Indonesia Car Rental Market Outlook to 2027F

Indonesia Car Rental Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of the Car Rental industry in Indonesia. The report covers an overview and genesis of the industry, and market size in terms of revenue generated.

Its market segmentations include By Market Structure, By Type of Vehicles, By ICE/EV, By Cities, By Mode of Booking, By Client, and By Pick-up; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, the Indonesia Car Rental Market – which grew from approximately $ ~ Mn in 2017 to approximately $ ~ Mn in 2022 – is forecasted to grow further into a $ ~ Mn opportunity by 2027F, owing to the expansion of the tourism industry, on-demand transportation and the initiatives taken by the government.

Indonesia has the largest auto leasing market and car rental market in South East Asia.

In September 2021, Car-rental platform Zoomcar announced the launch of its operations in Indonesia and Vietnam to secure a stronger footprint in Southeast Asia.

Also in June 2022, Indonesia announced a “Digital Nomad” visa to allow remote workers to live there tax-free in an effort to boost tourism numbers back up to pre-pandemic highs. Such instances are helping the car rental market in the country.

Key Trends by Market Segment:

By Market Structure: There is apreference towards the organized sector as most of the tourists look for legal documents and certifications of the vehicle to avoid security patrolling for safety measures.

By Mode of Booking: Online platforms have been increasingly growing because they are connecting various vehicle sellers and groups like independent dealers as well as private owners with customers. These platforms are expanding their presence in the region to increase their market share and revenues.

By Client: Leisure trips are projected to hold a significant market share with the increasing number of tourist arrivals contributing to increasing the country’s GDP as well.

Future Outlook

Indonesia’s car rental market is projected to witness a CAGR of ~% between 2022 to 2027F. Travel & Tourism Industry in Indonesia is a major contributor to the GDP and employment of that country. It has become a key focus area for the Indonesian Government’s growth strategy.

The number of international travellers arriving in Indonesia has been on a constant rise over the years. This is expected to support the growth of the car rental market as travellers prefer booking cars in advance for their trips for the sake of convenience.

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