Car Rentals - Algeria

Algeria

Highlights

Algeria is projected to generate a revenue of US$202.60m in the Car Rentals market by 2024.
The revenue is expected to grow annually at a rate of 5.37%, resulting in a market volume projection of US$263.20m by 2029.
In terms of the number of users, the Car Rentals market is expected to witness an increase and amount to 5.42m users by 2029.
The user penetration rate is projected to be 8.4% in 2024, which is expected to increase to 11.0% by 2029.
The average revenue per user (ARPU) is expected to amount to US$52.19.
By 2029, 62% of the total revenue in the Car Rentals market will be generated through online sales.
In comparison to other countries, United States is projected to generate the highest revenue of US$32bn in the Car Rentals market by 2024.
Car rental companies in Algeria are focusing on offering affordable prices and expanding their fleets to meet the increasing demand from both domestic and international travelers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Algeria has been experiencing significant growth in recent years.

Customer preferences: Customers in Algeria are increasingly opting for car rentals instead of purchasing their own vehicles. This shift in preference can be attributed to several factors. Firstly, renting a car provides more flexibility and convenience, especially for short-term use or for tourists visiting the country. Additionally, the cost of owning a car, including maintenance, insurance, and fuel expenses, can be quite high, making car rentals a more affordable option for many Algerians.

Trends in the market: One of the key trends in the car rentals market in Algeria is the increasing popularity of online booking platforms. Algerians are becoming more comfortable with online transactions and are utilizing these platforms to compare prices, check availability, and make reservations. This trend has not only made the booking process more convenient for customers but has also increased competition among car rental companies, leading to more competitive pricing and better service offerings. Another trend in the market is the growing demand for eco-friendly vehicles. As environmental consciousness increases globally, Algerian customers are also showing a preference for car rental companies that offer electric or hybrid vehicles. This trend is driven by both environmental concerns and the desire to reduce fuel expenses.

Local special circumstances: Algeria is a country with diverse landscapes, ranging from the Sahara Desert to the Mediterranean coastline. This geographical diversity attracts a large number of tourists who want to explore the country's natural beauty. Car rentals provide these tourists with the flexibility to travel at their own pace and explore remote areas that may not be easily accessible by public transportation. Additionally, the presence of major cities like Algiers and Oran also contributes to the demand for car rentals as locals and tourists alike require transportation within these urban areas.

Underlying macroeconomic factors: The growth of the car rentals market in Algeria can be attributed to several macroeconomic factors. Firstly, the country has witnessed an increase in disposable income, allowing more Algerians to afford car rentals. Additionally, the tourism industry in Algeria has been growing steadily, attracting both domestic and international visitors who require transportation during their stay. The government's efforts to promote tourism and improve infrastructure have also contributed to the growth of the car rentals market. In conclusion, the car rentals market in Algeria is experiencing significant growth due to changing customer preferences, increasing online bookings, and the demand for eco-friendly vehicles. The country's diverse landscapes and growing tourism industry further contribute to the demand for car rentals. The underlying macroeconomic factors, such as rising disposable income and government initiatives, have also played a role in the market's development.

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.