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
Thank you sharing nice blog with us.
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