Car Rentals - Israel

Israel

Highlights

The Car Rentals market in Israel is set to achieve a revenue of US$296.40m in 2024.
It is expected to grow annually at a rate of 10.22% between 2024 and 2029, resulting in a market volume of US$482.20m by 2029.
The number of users in this market is expected to reach 1.30m users by 2029, with a user penetration rate of 8.4% in 2024 and 13.0% by 2029.
Additionally, average revenue per user (ARPU) is projected to be US$380.60.
In the Car Rentals market, online sales are expected to generate 82% of total revenue by 2029.
Comparatively, United States will generate the most revenue globally, with US$32bn in 2024.
Israel's car rental market has seen increased demand from tourists due to the country's rich historical and religious sites.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Israel has been experiencing steady growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Israel have played a significant role in shaping the Car Rentals market. With a growing number of tourists visiting the country, there is a high demand for rental cars to explore the diverse landscapes and historical sites. Additionally, many locals prefer to rent cars for special occasions or when traveling to remote areas that are not easily accessible by public transportation. The convenience and flexibility offered by car rentals have made them a popular choice among both tourists and locals. Trends in the market have also contributed to its development. One notable trend is the rise of online car rental platforms, which have made it easier for customers to compare prices, book vehicles, and access additional services. This shift towards digital platforms has increased market transparency and competition, leading to more competitive pricing and improved customer experience. Another trend is the growing popularity of eco-friendly car rentals, with an increasing number of companies offering electric and hybrid vehicles to cater to environmentally conscious customers. Local special circumstances further influence the Car Rentals market in Israel. The country's small size and well-developed road infrastructure make it convenient for travelers to rent cars and explore different regions. Additionally, the security situation in the country has improved in recent years, attracting more tourists and boosting the demand for car rentals. The unique cultural and historical attractions in Israel also contribute to the market's growth, as visitors often prefer to have the freedom to explore these sites at their own pace. Underlying macroeconomic factors also play a role in the development of the Car Rentals market in Israel. The country's strong economy and stable political environment have created a favorable business climate, attracting both domestic and international car rental companies to establish a presence in the market. Furthermore, the government has implemented policies to promote tourism, such as visa waivers for certain nationalities and investment in infrastructure, which have further stimulated the demand for car rentals. In conclusion, the Car Rentals market in Israel is developing due to customer preferences for convenience and flexibility, market trends such as online platforms and eco-friendly options, local special circumstances including the country's small size and cultural attractions, and underlying macroeconomic factors such as a strong economy and government support for tourism. These factors are expected to continue driving the growth of the market 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.