Car Rentals - Panama

Panama

Highlights

By 2024, revenue in Panama's Car Rentals market is expected to reach US$89.89m.
Furthermore, it is projected that there will be an annual growth rate (CAGR 2024-2029) of 3.03%, resulting in a projected market volume of US$104.40m by 2029.
The number of users in the Car Rentals market is expected to amount to 657.40k users by 2029, with a projected user penetration of 10.8% in 2024 and 13.7% by 2029.
The average revenue per user (ARPU) is expected to be US$183.70.
It is projected that 62% of the total revenue in this market will be generated through online sales by 2029.
In comparison to other countries, United States is expected to generate the most revenue by 2024, with US$32bn in revenue.
Panama's car rental market is seeing a shift towards eco-friendly vehicles as tourists seek more sustainable transportation options.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Panama has been experiencing significant growth in recent years. Customer preferences for car rentals have shifted towards convenience and flexibility, driving the demand for rental services. Additionally, local special circumstances and underlying macroeconomic factors have contributed to the development of the market. Customer preferences in the Car Rentals market in Panama have been shaped by the need for convenience and flexibility. With an increasing number of tourists visiting the country, there is a growing demand for rental cars to explore the various attractions and destinations. Customers prefer the flexibility of having their own mode of transportation, allowing them to travel at their own pace and convenience. This preference is further fueled by the availability of online booking platforms, which make it easier for customers to compare prices and choose the most suitable rental option. Trends in the Car Rentals market in Panama are also influenced by global and regional market developments. The rise of ride-sharing services and the sharing economy has impacted the traditional car rental industry. However, in Panama, the demand for rental cars remains strong due to the country's unique geography and infrastructure. With its diverse landscape and scattered attractions, rental cars provide a more practical and efficient mode of transportation for tourists. Additionally, the affordability of rental cars compared to ride-sharing services makes them a preferred choice for many customers. Local special circumstances in Panama have contributed to the growth of the Car Rentals market. The country's tourism industry has been steadily growing, attracting both international and domestic visitors. Panama's natural beauty, including its beaches, rainforests, and historical sites, has become a major draw for tourists. To fully explore these attractions, many visitors opt for rental cars to have the freedom to travel and discover hidden gems. Furthermore, Panama's status as a major business hub in the region has also contributed to the demand for rental cars among business travelers. Underlying macroeconomic factors have played a role in the development of the Car Rentals market in Panama. The country's stable economy and increasing disposable income levels have enabled more people to afford rental cars. As the middle class expands and consumer spending power grows, the demand for car rentals is expected to continue rising. Moreover, Panama's investment in infrastructure development, such as the expansion of highways and airports, has improved accessibility and connectivity, further driving the need for rental cars. In conclusion, the Car Rentals market in Panama is experiencing growth due to customer preferences for convenience and flexibility, as well as the unique local circumstances and underlying macroeconomic factors. The demand for rental cars is expected to continue rising as more tourists visit the country and as the economy and infrastructure continue to develop.

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.