“Rising number of establishments, increasing GDP of the country, growing employment rate in Saudi Arabia, increasing size of end user industries and rising tourism will be the key factors driving growth in Saudi Arabia Car Rental and Leasing Market”
Growing Employment: The increasing employment opportunity in Saudi Arabia is influencing positively the standard of living and purchasing power of Saudis. High purchasing power enables them to afford their preferable car brands on lease and on rental. This further supports the demand for car rental and leasing service in the country. After the implementation of Saudization in the country, the employment rate of Saudi nationals has immensely improved in the country. In terms of individual demand, Sedan and SUV are the most preferable category and thus the demand for Sedan in rental segment and SUV in leasing segment has rapidly grown between the years 2013-2018.
Increasing Number of Establishments: Corporate are the major end users of car rental and leasing service. Thus, the growing number of establishments in the country has increased the demand for rental and leasing services in the country. The increase in number of construction and oil & gas projects have also propelled the demand for rental & leasing service in terms of logistics transportation , employee mobility and business visitors. In terms of leasing service, contracts with duration of 4 years are preferred by corporate owing to the long term projects of industries and are considered as a value for money option. As most of the new establishments are located in eastern provinces mainly in Dammam, Al- Khobar & Jubail, hence the demand for car rental & leasing is highest in these cities.
Tourism Industry: The demand for the car rental in Saudi Arabia has enhanced in the past few years with the rise in tourist arrivals for leisure and pilgrim. Saudi Arabia has been observed as catering to millions of pilgrims visiting Hajj and Umrah especially during Eid Al- Fitr and Eid Al- Adha for leisure travels across the Middle East region each year. The tourism industry of Saudi Arabia each year witnessed a new record with the surge in pilgrim visitors. The tourism industry in Saudi accounted for 9.4% of the total GDP of Saudi in 2017. The foreign visitors accounted for 17.7 million in 2018 which is expected to grow by 5.6% each year.
Analysts at Ken Research in their latest publication “Saudi Arabia Car Rental and Leasing Market Outlook to 2023- By Business Model (Car Leasing and Car Rental), By Fleet Type (Small Category, Medium Category, SUV, Premium/Luxury) and By End Users (Logistics, FMCG, Oil & Gas, Construction, Government and Others)” believes that an increase in the number of establishment, growing tourist arrivals and growth in end user sectors such as construction, logistics and oil and gas would surge the overall demand for car rental and leasing service in the market. The market has witnessed a positive CAGR of close to 11.4% in terms of revenue from leasing segment and 12.5% in terms of fleet size while rental service witnessed a positive CAGR of close to 4.6% in terms of fleet size, during the review period 2013-2018.
Key Segments Covered in Saudi Arabia Car Rental & Leasing Market
By Car Dealers & Car Rental Companies (On the basis of fleet size)
Car Dealers
Car Rental Companies
By Type of vehicle (On the basis of fleet size)
SUV with or without luggage and pickup & cargo cars
Medium category
Small category
Premium/ Luxury
By Duration (On the basis of fleet size)
1-2 years
More than 2 years but less than 4 years
4 years
More than 4 years
By Region (On the basis of fleet size)
Central
Western
Eastern
Southern
Northern
By End User (On the basis of fleet size)
Logistics
FMCG & e-commerce
Oil & Gas
Construction
Government& semi- government offices
Other Industries
By User (On the basis of fleet size)
Corporate
Individual
By On Airport & off Airport (On the basis of revenue)
On Airport
Off Airport
Time Period Captured in the Report:
Historical Period: 2013-2018
Forecast Period: 2019-2023
Key Target Audience
Car Rental Companies
Car Dealers
End User Industries
Individuals
Companies Covered:
United International Transportation Company (Budget)
Hanco rent a car
Best rent a car
Theeb rent a car
Al Wefaq rent a car
Hertz rent a car
Avis rent a car
Autoworld rent a car
Samara rent a car
Al Tayyar rent a car
Key rent a car
Ford Aljazerah
Al Jomaih
Universal Motors
For more information on the research report, refer to below link:
Saudi Arabia Car Rental and Leasing Market Outlook to 2023
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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
