Car Rentals - Singapore

Singapore

Highlights

Singapore's Car Rentals market is projected to reach a revenue of US$214.30m by 2024.
The revenue is expected to grow annually at a rate of 2.72% (CAGR 2024-2029), resulting in a projected market volume of US$245.10m by 2029.
By 2029, the number of users in this market is expected to reach 723.90k users.
The user penetration rate is projected to be 9.8% in 2024 and 11.6% by 2029.
The average revenue per user (ARPU) is expected to be US$360.30.
It is projected that 80% of the total revenue in this market will be generated through online sales by 2029.
In global comparison, United States is expected to generate the highest revenue of US$32bn in 2024.
Car rental market in Singapore is highly competitive, with major players offering a range of services and perks to attract customers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Singapore has been experiencing significant growth in recent years. Customer preferences have shifted towards a more convenient and flexible mode of transportation, leading to an increased demand for car rental services. This trend can be attributed to several factors, including changing lifestyles, the rise of the sharing economy, and the local special circumstances in Singapore.

Customer preferences: Customers in Singapore are increasingly opting for car rental services due to their convenience and flexibility. With busy lifestyles and a desire for hassle-free transportation, many people are choosing to rent a car instead of owning one. This allows them to have access to a vehicle whenever they need it, without the responsibilities and costs associated with owning a car. Additionally, car rental services often offer a wide range of vehicle options, allowing customers to choose a vehicle that suits their specific needs and preferences.

Trends in the market: One of the key trends in the car rental market in Singapore is the rise of the sharing economy. Companies like Grab and Gojek have disrupted the traditional car rental industry by offering ride-hailing and car-sharing services. This has led to increased competition in the market and has prompted traditional car rental companies to adapt their business models to remain competitive. As a result, many car rental companies in Singapore now offer flexible rental options and have integrated their services with ride-hailing platforms, allowing customers to book a rental car through a mobile app.

Local special circumstances: Singapore is a small and densely populated city-state with limited space for parking and high costs associated with car ownership. As a result, many residents find it more practical and cost-effective to rent a car when they need one, rather than owning a vehicle. The government has also implemented measures to discourage car ownership, such as high taxes and strict regulations on vehicle ownership and usage. These factors have contributed to the growing popularity of car rental services in Singapore.

Underlying macroeconomic factors: The growth of the car rental market in Singapore can also be attributed to underlying macroeconomic factors. Singapore has a strong economy and a high level of disposable income, which allows residents to afford the convenience of car rental services. Additionally, the tourism industry in Singapore has been booming in recent years, attracting a large number of visitors who prefer to rent a car to explore the city and its surrounding areas. This has further contributed to the growth of the car rental market. In conclusion, the Car Rentals market in Singapore has been experiencing significant growth due to changing customer preferences, the rise of the sharing economy, local special circumstances, and underlying macroeconomic factors. As more people in Singapore seek convenient and flexible transportation options, the demand for car rental services is expected to continue to grow 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.