Car Rentals - Tanzania

Tanzania

Highlights

By 2024, it is projected that the revenue in Tanzania's Car Rentals market will reach US$58.23m.
The market is expected to grow annually at a rate of 3.26% between 2024 and 2029, resulting in a projected market volume of US$68.36m by 2029.
The number of users in this market is expected to be 4.83m users by 2029 with user penetration projected to increase from 4.5% in 2024 to 6.1% by 2029.
The average revenue per user (ARPU) is expected to be US$18.48.
Online sales are projected to generate 55% of total revenue in this market by 2029.
It is worth noting that in global comparison, United States is expected to generate the most revenue in this market, reaching US$32bn in 2024.
Car rental companies in Tanzania are adapting to the unique demands of tourists by offering 4x4 vehicles for safari trips and airport pick-up services.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Tanzania has been experiencing significant growth in recent years. Customer preferences have shifted towards renting cars instead of purchasing them, leading to an increase in demand for car rental services. This trend can be attributed to several factors, including changing consumer behavior, economic factors, and local special circumstances.

Customer preferences: One of the main reasons for the growth of the car rental market in Tanzania is the changing preferences of customers. Many people are opting to rent cars instead of buying them due to the convenience and flexibility it offers. Renting a car allows customers to have access to a vehicle without the long-term commitment and financial burden of owning one. Additionally, tourists visiting Tanzania often prefer to rent cars to explore the country at their own pace.

Trends in the market: The car rental market in Tanzania has witnessed the emergence of several trends. One of these trends is the increasing popularity of online car rental platforms. Customers now have the option to book cars online, making the process more convenient and efficient. This trend has also led to increased competition among car rental companies, driving them to improve their services and offer competitive prices. Another trend in the market is the growing demand for eco-friendly and fuel-efficient cars. With increasing awareness about environmental issues, customers are seeking out car rental companies that offer electric or hybrid vehicles. This trend is driven by both local and global concerns for sustainability and reducing carbon emissions.

Local special circumstances: The unique geography and natural attractions of Tanzania contribute to the growth of the car rental market. Many tourists visit Tanzania to explore its national parks, such as the Serengeti and the Ngorongoro Crater. Renting a car provides tourists with the flexibility to navigate these vast landscapes and experience the country's wildlife and natural beauty. Additionally, the lack of reliable public transportation infrastructure in certain areas of Tanzania makes car rentals a necessity for both locals and tourists.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the car rental market in Tanzania. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has made car rentals more affordable and accessible to a larger segment of the population. Furthermore, the tourism industry in Tanzania has been thriving, attracting a significant number of international visitors. These tourists often require car rental services to explore the country and visit tourist destinations. The growth of the tourism industry has created a favorable environment for the car rental market to flourish. In conclusion, the Car Rentals market in Tanzania has experienced significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The convenience and flexibility offered by car rentals, coupled with the increasing popularity of online platforms and eco-friendly vehicles, have contributed to the market's expansion. Additionally, the unique geography and natural attractions of Tanzania, along with the steady economic growth and thriving tourism industry, have created a favorable environment for the car rental market to thrive.

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.