Car Rentals - Zambia

Zambia

Highlights

By 2024, the Car Rentals market in Zambia is expected to generate a revenue of US$34.13m.
Furthermore, the revenue is anticipated to exhibit an annual growth rate of 5.80% (CAGR 2024-2029), resulting in a projected market volume of US$45.23m by 2029.
The number of users in the Car Rentals market is expected to reach 1.97m users by 2029 with a user penetration rate of 6.1% in 2024 and 8.2% by 2029.
The average revenue per user (ARPU) is expected to be US$26.59.
Also, it is projected that 55% of the total revenue in the Car Rentals market will be generated through online sales by 2029.
It is worth noting that in comparison with other countries, United States is expected to generate the highest revenue in the Car Rentals market, with a projected revenue of US$32bn in 2024.
Zambia's car rental market is experiencing growth due to an increase in tourism and business travel.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Car Rentals market in Zambia has experienced significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Car Rentals market in Zambia have shifted towards convenience and flexibility. With an increasing number of tourists and business travelers visiting the country, there is a growing demand for rental cars that provide a hassle-free and comfortable transportation option. Customers are looking for vehicles that are well-maintained, fuel-efficient, and equipped with modern amenities. Additionally, there is a preference for flexible rental options, including short-term and long-term rentals, as well as self-drive and chauffeur-driven services. Trends in the Car Rentals market in Zambia reflect global and regional market developments. One of the key trends is the rise of online booking platforms and mobile applications, which have made it easier for customers to compare prices, check availability, and make reservations. This has increased competition among car rental companies and has led to the introduction of innovative services and pricing models. Another trend is the growing popularity of eco-friendly and electric vehicles, as customers become more conscious of their environmental impact. Local special circumstances play a role in shaping the Car Rentals market in Zambia. The country's tourism industry has been growing steadily, attracting both domestic and international visitors. This has created a demand for rental cars, particularly in popular tourist destinations such as Livingstone and Lusaka. Additionally, the presence of multinational companies and foreign investors in Zambia has increased the need for corporate car rentals, further driving the market. Underlying macroeconomic factors have also contributed to the development of the Car Rentals market in Zambia. The country has experienced stable economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has allowed more individuals and businesses to afford rental cars, boosting market demand. Furthermore, government initiatives to improve infrastructure, such as road construction and airport expansions, have made it easier for customers to access car rental services. In conclusion, the Car Rentals market in Zambia has witnessed significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for convenient and flexible transportation options, along with the rise of online booking platforms and eco-friendly vehicles, has driven market expansion. The growth of the tourism industry and the presence of multinational companies have also contributed to market development. Overall, the Car Rentals market in Zambia is expected to continue growing in the coming years, driven by these factors.

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.