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Car Rentals - Portugal

Portugal

It is anticipated that the Car Rentals market in Portugal will experience an increase in revenue, with projections indicating revenue to reach €236.00m by 2024.
It is further expected that the market will grow at an annual rate of 3.11% between 2024 and 2029, resulting in a projected market volume of €275.10m in 2029.
The number of users in the Car Rentals market is also expected to increase, with projections indicating a total of 1.16m users users by 2029.
The expected user penetration rate is projected to be 10.1% in 2024 and 11.5% by 2029.
The average revenue per user (ARPU) is expected to be €229.30.
In Portugal's Car Rentals market, online sales are projected to account for 55% of total revenue by 2029.
When compared globally, United States is expected to generate the highest revenue in this market, with projections indicating revenue of €29,240m in 2024.
Portugal's car rental market is experiencing a surge in demand from tourists seeking to explore the country's scenic coastal roads and historic landmarks.

Key regions: United States, Saudi Arabia, Thailand, South America, Malaysia

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Analyst Opinion

The Car Rentals market in Portugal has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the key customer preferences driving the growth of the Car Rentals market in Portugal is the increasing demand for flexible transportation options. Many consumers prefer renting a car for short periods rather than owning one, as it provides them with the flexibility to choose different types of vehicles based on their specific needs. Additionally, renting a car allows customers to avoid the costs and responsibilities associated with car ownership, such as maintenance, insurance, and parking.

Trends in the market: A major trend in the Car Rentals market in Portugal is the rise of online booking platforms and mobile applications. These platforms have made it easier for customers to compare prices, book cars, and manage their rentals. The convenience and transparency offered by these platforms have significantly contributed to the growth of the market, as they provide customers with a seamless and efficient renting experience. Another trend in the market is the increasing popularity of eco-friendly and electric vehicles. With growing concerns about environmental sustainability, many customers are opting for car rental companies that offer electric or hybrid vehicles. This trend is driven by both customer preferences for environmentally-friendly transportation options and government initiatives to promote the adoption of electric vehicles.

Local special circumstances: Portugal's tourism industry plays a crucial role in the growth of the Car Rentals market. The country is known for its beautiful landscapes, historical sites, and vibrant cities, attracting a large number of domestic and international tourists. As a result, there is a high demand for rental cars among tourists who want to explore the country at their own pace. Additionally, Portugal's well-developed road infrastructure and efficient transportation system make it an ideal destination for car rentals.

Underlying macroeconomic factors: The growth of the Car Rentals market in Portugal is also influenced by underlying macroeconomic factors. Portugal has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This has resulted in higher spending on leisure activities, including car rentals. Furthermore, the country's stable political environment and favorable business climate have attracted international car rental companies, contributing to the overall growth of the market. In conclusion, the Car Rentals market in Portugal is witnessing significant growth due to customer preferences for flexible transportation options, the rise of online booking platforms, the increasing popularity of eco-friendly vehicles, the country's thriving tourism industry, and favorable macroeconomic factors. These factors are expected to continue driving the growth of the market in the coming years.

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.