Car Rentals - Egypt

Egypt

Highlights

Egypt is projected to witness a surge in revenue within the Car Rentals market, with a projected revenue of US$360.20m in 2024.
Furthermore, the revenue is expected to exhibit a CAGR of 10.10% between 2024 and 2029, leading to a projected market volume of US$582.70m by 2029.
The number of users in this market is expected to reach 12.41m users by 2029, with a projected user penetration of 6.5% in 2024, and 10.1% by 2029.
The average revenue per user (ARPU) is expected to be US$48.16.
Additionally, it is projected that 57% of the total revenue in the Car Rentals market will be generated through online sales by 2029.
Lastly, in the global comparison, United States is projected to generate the highest revenue of US$32bn in 2024 within the Car Rentals market.
Egypt's car rental market is growing due to an increase in tourism and a rise in demand for transportation services.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Egypt is experiencing significant growth due to several factors. Customer preferences are shifting towards convenience and flexibility, leading to an increased demand for car rental services. Additionally, local special circumstances and underlying macroeconomic factors are contributing to the expansion of the market.

Customer preferences: Customers in Egypt are increasingly valuing convenience and flexibility when it comes to transportation. Owning a car can be expensive and inconvenient in terms of maintenance, parking, and traffic congestion. As a result, many people are opting for car rental services as a more convenient and cost-effective alternative. This trend is particularly prominent among tourists and business travelers who prefer the flexibility of renting a car to explore the country or attend meetings.

Trends in the market: One of the key trends in the car rental market in Egypt is the rise of online platforms and mobile applications. Customers can easily book a car rental through these platforms, providing them with a seamless and hassle-free experience. This trend is driven by the increasing penetration of smartphones and internet connectivity in the country. Furthermore, car rental companies are expanding their fleets and offering a wide range of vehicle options to cater to different customer needs and preferences.

Local special circumstances: Egypt is a popular tourist destination, attracting millions of visitors each year. The country's rich history, cultural heritage, and natural attractions make it an ideal location for tourists. Many of these tourists prefer to explore the country at their own pace, which has led to a growing demand for car rentals. Additionally, Egypt has a large expatriate population, with many foreigners working and living in the country. These expatriates often rely on car rentals for their transportation needs.

Underlying macroeconomic factors: The car rental market in Egypt is also influenced by underlying macroeconomic factors. The country has been experiencing economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, more people can afford to rent cars for their personal or business needs. Furthermore, the government has been investing in infrastructure development, including road networks and airports, which has improved accessibility and connectivity across the country. These developments have contributed to the growth of the car rental market in Egypt. In conclusion, the Car Rentals market in Egypt is growing due to shifting customer preferences towards convenience and flexibility. The rise of online platforms and mobile applications has made it easier for customers to book car rentals. The country's status as a popular tourist destination and the presence of a large expatriate population also contribute to the market's expansion. Additionally, underlying macroeconomic factors such as economic growth and infrastructure development play a role in driving the growth of the car rental market in Egypt.

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.