Showing posts with label Saudi Arabia Car Rental Market. Show all posts
Showing posts with label Saudi Arabia Car Rental Market. Show all posts

Wednesday, January 29, 2020

Saudi Arabia Car Rental and Leasing Market Research Report to 2023: Ken Research

How Car Rental and Leasing Market Is Positioned in Saudi Arabia?
The Car Rental & Leasing Market in Saudi Arabia is currently at its growth stage. Increase in number of establishments and growing tourism industry has been complimenting the market size of this industry, coupled with increasing employment rate and GDP. The market has grown significantly during the period 2013 to 2018, though a drop has been registered in the market during 2015-2016 owing to recession period in Saudi Arabia. The Saudi Arabia car leasing segment is primarily dominated with corporate demand especially from the industries such as logistics, construction and oil and gas sector with considerable demand for transportation of equipment and employee mobility. The logistics industry has the biggest share in terms of demand followed by FMCG & E-commerce industry, while the demand from government & semi- government offices and others grew at a stable rate in 2018. The increasing market size of industries such as construction and e-commerce will directly impacts the growth rates of car rental industry in the country as with the increase in number of construction contracts, the demand for more rental car for transportation and corporate visitors will increase in the market

The increasing number of tourist arrivals especially during the festivals such as Eid Al- Fitr & Eid Al- Adha has helped the revenue to grow at a CAGR of ~% during the review period. Few of the car rental companies United International Transportation Company (Budget), Hanco rent a car, Theeb rent a car, Best rent a car, Key rent a car, Al Wefaq rent a car, Hertz rent a car, Avis rent a car, and Samara rent a car, Al Tayyar rent a car and others. These companies are providing services such as repair & maintenance, on road assistance, 24*7 customer support, comprehensive insurance package and service centre and mobile workshops etc. Nowadays, there are many rental companies that are providing limousine service to their clients to increase their client retention rate.
The market witnessed a growth at the rate of approximately ~% in terms of revenue and fleet during the review period of 2013 to 2018.

Which Type Of Vehicle Has Been More Successful In 2018?
The market is dominated by the SUV with or without luggage and pickup cargo cars based on the fleet size in 2018. This is due to the high usage of rental & leasing cars by corporate for transportation. SUV and pick cargo cars are comparatively big in size with luggage compartments and thus suitable for handling of equipments and tools. The major demand for these cars occurs from logistics, telecommunication and construction industries. In terms of rental cars, SUV is preferred as generally tourists arrive in group of 6-7 people. SUV with or without luggage and pickup cargo cars accounts for ~% share of the fleet size into car rental & leasing market in Saudi Arabia. The second most preferred vehicle in car leasing is medium category which includes cars such as Honda Accord. This is due to the increasing employment rate in the kingdom and people opt to lease cars compared to buy them as it is comparatively cheaper. The corporate demands for medium category cars for meeting the requirements for client visits and employee mobility. Medium category cars accounted for ~% share on the basis of fleet size in car rental & leasing market in Saudi Arabia.

Share of Different Regions in KSA Car Rental and Leasing Market
The central province is dominating the market in terms of fleet size in Saudi Arabia car rental and leasing market. This is due to the presence of large number of industries in this region particularly in Riyadh and Jeddah. Also, Riyadh is the most populous city in Saudi Arabia and thus, in order to capture the individual and corporate demand for leasing and rental, companies keep their maximum fleet in this region. The central region accounts for ~% share of the total fleet size in Saudi Arabia .The second ranked region in terms of fleet size is western province. This is due to the presence of institutions and universities in this region. Also, western region is the most popular tourist destination due to cities such as Mecca & Medina. These places are the major pilgrimage attractions in Saudi Arabia. Considering the demand from corporate and tourism industry, car rental companies maintain a significant number of cars in western region. Western province accounts for ~% share of the total fleet size in car rental & leasing market in Saudi Arabia.

What are the Major Challenges in the Saudi Arabia Car Rental & Leasing Market?
Saudization is posing as a major challenge for international car rental companies and car dealers. The saudization supports the employment of Saudi nationals into car rental companies and discourages foreign employees. This ban led to the shutdown of many small car rental companies in the market. This law results into low profit for the companies as they need to pay high salaries to Saudi’s workers. The car rental companies are also facing major challenge from the government initiative of developing public transport in Saudi Arabia. SAPTCO has been established in order to improve the public modes of transport. This creates a threat for car rental companies as individual would start shifting towards public mode of transport as they would be available at cheaper rates. Increased premium by insurance company on rental cars is also creating hindrance in the growth of Saudi Arabia car rental industry. Insurers hiked compulsory motor third party liability insurance premiums due to the risk and losses suffered during the period of recession. Many insurance companies now refuse to provide insurance coverage to rental companies due to which there is a situation of monopoly where the prices are in the hands of few insurance companies. As insurance is the pre-requisite demand from corporate and individuals, thus it is a big challenge for car rental companies in the market.

