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Car Rentals - Hong Kong

Hong Kong

In Hong Kong, the Car Rentals market is expected to generate a revenue of US$331.20m by 2024.
The projected annual growth rate (CAGR 2024-2028) of 2.77% is expected to result in a market volume of US$369.50m by 2028.
The number of users in the Car Rentals market is expected to reach 0.95m users by 2028 with a projected user penetration of 11.7% in 2024 and 12.7% by 2028.
The average revenue per user (ARPU) is expected to be US$0.38k.
By 2028, 85% of the total revenue in the Car Rentals market is expected to be generated through online sales.
It is noteworthy that in comparison to other countries, United States is predicted to generate the highest revenue with a projected value of US$30,440m in 2024.
Hong Kong's car rental market is dominated by international companies, but local providers are gaining traction with personalized services and competitive pricing.

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

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Analyst Opinion

The Car Rentals market in Hong Kong has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the Car Rentals market in Hong Kong is the increasing preference for convenience and flexibility among customers. With the rise of ride-hailing services and the increasing popularity of car-sharing platforms, more and more people are opting for short-term rentals rather than owning a car. This trend is particularly strong among young urban professionals who value the convenience of being able to rent a car on-demand without the hassle of owning and maintaining a vehicle.

Trends in the market: Another trend that is shaping the Car Rentals market in Hong Kong is the growing demand for electric and hybrid vehicles. As the government of Hong Kong has been actively promoting the adoption of electric vehicles to reduce air pollution and dependence on fossil fuels, there has been a significant increase in the number of electric and hybrid vehicles available for rent. This trend is expected to continue as more people become aware of the environmental benefits of electric vehicles and as the charging infrastructure in Hong Kong continues to expand.

Local special circumstances: One of the unique aspects of the Car Rentals market in Hong Kong is the high population density and limited parking space. In a city where parking is a premium, owning a car can be quite expensive and inconvenient. Renting a car for short periods of time allows residents and visitors to have access to a vehicle when needed, without the need for long-term parking arrangements. This has contributed to the popularity of car rentals in Hong Kong and has driven the growth of the market.

Underlying macroeconomic factors: The strong economic growth in Hong Kong has also played a significant role in the development of the Car Rentals market. As the economy continues to expand, more people have disposable income to spend on leisure activities, including renting cars for vacations or weekend getaways. Additionally, the growing number of tourists visiting Hong Kong has also contributed to the demand for car rentals. Tourists often prefer the convenience and flexibility of renting a car to explore the city and its surrounding areas at their own pace. In conclusion, the Car Rentals market in Hong Kong is experiencing growth due to the increasing preference for convenience and flexibility among customers, the growing demand for electric and hybrid vehicles, the unique local circumstances of high population density and limited parking space, and the strong macroeconomic factors such as economic growth and tourism.

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.