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Car-sharing - Kuwait

Kuwait

According to recent projections, the Car-sharing market in Kuwait is expected to witness a significant surge in revenue, with a projected figure of US$12.75m in 2024.
This is expected to be followed by a steady annual growth rate of 5.72% (CAGR 2024-2028), leading to an estimated market volume of US$15.93m by 2028.
As for the number of users in this market, it is expected to reach 91.20k users by 2028, with a projected user penetration rate of 1.7% in 2024 and 2.0% by 2028.
The average revenue per user (ARPU) is expected to be US$174.40 .
It is also projected that by 2028, 100% of total revenue in this market will be generated through online sales.
In terms of global comparison, United States is expected to generate the highest revenue in the Car-sharing market, with a projected figure of US$3,066m in 2024.
Car-sharing is gaining popularity in Kuwait as urbanization and traffic congestion increase.

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

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Analyst Opinion

The Car-sharing market in Kuwait has been experiencing significant growth in recent years. Customer preferences for more flexible and convenient transportation options, along with advancements in technology, have contributed to the rise of car-sharing services in the country.

Customer preferences: One of the key factors driving the growth of the car-sharing market in Kuwait is the changing preferences of customers. Many individuals are now seeking more flexible and cost-effective transportation solutions, especially in urban areas where traffic congestion and parking limitations are common. Car-sharing services offer a convenient alternative to traditional car ownership, allowing customers to access a vehicle when needed without the associated costs and responsibilities of ownership.

Trends in the market: The car-sharing market in Kuwait is witnessing several trends that are shaping its development. Firstly, there has been a shift towards electric and hybrid vehicles in car-sharing services. This trend is driven by increasing environmental awareness and government initiatives to promote sustainable transportation options. Electric and hybrid vehicles not only reduce carbon emissions but also offer lower operating costs, making them an attractive choice for car-sharing providers and customers alike. Another trend in the car-sharing market is the integration of mobile applications and digital platforms. These technologies enable customers to easily book and access vehicles, track their usage, and make payments. The convenience and accessibility provided by these platforms have significantly enhanced the user experience and contributed to the growth of car-sharing services in Kuwait.

Local special circumstances: Kuwait's car-sharing market is also influenced by unique local circumstances. The country has a high population density in urban areas, resulting in limited parking spaces and increased traffic congestion. This makes car-sharing services an appealing option for residents who want to avoid the challenges associated with owning a private vehicle. Additionally, Kuwait has a young and tech-savvy population, which is more open to adopting new transportation solutions and embracing digital platforms.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the growth of the car-sharing market in Kuwait. The country has a strong economy, driven by its oil reserves and government investments in infrastructure development. This has led to an increase in disposable income and a growing middle class, who are more likely to utilize car-sharing services as a cost-effective transportation option. Furthermore, the government of Kuwait has been supportive of initiatives that promote sustainable transportation and reduce traffic congestion. This includes providing incentives for electric and hybrid vehicles, as well as investing in the development of charging infrastructure. These factors create a favorable environment for the growth of the car-sharing market in Kuwait. In conclusion, the car-sharing market in Kuwait is experiencing significant growth due to changing customer preferences, technological advancements, and local circumstances. The adoption of electric and hybrid vehicles, integration of mobile applications, and the convenience offered by car-sharing services have contributed to their popularity. Additionally, Kuwait's population density, young demographic, and strong economy have created a conducive environment for the development of the car-sharing market.

Methodology

Data coverage:

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