Car Rentals - Iran

Iran

Highlights

Iran's Car Rentals market is expected to see a significant growth in revenue, with a projected amount of US$385.60m in 2024.
The market is anticipated to expand at an annual growth rate of 14.73% between 2024 and 2029, resulting in a market volume of US$766.50m by 2029.
The number of users in this market is expected to increase to 7.46m users by 2029, with a user penetration rate of 5.2% in 2024 and 8.1% by 2029.
The average revenue per user (ARPU) is expected to be US$82.29.
Online sales are projected to generate 66% of total revenue by 2029.
It is noteworthy that United States is expected to generate the highest revenue of US$32bn in 2024, in comparison to other countries worldwide.
Despite economic sanctions and a struggling tourism industry, local car rental companies in Iran are seeing an increase in demand from domestic customers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Iran is experiencing significant growth and development in recent years.

Customer preferences: One of the key reasons for the growth in the Car Rentals market in Iran is the increasing preference for convenience and flexibility among customers. With the rise of the sharing economy and the increasing popularity of ride-hailing services, customers are looking for more flexible transportation options. Renting a car provides customers with the freedom to travel at their own pace and schedule, without the need to rely on public transportation or the availability of taxis. This convenience factor has contributed to the growing demand for car rentals in Iran.

Trends in the market: Another trend in the Car Rentals market in Iran is the increasing demand from tourists and business travelers. Iran has seen a significant increase in tourism in recent years, with more and more international visitors coming to explore the country's rich history and cultural heritage. These tourists often prefer to rent a car to have the flexibility to explore different regions and attractions at their own pace. Similarly, business travelers visiting Iran for meetings and conferences also prefer the convenience of renting a car to navigate the city and attend their appointments.

Local special circumstances: Iran has a well-developed road infrastructure, which makes it easier for car rental companies to operate and meet the growing demand. Additionally, the relatively low cost of fuel in Iran compared to other countries in the region makes renting a car an affordable option for both locals and tourists. Furthermore, the availability of a wide range of car rental options, from economy cars to luxury vehicles, caters to the diverse needs and preferences of customers.

Underlying macroeconomic factors: The growth of the Car Rentals market in Iran can also be attributed to the country's improving economic conditions. Iran has witnessed an increase in disposable income and a growing middle class, which has led to higher consumer spending. As a result, more people are able to afford the cost of renting a car, contributing to the growth of the market. Additionally, the government's efforts to promote tourism and attract foreign investment have also had a positive impact on the Car Rentals market, as it has led to an increase in the number of tourists and business travelers visiting the country. In conclusion, the Car Rentals market in Iran is experiencing significant growth and development due to customer preferences for convenience and flexibility, the increasing demand from tourists and business travelers, the local special circumstances such as a well-developed road infrastructure and affordable fuel prices, and the underlying macroeconomic factors such as improving economic conditions and government initiatives to promote tourism and attract foreign investment.

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.