Car Rentals - Pakistan

Pakistan

Highlights

Pakistan is projected to witness a surge in revenue for the Car Rentals market, which is expected to reach US$544.00m in 2024.
The market is projected to grow at an annual rate of 3.57%, resulting in a market volume of US$648.20m by 2029.
It is expected that the number of users in the Car Rentals market will reach 18.17m users by 2029, with user penetration projected to be 4.9% in 2024 and 6.8% by 2029.
The average revenue per user (ARPU) is expected to be US$45.59.
In Pakistan, the Car Rentals market will generate 66% of total revenue through online sales by 2029.
It is noteworthy that United States will generate the most revenue in the Car Rentals market globally, with US$32bn in revenue projected for 2024.
Pakistan's car rental market is witnessing a surge in demand due to an increase in domestic tourism and business travel.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Pakistan is experiencing significant growth and development. Customer preferences are shifting towards the convenience and flexibility of renting a car, leading to an increase in demand for car rental services. This trend is driven by several factors, including changing lifestyles, increasing urbanization, and the rise of the sharing economy.

Customer preferences: Customers in Pakistan are increasingly opting for car rentals as a convenient and flexible mode of transportation. Renting a car provides individuals with the freedom to travel at their own pace and explore different destinations. It also eliminates the need for long-term commitments and the financial burden of owning a car. Additionally, car rentals offer a wide range of vehicle options to cater to different needs and preferences, from compact cars for city travel to SUVs for family outings.

Trends in the market: One of the key trends in the car rental market in Pakistan is the growing popularity of ride-hailing services. Companies like Uber and Careem have gained significant traction in the country, providing customers with an alternative to traditional taxi services. This has led to increased competition in the car rental market, as traditional car rental companies are adapting their business models to offer similar on-demand services. Another trend in the market is the emergence of car rental aggregators. These platforms act as intermediaries, connecting customers with multiple car rental companies and allowing them to compare prices and book vehicles online. This has made the process of renting a car more convenient and transparent, driving the growth of the car rental market in Pakistan.

Local special circumstances: Pakistan has a growing middle class with increasing disposable income, which has contributed to the rise in demand for car rental services. As more people have the means to afford travel and leisure activities, the car rental market has expanded to cater to this growing consumer segment. Additionally, the country's tourism industry has been on the rise in recent years, attracting both domestic and international tourists who prefer the convenience of renting a car for their travels.

Underlying macroeconomic factors: The car rental market in Pakistan is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has resulted in improved infrastructure and transportation networks. This has made it easier for individuals to travel and explore different regions, further driving the demand for car rental services. Additionally, the government's focus on promoting tourism and foreign investment has created a favorable business environment for car rental companies, encouraging their growth and expansion. In conclusion, the Car Rentals market in Pakistan is witnessing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The convenience and flexibility offered by car rentals, coupled with the rise of ride-hailing services and car rental aggregators, have contributed to the increasing demand for car rental services in the country. As Pakistan's economy continues to grow and its tourism industry flourishes, the car rental 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.