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Car Rentals - United Arab Emirates

United Arab Emirates

The Car Rentals market in the United Arab Emirates is expected to generate a revenue of €163.50m in 2024.
The market is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 4.24%, which will result in a projected market volume of €201.20m by 2029.
The number of users is also expected to increase to 0.83m users by 2029.
The user penetration rate is projected to be 7.2% in 2024 and 8.3% by 2029.
The average revenue per user (ARPU) is expected to reach €236.10.
Additionally, 87% of the total revenue in the Car Rentals market is forecasted to be generated through online sales by 2029.
Lastly, it is worth noting that United States is expected to generate the most revenue (€29,240m in 2024) in the Car Rentals market globally.
Car rental companies in the United Arab Emirates are increasingly offering luxury and exotic vehicles to cater to the country's affluent clientele.

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

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Analyst Opinion

The Car Rentals market in United Arab Emirates is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trend. Customer preferences in the Car Rentals market in United Arab Emirates are shifting towards convenience and flexibility. With the rise of the sharing economy and the increasing popularity of ride-hailing services, customers are seeking more flexible transportation options. Car rentals provide the convenience of having a vehicle available on-demand, without the commitment of car ownership. Additionally, customers are increasingly looking for high-quality vehicles with the latest technology and amenities. Trends in the Car Rentals market in United Arab Emirates reflect the changing preferences of customers. Car rental companies are expanding their fleets to include a wider range of vehicles, including luxury and electric cars, to cater to the diverse needs of customers. They are also investing in technology to enhance the customer experience, such as mobile apps for booking and managing rentals, and GPS navigation systems in the vehicles. Furthermore, car rental companies are partnering with other transportation providers, such as airlines and hotels, to offer bundled services and loyalty programs. Local special circumstances in the United Arab Emirates contribute to the growth of the Car Rentals market. The country is a popular tourist destination, attracting millions of visitors each year. Tourists often prefer to rent a car to explore the country at their own pace. Additionally, the United Arab Emirates has a large expatriate population, many of whom prefer to rent a car for their daily commute or weekend getaways. The country's well-developed infrastructure and road network also make it conducive for car rentals. Underlying macroeconomic factors also play a role in the development of the Car Rentals market in United Arab Emirates. The country has a strong economy, driven by industries such as oil and gas, tourism, and finance. This has led to an increase in disposable income and consumer spending, enabling more people to afford car rentals. Furthermore, the government's initiatives to diversify the economy and promote tourism have attracted foreign investment and boosted the tourism industry, further driving the demand for car rentals. In conclusion, the Car Rentals market in United Arab Emirates is growing and evolving to meet the changing preferences of customers. Convenience, flexibility, and high-quality vehicles are driving customer preferences, while trends in the market include the expansion of vehicle fleets and the use of technology to enhance the customer experience. Local special circumstances, such as the country's popularity as a tourist destination and the presence of a large expatriate population, contribute to the growth of the market. Additionally, underlying macroeconomic factors, such as a strong economy and government initiatives, support the development of the Car Rentals market in United Arab Emirates.

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.