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Car Rentals - Thailand

Thailand

By 2024, the Car Rentals market in Thailand is anticipated to record a revenue of €1.05bn.
The sector is expected to display a Compound Annual Growth Rate (CAGR 2024-2029) of 4.20%, leading to a projected market size of €1.29bn by 2029.
It is expected that the number of users in the Car Rentals market will reach 9.67m users by 2029.
The projected user penetration is 10.4% in 2024 and 13.4% by 2029.
Furthermore, the Average Revenue Per User (ARPU) is anticipated to be €141.00.
By 2029, 41% of the total revenue in the Car Rentals market will be generated through online sales.
It is noteworthy that in comparison to other countries, United States is projected to generate the highest revenue (€29,240m in 2024).
Car rental demand in Thailand has seen a significant increase due to the rise of domestic tourism and the popularity of road trips.

Key regions: United States, Saudi Arabia, Thailand, South America, Malaysia

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Analyst Opinion

The Car Rentals market in Thailand is experiencing significant growth and development.

Customer preferences: Customers in Thailand are increasingly opting for car rentals as a convenient and flexible mode of transportation. This trend can be attributed to several factors. Firstly, the rise of the sharing economy and the popularity of ride-hailing services have made people more comfortable with the idea of renting a car for short-term use. Additionally, the growing number of tourists visiting Thailand has also contributed to the increased demand for car rentals, as visitors prefer the freedom and convenience of exploring the country at their own pace.

Trends in the market: One of the key trends in the car rentals market in Thailand is the increasing popularity of online booking platforms. Customers are now able to easily compare prices and book their desired vehicles through online platforms, which has made the process more convenient and transparent. This trend has also led to increased competition among car rental companies, forcing them to offer competitive prices and improve their services to attract customers. Another trend in the market is the growing demand for eco-friendly and fuel-efficient vehicles. As environmental awareness increases, customers are becoming more conscious of their carbon footprint and are opting for greener transportation options. Car rental companies in Thailand are responding to this trend by expanding their fleet of electric and hybrid vehicles, providing customers with more eco-friendly options.

Local special circumstances: Thailand's unique geography and diverse attractions make car rentals a popular choice among both locals and tourists. The country is known for its beautiful beaches, historical sites, and vibrant cities, all of which can be easily explored with a rental car. Additionally, Thailand's well-developed road infrastructure and relatively low fuel prices make car rentals a cost-effective and convenient option for transportation.

Underlying macroeconomic factors: Thailand's growing economy and increasing disposable income levels have also contributed to the development of the car rentals market. As people have more money to spend, they are more likely to opt for the convenience and comfort of a rental car, rather than relying on public transportation or taxis. Additionally, the government's efforts to promote tourism and attract foreign investment have led to an influx of visitors to the country, further driving the demand for car rentals. In conclusion, the Car Rentals market in Thailand is experiencing significant growth and development due to changing customer preferences, including the rise of the sharing economy and the increasing popularity of online booking platforms. The country's unique geography, well-developed road infrastructure, and growing economy are also contributing factors. As the market continues to evolve, it is expected that car rental companies in Thailand will continue to innovate and expand their services to meet the changing needs of customers.

Methodology

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.