and business trips across the region, both internationally and locally. In addition, strong presence of prominent market players is also anticipated to boost the region’s market growth in the future. Moreover, the market in Europe is also projected to acquire a notable share during the forecast period, which can be credited to the rise in government investments for green transportation facilities, and upsurge in adoption of electric vehicles in the region. As per a report published by the International Council of Clean Transportation or ICCT, a total of 564,000 electric vehicles were registered were made in 2019 in Europe. The EV sales across the region observed a growth of 3.6 percent in the same year.
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The global electric vehicle rental market is further classified on the basis of region as follows:
Our in-depth analysis of the global electric vehicle rental market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are rapid expansion of travel and tourism sector globally, and rising demand for cheaper means of transportation.
The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2022 – 2030.
Lack of infrastructure for electric vehicle rental services is estimated to hamper the market growth.
North America will provide more business opportunities for market growth owing to the growing usage of car rental services, and increasing number of leisure and business trips across the region, both internationally and locally.
The major players in the market are SIXT SE, ER Travel Services Ltd., Europcar Mobility Group SA, Fleetdrive Management Ltd., Green Motion International, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by vehicle type, category, booking type, rental length, application, and by region.
The battery electric vehicle segment is anticipated to hold largest market size and is estimated to grow at a robust CAGR over the forecast period and display significant growth opportunities.
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