Car Rentals - Iraq

Iraq

Highlights

The projected revenue for Iraq's Car Rentals market is expected to reach US$523.60m by 2024.
Furthermore, it is anticipated to show an annual growth rate of 3.74% (CAGR 2024-2029), ultimately resulting in a projected market volume of US$629.20m by 2029.
The number of users in this market is expected to reach 5.06m users by 2029.
User penetration is estimated to be 7.9% in 2024 and is expected to increase to 9.8% by 2029.
The average revenue per user (ARPU) is projected to be US$141.60.
By 2029, 79% of the total revenue in the Car Rentals market will be generated through online sales.
It's worth noting that United States is expected to generate the most revenue in this market globally, with revenue estimated at US$32bn in 2024.
Despite security concerns and infrastructure challenges, the car rental market in Iraq has seen steady growth due to increasing demand from business and government travelers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Iraq is experiencing significant growth and development due to several factors. Customer preferences have shifted towards the convenience and flexibility of renting a car, while local special circumstances and underlying macroeconomic factors have also contributed to the market's expansion.

Customer preferences: Customers in Iraq have increasingly shown a preference for renting cars instead of purchasing them. This shift can be attributed to several factors. Firstly, renting a car provides customers with the flexibility to choose different models and types of vehicles based on their specific needs. This is particularly important for individuals who require a car for a short period of time or for those who prefer not to commit to the long-term financial obligations of owning a car. Additionally, renting a car eliminates the need for customers to worry about maintenance, insurance, and depreciation costs, making it a more cost-effective option for many.

Trends in the market: The Car Rentals market in Iraq is witnessing a surge in demand, driven by both domestic and international travelers. Domestic travelers are increasingly opting for car rentals as a convenient mode of transportation for their vacations or business trips. Additionally, the influx of international tourists has also contributed to the growth of the market. Tourists visiting Iraq often prefer the convenience and freedom of renting a car to explore the country at their own pace.

Local special circumstances: Iraq's infrastructure and transportation system are still in the process of being rebuilt and developed after years of conflict and instability. This has created a demand for alternative modes of transportation, such as car rentals, to fill the gaps in the existing transportation network. Additionally, the country's vast and diverse landscapes, including historical sites, natural attractions, and urban centers, make car rentals an attractive option for both locals and tourists who wish to explore the country.

Underlying macroeconomic factors: The Car Rentals market in Iraq is also influenced by underlying macroeconomic factors. The country's improving economic conditions, including rising disposable incomes and increasing urbanization, have contributed to the growth of the market. As more individuals and families have access to disposable income, they are more likely to spend on travel and leisure activities, including renting cars for their transportation needs. Furthermore, the growing urbanization in Iraq has led to increased mobility and a higher demand for convenient transportation options, such as car rentals. In conclusion, the Car Rentals market in Iraq is experiencing significant growth and development due to customer preferences for convenience and flexibility, local special circumstances, and underlying macroeconomic factors. As the country continues to rebuild its infrastructure and improve its economic conditions, the market is expected to further expand in the coming years.

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.