The Singapore Car Rental market is forecast to grow at a CAGR of 5.61%, reaching USD 2.90 billion in 2031 from USD 2.20 billion in 2026.
The increase in tourism, which led to demand for rental services to commute with leisure and activity trips, and the digital transformation, are boosting market expansion. Furthermore, the shift towards sustainability in Singapore supported the government incentives, and consumer awareness is also promoting market growth.
In 2025, electric vehicles are the fastest growing segment by car type, accounting for % share by value, along with gasoline holding the major market segment due to wide availability, contributing to % share in the same year.
Among services, the chauffeur-driven segment is the fastest-growing service type due to an increase in corporate clients and premium travelers demanding time efficiency and convenience.
By mode of booking, the online booking segment constitutes the major segment that is largely driven by the increase in digitalization in the country, along with the rise in adoption of mobile apps.
The airport rental category segment of the market is the dominant segment in the rental categories due to high inbound tourism.
Based on Contract type, long-term rental is the fastest growing segment driven by the corporates seeking cost-effective alternatives for mobility.
The leisure/ activity trips are the major application segment due to tourism, which is a major factor for rental demand in Singapore.
The????? growing Certification of Entitlement (COE) prices, combined with the overall high cost of private vehicle ownership, remain major factors driving the rise in users towards car rental services for both individual and corporate mobility across Singapore.
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.
According to the recent data published by the Automobile Association of Singapore (AAS), the COE price is witnessing a consistent rise. For Cat A (Car up to 1600cc & up to 97KW), the price was $106,501 in February 2026 to $111,890 in March 2026, and for Cat B (Car above 1600cc or above 97KW), the price was $105,001 in February 2026 to $115,568 in March 2026.
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.
According to the Key Motor data of 2025, it estimated the mid-range car ownership over 10 years in Singapore, which includes COE + Taxes + Upfront Fee, which is S$120,000 – 150,000, while maintenance and fuel/charging, which are around S$10,000 – 15,000 and S$30,000 – 40,000, respectively. Besides, parking + ERP cost is S$25,000 – 35,000.
Hiking????? the cost of owning a vehicle is one of the factors that is promoting the rental services as a mobility option among the country's consumers, especially in urban regions.
By Mode of booking, the Singaporean car rental market is segmented into online and offline, where the online mode accounts for 74.0% share in the market, fueled by growing internet penetration and smartphone adoption. The offline segment accounts for 26.0% share of the market.
Ongoing investment to digitize the economy has played an integral role in adopting digital platforms for car rental booking in Singapore.
The escalation in travel frequency has increased the preference for the most convenient mode of car rental booking in the country.
Rapid expansion of 5G network infrastructure has propelled the online trend in Singapore, with mobile subscriptions, including post-paid & pre-paid, reaching 2.98 million according to the August 2025 data from Infocomm Media Development Authority (IMDA).
Well-established presence of key market players, namely GetGo Technologies Pte. Ltd, which operates a fleet of more than 3,000 vehicles covering nearly 1,700 locations across Singapore, has further driven consumers’ preferences.
Ongoing efforts to rebound the travel & tourism sector have played an integral role in driving the online mode of booking for car renting in Singapore with OTAs (Online Travel Agencies), namely Traveloka, which has formed tie-ups with major players like Hertz and Avis Budget
High private vehicle ownership costs have further shifted the preference to short-term and long-term car rental in Singapore, with online platforms providing the most convenient mode of booking.
Domestic players like Grab, which are investing in E-ride hailing and offering rental EVs via its apps, are also set to transform the overall market landscape with online booking mode growth showcasing a considerable upward trajectory.
Based on rental category, the Singaporean car rental market is segmented into local transport, airport transport, and outstation transport, where the airport transport segment is projected to grow consistently, owing to improved tourism activities.
Growing corporate and business travel has propelled the demand for flexible mobility in Singapore, with car rental providing an effective mobility platform.
Changing preferences from public transport to rental vehicles for specific outing needs has further amplified market growth.
The airport transport segment is projected to show considerable growth owing to the progression in domestic and international travel in Singapore.
Strategic efforts outlining investments in major tourist attractions have positively impacted IVA (International Visitor Arrivals) in Singapore, thereby simultaneously boosting tourism receipts (TR), with spending on accommodation witnessing 4.8% growth in 1H 2025.
Market players, namely Sixt SE, Avis Group, and Hertz, offer extensive car rental services ranging from economy to SUVs at major airports like Changi Airport, which has provided new growth prospects.
With the number of international travelers progressing, the demand for convenient commuting options is anticipated to grow in Singapore, thereby driving the market expansion in the airport segment. According to the Singapore Tourism Board (STB), total international visitor arrivals reached 16.9 million in 2025, showing a 2.3% growth over 2024 IVAs.
Expansion of airport routes to improve flight frequency has amplified airport geographic spread in Singapore, which has offered new opportunities for rented transportation usage to travel to various locations. Efforts to improve the MICR tourism industry are also acting as an additional driving factor
P2P (Point-To-Point) regulatory framework undertaken by Land Transport Authority (LTA), followed by a new franchise partnership undertaken by major firms like Hertz to provide short-term self-driven and premium chauffeur-driven rental mobility options for leisure and business travelers, is set to transform the overall market scope.
| Report Metric | Details |
|---|---|
| Total Market Size in 2026 | USD 2.2 billion |
| Total Market Size in 2031 | USD 2.9 billion |
| Forecast Unit | Billion |
| Growth Rate | 5.7% |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Car Type, Service, Contract Type, Rental Category |
| Companies |
|
Hertz Corporation
Sixt SE
Asia Express Car Rental Pte. Ltd.
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.
Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., was established in 1918 and has a global presence, operating Hertz, Dollar, and Thrifty vehicle rental brands throughout Europe, North America, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand.
The company is known for its diverse range of vehicles, gaining customer loyalty through its commitment to customer service, competitive pricing, and extensive rental network. Hertz operates over 8,100 car rental locations in more than 150 countries, including Singapore, covering each state, territory, major airport, and town, ensuring a Hertz location is available for all car hire needs.