Singapore Car Rental Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Car Type (Economy Cars, Luxury Cars, Executive Cars, SUVs, MUVs), By Mode Of Booking (Online, Offline), By Rental Category (Local Transport, Airport Transport, Outstation Transport), And By Geography - Forecasts From 2024 To 2029

Description

Singapore Car Rental Market Size:

The Singaporean Car Rental Market is set to reach USD 2.668 billion in 2030, growing at a CAGR of 5.21% from a valuation of USD 1.605 billion in 2020.

The?‍?‌‍?‍‌ Singaporean car rental market is undergoing a phase of steady structural expansion primarily influenced by high costs of private vehicle ownership, rising tourism, and rapid formalization of long-term leasing and subscription models in both consumer and corporate segments. High prices for the Certificate of Entitlement (COE) remain a significant factor that is shifting the demand from ownership to usage-based mobility. In this way, rental operators can attract a wider customer base who are looking for flexibility, predictable monthly costs, and avoidance of large capital outlays. Alongside this trend, the transport of Singapore's tourism recovery, which is mainly supported by strong regional travel flows and good connectivity, is experiencing strong short-term rental demand, especially among business travellers and leisure visitors seeking convenient point-to-point ?‍?‌‍?‍‌mobility.

Singapore Car Rental Market Overview

The?‍?‌‍?‍‌ Singaporean car rental market is changing its structure as the costs of vehicle ownership increase. These rising costs are the main reasons for the increase in prices of Certificate of Entitlement (COE), prompting consumers and enterprises to opt for rental, leasing, and subscription-based mobility models. Two distinct segments are shaping demand increasingly: on the one hand, short-term rentals related to tourism and domestic mobility needs, and on the other, long-term leasing, which is rapidly expanding and is chosen by residents and corporate fleets seeking predictable costs, minimal maintenance, and freedom from the capital burden of ownership. Moreover, digital transformation is also changing the competition landscape. Technology-enabled platforms are providing in-real-time availability, dynamic pricing, seamless app-based bookings, and integrated telematics that enhance fleet utilization and customer ?‍?‌‍?‍‌experience.

Singapore's?‍?‌‍?‍‌ government is proactively influencing changes to the car rental market with a well-aligned set of mobility and electrification measures aimed at reducing emissions, broadening access to charging, and promoting fleet renewal. Among the most significant offerings is the EV Early Adoption Incentive (EEAI) that helps in reducing the initial EV purchase cost and the Vehicular Emissions Scheme (VES) that awards cleaner vehicles through rebates, both of which facilitate the rental and leasing companies that indirectly support the transition of their fleets to electric models. Additionally, the government is promoting the growth of infrastructure through the provision of different types of grants like the EV Common Charger Grant (ECCG) and the Electric Heavy Vehicle Charger Grant (EHVCG), which fund the setting up of the charging stations in residential and commercial places, and hence, rental operators can make it easy for customers to access their services. The introduction of the EV Charging Act (EVCA) as one of many regulatory steps is stabilizing the business environment by giving a standard for charger safety and installation practices. All these efforts, in conjunction with each other, not only align with the country's goals under the Singapore Green Plan 2030 but also facilitate the car rental industry to grow its fleet that is electrified, digitally managed, and less ?‍?‌‍?‍‌polluting.

In October 2025 motor vehicle population by type of vehicles for cars, private hire cars, taxis, buses, goods & other vehicles, and motorcycles was 566,527, 94,077, 12,216, 18,807, 166,950, 151,234, respectively.

The?‍?‌‍?‍‌ key players in the car rental ecosystem in Singapore include a mix of global leaders and robust local operators. The market is stabilized by international brands like Hertz Corporation, Sixt SE, Avis Budget Group, and Europcar, which offer established fleets, a variety of premium services, and are highly visible at the airport. Local and regional companies Asia Express Car Rental Singapore, Reach Group, Siang Hock Holding, and platform-based mobility services like GetGo Technologies and Tribecar, can attract customers using competitive pricing, subscription models, and extensive car-sharing networks. Aggregators like Skyscanner Ltd are also very significant in this market as they direct online traffic and support price transparency among operators. These businesses in total create a balanced market that provides diverse options for short-term rentals, long-term leasing, and shared ?‍?‌‍?‍‌mobility.

