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 

Industry Related Reports by Mordor Intelligence 

Used Truck Market: The Used Truck Market is projected to grow from USD 55.38 billion in 2026 to USD 70.74 billion by 2031, registering a CAGR of 5.02% during the forecast period. The market’s growth is driven by increasing demand for cost-effective commercial transportation solutions, rising logistics and freight activities, growing preference for pre-owned trucks among fleet operators, and the need to optimize fleet acquisition and operating costs.

EV Battery Pack Market: The Electric Vehicle Battery pack Market is projected to grow from USD 179.49 billion in 2026 to USD 265.05 billion by 2031, registering a CAGR of 8.11% during the forecast period. The market’s growth is driven by the increasing adoption of electric vehicles, rising demand for advanced battery technologies, expanding investments in battery manufacturing and charging infrastructure, and the growing focus on energy efficiency and sustainable mobility solutions. 

Get More information: https://www.mordorintelligence.com/industry-reports/global-electric-vehicle-battery-market-industry?utm_source=prnewswire

Driving Simulator Market: The Driving Simulator Market is projected to grow from USD 0.88 billion in 2026 to USD 1.24 billion by 2031, registering a CAGR of 7.12% during the forecast period. The market’s growth is driven by increasing demand for advanced driver training solutions, rising adoption of simulation technologies in automotive research and development, growing emphasis on road safety, and the expanding use of driving simulators for vehicle testing and validation. 

About Mordor Intelligence  

Mordor Intelligence is a trusted partner for businesses seeking comprehensive, actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.  

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics.  

For any inquiries, please contact:     

media@mordorintelligence.com 

https://www.mordorintelligence.com/contact-us 

View original content to download multimedia:https://www.prnewswire.com/news-releases/electric-car-rental-market-to-reach-usd-21-37-billion-by-2031–driven-by-fleet-electrification-reports-mordor-intelligence-302856561.html

SOURCE Mordor Intelligence Private Limited