Car Rentals - Armenia

Armenia

Highlights

It is projected that in Armenia, the revenue in the Car Rentals market will reach US$18.91m by 2024.
The market is expected to exhibit an annual growth rate of 8.57% (CAGR 2024-2029), resulting in a projected market volume of US$28.52m by 2029.
By 2029, the number of users in this market is expected to amount to 211.90k users.
The user penetration rate is projected to be 5.7% in 2024 and 7.7% by 2029.
Furthermore, the average revenue per user (ARPU) is estimated to be US$118.50.
It is also predicted that 67% of the total revenue in this market will be generated through online sales by 2029.
It is worth mentioning that in the Car Rentals market, United States is expected to generate the highest revenue of US$32bn in 2024 when compared globally.
Armenia's car rental market is experiencing growth due to an increase in tourism and the country's expanding economy.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Armenia has been experiencing steady growth in recent years, driven by a combination of factors such as increasing tourism, growing urbanization, and rising disposable incomes.

Customer preferences: Customers in Armenia are increasingly opting for car rentals as a convenient and flexible mode of transportation. This preference is driven by the desire for independence and the ability to explore the country at their own pace. Additionally, tourists visiting Armenia are also choosing car rentals to explore the scenic landscapes and historical sites that the country has to offer.

Trends in the market: One of the key trends in the car rentals market in Armenia is the growing popularity of online booking platforms. Customers are increasingly using online platforms to compare prices, check availability, and make reservations, providing them with greater convenience and flexibility. This trend is also beneficial for car rental companies as it allows them to reach a wider customer base and streamline their operations. Another trend in the market is the increasing demand for eco-friendly and fuel-efficient rental cars. With growing awareness about environmental sustainability, customers are seeking out rental options that have lower carbon emissions and are more fuel-efficient. Car rental companies in Armenia are responding to this trend by expanding their fleet of electric and hybrid vehicles, providing customers with more sustainable transportation options.

Local special circumstances: Armenia's unique geographical location and historical significance make it an attractive destination for tourists. The country is known for its rich cultural heritage, ancient monasteries, and stunning landscapes, including the picturesque Lake Sevan and the majestic Mount Ararat. These factors contribute to the increasing number of tourists visiting Armenia and subsequently driving the demand for car rentals. Furthermore, Armenia's improving infrastructure, including the expansion of road networks and the development of tourist-friendly routes, has made it easier for tourists to navigate and explore the country. This has further fueled the demand for car rentals as tourists seek to make the most of their visit.

Underlying macroeconomic factors: The growth of the car rentals market in Armenia is also supported by positive macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable incomes. This has enabled more individuals to afford car rentals and explore the country independently. Additionally, the government of Armenia has been actively promoting tourism as a key sector for economic development. This includes initiatives to attract foreign investment, improve infrastructure, and simplify visa processes. These efforts have contributed to the growth of the tourism industry, leading to an increase in the demand for car rentals. In conclusion, the car rentals market in Armenia is experiencing growth due to customer preferences for convenience and flexibility, the increasing popularity of online booking platforms, the demand for eco-friendly vehicles, and the country's unique tourism offerings. These factors, combined with positive macroeconomic factors, are driving the development of the car rentals market in Armenia.

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.