In?‍?‌‍?‍‌ general, the Singapore car rental market is transforming into a more diversified, tech-savvy, and eco-friendly mobility ecosystem, where long-term leasing and premium service models are gradually becoming the two most significant sources of growth in the ?‍?‌‍?‍‌future.

Singapore Car Rental Market Drivers

• Escalating COE Prices and High Vehicle Ownership Costs         

The?‍?‌‍?‍‌ growing COE prices, combined with the overall expensive private vehicle ownership, remain major factors driving the Singaporean car rental market to change the behavior of both individual and corporate mobility users deeply. Singapore’s COE system, designed to regulate the vehicle population, has led to repeated surges in premiums. At times, these have reached levels that render private car ownership unaffordable for a significant portion of the population. Apart from the COE, buyers need to take into consideration various other costs, such as the vehicle's base price, registration fees, taxes, insurance, maintenance, fuel, and depreciation, thus putting a hefty long-term financial burden on ?‍?‌‍?‍‌them.   

COE price for Cat E (Open-All Except Motorcycle), Cat C (Goods Vehicle & Bus), Cat D Motorcycle, Cat A (Car up to 1600cc & up to 97KW (130bhp)), and Cat B (Car above 1600cc or above 97KW (130bhp)) were $136,000, $76,801, $9,389, $122,000, and $131,889 in October 2025, respectively.  

Hiking?‍?‌‍?‍‌ the cost of owning a vehicle is one of the reasons rental fleets are replacing their vehicles more frequently; thus, customers are always getting access to relatively new and clean vehicles. Rental services can thus be considered as a winning mobility option. The high cost of car ownership creates a substantial barrier, thereby sustaining steady demand for the car-rental ecosystem. This keeps the rental market structurally robust and positions it as a viable and economically rational solution for urban mobility in Singapore, a city marked by stringent regulations and elevated vehicle-related costs.

Singapore Car Rental Market Segmentation Analysis

• By Mode of Booking: Online

Based on the mode of booking, the Singaporean car rental market is segmented into online and offline. Digital transformation is gaining traction in Singapore with strategic investments bolstering infrastructural development that assist in the adoption of digital tools and applications, further simplifying people’s daily lives. Likewise, the growth in domestic and overseas travelling has escalated the need for airport and outstation transport, thereby shifting the focus of consumers to choose the most convenient mode of booking, which has stimulated the transition towards online applications.

Furthermore, internet penetration has also progressed in Singapore, fuelled by the growing demand for high-speed internet, 5G broadband establishment, and increased mobile subscriptions. According to the Infocomm Media Development Authority (IMDA), in August 2024, the total mobile subscription for 5G reached 2,150,900, representing a 3.6% growth in subscription compared to the previous month. The same source also specified that the total wireless broadband subscription in the same month stood at 11,013,400.

Moreover, the establishment of Next Generation Nationwide Broadband Network (NGNBN), which provides high-speed internet access across all locations, has further expanded the internet consumer base in Singapore. Additionally, the rapid growth in the urban population has also impacted the demand for premium services featuring advanced technologies. Hence, such digital transformation and efforts to bolster internet penetration have provided new growth prospects for online platforms for car renting.

The well-established presence of online travel agencies (OTAs), namely Traveloka, forming strategic partnerships with car rental suppliers such as Hertz and Avis Budget, is also an additional driving factor for the overall segment expansion.

• By Rental Category: Airport Transport

Based on rental category, the Singaporean car rental market is segmented into local transport, airport transport, and outstation transport. The growing airport visits for both domestic and international travelling has accelerated the demand for convenient and efficient transportation services that meet the dynamic needs of travellers. Car renting service providers have emphasised on meeting such demand through their extensive product offerings, including premium cars, SUVs, and economy cars, thereby expanding their usage in airports.

