Gurugram, India, Jan. 16, 2023 (GLOBE NEWSWIRE) -- KSA Car Rental and Leasing Market is at growing stage and has highly fragmented market with about 30-40 players in market. The Car Rental and Leasing Market in the KSA has seen emergence of many players over the past years. Budget Rent a Car and Key Car Rental are market leaders.
- There is robust growth expected in rental and leasing from commercial segment with the government promoting development of infrastructure and mandating headquarters of international companies in Riyadh from 2024.
- Investment in tourism will promote car rental and leasing by private individuals which is expected to hold ~50% share of the market.
- It is expected to see a positive growth in Pickup trucks due to construction activities like Neom project, Vision 2030 and Red Sea project.
Technological Innovations: Technology isn’t just evolving the way people rent cars, it is completely transforming the experience, with rental vehicle’s operation, performance, and maintenance being made available in real time. Such features are tremendous assets for drivers and fleet managers, and will enable them to more efficiently identify risks and implement timely improvements of their rental services.
Infrastructure Development: Saudi Arabia has announced a trillion-dollar pipeline of infrastructure projects including Neom, Riyadh Metro, Makkah Public Transport, Al Widyan city. The Kingdom aims to position itself as a global hub for investment and logistics in line with its Vision 2030 such as airport and seaport expansion projects designed to strengthen the logistics industry.
Investments and Mergers: Several companies are entering the car rental and leasing space by way of acquiring stakes in already established businesses. These deals will contribute in raising the market’s competitiveness and enhancing its leadership position in a sector that is witnessing a rapid growth.
Online Car Rental Booking Services: Car Financing Companies are increasingly moving towards digitization to improve operational profits as well as customer experience. Online car rental booking services in the form of mobile applications and websites has been gaining popularity in KSA, which has enhanced user experience by making the process quicker and more convenient by showing the customer the range of cars at a one stop shop.
Analysts at Ken Research in their latest publication “KSA Car Rental and Leasing Market Outlook to 20267F- Driven by Infrastructure Development, Growing Tourism and Diversification of Economy” by Ken Research observed that Car Rental and Leasing market is an emergent automotive market in KSA at a growing stage from the economic crisis after pandemic. The rising government policies and introduction of EVs, growth in travel industry along with government initiatives is expected to contribute to the market growth over the forecast period. The market is expected to grow at a 11.7% CAGR during 2022-2027F owing to investment in tourism, infrastructure development and new government policies.
Key Segments Covered in the report:-
KSA Car Rental and Leasing Market Segmentation
By type of vehicles
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
By Region
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
By End-User
- Private
- Commercial
- Government & Semi Government Contracts
KSA Car Leasing Market Segmentation:-
By type of leaser
- Car Leasing Companies
- Car Dealers
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By Organization
- Organized
- Unorganized
By type of vehicles
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
By Duration for Fleets Leased
- 1 years
- 2 years
- 3 years
- 4 years and more
By Region
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
By End-User
- Private
- Commercial
- Government & Semi Government Contracts
By Commercial
- Logistics Companies
- FMCG and E-commerce
- Oil, Gas & Refineries
- Construction
- Others- Remaining Industries
KSA Car Rental Market Segmentation:-
By Organization
- Organized
- Unorganized
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By Pickup Point
- Off-airport
- On-airport
By type of vehicles
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
By Region
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
By End-User
- Private
- Commercial
- Government & Semi Government Contracts
Key Target Audience:-
- Car Rental Service Providers
- Car Rental Companies aiming to establish in KSA
- KSA automotive industries
- Government Bodies & Regulating Authorities
- Venture Capitalist targeting the car rental market
- Automotive industry association
- Car Manufacturers
- Existing Car Rental Companies
- OEM Dealerships
- New Market Entrants
- Investors
- Car Rental Associations
Time Period Captured in the Report:-
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027F
Companies Covered:-
- Budget Rent a Car
- Theeb
- Key Car Rental
- Hanco
- Avis
- Al jazira/ Auto World
- AL Jabr
- Best Rent a car
- Samara/SIXT
Key Topics Covered in the Report:-
- KSA Automotive Market Overview
- Ecosystem and Business Cycle of KSA Car Leasing and Rental Market
- Timeline and Value Chain Analysis of KSA Car Leasing and Rental Market
- KSA Car Leasing and Rental Industry Segmentation
- KSA Car Leasing Market Size and Segmentation
- KSA Car Rental Market Size and Segmentation
- Porter’s Five Forces Analysis and Trends of KSA Car Leasing and Rental Market
- Growth Drivers and Challenges of KSA Car Leasing and Rental Market
- End User Analysis of KSA Car Leasing and Rental Market
- Competition Framework for KSA Car Leasing and Rental Market
- Future Outlook of KSA Car Rental and Leasing Market
- Case Study of Chinese Rental Market
- Analyst Recommendations and Industry Speaks
For more insights on the market intelligence, refer to below link:-
KSA Car Rental and Leasing Market
Related Reports by Ken Research:-
The Rental Market is supposed to see an increase in the market size with a CAGR of ~8% during 2020-2025. The growth factors behind this are the aggregators and change in consumer preference that is being experienced in the market. The role of the aggregators is still in the nascent stage with a few companies trying to gain the market. In terms of Emirates, Dubai and Abu Dhabi are expected to dominate the rental and leasing space due to the increased commercialization. Vis-à-vis Sharjah in the Rental Space, it is expected to see an increase of CAGR 10% in the next 5 years owing to the increased commercialization taking place in the emirate. The Leasing Market is expected to grow at a CAGR of ~5% during 2020-2025. The Car Rental, Leasing and Limousine market has to be vary of government regulations that would be imposed with respect to the introduction of electronic vehicles in the market. The Government agencies have been slowly trying to move towards more eco-friendly options and there is a nudge towards the same with half of the taxi fleet in Dubai being either Electric or Hybrid.
Belgium Car Rental market has witnessed a steady growth in the 2017-2021 period in terms of fleet size & revenue owing to the expansion in the number & size of both local & international players & market size as a result of increase in the number of tourists travelling to Europe. Regarding the future projections, the Belgium Car Rental market is expected to reach US $ ~Mn in 2022P & will grow at an annual growth rate of ~% (CAGR). The user penetration is expected to reach ~% by 2027 & the average revenue per user will be US $ ~ Mn.
According to Ken Research estimates, the Bahrain car rental market is expected to witness healthy growth during the forecast period of 2017P-2027F This growth can be attributed to the increasing demand for car rental services from tourists, business travelers, and locals. Additionally, the increasing number of international flights to Bahrain and the growing disposable income of the population are expected to further drive the growth of the market.
The Japan Car Rental market is projected to show a significant growth of CAGR ~% in the forecasted period of 2022P-2027F, with increase in travel expenditure, rising demand for rental cars, increased internet and smartphone penetration, rising population and increasing demand from tourists for business and leisure purposes hiring rental cars.
Australia Car Leasing industry was witnessed to be at the late growth stage, with unstable growth year-on-year. Low growth in new vehicle sales and the mining industry bust during the period were primarily responsible for translating low growth in the car lease industry. The industry witnessed growth at a CAGR of around 3.5% in terms of fleet size from leasing segment and 2.7% in terms of revenue from leasing segment during the period 2013-2018. The leasing market is solely built on operating lease and financial lease has not been taken into consideration.
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