The UAE Car Rental and Leasing Market is expected to be driven by Changing Customer Preference vis-à-vis Personal ownership owing to Covid-19 coupled with Rising Tourism, High Vaccination Rates enabling Commercial Activities: Ken Research

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Gurugram, India, Feb. 22, 2022 (GLOBE NEWSWIRE) -- Key Findings

  • Historically, public transport has been the preferred mode of travel in UAE. However, the pandemic has provided a shift in consumer preference for the industry with the increased movement of the population towards personal transport due to health reasons.
  • The change in consumer preference has been aided by greater technological adoption, government regulations, and health concerns.
  • Consumers are shifting away from traditional methods of booking vehicles for rentals directly from the airport to booking vehicles from any part of the city through the applications of different aggregators.
  • Major players in the market such as Diamond lease, Avis, Hertz and Shifty and many more, are expanding their fleets as aggregators have entered the market and the requirement for 'ready-vehicles' has increased. One way the major players have expanded their fleet size is by acquiring fleets from companies which suffered financially from the effects of the pandemic.

Increasing Car Rentals and Leases due to Covid-19: The demand for rental and leased cars increased after the lockdown imposed due to Covid-19 pandemic was lifted but restrictions imposed by the UAE government on Public transport continued. There was a shift in consumer preference due to various factors. Most noticeably, health concerns by individuals and families moved to rent cars instead of using public transport. The growth of tech aggregators in the market also eased the process of selecting vehicles on rent or lease. Nonetheless, the behavior of individuals and corporates varied as individuals demanded cars for a shorter period of time more frequently than compared to corporates who demanded vehicles for a longer period of time.

Opportunities through Commercial Events and Reviving Tourism: Companies in this space are bullish towards Expo 2020 with the event spanning for a period of over 6 months and with an expected arrival of over 3 million people for the event. In the Limousine space, companies are bullish towards the event due to the increased pre-bookings done by corporates for the event. Furthermore, there is an expectation in the market that tourism will revive back due to the high vaccination rates and the attitude of the government towards this has been seen fairly positive.

Shift towards Electric/Hybrid Vehicles: The Government in UAE has been pushing towards a movement towards electric vehicles in a strong manner by providing both monetary and non-monetary incentives. The most direct of this effect would be experienced by the taxi and limousine companies working in the industry as the government owned companies have already started transforming their fleets to either hybrid or electric ones, providing them with a first mover advantage. In comparison, the rental companies run on a very thin number of Electric Vehicles in their fleet currently but are expected to increase the same in the coming years.

Focus on Value-Added Services: In the near future, similar trend can be observed for both the rental and limousine companies as players are competing by providing superior value-added services instead of heading towards a price war. The services include sliding scale termination policy, pooled mileage services to corporates to after rental services and guaranteed replacement of vehicles during servicing. Easy financing opportunities will be offered to both corporates as well as individuals.

Analysts at Ken Research in their latest publication "The UAE Car Rental, Leasing and Limousine Market Outlook to 2025 - Driven by Reviving Tourism, altered Customer Preference from Public Transport to Personal Cars owing to Covid-19observed that UAE car rental and leasing market is in a growth phase, and is recovering strongly from the economic crisis after pandemic. The primary factors that are leading to the gains in the sector are the rebounding of tourism, favorable government initiatives in the form of various events such as Expo 2020 and Abu Dhabi Grand Prix for Formula 1. Additionally, shift in customer preference towards rental and leased vehicles aided by increased technological adoption. The UAE Car Rental Market is expected to grow at a CAGR of 8.5% on the basis of revenue for the period 2020-2025F.

Key Segments Covered for Car Rental:-

  • By Emirates
    • Dubai
    • Abu Dhabi
    • Sharjah
  • Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)
  • By Types of Car
    • Economy
    • SUV
    • Luxury
  • By End User
    • Corporate
    • Personal
  • By Source of Booking
    • On-Airport
    • Off-Airport
  • By Duration of Car Rental
    • 0-1 Month
    • 1-6 Months
    • 6-12 Month

Key Segments Covered for Car Leasing:-

  • By Emirates
    • Dubai
    • Abu Dhabi
    • Sharjah
    • Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)
  • By Types of Car
    • Economy
    • SUV
    • Luxury
    • Pick-Up Vans
  • By Type of Car Leased
    • Corporate
    • Personal
  • By Duration of Car Leasing
    • 1 Year
    • 2 Years
    • 3 Years
    • More than 3 Years
  • By End User
    • Facility Management
    • Industrial Sector
    • Food Services
    • Logistics
    • Others

