|01 July, 2019

Albeit Tough Business Environment, Saudi Arabia Car Rental & Leasing Market Would be Driven by Continued Demand From End Users Sector and Rise in Tourist Arrivals: Ken Research

The construction sector is expected to grow with a CAGR of close to 3.9% and oil and gas sector with a CAGR of 5.0% during this period

  • The number of establishments in Saudi Arabia is expected to positively incline registering a CAGR of close to 3.0% with growth in the number of construction projects and oil and gas projects during 2019-2023. The construction sector is expected to grow with a CAGR of close to 3.9% and oil and gas sector with a CAGR of 5.0% during this period. This will lead to proportionate rise in the corporate demand for car rental and leasing service in the country by the end of 2023.
  • The ban on the women driving in Saudi Arabia was lifted in 2018, which reflected positively on the economy and the spending power of families of Saudi Arabia. The women population in the year 2018 in Saudi Arabia was 10.2 million which is expected to reach 15 million in 2020, 20% of which are projected to drive, resulting in growing economy and the growing demand for car rental and leasing service in the country. 
  • The car rental market is also expected to grow due to the increase in number of tourist arrivals in the country with an annual growth anticipated at around 1.1% till 2023. The western province of Saudi Arabia is expecting a growth of 20.0% in the number of tourist arrivals in Mecca by 2022. This would surge the demand for rental cars in the country in future.

Growth Enablers: Saudi Arabia car rental and leasing market growth will be facilitated by increasing number of establishments, growing size of construction, logistics and oil & gas sector, increasing employment and GDP and growing number of tourist arrivals in the country. The car rental and leasing market is still dominated by corporate users due to their bulk demand for variety of cars as compared to individuals. The individual demand is mainly supported by tourist industry especially from central and western region. This demand is highest during festivals such as Eid Al- Fitr and Eid Al- Adha.

Competition: Many new rental companies and car dealers might enter the market in the coming years. There could be an opportunity for new car dealers to enter in the market with customized services, attractive fleet and low pricing strategy. Companies will focus on differentiating themselves on the basis of value added services (personalized relationship manager) provided to prospective clients, reducing the service cost and introducing newer models into their fleet to capture a significant share in the market.

Regional Demand: In terms of regional demand in car rental industry in Saudi Arabia, it is expected that western and eastern regions will have high demand for car rental due to increase in number of establishment in eastern region and surge in tourism activities in western region. The central region will have comparatively low and matured demand due to intense competition. The central region hosts a mix of sectors with high penetration of retail business. The southern and northern region has stable or low demand as compared to other major regions of Saudi Arabia owing low infrastructure and tourism development in these regions.

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)believe that the market is expected to register positive CAGR of 12.1% in terms of revenue and 10.6% in terms of fleet in car leasing segment and 6.1% growth in term of fleet in car rental segment during the forecasted period 2018-2023.

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

Key Topics Covered in the Report

  • Executive Summary
  • Research Methodology
  • Saudi Arabia Car Rental & Leasing Market Size
  • Saudi Arabia Car Rental & Leasing Market Segmentation
  • SWOT Analysis of Saudi Arabia Car Rental & Leasing Market
  • Trends and Development in Saudi Arabia Car Rental & Leasing Market
  • Issues and Challenges in Saudi Arabia Car Rental & Leasing Market
  • Regulatory Scenario of Saudi Arabia Car Rental & Leasing Market
  • Recent Developments in Saudi Arabia Car Rental & Leasing Market
  • Emerging Technologies in Saudi Arabia Car Rental & Leasing Market
  • Competitive Scenario in Saudi Arabia Car Rental & Leasing Market
  • Company Profiles of Major Players in Saudi Arabia Car Rental & Leasing Market
  • Saudi Arabia Car Rental & Leasing Market Future Outlook and Projections, 2018-2023E
  • Analyst Recommendation in Saudi Arabia Car Rental & Leasing Market

For more information on the market research report please refer to the link below:

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/saudi-arabia-car-rental-leasing-market/214914-100.html 

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Philippines Car Rental Industry Revenue has grown at a positive CAGR during the period 2013-2018. This growth was supported by the increase in the number of tourist arrivals in the country, government initiatives to promote tourism and rise in fleet size along with general economy and business trip growth. The market faces challenges such as the inconsistent local transportation, highly congested roads and unsafe driving practices. The car rental market is concentrated with a few players. Major global players such as Avis, Hertz, Nissan Rent-A-Car and Europcar are well established in the market. Economy cars dominated the market of car rentals in Philippines in the year 2018. The segment has grown due to its affordability, more compact cars on the roads due to increasing traffic problems and increasing business related trips to the country. Car rental for leisure purpose contributed a major share for the industry in 2018. Rented cars are majorly demanded by tourists who visit the country for holidays or recreational purposes. Luzon contributed the highest revenue share in the overall car rental market in Philippines in the year 2018. Luzon provides the maximum business to car rental industry owing to its high population, diverse tourist attractions and business establishments.

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The report provides a comprehensive analysis on the Car Rental, leasing, cab aggregator, red tax segments' Business Models, Competition Scenario, market share of major players, segmentation, Regulatory Environment, Trends and Developments, Issues and Challenges. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.

Costa Rica Car Rental industry revenue has grown at a positive CAGR during the period 2012-2018. This growth was supported by the increase in the number of internet users, rising urban population, government initiatives to promote sustainable tourism and rise in the disposable income. The market faces challenge from the local transportation available in the country, consistent crimes and conditions of the roads.

The car rental market is concentrated among few players such as Adobe Rent A Car, National car Rental, enterprise Car Rental, Alamo Car rental and Budget Car Rental. SUV/AUV cars contributed the most to the overall car rental market in Costa Rica in the year 2018. The segment has grown due to large seating and boot space which facilitates in group travels, sturdiness and comfort and easier to maneuver on tough roads. On the other hand, Economy and Premium accounted for a limited share in car rental market. Car rental for leisure purpose contributed a major share in terms of generating revenues for the industry in 2018. Rented cars are majorly demanded by tourists who visit the country for holidays or recreational purpose. Car rental for business purpose contributed second highest revenue share; whereas insurance replacement accounted for a small share in the overall car rental market revenues in 2018.San Jose contributed the highest revenue share in the overall car rental market in Costa Rica in the year 2018 due to large population and diverse tourist attractions. This was followed by Heredia, Liberia, Puerto Limon and other regions.

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