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 effects 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-19” observed 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.
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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
Auto Rent
Limousine Companies
Dubai Taxi Corporation
Emirates Transport
City Link Limousine
Private Limousine
Avis Limousine
Transguard Limousine
Limoinuae
National Transport
Sharjah Roads and Transport Authority
Hot Wheels Limo
Global Wings Limousine
City way 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
For More Information on the Research Report, Refer to Below Link:
UAE Car Rental, Leasing and Limousine Market: Ken Research
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