Taxi - Kuwait | Statista Market Forecast

Taxi - Kuwait

Kuwait

Highlights

The Taxi market in Kuwait is expected to experience significant growth in the coming years.
By 2024, the projected revenue is estimated to reach US$210.80m Kuwaiti Dinars.
This positive trend is expected to continue, with an annual growth rate of -1.03% (CAGR 2024-2029), resulting in a projected market volume of US$200.20m Kuwaiti Dinars by 2029.
The number of Taxi market users in Kuwait is also expected to increase steadily, reaching 704.80k users by 2029.
This indicates a growing demand for Taxi market services in the country.
User penetration, which measures the proportion of the population using Taxi market services, is projected to be 17.0% in 2024 and is expected to decrease slightly to 15.6% by 2029.
The average revenue per user (ARPU) in the Taxi market is anticipated to be US$285.60 Kuwaiti Dinars.
This figure provides insights into the average spending of Taxi market users in Kuwait.
In terms of global comparison, China is expected to generate the highest revenue in the Taxi market, reaching US$54bn Kuwaiti Dinars by 2024.
This highlights the significant market potential and size of China's Taxi market industry.
The Taxi market in Kuwait has seen a significant rise in demand due to the country's growing population and increasing tourism.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Taxi market, covering exclusively services booked offline through methods like street hailing or telephone calls, remains an integral part of the broader transportation industry on a global scale. While ride-hailing platforms have revolutionized urban mobility through digital innovation, offline taxi services continue to play a crucial role, even if it is declining in many regions.

The significance of traditional taxis lies in their reliability and familiarity to passengers, especially in regions where technology adoption may lag or where personal interactions with drivers are valued. These services are deeply rooted in local transportation systems and provide accessible, point-to-point mobility solutions.

However, the traditional Taxi market faces its own set of challenges in the era of digital disruption. Competition from ride-hailing platforms has intensified, prompting traditional taxi operators to adapt to evolving consumer expectations. Some have incorporated mobile apps to compete on convenience and have begun implementing digital payment options. However, this Taxi market within the Shared Mobility market focuses exclusively on offline generated business. Online bookings of taxi services are included in the Shared Mobility Ride-hailing market.

Regulatory issues also loom large, as governments strive to maintain a level playing field between traditional taxis and ride-hailing companies. Balancing safety standards, pricing regulations, and licensing requirements remains a complex endeavor, often leading to contentious debates and changes in the regulatory landscape.

The Taxi market continues to serve as a vital component of mobility solutions. While facing competition and regulatory challenges, it remains an essential mode of travel, particularly in regions where it aligns with local preferences and infrastructure. However, it is essential to acknowledge that this offline taxi business is likely to face a further decline in many countries, albeit not disappearing entirely in the near future. To navigate this evolving landscape successfully, taxi operators must recognize the importance of offering their services online. Embracing a hybrid business model that combines offline and online bookings is considered an effective approach to sustaining their relevance in the ever-changing transportation landscape. This strategy allows traditional taxi services to preserve their reliability and personal touch while harnessing the benefits of digital innovation to remain competitive in the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of traditional offline taxi 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.