Car Rentals - Iceland

Iceland

Highlights

It is estimated that the Car Rentals market in Iceland will reach a revenue of US$12.79m by 2024.
Furthermore, the revenue is anticipated to display a Compound Annual Growth Rate (CAGR 2024-2029) of 3.82%, resulting in a projected market volume of US$15.43m by 2029.
In terms of user base, the Car Rentals market is expected to have 43.66k users users by 2029.
The user penetration rate is projected to be 9.6% in 2024 and 11.2% by 2029.
The average revenue per user (ARPU) is expected to be US$352.00.
Additionally, it is estimated that 89% of the total revenue in the Car Rentals market will be generated through online sales by 2029.
Finally, in comparison to other countries, United States is projected to generate the most revenue in the Car Rentals market, amounting to US$32bn in 2024.
Iceland's car rental market is thriving due to the country's unique landscapes and popular tourist destinations.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: One of the main reasons for this growth is the increasing number of tourists visiting Iceland. The country has become a popular destination for travelers from all over the world, attracted by its stunning natural landscapes and unique cultural experiences. Many of these tourists choose to rent a car in order to explore the country at their own pace and have the freedom to visit remote areas that are not easily accessible by public transportation. Additionally, Iceland's road infrastructure is well-developed, making it convenient for tourists to navigate the country by car.

Trends in the market: The Car Rentals market in Iceland has seen a trend towards online bookings and mobile applications. With the rise of digital technology, customers are increasingly turning to online platforms to search for and book their car rentals. This trend is driven by the convenience and ease of use offered by online platforms, as well as the ability to compare prices and read customer reviews. Mobile applications have also become popular, allowing customers to book and manage their car rentals on the go. Another trend in the Car Rentals market in Iceland is the increasing demand for environmentally-friendly vehicles. As sustainability becomes a more important consideration for travelers, car rental companies are offering electric and hybrid vehicles as an alternative to traditional petrol or diesel cars. This trend is driven by both customer demand and government initiatives to reduce carbon emissions.

Local special circumstances: Iceland's unique geography and climate present special circumstances for the Car Rentals market. The country's rugged terrain and unpredictable weather conditions require vehicles that are well-suited to these conditions. Car rental companies in Iceland often offer 4x4 vehicles and cars equipped with winter tires to ensure the safety and comfort of their customers. Additionally, the popularity of outdoor activities such as hiking and glacier exploration has led to an increased demand for specialized vehicles such as camper vans and off-road vehicles.

Underlying macroeconomic factors: The growth of the Car Rentals market in Iceland is also influenced by underlying macroeconomic factors. Iceland has experienced strong economic growth in recent years, leading to increased disposable income and higher levels of consumer spending. This has resulted in more people being able to afford to rent a car while visiting the country. Furthermore, the depreciation of the Icelandic krona has made Iceland a more affordable destination for international tourists, further driving the demand for car rentals. In conclusion, the Car Rentals market in Iceland is experiencing significant growth due to the increasing number of tourists visiting the country, the trend towards online bookings and mobile applications, the demand for environmentally-friendly vehicles, the unique geography and climate of Iceland, and the underlying macroeconomic factors such as strong economic growth and the depreciation of the Icelandic krona.

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.