The Singapore Car Rental Market is projected to expand from USD 2.2 billion in 2026 to USD 2.9 billion by 2031, demonstrating a Compound Annual Growth Rate (CAGR) of 5.3%.
The Singaporean car rental market demonstrates robust structural growth, driven primarily by the escalating costs of private vehicle ownership, a resurgent tourism sector, and the increasing formalization of long-term leasing and subscription models across consumer and corporate segments. Elevated Certificate of Entitlement (COE) prices critically shift demand from traditional ownership to usage-based mobility solutions.
This environment allows rental operators to attract a broader customer base seeking flexibility, predictable monthly costs, and reduced capital outlay. Concurrently, Singapore’s tourism recovery, bolstered by strong regional travel and excellent connectivity, generates significant short-term rental demand from both business and leisure travelers requiring convenient point-to-point mobility.
The structure of the Singaporean car rental market is evolving significantly due to the rising costs associated with vehicle ownership. Increases in Certificate of Entitlement (COE) prices compel both consumers and enterprises to favor rental, leasing, and subscription-based mobility models.
Market demand is increasingly shaped by two distinct segments. Short-term rentals cater to tourism and immediate domestic mobility needs, while long-term leasing is rapidly expanding, favored by residents and corporate fleets seeking predictable expenses, minimal maintenance, and relief from the capital burden of ownership. This landscape is further transformed by digital advancements.
Technology-enabled platforms offer real-time availability, dynamic pricing, seamless app-based bookings, and integrated telematics. These innovations collectively enhance fleet utilization and optimize the customer experience.
The Singaporean government actively influences the car rental market through targeted mobility and electrification strategies. These initiatives aim to reduce emissions, broaden charging infrastructure access, and promote fleet renewal.
Key offerings include the EV Early Adoption Incentive (EEAI), which lowers initial EV purchase costs, and the Vehicular Emissions Scheme (VES), providing rebates for cleaner vehicles. These programs indirectly support rental and leasing companies in transitioning their fleets to electric models. Furthermore, infrastructure development is bolstered by grants such as the EV Common Charger Grant (ECCG) and the Electric Heavy Vehicle Charger Grant (EHVCG), which fund charging station installations in residential and commercial areas, thereby facilitating customer access to rental services.
Regulatory measures, including the EV Charging Act (EVCA), stabilize the business environment by standardizing charger safety and installation practices. These concerted efforts align with the Singapore Green Plan 2030, enabling the car rental industry to expand its electrified, digitally managed, and environmentally conscious fleet.
As of October 2025, the motor vehicle population by type was as follows: cars, 566,527; private hire cars, 94,077; taxis, 12,216; buses, 18,807; goods & other vehicles, 166,950; and motorcycles, 151,234.
The car rental ecosystem in Singapore comprises a blend of global industry leaders and robust local operators. International brands such as Hertz Corporation, Sixt SE, Avis Budget Group, and Europcar stabilize the market with established fleets, premium services, and high visibility at key transport hubs.
Local and regional entities (e.g., Asia Express Car Rental Singapore, Reach Group, Siang Hock Holding) alongside platform-based mobility services (e.g., GetGo Technologies, Tribecar) attract customers through competitive pricing, subscription models, and extensive car-sharing networks. Aggregators like Skyscanner Ltd also play a vital role, directing online traffic and enhancing price transparency across operators. This diverse market structure offers a comprehensive range of options for short-term rentals, long-term leasing, and shared mobility solutions.
The Singapore car rental market is evolving into a more diversified, technology-centric, and environmentally sustainable mobility ecosystem. Long-term leasing and premium service models are emerging as the principal growth drivers for the future.
Escalating COE Prices and High Vehicle Ownership Costs
The persistent increase in Certificate of Entitlement (COE) prices, coupled with the inherent high costs of private vehicle ownership, profoundly influences individual and corporate mobility choices within Singapore. The COE system, designed to manage the vehicle population, has driven premiums to levels that often render private car ownership economically unfeasible for a significant segment of the populace.
Beyond the COE, prospective buyers face substantial financial commitments including the vehicle's base price, registration fees, taxes, insurance, maintenance, fuel, and depreciation. These combined elements impose a considerable long-term financial burden.
In October 2025, COE prices were recorded as follows: Cat E (Open-All Except Motorcycle), $136,000; Cat C (Goods Vehicle & Bus), $76,801; Cat D Motorcycle, $9,389; Cat A (Car up to 1600cc & up to 97KW (130bhp)), $122,000; and Cat B (Car above 1600cc or above 97KW (130bhp)), $131,889.
The elevated cost of vehicle ownership incentivizes rental operators to undertake more frequent fleet renewals, ensuring customers consistently access newer and well-maintained vehicles. Consequently, rental services present a compelling and economically rational alternative for urban mobility in Singapore.
This substantial barrier to private car ownership sustains robust demand for the car rental ecosystem, positioning it as a structurally resilient solution in a city characterized by stringent regulations and high vehicle-related expenditures.
By Mode of Booking: Online
The Singaporean car rental market is segmented by mode of booking into online and offline channels. Digital transformation, supported by strategic investments in infrastructural development, facilitates the widespread adoption of digital tools and applications that streamline daily processes. The increasing volume of domestic and international travel has intensified demand for convenient airport and outstation transport, prompting a consumer shift towards online booking platforms.
Internet penetration in Singapore continues to advance, propelled by a rising demand for high-speed internet, the establishment of 5G broadband, and increased mobile subscriptions. Data from the Infocomm Media Development Authority (IMDA) indicates that in August 2024, total mobile 5G subscriptions reached 2,150,900, marking a 3.6% month-over-month growth. During the same period, total wireless broadband subscriptions stood at 11,013,400.
The Next Generation Nationwide Broadband Network (NGNBN) provides high-speed internet access nationwide, further expanding Singapore's internet user base. This digital evolution, coupled with the growing urban population's demand for advanced technological services, creates significant growth opportunities for online car rental platforms.
The robust presence of Online Travel Agencies (OTAs), such as Traveloka, which form strategic partnerships with prominent car rental suppliers (e.g., Hertz and Avis Budget), further contributes to the expansion of the online booking segment.
By Rental Category: Airport Transport
The Singaporean car rental market is categorized into local transport, airport transport, and outstation transport. A rise in airport visits, encompassing both domestic and international travel, has escalated the need for convenient and efficient transportation services. Car rental providers address this dynamic demand through extensive product offerings, including premium cars, SUVs, and economy options, thereby expanding their utility at airport locations.
Singapore's tourism sector continues to demonstrate consistent growth, fueled by increasing international tourist arrivals. According to the Singapore Tourism Board, international tourist arrivals reached 1,680,770 in July 2025, a significant 22.3% increase over May 2025. Tourism receipts for Sightseeing, Entertainment, and Gaming (SEG), covering expenses for day-tours, leisure events, and entertainment, amounted to S$3,496 million.
Ongoing efforts to expand airport routes and increase flight frequency at major hubs like Changi Airport contribute to a broader geographic dispersion of arrivals. As passengers arrive at various terminals, the demand for onward transportation throughout the city becomes more diversified. Car rental services are thus a preferred option for travelers prioritizing comfort, direct transport, and personalized travel itineraries.
Major market players such as Hertz Corporation maintain a strong presence in Singapore, providing airport transport services with flexible pricing based on rental duration. For instance, a standard compact Honda is offered at S$106.42 per day, while economy cars like the Hyundai Accent (or similar models) are available at S$108.25 per day.
| 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 | 5.3% |
| 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 |
|
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