Key Segments Covered for Limousine Car:-

  • By Emirates
    • Dubai
    • Abu Dhabi
    • Sharjah
    • Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)
  • By Limousine Companies in Emirates (Number of Companies)
    • Dubai
    • Abu Dhabi
    • Sharjah
    • Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)
  • By Types of Car
    • Standard
    • Large Sized
    • Premium
    • Ultra Luxury
  • By Business
    • Event
    • Non – Event
  • By Source of Business (for Cab Companies)
    • Airport
    • Non – Airport
  • By Source of Business
    • Cab Companies
    • Non – Cab Companies
  • By Source of Payment
    • Direct from Corporate
    • Corporate Payments
  • By Purpose of Limousine
    • Leisure
    • Corporate

Companies Covered:-

  • Rental and Lease Companies
    • Thrifty Rent a Car
    • Emirates Transport
    • Hertz
    • Diamondlease
    • Massar Car Rental
    • Leaseplan
    • Shift Rent a Car
    • National Car Rental
    • Avis Rent a Car
    • Europcar
    • Budget Rent a Car
    • Fast Rent a Car
    • Dollar
    • Nirvana Travel and Tourism
    • AutoRent

Limousine Companies:-

  • Dubai Taxi Corporation
  • Emirates Transport
  • CityLink Limousine
  • Private Limousine
  • Avis Limousine
  • Transguard Limousine
  • Limoinuae
  • National Transport
  • Sharjah Roads and Transport Authority
  • Hot Wheels Limo
  • Global Wings Limousine
  • Cityway Limousine
  • Royal Falcon Limousine
  • Insaf Limousine
  • Onak Limousine
  • Dubai Exotic Limo

Major Dealer

  • Al Habtoor
  • Al Futtaim
  • Al Rostamani
  • Al Tayer Group
  • Ali and Sons

Key Target Audience:-

  • Car Rental companies
  • Car Leasing companies
  • Limousine Companies
  • Tourism Industries
  • Tour and Travel Aggregator
  • Automobile companies
  • Cab taxi companies
  • Cab Aggregators
  • Technology Provides
  • Investors and Venture Capitalist
  • Government Associations

Time Period Captured in the Report:-

  • Historical Period – 2015-2020
  • Forecast Period – 2021-2025

Key Topics Covered in the Report:-

  • Overview of the UAE Car Rental, Leasing and Limousine Industry
  • Government Regulations, Initiatives and Procedure to Start Car Rental & Leasing Business
  • Car Rental Market Overview
  • Car Rental Market Size
  • Car Rental Market Segmentation
  • Future Outlook of the UAE Car Rental Market, 2020-2025F
  • Car Leasing Market Overview
  • Car Leasing Market Size
  • Car Leasing Market Segmentation
  • Future Outlook of the UAE Car Leasing Market, 2020-2025F
  • Competition in Car Rental and Leasing Market
  • Company Profiles of Rental and Lease Companies
  • Limousine Car Market Overview
  • Limousine Car Market Segmentation
  • Competition in Limousine Service Market Overview
  • Future Outlook of the UAE Limousine Car Market, 2020-2025F
  • Covid-19 Impact on the Industry & the way forward
  • Analysts' Recommendations
  • UAE Car Rental Industry
  • UAE Car Rental Market
  • UAE Car Rental and Leasing Industry
  • UAE Car Rental and Leasing Market
  • UAE Car Leasing Industry
  • UAE Car Leasing Market
  • Competition in the UAE Car Rental Market
  • Competition in UAE Car Leasing Market
  • Corporate Car Leasing UAE
  • Corporate Car Rentals UAE
  • Corporate Limousine Car Industry UAE
  • Economy Car Bookings in UAE
  • Electric Cars UAE
  • Taxi Fleet UAE
  • Hybrid Vehicles UAE
  • Driver Services UAE
  • Car Rental Analysis UAE
  • Car Leasing Analysis UAE
  • Number of Players in Rental Industry UAE
  • Number of Players in Leasing Industry UAE
  • Majors Players in Rental Industry UAE
  • Majors Players in Leasing Industry UAE
  • UAE Fleet Size Car Rentals
  • UAE Fleet Size Car Leasing
  • Expo 2020 Car Rental and Leasing
  • Avis Market Share UAE
  • Limousine Market Size UAE
  • Limousine Market UAE

For More Information on the research report, refer to below link:-

UAE Car Rental, Leasing and Limousine Market

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