Car Rentals - Taiwan

Taiwan

Highlights

Taiwan's Car Rentals market is expected to see significant growth in the coming years.
By 2024, it is projected that revenue in this market will reach US$781.50m.
Furthermore, this revenue is expected to experience an annual growth rate (CAGR 2024-2029) of 0.74%, resulting in a projected market volume of US$810.90m by 2029.
In terms of user numbers, the Car Rentals market is expected to have 3.23m users users by 2029, with a user penetration rate of 11.2% in 2024 and 13.5% by 2029.
The average revenue per user (ARPU) is projected to be US$292.00.
It is also worth noting that 68% of total revenue in the Car Rentals market is expected to be generated through online sales by 2029.
Finally, when compared globally, United States is expected to generate the most revenue in this market, with a projected revenue of US$32bn in 2024.
Taiwan's car rental market is experiencing a surge in demand due to the country's growing tourism industry.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Taiwan has been experiencing steady growth in recent years, driven by various factors such as increasing tourism, changing consumer preferences, and the rise of ride-sharing services.

Customer preferences: In Taiwan, there is a growing preference among consumers for renting cars instead of owning them. This shift can be attributed to several factors. Firstly, renting a car provides more flexibility and convenience, especially for tourists who want to explore the country at their own pace. Secondly, car rentals offer a cost-effective solution for occasional drivers who do not want to bear the expenses of owning a car, such as maintenance, insurance, and parking fees. Lastly, the rise of ride-sharing services has also contributed to the popularity of car rentals, as some consumers prefer the privacy and control that comes with driving their own rented vehicle.

Trends in the market: One of the key trends in the Car Rentals market in Taiwan is the increasing demand for eco-friendly and electric vehicles. As environmental consciousness grows, consumers are actively seeking greener alternatives for transportation. Car rental companies have responded to this demand by expanding their fleets to include electric and hybrid vehicles. This trend is expected to continue as the government of Taiwan promotes the adoption of electric vehicles through various incentives and initiatives. Another trend in the market is the integration of technology in car rental services. Many car rental companies in Taiwan have embraced digital platforms and mobile applications to streamline the booking process and enhance the overall customer experience. These platforms allow customers to easily search for available vehicles, compare prices, and make reservations online. Additionally, some car rental companies have started to offer keyless entry systems, allowing customers to unlock and start the rented vehicle using their smartphones.

Local special circumstances: Taiwan's unique geography and diverse landscapes make it an attractive destination for both domestic and international tourists. The country offers a wide range of attractions, from bustling cities to scenic mountains and beautiful coastline. This diversity creates a need for flexible transportation options, and car rentals provide the perfect solution for travelers to explore different regions at their own pace. Furthermore, Taiwan's well-developed transportation infrastructure, including an extensive network of highways and well-maintained roads, makes it easy for tourists to navigate the country by car. The availability of car rental services at major airports and popular tourist destinations further enhances the convenience and accessibility of exploring Taiwan by road.

Underlying macroeconomic factors: The steady growth of the Car Rentals market in Taiwan can also be attributed to the country's robust tourism industry. In recent years, Taiwan has experienced a significant increase in international tourist arrivals, with visitors from countries such as China, Japan, and South Korea contributing to the growth. This influx of tourists has created a strong demand for car rental services, as visitors seek convenient and flexible transportation options to explore the country. Additionally, Taiwan's stable economy and rising disposable incomes have also played a role in the growth of the Car Rentals market. As consumers have more discretionary income, they are more likely to spend on travel and leisure activities, including renting cars for their vacations or weekend getaways. In conclusion, the Car Rentals market in Taiwan is experiencing growth due to changing consumer preferences, increasing tourism, and the integration of technology in car rental services. The demand for eco-friendly vehicles and the country's well-developed transportation infrastructure further contribute to the market's expansion. With these favorable conditions, the Car Rentals market in Taiwan is expected to continue its upward trajectory 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.