Car Rentals - NAFTA

NAFTA

Highlights

The Car Rentals market in NAFTA is expected to generate a revenue of US$35.77bn by the year 2024.
This is projected to grow annually at a rate of 3.75%, resulting in a market volume of US$43.00bn by 2029.
By this year, the number of users in this market is predicted to reach 74.76m users.
The user penetration rate is expected to increase from 12.6% in 2024 to 14.2% by 2029.
The Average Revenue Per User (ARPU) is estimated to be US$556.70.
Furthermore, online sales are expected to account for 82% of the total revenue by 2029.
It is noteworthy that United States is projected to generate the highest revenue in the Car Rentals market globally, with a total of US$32bn by 2024.
Car rental demand in NAFTA countries, such as the United States, Canada, and Mexico, is increasing due to the growing popularity of road trips and domestic travel.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in NAFTA is experiencing significant growth and development driven by various factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the overall expansion of the industry. Customer preferences in the Car Rentals market in NAFTA are shifting towards convenience and flexibility. Customers are increasingly looking for hassle-free transportation options that allow them to easily navigate different cities and regions. Car rentals provide the freedom to explore at one's own pace, making them a popular choice among tourists and business travelers alike. Additionally, customers are increasingly valuing the ability to book car rentals online, which offers convenience and ease of use. Trends in the Car Rentals market in NAFTA reflect the changing preferences of customers. One notable trend is the rise of ride-sharing services, which have disrupted the traditional car rental industry. These services offer a convenient and cost-effective alternative to car rentals, particularly for short distances or urban travel. However, despite the competition from ride-sharing services, car rentals continue to thrive due to their flexibility and availability in remote areas where ride-sharing services may be limited. Local special circumstances also play a role in the development of the Car Rentals market in NAFTA. In Mexico, for example, the tourism industry is a major driver of car rental demand. The country's popular tourist destinations, such as Cancun and Playa del Carmen, attract millions of visitors each year who often prefer to rent a car to explore the surrounding areas. In Canada, on the other hand, the car rental market is influenced by the vastness of the country and the need for transportation in remote areas with limited public transportation options. Underlying macroeconomic factors contribute to the growth of the Car Rentals market in NAFTA. Economic stability and growth in the region drive both domestic and international travel, increasing the demand for car rentals. Additionally, low interest rates and favorable financing options make it easier for car rental companies to expand their fleets and meet the growing demand. Furthermore, the increasing number of international tourists visiting NAFTA countries also boosts the demand for car rentals as they seek convenient and reliable transportation options. In conclusion, the Car Rentals market in NAFTA is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The industry is adapting to changing customer preferences for convenience and flexibility, while also facing competition from ride-sharing services. Local factors such as tourism and transportation needs in remote areas further contribute to the market's growth. Overall, the Car Rentals market in NAFTA is poised for continued expansion 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.