Car Rentals - Canada

Canada

Highlights

Canada is expected to witness significant growth in the Car Rentals market with a projected revenue of US$2.23bn in 2024.
The market is anticipated to expand at a Compound Annual Growth Rate (CAGR) of 1.72% from 2024 to 2029 which will result in a market volume of US$2.42bn by 2029.
The number of users is expected to increase to 5.08m users by 2029 with a user penetration rate of 11.6% in both 2024 and 2029.
The Average Revenue Per User (ARPU) is forecasted to be US$492.10.
Furthermore, 88% of the total revenue in the Car Rentals market is projected to be generated through online sales by 2029.
It is noteworthy that United States will generate the highest revenue globally in the Car Rentals market with an estimated revenue of US$32bn in 2024.
Canada's car rental market has seen a shift towards eco-friendly options, with hybrid and electric vehicles gaining popularity among consumers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Canada has been experiencing steady growth in recent years.

Customer preferences: Customers in Canada have shown a growing preference for car rentals due to the convenience and flexibility they offer. Renting a car allows customers to have access to a vehicle without the burden of ownership, maintenance, and insurance costs. This is particularly appealing to millennials and younger generations who prioritize experiences over ownership. Additionally, tourists visiting Canada often opt for car rentals to explore the country's vast and diverse landscapes.

Trends in the market: One of the key trends in the car rentals market in Canada is the increasing popularity of online booking platforms. Customers can easily compare prices, vehicle options, and book their rentals in advance, saving time and ensuring availability. This trend has been further accelerated by the COVID-19 pandemic, as customers prefer contactless transactions and online reservations. Car rental companies have responded to this trend by investing in user-friendly websites and mobile applications to enhance the booking experience. Another trend in the market is the growing demand for eco-friendly and electric vehicles. As sustainability becomes a more important consideration for customers, car rental companies in Canada are expanding their fleets to include electric and hybrid vehicles. This not only aligns with customer preferences but also contributes to the country's efforts to reduce carbon emissions and promote clean transportation.

Local special circumstances: Canada's vast size and diverse geography contribute to the unique circumstances in the car rentals market. The country's expansive road network and numerous natural attractions make car rentals an attractive option for both domestic and international travelers. From exploring the Rocky Mountains in Alberta to driving along the Cabot Trail in Nova Scotia, having a rental car provides the freedom to explore Canada's natural wonders at one's own pace.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the car rentals market in Canada. The country's stable economic growth and rising disposable incomes have increased the affordability of car rentals for many Canadians. Additionally, the growth of the tourism industry in Canada has driven the demand for car rentals, as visitors from around the world seek to explore the country's diverse landscapes and attractions. In conclusion, the Car Rentals market in Canada is experiencing steady growth driven by customer preferences for convenience and flexibility, the increasing popularity of online booking platforms, the demand for eco-friendly vehicles, and the unique circumstances of Canada's geography. These factors, along with the country's stable economic growth and thriving tourism industry, have contributed to the positive development of the car rentals market in Canada.

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.