Singapore Car Rental Market Size (2024 - 2029)

The car rental market in Singapore is poised for significant growth, driven by a resurgence in travel demand and favorable government initiatives. The market's expansion is supported by the increasing costs associated with car ownership, which is prompting more consumers to opt for rentals. The retail sector is a key driver of this demand, as customers seek seamless and efficient rental experiences akin to other services. Despite the challenges posed by the COVID-19 pandemic, which led to drastic cost-cutting measures and a temporary decline in demand, the market is recovering and expected to grow substantially in the coming years.

Home Market Analysis Automotive Research Automotive Services Research Auto Rental Research Vehicle Rental Research Car Rental Research Singapore Car Rental Industry Market Size

Market Size of Singapore Car Rental Industry

Market Overview
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.84 %
Market Concentration Medium

Major Players

Singapore Car Rental Market Major Players

*Disclaimer: Major Players sorted in no particular order

Singapore Car Rental Market Analysis

The Singapore Car Rental Market is valued at USD 120.33 Million in 2021 and is expected to reach USD 192.36 Million by 2027 registering a CAGR of over 9.84% during the forecast period, 2022-2027.

The demand for rental cars fell by almost 90% during the start of the COVID-19 outbreak, and vendors rushed to find cost-saving measures. Demand is already surpassing availability as more people resume travelling and vaccine distribution, which could result in the growth of car rental market . Due to pandemic caused havoc, the challenge for car rental companies was to find quick ways to cut costs and overhead. All companies were compelled to consider options during the early stages of the pandemic, including employee layoffs, closing rental outlets, and drastic fleet size reductions. The low demand for secondhand cars made it extremely difficult to remain profitable, which further exacerbated the situation. As the situation is recovering back to normalcy from Q2 2021, the car rental market is expected to gain traction during the coming years.

Over the long term, , the market is anticipated to exhibit significant expansion due to the factors like the rising cost of owning and maintaining a car which is helping the market. Favorable government initiatives will also increase the nation's market for car rentals.

The demand for car rentals is being driven by the retail sector. In Singapore, customers anticipate similar experiences with other services as well. Also, the rental car sector is undergoing a big shift or disruption as customers are looking for seamless applications, speed and service.

Singapore Car Rental Industry Segmentation

The Singapore Car Rental Market covers the current and upcoming trends with recent technological development. The report will provide a detailed analysis of various areas of the market by Type, Duration, and Application. The market share of significant car rental companies across the Indonesian market will be provided in the report.

By booking type, the market is segmented as Offline and Online.

By Rental Duration Type, the market is segmented as Short term, Long Term.

and By Application Type, the market is segmented as Tourism, Commuting.

Booking Type
Online
Offline
Rental Duration
Short-Term
Long-Term
Application Type
Tourism
Commuting
Need A Different Region Or Segment?
Customize Now

Singapore Car Rental Market Size Summary

The car rental market in Singapore is poised for significant growth, driven by a resurgence in travel demand following the COVID-19 pandemic. Initially, the market faced a steep decline in demand, prompting companies to implement cost-cutting measures such as reducing fleet sizes and closing outlets. However, as travel resumes and vaccine distribution progresses, demand is outpacing supply, setting the stage for market expansion. The increasing cost of car ownership and maintenance, coupled with favorable government initiatives, is further propelling the market. The retail sector's demand for car rentals is also on the rise, as consumers seek seamless and efficient service experiences. The popularity of car-hailing apps has transformed the availability of vehicles, contributing to the shift towards more affordable and flexible transportation options.

Singapore's car rental industry is characterized by a competitive landscape with both international and local players. While international companies like Avis-Budget and Hertz offer a wider range of luxury vehicles, local firms such as Ride Now and Motorist provide more cost-effective solutions. The government's regulatory framework, including quotas and fees, aims to manage traffic growth and maintain competitive pricing. This has fostered a market environment with limited monopolistic tendencies, encouraging service providers to offer reasonable rates. Additionally, government support for entrepreneurs through grants and incubators is facilitating the entry of new players into the market. Partnerships and technological advancements, such as usage-based insurance models, are further enhancing the car rental offerings in Singapore, catering to the evolving needs of consumers.

Explore More

Singapore Car Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters 5 Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in USD Million)

    1. 2.1 Booking Type

      1. 2.1.1 Online

      2. 2.1.2 Offline

    2. 2.2 Rental Duration

      1. 2.2.1 Short-Term

      2. 2.2.2 Long-Term

    3. 2.3 Application Type

      1. 2.3.1 Tourism

      2. 2.3.2 Commuting

Singapore Car Rental Market Size FAQs

The Singapore Car Rental Market is projected to register a CAGR of 9.84% during the forecast period (2024-2029)

SIXT SE, Avis Budget Group, Drive Sg, Europcar Mobility Group and Hertz Corporation are the major companies operating in the Singapore Car Rental Market.

Singapore Car Rental Market Report Snapshots

Car Rental Market in Singapore Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)