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Car Rentals - Kuwait

Kuwait

The projected revenue for the Car Rentals market in Kuwait is expected to reach US$109.60m by the year 2024.
This is estimated to show an annual growth rate (CAGR 2024-2028) of 2.78%, resulting in a projected market volume of US$122.30m by 2028.
As for the number of users in this market, it is expected to amount to 517.50k users by 2028, with a projected user penetration of 10.4% in 2024 and 11.5% by 2028.
Additionally, the average revenue per user (ARPU) is estimated to be US$241.20.
It is also projected that 73% of the total revenue in this market will be generated through online sales by 2028.
When comparing the revenue generated in the Car Rentals market in Kuwait to other countries, United States is expected to generate the most revenue, with an estimated revenue of US$30,440m in 2024.
Car rentals in Kuwait have seen a surge in demand due to the increasing number of tourists and business visitors in the country.

Key regions: China, South America, Germany, United States, Malaysia

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Analyst Opinion

The Car Rentals market in Kuwait has been experiencing significant growth in recent years, driven by various factors such as increasing tourism, expanding business activities, and a growing population.

Customer preferences: In Kuwait, there is a strong preference for renting cars due to the convenience and flexibility it offers. Tourists visiting the country often choose to rent cars to explore the various attractions and landmarks at their own pace. Additionally, business travelers prefer renting cars for their transportation needs, as it allows them to easily navigate through the city and attend meetings and conferences.

Trends in the market: One of the major trends in the Car Rentals market in Kuwait is the increasing demand for luxury and high-end cars. With the rise in disposable income and the desire for a premium travel experience, customers are opting for luxury car rentals to enhance their travel experience. This trend is particularly prominent among tourists and high-net-worth individuals. Another trend in the market is the growing popularity of online car rental platforms. Customers in Kuwait are increasingly using online platforms to book car rentals, as it offers convenience, transparency, and competitive pricing. Online platforms also provide customers with a wide range of options in terms of car models, rental durations, and additional services.

Local special circumstances: Kuwait is known for its hot climate, and this has a direct impact on the Car Rentals market. During the summer months, there is a surge in demand for cars with air conditioning, as customers prioritize comfort and convenience. Car rental companies in Kuwait often cater to this demand by ensuring that their fleet consists of vehicles with efficient air conditioning systems.

Underlying macroeconomic factors: The growth of the Car Rentals market in Kuwait is also influenced by various macroeconomic factors. The country has been witnessing steady economic growth, which has resulted in an increase in disposable income and consumer spending. This has positively impacted the demand for car rentals, as more people are able to afford the cost of renting a car. Additionally, Kuwait has been investing heavily in its tourism sector, with the aim of attracting more international visitors. The government has implemented various initiatives and infrastructure development projects to enhance the tourism experience in the country. This has led to an increase in the number of tourists visiting Kuwait, thereby boosting the demand for car rentals. In conclusion, the Car Rentals market in Kuwait is experiencing significant growth due to increasing tourism, expanding business activities, and a growing population. Customer preferences for convenience and flexibility, along with the trends of luxury car rentals and online booking platforms, are shaping the market. Local special circumstances such as the hot climate also influence customer preferences. The underlying macroeconomic factors of steady economic growth and government investment in the tourism sector further contribute to the development of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car rental services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.