Electric car rental market seen hitting $42.28 billion by 2035

The electric car rental market is projected to grow from $10.40 billion in 2025 to $42.28 billion by 2035, led by Asia-Pacific and supported by rising EV adoption, charging buildout and corporate sustainability demand. North America generated $3.97 billion in 2025 revenue, with the United States accounting for more than 72% of that total.

Why it matters: - Electric car rentals are moving from niche offering to mainstream mobility service as fleets, travelers and businesses look for lower-emission transport without buying EVs. - The market’s projected climb to $42.28 billion by 2035 signals growing demand for flexible EV access, especially as charging networks expand and operating costs improve. - North America generated $3.97 billion in 2025 revenue, and the United States accounted for more than 72% of that total.

What happened: - The electric car rental market was valued at $10.40 billion in 2025. - The market is projected to reach $11.65 billion in 2026. - The market is forecast to reach $42.28 billion by 2035. - The projected compound annual growth rate is 15.40% from 2026 to 2035. - The market covers battery electric vehicles, plug-in hybrid electric vehicles and extended-range electric vehicles rented to private and commercial customers. - The service package typically includes insurance, maintenance and, in some cases, charging support. - The market includes traditional rental companies, EV-focused rental and subscription providers, OEM-backed rental services and peer-to-peer platforms. - The report is available as a free sample report. - The full market report is available for purchase here.

The details: - The market is being pulled by decarbonization goals, emissions regulations, corporate sustainability targets and growing consumer demand for cleaner transport. - Charging infrastructure expansion and battery improvements are reducing range anxiety and enabling new rental models. - Lower operating and maintenance costs for EVs are improving fleet economics for rental operators. - Digital-first booking, app-based rentals and subscription mobility models are becoming more important. - Partnerships among rental companies, automakers and charging network operators are increasingly central to scale and profitability. - Telematics, predictive maintenance, dynamic pricing and route optimization are improving fleet utilization. - International tourist arrivals are projected to reach 1.4 billion in 2024, up 11% from 2023, supporting rental demand. - The EV rental share remains about 2.2% of global rental bookings, even as some markets are growing by more than 100% a year. - By vehicle type, BEVs are expected to account for about 75% of the market by 2025, while PHEVs are expected to stay below 20%. - By body style, SUVs are projected to hold about 42% of demand by 2025. - By customer type, leisure and tourism accounted for about 59% of bookings in 2025. - By booking channel, online platforms are the fastest-growing segment. - By rental duration, short-term rentals dominate utilization, while long-term subscriptions are typically priced at USD 300-400 per week and can save customers USD 200-300 a month on fuel. - By price tier, economy EVs such as the Nissan Leaf, Chevrolet Bolt, Renault Zoe and BMW i3 are helping more renters try EVs. - By end use, airport transport and city mobility remain key demand areas. - Asia-Pacific held 53.41% of global market share in 2025. - Europe contributed about 41% of market growth during the forecast period. - North America remains strong on corporate sustainability demand and EV infrastructure expansion. - Europe had more than 882,012 public charging points as of December 2024. - Norway reached a 48.9% booking share for electric vehicles in 2026. - France, Belgium and Switzerland reached booking shares of 10.4%, 11.3% and 9.8%, respectively. - Portugal and Italy posted strong growth, with booking increases of 175.8% and 129.8% over 12 months. - China is forecast to grow at a 21.9% CAGR through 2032 and reach $10.7 billion. - Japan is forecast to grow at 12.6% CAGR, and South Korea at 15.5% CAGR. - Canada is forecast to grow at about 15.5% CAGR during the analysis period. - The report says tariffs in the United States are affecting procurement costs and pushing operators toward sourcing diversification and localization.

Between the lines: - The market is benefiting from the same forces reshaping the broader auto industry: electrification, digital booking and subscription access. - The data suggests rental operators are becoming mobility service providers, not just vehicle lessors, as they bundle charging, software and fleet management. - The regional split shows a two-speed market: Europe has maturity and policy support, while Asia-Pacific has scale and momentum. - North America’s growth appears tied to corporate fleet transitions, but procurement pressure and tariff uncertainty could slow deployment. - The low EV share of rental bookings shows there is still room to grow even after rapid percentage gains.

What's next: - Rental companies are likely to keep expanding EV partnerships with automakers, charging operators and mobility platforms. - Subscription and medium-term rental products should keep growing as businesses and consumers seek flexible access without ownership. - Fleet operators are expected to invest more in telematics, predictive maintenance and dynamic pricing to protect margins. - Autonomous ride-hailing and EV fleet operations may converge further, following partnerships such as the Avis Budget Group-Waymo deal. - Regional growth will likely remain strongest where charging infrastructure, incentives and digital adoption are aligned.

The bottom line: - Electric car rental is scaling fast because it fits the shift toward cleaner, app-based and more flexible mobility.