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Car Rentals - Norway

Norway

In Norway, the Car Rentals market is expected to generate a revenue of US$244.90m by 2024.
It is projected that the revenue will grow annually at a rate of -0.72% from 2024 to 2028, resulting in a market volume of US$237.90m by 2028.
The number of users in the Car Rentals market is also expected to increase and reach 0.64m users by 2028.
In terms of user penetration, the projection shows 11.4% in 2024 and 11.3% by 2028.
Furthermore, the average revenue per user (ARPU) is expected to be US$0.39k.
Online sales are expected to contribute 71% of the total revenue in the Car Rentals market by 2028.
It is worth noting that in a global comparison, United States is expected to generate the most revenue in the Car Rentals market with a projected revenue of US$30,440m in 2024.
In Norway, car rental companies are increasingly investing in eco-friendly electric and hybrid vehicles to meet the country's strong environmental regulations.

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

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Analyst Opinion

The Car Rentals market in Norway has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Norwegian customers have shown a growing preference for car rentals due to the convenience and flexibility they offer. With a well-developed road infrastructure and a desire for independent travel, many Norwegians opt to rent cars for both business and leisure purposes. Additionally, the popularity of road trips and outdoor activities in Norway further fuels the demand for car rentals.

Trends in the market: One of the key trends in the car rentals market in Norway is the rise of eco-friendly rental options. Norwegians are known for their strong commitment to sustainability and environmental consciousness. As a result, there has been an increasing demand for electric and hybrid cars in the rental market. Rental companies have responded to this trend by expanding their fleets to include a larger selection of eco-friendly vehicles. Another trend in the market is the growing popularity of online booking platforms. Norwegians are tech-savvy and prefer the convenience of booking their car rentals online. This trend has led to the emergence of online platforms that allow customers to compare prices, choose from a wide range of vehicles, and make reservations with ease.

Local special circumstances: Norway's unique geography and natural beauty contribute to the demand for car rentals. The country is known for its stunning fjords, picturesque landscapes, and remote areas that are best explored by car. This makes car rentals an attractive option for both domestic and international tourists who want to experience the beauty of Norway at their own pace. Furthermore, Norway has a high cost of car ownership, including taxes, fuel prices, and toll roads. This has led many Norwegians to choose car rentals as a more cost-effective alternative to owning a car. Renting a car allows them to avoid the upfront costs and ongoing expenses associated with car ownership.

Underlying macroeconomic factors: Norway's strong economy and high disposable income levels have played a significant role in the growth of the car rentals market. With a stable economy and low unemployment rates, Norwegians have more financial resources to spend on travel and leisure activities, including car rentals. Additionally, the growth of the tourism industry in Norway has contributed to the expansion of the car rentals market. The country has seen a steady increase in international tourists, attracted by its natural wonders, cultural heritage, and outdoor activities. These tourists often rely on car rentals to explore the country and experience its diverse attractions. In conclusion, the Car Rentals market in Norway is developing due to customer preferences for convenience and flexibility, trends such as eco-friendly rental options and online booking platforms, local special circumstances including the country's geography and high cost of car ownership, and underlying macroeconomic factors such as a strong economy and growth in the tourism industry.

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.