“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:
Related
Reports
Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
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