Car Rentals - Malaysia

Malaysia

Highlights

Malaysia is expected to witness a significant growth in the Car Rentals market.
By 2024, the projected revenue is estimated to reach US$771.20m.
This revenue is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 1.71%, resulting in a projected market volume of US$839.30m by 2029.
Moreover, the number of users in the Car Rentals market is expected to reach 5.70m users by 2029, with a projected user penetration of 15.7%.
The average revenue per user (ARPU) is expected to be US$176.10.
It is projected that 73% of the total revenue in the Car Rentals market will be generated through online sales by 2029.
It is noteworthy that in global comparison, United States is expected to generate the highest revenue (US$32bn in 2024).
Malaysia's car rental market is witnessing a shift towards eco-friendly vehicles, with companies like Europcar offering hybrid and electric cars for rent.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Malaysia have shown a growing preference for car rentals as a convenient and cost-effective mode of transportation. This trend can be attributed to several factors. Firstly, the increasing urbanization and population density in major cities have led to congestion and limited parking spaces, making car ownership less desirable. Secondly, the rise of ride-hailing services has made it more convenient for individuals to rely on rental cars for specific trips or occasions. Lastly, the flexibility and freedom offered by car rentals appeal to tourists and travelers who want to explore the country at their own pace.

Trends in the market: One of the key trends in the car rentals market in Malaysia is the emergence of online platforms and mobile applications that facilitate easy booking and payment processes. These platforms have made it more convenient for customers to compare prices, choose from a wide range of vehicle options, and make reservations in real-time. Additionally, car rental companies are increasingly offering value-added services such as GPS navigation systems, Wi-Fi connectivity, and child safety seats to attract customers. Another trend in the market is the growing demand for eco-friendly and fuel-efficient vehicles. As environmental awareness increases, customers are seeking out car rental companies that offer hybrid or electric vehicles. This trend is driven by both environmental concerns and cost savings on fuel expenses.

Local special circumstances: Malaysia's strong tourism industry is a significant factor contributing to the growth of the car rentals market. The country attracts a large number of international tourists who prefer to explore the diverse attractions and landscapes at their own pace. Additionally, domestic tourism is also on the rise, with Malaysians increasingly opting for road trips and weekend getaways. These factors have created a favorable environment for the car rentals market to thrive.

Underlying macroeconomic factors: The steady economic growth in Malaysia has had a positive impact on the car rentals market. As disposable incomes rise, more individuals are able to afford the convenience and flexibility of renting a car. Furthermore, the government's efforts to improve infrastructure, including the development of highways and expressways, have made road travel more accessible and convenient, further driving the demand for car rentals. In conclusion, the Car Rentals market in Malaysia is experiencing growth and development due to customer preferences for convenience and cost-effectiveness, the emergence of online platforms, the demand for eco-friendly vehicles, a strong tourism industry, and favorable macroeconomic factors.

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.