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Car Rentals - Estonia

Estonia

By 2024, Estonia's Car Rentals market is expected to earn a revenue of US$26.95m.
The projected market volume is expected to reach US$29.11m by 2028, with an annual growth rate of 1.95%.
The number of users in this market is likely to increase to 98.18k users by 2028, with a projected user penetration rate of 7.1% in 2024, which will escalate to 7.5% by 2028.
The average revenue per user (ARPU) is expected to be US$288.90.
Furthermore, it is projected that 77% of the total revenue in the Car Rentals market will be generated through online sales by 2028.
Lastly, in global comparison, United States is expected to generate the most revenue (US$30,440m in 2024) in the Car Rentals market.
Estonia's car rental market is seeing increased demand from tourists due to the country's growing popularity as a digital nomad destination.

Key regions: China, South America, Germany, United States, Malaysia

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Analyst Opinion

The Car Rentals market in Estonia is experiencing significant growth and development in recent years.

Customer preferences: Customers in Estonia are increasingly opting for car rentals as a convenient and flexible mode of transportation. This preference is driven by several factors. Firstly, car rentals provide individuals with the freedom to travel at their own pace and explore different parts of the country. Additionally, renting a car is often more cost-effective than owning one, especially for those who do not require a vehicle on a daily basis. Furthermore, the rise of ride-hailing services has made it easier for customers to access car rentals, as many providers offer online booking platforms and mobile applications.

Trends in the market: One of the key trends in the car rentals market in Estonia is the growing demand for electric and hybrid vehicles. As the country aims to reduce its carbon footprint and promote sustainable transportation, more customers are opting for eco-friendly rental options. Car rental companies are responding to this trend by expanding their fleets to include a greater number of electric and hybrid vehicles. This not only aligns with customer preferences but also helps car rental companies differentiate themselves in the market. Another trend in the market is the increasing popularity of long-term car rentals. This is particularly relevant for individuals who require a vehicle for an extended period, such as expatriates or business travelers. Long-term car rentals offer customers the convenience of having a vehicle without the commitment and maintenance costs associated with car ownership. Car rental companies are capitalizing on this trend by offering flexible rental terms and competitive pricing for long-term rentals.

Local special circumstances: Estonia's small size and well-developed transportation infrastructure contribute to the growth of the car rentals market. With a land area of just over 45,000 square kilometers, Estonia is easily traversable by car, allowing customers to explore various destinations within a short period. Additionally, the country's well-maintained road network and efficient public transportation system make car rentals a popular choice for both domestic and international travelers.

Underlying macroeconomic factors: The development of the car rentals market in Estonia is also influenced by several macroeconomic factors. Firstly, the country's strong economic growth and increasing disposable income levels have contributed to higher consumer spending on travel and leisure activities. This has created a favorable environment for the car rentals market to thrive. Furthermore, the rise of the sharing economy and digital platforms has made it easier for car rental companies to reach a wider customer base and streamline their operations. The convenience of online booking and the availability of customer reviews and ratings have also enhanced the customer experience and fostered trust in the car rentals market. In conclusion, the car rentals market in Estonia is experiencing growth and development due to customer preferences for convenience and flexibility, the emergence of new trends such as electric and long-term rentals, local special circumstances such as the country's small size and well-developed transportation infrastructure, and underlying macroeconomic factors such as strong economic growth and the rise of the sharing economy.

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.