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 research report, refer to below link:

Related Reports



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

Monday, June 10, 2019

Saudi Arabia Car Rental and Leasing Market is Driven by Growing GDP, Employment Rate & Expanding End User Industries: Ken Research Analysis

“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

Friday, June 7, 2019

Saudi Arabia Car Rental and Leasing Market Outlook to 2023: Ken Research

The report titled “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)”covers market size in terms of fleet size and revenue generated from car rental and leasing market along with market segmentation by car dealer & car rental companies, by type of vehicle (SUV with or without luggage & pickup cargo cars, medium category, small category , premium/luxury), by duration (1-2 year, more than 2 year but less than 4 years, 4 years and more than 4 years) and by region (central region, western region, eastern region, southern region and northern region),by end user (logistics, FMCG, oil& gas, construction, government & semi- government offices and others), by user (corporate and individual), by on airport & off airport. The report also covers emerging growth drivers and trends; issues and challenges; government regulations and competitive landscape of players in the market with special focus on United International Transportation Company (Budget), Hanco rent a car, Theeb rent a car, Avis rent a car, Al Wefaq rent a car, Al Tayyar rent a car, Autoworld rent a car, Key rent a car, Best rent a car and others. The report also explores the emerging technologies into car rental market, future outlook & projections along with analyst recommendation & macroeconomic variables highlighting the major opportunities & cautions to the readers.

Saudi Arabia Car Rental Market Summary
Market Overview: Saudi Arabia car rental market is at the growth stage witnessing intense competition. Increase in the tourist arrivals, employment rate and growing number of establishments in the kingdom has propelled momentum to the market. The GDP of Saudi Arabia has increased considerably during the review period. The market size of construction industry in the kingdom has increased aggregating a CAGR of close to 3.9% during 2013-2018 owing primarily to the higher demand for car leasing and rental. Major car rental companies such as United International Transportation Company, Hanco, Best Rent a Car, Hertz, Avis, Key, Al Wefaq, Al Tayyar, Enterprise, Samara and others have complimented the target audience in terms of availability of wide range of services. Saudi Arabia car rental & leasing market has witnessed sound growth at a CAGR of around 12.5% in terms of fleet size from leasing segment and 4.6% in terms of fleet size from rental segment during the revenue period 2013-2018.

Market Segmentation
By Car Dealer & Car Rental Companies
Car rental companies dominated the market owing to superior customized services to the clients. In addition, the car rental companies catered the demand of individuals for fewer cars as compared to dealers who focused on the demand for bulk orders only. However, in order to cope up with competition, the car dealers have started providing customized service to the clients at cheaper rate as compared to car rental/leasing companies. Thus, few end user industries have started to prefer car dealers in Saudi Arabia for their car leasing requirements. 

By Types of Vehicles (SUV with or without luggage & pickup cargo cars, Medium category, Small category, Premium/Luxury)
Among the five types of vehicles, SUV with or without luggage & pickup cargo cars have gathered the maximum market share in terms of fleet size in leasing segment due to their big size and availability of luggage compartment for transportation of equipment & tools. Medium category which includes cars such as Honda Accord and Toyota Corolla ranks second due to the increasing employment rate which further leads to higher purchasing power in the country. Small category which includes hatchbacks and sedans has been preferred by corporate for employee mobility and client visits and accounted for third largest market share in terms of total fleet size in the market.

By Sectors/Industries (Logistics, FMCG, Oil& Gas, Construction, Government & Semi- Government offices and others)
Logistics is the most prominent sector which demands car leasing services for facilitating employee mobility and goods transportation followed by the FMCG & E-commerce. Demand from construction sector has started increasing due to the increasing number of construction contracts in the country. Oil & Gas sector is the main pillar of the economy and thus, after recession and oil price stabilization, the demand from this sector has started increasing especially in the eastern region.

By Region/Provinces (Central, Western, Eastern, Southern, Northern)
In terms of regions, maximum demand is accounted from central region due to the presence of large industrial area in this region. Riyadh and Jeddah are the most populous cities of central region and thus, the demand for individual and corporate car rental & leasing is high from this region. Western region ranks second in terms of demand for car rental & leasing service. This is due to the presence of cities such as Mecca & Medina which are the major tourist attraction for pilgrimage. Though there are number of universities and institutions in this region which also propels the demand for car rental and leasing services. Eastern region is the major hub of oil companies, cities such as Dammam and Al-Khobar generates the highest demand for car rental and leasing services from this region. Southern & Northern region have low demand for car rental & leasing service owing to low population and less developed industrial area in these regions.

Competitive Landscape
Competition stage in the country’s car rental & leasing market is witnessed to be concentrated on the basis of fleet size with presence of both international and local car rental/leasing companies in 2018. Companies compete on the basis of pricing, fleet size, brand value, service portfolio or value added services. Some of the major players operating within this segment include United International transportation Company (Budget), Hanco, Best, Theeb, Key, Hertz, Avis, Autoworld, Samara and others. Few cars dealers have also established themselves at the forefront such as Ford Al-Jazirah, Al Jomaih and Universal Motors. The number of service centers or retail points and diversified client base are considered vital in order to reach a wider target audience in the country.

Saudi Arabia Car Rental & Leasing Market Future Outlook
Over the forecasted period, Saudi Arabia car rental & leasing market will witness a high growth from the period 2018 to 2023E as the market becomes more competitive. It is forecasted to witness a CAGR (2018-2023) of close to 10.2% in terms of fleet size of car leasing market and car rental market is expected to grow at a CAGR (2018-2023) of close to 6.1% due to the increase in number of establishments and tourism in Saudi Arabia. Companies are focusing more towards adding younger fleet in car rental market due to the increasing demand for new cars from corporate and individuals.

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 research report, refer to below link:

Related Reports





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