Furthermore, the tourism sector of Singapore has shown a constant growth fuelled by the growing number of international tourist arrivals, for instance, according to the data provided by the Singapore Tourism Board, in July 2025, the strength of international tourist arrivals in Singapore reached 1,680,770, demonstrating a considerable growth over the 22.3% over the number of international tourist arrivals recorded in May 2025. The same source also stated tourism receipts on SEG (Sightseeing, Entertainment and Gaming), which covers various expenses incurred on day-tours, leisure events, and entertainment, reached S$3,496 million.

Additionally, the ongoing efforts to further expand their airport routes to propel the flight frequency in major airports such as Changi Airport have led to a broader geographic spread of arrivals. As passengers arrive at various terminals, the demand for transportation to different parts of the city has diversified. Car rental services become a preferred choice for travellers who prioritize comfort, door-to-door service, and the ability to customize their travel itineraries.

Hence, major market players such as Hertz Corporation have a well-established presence in Singapore, where the car rental company offers airport transport services with prices varying according to the duration of rental, spanning from days to weeks. For instance, the standard rate for a compact Honda is S$106.42 per day, while for economy cars such as the Hyundai Accent or similar, the rate is S$108.25 per day. 

Segmentation:

By Car Type:

• Electric
• Gasoline Cars
  • Economy
  • Luxury
  • SUVs
  • MUVs

By Service

• Self-Driven
• Chauffeur-Driven

By Contract Type

• Long-Term
• Short-Term  

By Application

• Leisure/ Activity Trips
• Corporate/ Business Trips

By Mode of Booking:

• Online
• Offline

By Rental Category:

• Local Transport
• Airport Transport
• Outstation Transport

Table Of Contents

1. Executive Summary

2. Market Snapshot

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. Business Landscape

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. Technological Outlook

5. Singapore Car Rental Market By Car Type

5.1. Introduction

5.2. Electric

5.3. Gasoline

5.3.1. Economy

5.3.2. Luxury

5.3.3. SUV

5.3.4. MUV

6. Singapore Car Rental Market By Service 

6.1. Introduction

6.2. Self-Driven

6.3. Chauffeur-Driven

7. Singapore Car Rental Market By Mode of Booking

7.1. Introduction

7.2. Online

7.3. Offline

8. Singapore Car Rental Market By Rental Category

8.1. Introduction

8.2. Local Transport

8.3. Airport Transport

8.4. Outstation Transport

9. Singapore Car Rental Market By Contract Type

9.1. Introduction

9.2. Long-Term

9.3. Short-Term

10. Singapore Car Rental Market By Application

10.1. Introduction

10.2. Leisure/ Activity Trips

10.3. Corporate/ Business Trips

11. Competitive Environment and Analysis

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. Company Profiles

12.1. Hertz Corporation

12.2. Sixt SE

12.3. Asia Express Car Rental Singapore

12.4. Avis Budget Group, Inc

12.5. Europcar Mobility Group S.A.

12.6.  Reach Group Holdings Pte. Ltd.

12.7. GetGo Technologies Pte. Ltd.

12.8. Tribecar Pte. Ltd.

12.9. Siang Hock Holding Pte. Ltd

12.10. Skyscanner Ltd   

12.11. Drive lah Pte. Ltd.

13. Research Methodology

List of Figures

List of Tables

Companies Profiled

Hertz Corporation

Sixt SE

Asia Express Car Rental Singapore

Avis Budget Group, Inc

Europcar Mobility Group S.A.

 Reach Group Holdings Pte. Ltd.

GetGo Technologies Pte. Ltd.

Tribecar Pte. Ltd.

Siang Hock Holding Pte. Ltd

Skyscanner Ltd   

Drive lah Pte. Ltd.

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