Car Rentals - South Korea

South Korea

Highlights

South Korea is projected to generate a revenue of US$1.60bn in the Car Rentals market by 2024.
This revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.69%.
As a result, the market volume is projected to reach US$1.91bn by 2029.
The number of users in this market is expected to amount to 6.02m users by 2029.
In 2024, the user penetration rate is projected to be 10.0% and by 2029, it is expected to increase to 11.7%.
The average revenue per user (ARPU) is expected to be US$307.40.
By 2029, online sales are estimated to contribute 77% of the total revenue in the Car Rentals market.
It is noteworthy that United States is expected to generate the highest revenue among all countries worldwide, amounting to US$32bn in 2024.
South Korea's car rental market is seeing a shift towards eco-friendly options, with increasing demand for hybrid and electric vehicles.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in South Korea has been experiencing steady growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Korea have played a significant role in the development of the Car Rentals market. With a growing number of tourists visiting the country, there is a rising demand for convenient and flexible transportation options. Many tourists prefer to rent a car to explore the country at their own pace and visit various attractions. Additionally, there is also a growing trend among locals to rent cars for special occasions or for short trips outside the city. The market has also witnessed several trends that have contributed to its growth. One such trend is the increasing popularity of online car rental platforms. These platforms provide a convenient way for customers to compare prices, book cars, and manage their reservations. The ease of use and competitive pricing offered by these platforms have made them a preferred choice for many customers. Another trend in the Car Rentals market is the growing emphasis on environmentally friendly options. With increasing concerns about climate change and pollution, there is a rising demand for electric and hybrid vehicles. Car rental companies in South Korea have been quick to respond to this trend by adding more eco-friendly vehicles to their fleets. This not only attracts environmentally conscious customers but also helps the companies reduce their carbon footprint. Local special circumstances have also contributed to the development of the Car Rentals market in South Korea. The country's efficient public transportation system, including buses and trains, makes it easy for people to commute within cities. However, when it comes to exploring rural areas or traveling with a group of people, renting a car becomes a more convenient option. Additionally, South Korea's well-maintained road infrastructure and efficient traffic management system make it a safe and enjoyable experience for customers to rent and drive cars. Underlying macroeconomic factors have also played a role in the growth of the Car Rentals market in South Korea. The country's strong economic growth and rising disposable incomes have increased the affordability of car rentals for many customers. Additionally, the government's efforts to promote tourism and attract foreign investment have led to an increase in the number of tourists visiting the country, further driving the demand for car rentals. In conclusion, the Car Rentals market in South Korea is developing due to customer preferences for convenient and flexible transportation options, trends such as online car rental platforms and eco-friendly vehicles, local special circumstances that make car rentals a convenient choice, and underlying macroeconomic factors such as strong economic growth and increasing tourism.

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.