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Ride-hailing - Luxembourg

Luxembourg

Luxembourg is expected to witness a steady growth of revenue in the Ride-hailing market.
By 2024, the market is projected to reach a revenue of US$23.62m, with an estimated annual growth rate (CAGR 2024-2029) of 2.86%.
This will result in a market volume of US$27.20m by 2029.
In terms of users, the market is expected to have 140.80k users users by 2029, with a projected user penetration of 20.4%.
The average revenue per user (ARPU) is expected to be US$200.40.
Furthermore, it is estimated that 100% of the total revenue in the Ride-hailing market will be generated through online sales by 2029.
It is noteworthy that in the global comparison, China is expected to generate the most revenue in this market, with a projected revenue of US$59,560m in 2024.
Luxembourg's Ride-hailing market benefits from the country's high-income population and growing demand for convenient transportation options.

Key regions: South America, Europe, China, Saudi Arabia, Malaysia

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Currency

Analyst Opinion

The Ride-hailing market in Luxembourg is experiencing significant growth and development.

Customer preferences: Customers in Luxembourg are increasingly turning to ride-hailing services due to their convenience and affordability. With the rise of smartphone usage and the availability of ride-hailing apps, customers can easily book a ride with just a few taps on their screens. The ability to track the location of the driver and estimated arrival time also adds to the convenience factor. Additionally, customers appreciate the transparent pricing and the ability to pay through digital platforms, eliminating the need for cash transactions.

Trends in the market: One of the key trends in the ride-hailing market in Luxembourg is the increasing popularity of electric vehicles (EVs). As the government and society as a whole place a strong emphasis on sustainability and reducing carbon emissions, ride-hailing companies are incorporating EVs into their fleets. This not only aligns with the environmental goals of the country but also helps reduce operating costs for ride-hailing companies in the long run. The availability of EVs for ride-hailing services is also attracting environmentally conscious customers who prefer to support companies that prioritize sustainability. Another trend in the market is the integration of ride-hailing services with public transportation. In an effort to provide seamless and efficient transportation options, ride-hailing companies are partnering with public transportation authorities to offer integrated solutions. This allows customers to easily plan their journeys using a combination of ride-hailing and public transportation, further enhancing the convenience and accessibility of these services.

Local special circumstances: Luxembourg is a small country with a high population density, which presents unique challenges and opportunities for the ride-hailing market. The compact nature of the country means that ride-hailing services can efficiently serve a large number of customers within a relatively small geographic area. This makes it easier for ride-hailing companies to maintain a high level of service and ensure quick response times for customers. Furthermore, Luxembourg is a major financial hub and home to many multinational corporations. This attracts a large number of business travelers who rely on ride-hailing services for their transportation needs. The presence of a strong corporate customer base provides a stable and consistent demand for ride-hailing services, contributing to the growth of the market.

Underlying macroeconomic factors: The strong economy of Luxembourg, coupled with high disposable income levels, contributes to the growth of the ride-hailing market. As the country continues to experience economic growth, more people have the financial means to use ride-hailing services on a regular basis. This creates a favorable market environment for ride-hailing companies to expand their operations and attract new customers. In conclusion, the ride-hailing market in Luxembourg is thriving due to customer preferences for convenience and affordability, as well as the integration of EVs and partnerships with public transportation. The unique local circumstances of Luxembourg, such as its small size and high population density, further contribute to the growth of the market. Additionally, the strong economy and high disposable income levels in the country provide a favorable macroeconomic environment for the ride-hailing industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of ride-hailing 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.