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Car Rentals - Oman

Oman

By 2024, the Car Rentals market in Oman is expected to generate a revenue of US$79.05m.
Furthermore, an annual growth rate (CAGR 2024-2029) of 4.47% is projected, leading to an estimated market volume of US$98.36m by 2029.
The number of users is expected to reach 588.70k users in the same year.
In 2024, user penetration is anticipated to be 10.0%, which is projected to increase to 11.7% by 2029.
The average revenue per user (ARPU) is expected to be US$167.20.
Additionally, 71% of the total revenue in the Car Rentals market is expected to come from online sales by 2029.
It is noteworthy that in terms of global comparison, United States is projected to generate the largest revenue (US$31,540m in 2024).
Oman's car rental market is witnessing a surge in demand, driven by the country's growing tourism industry.

Key regions: United States, Saudi Arabia, Thailand, South America, Malaysia

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Analyst Opinion

The Car Rentals market in Oman has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Oman are increasingly opting for car rentals as a more convenient and cost-effective alternative to owning a car. This trend can be attributed to several factors. Firstly, car rentals provide flexibility and freedom to customers who may not require a car on a full-time basis. Renting a car allows them to have access to a vehicle whenever they need it, without the hassle of maintenance, insurance, and other ownership costs. Secondly, car rentals offer a wide range of vehicle options, allowing customers to choose a vehicle that suits their specific needs and preferences. Whether it's a small compact car for city driving or a larger SUV for family trips, customers can find the perfect vehicle for their requirements. Finally, car rentals often come with additional services such as roadside assistance and insurance coverage, providing customers with peace of mind during their rental period.

Trends in the market: One of the key trends in the car rentals market in Oman is the increasing popularity of online booking platforms. Customers are now able to easily compare prices, vehicle options, and rental terms from multiple car rental companies, making it more convenient to find the best deal. This trend has led to increased competition among car rental companies, forcing them to offer competitive pricing and improved services to attract customers. Additionally, there has been a growing demand for eco-friendly and fuel-efficient vehicles in Oman, as customers become more conscious of their environmental impact. Car rental companies are responding to this trend by expanding their fleet with hybrid and electric vehicles, providing customers with more sustainable transportation options.

Local special circumstances: Oman's thriving tourism industry has played a significant role in the growth of the car rentals market. The country's natural beauty, historical sites, and cultural attractions attract a large number of domestic and international tourists each year. These visitors often prefer the convenience and flexibility of renting a car to explore the country at their own pace. Furthermore, Oman's growing population and urbanization have resulted in increased demand for transportation services, including car rentals. As more people move to urban areas and rely on public transportation, they may still require a car for specific occasions or trips, leading to higher demand for car rentals.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the car rentals market in Oman. The country's stable economy and rising disposable incomes have increased the affordability of car rentals for a larger segment of the population. Additionally, the government's focus on diversifying the economy and promoting tourism has resulted in improved infrastructure and transportation networks, making it easier for customers to travel within Oman and explore different regions. These factors have created a favorable environment for the growth of the car rentals market in Oman. Overall, the car rentals market in Oman is experiencing growth due to changing customer preferences, local special circumstances such as tourism and urbanization, and favorable macroeconomic factors. As the market continues to evolve, car rental companies will need to adapt to meet the evolving needs and preferences of customers in Oman.

Methodology

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.