Car Rentals - Ethiopia

Ethiopia

Highlights

The projected revenue for the Car Rentals market in Ethiopia is expected to hit US$238.70m by 2024.
It is further projected to experience an annual growth rate (CAGR 2024-2029) of 10.94%.
This will result in a projected market volume of US$401.20m by 2029.
The number of users in this market is expected to reach 12.22m users by 2029.
In 2024, the user penetration is projected to be 5.3%, while in 2029, it is projected to increase to 8.4%.
The average revenue per user (ARPU) is expected to be US$34.87.
It is projected that 54% of total revenue in the Car Rentals market will be generated through online sales by 2029.
When compared globally, United States is expected to generate the most revenue with US$32bn in 2024.
Car rental services in Ethiopia are in high demand due to the country's growing tourism industry and lack of reliable public transportation options.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Ethiopia is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in Ethiopia are increasingly opting for car rentals as a convenient and flexible mode of transportation. This preference is driven by factors such as the growing urban population, increasing disposable incomes, and improved road infrastructure. Additionally, tourists visiting Ethiopia also prefer renting cars to explore the country at their own pace.

Trends in the market: One of the major trends in the car rentals market in Ethiopia is the rise of online platforms and mobile applications that enable customers to easily book and rent cars. These platforms provide a wide range of options, allowing customers to choose the type of vehicle that suits their needs and preferences. Furthermore, car rental companies are increasingly offering additional services such as chauffeurs, GPS navigation systems, and roadside assistance to enhance the customer experience.

Local special circumstances: Ethiopia's tourism industry is growing rapidly, with a significant increase in the number of international tourists visiting the country. This has created a demand for car rentals, as tourists prefer the convenience and flexibility of exploring the country on their own. Additionally, the government's efforts to improve road infrastructure and promote tourism have further contributed to the growth of the car rentals market.

Underlying macroeconomic factors: Ethiopia's economy has been growing steadily in recent years, with a focus on infrastructure development and tourism. This has led to an increase in disposable incomes and a rise in domestic and international travel. As a result, the demand for car rentals has surged, providing opportunities for both local and international car rental companies to expand their operations in the country. In conclusion, the Car Rentals market in Ethiopia is witnessing significant growth and development due to factors such as increasing customer preferences for convenience and flexibility, the rise of online platforms, the growth of the tourism industry, and the country's improving macroeconomic conditions. These factors are driving the expansion of the car rentals market and creating opportunities for companies to cater to the growing demand.

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.