The report titled “The UAE Car Rental, Leasing and Limousine Market Outlook to 2025 (Second Edition) - Driven by Reviving Tourism, altered Customer Preference from Public Transport to Personal Cars owing to Covid-19” provides a comprehensive analysis on the status of the Car Rental, Lease and Limousine industry in UAE. With respect to the car rental and leasing market/industry the report covers various aspects including fleet size & market size, segmentation by Emirates (Dubai, Abu Dhabi, Sharjah, Others), Major Players in the market and their market share, Types of Cars (Economy, SUV, Luxury), End Users (Corporates or Individuals), Duration of the Rentals (0-1 Month, 1-6 Months and 6-12 Months), and Booking destinations (On – Airport and Off – Airport). Furthermore, the report provides insight into the Limousine Market in UAE by covering aspects such as Fleet Size over the years, the Market Size, Segmentation by Emirates (Dubai, Abu Dhabi, Sharjah, Others), Type of Limousines (Standard, Large Sized, Premium and Ultra Luxury), Revenue of Cab Aggregators, Revenue By Source (Events and Non-Events), and Major Players in the Limousine Space. Additionally, the report also provides details regarding the taxi business industry in UAE with specifics related to the number of trips done, number of people using the taxis, and, fare estimation between different companies. The report takes into account of the qualitative and expected effects of Covid-19 pandemic on the above mentioned segments, especially vis-à-vis the rental and leasing market, where growth factors, information regarding the strength, opportunity, potential threat to the industry is also mentioned. The UAE Car Rental and Leasing Market report concludes with projections for the future industry including forecasted sales revenue and volume by 2025, market segmentations and analysts’ take on the future.
UAE Car Rental Market Overview and Size:
UAE Car Rental market has
increased at a negative CAGR of ~ 0.6% during 2015-2020, mainly due to the
impact of taxation introduced by the government coupled with the less number of
cars rented due the lockdown imposed in the country owing to the global pandemic
Covid-19. However, an expected revival in tourism, strong vaccination rates,
increased technological upgradation for both suppliers and customers, favorable
government initiatives in the form of various events such as Expo 2020 and Abu
Dhabi Grand Prix, and favorable changes in customer preference towards
personalized vehicles are all factors that are expected to help the UAE Car
Rental Market grow in the forthcoming years.
UAE
Car Rental Market Segmentations
By
Emirates
Dubai and Abu Dhabi lead as
the Emirates with the highest number of rented fleets with a combined share of
~80%. The car rental market is expected to grow in other Emirates such as
Sharjah but the bulk of the demand remains with these emirates.
By
Types of Car
The two most preferred
vehicles in the segment are the economy vehicle and the SUVs, which have a
combined share of ~90% in the market. The economy segment dominates on all the
other segments due to affordability and flexible with respect to the duration
of rentals permitted by the companies.
By
Location of Car Bookings
The majority of the bookings
happen through the airports which accounted the highest share in the market.
However, this trend is expected to change in the coming years with the
introduction of apps by aggregators who provide vehicles free of delivery to
major parts of various cities. Therefore, the number of booking off airports is
expected to increase massively.
By
End Users
Due to the pandemic, small
corporates have turned towards leasing along with an increased demand by
individuals. However, the corporates edge out individuals with a dominating
share in the rented market.
By
Duration of Car Rentals
The majority of car rentals
are taken for a period of less than 1 month. The same stands as a
characteristic for personal leasing and leasing done by small corporates. It
has a share of ~45%. Larger corporates and government agencies prefer longer
rentals that extends for either half a year or a complete period of 12 months.
Due to the uncertainty in the commercial practices across the country owning to
the pandemic, corporates and individuals shifted preference towards short term
rentals
UAE Car Leasing Market Overview and Size
UAE Car Leasing sector is in
a growth phase, having grown at a CAGR of ~1.6% during 2015-2020 (5.1% CAGR
Pre-Covid during 2015-2019). The sector is expecting a revival based on factors
such as increase in tourist footfall, increased commercialization post
Covid-19, and a movement towards specialization of services provided to
corporates such as providing chillers for logistic companies. The market has
become less fragmented due to small players, who were majorly dependent on
contracts of shorter duration being pushed out of the market as a result of the
financial backlash of Covid-19 induced lockdown. Thus, for a steady flow of
business in this uncertain environment, corporates have started working with
the well-established players in the market.
UAE
Car Leasing Market Segmentations
By
Emirates
The major commercial hubs of
Dubai and Abu Dhabi alone accounted for more than 80% share in the market. Where
Dubai accounted the highest share with respect to other Emirates. On the other
hand, in the near future it is anticipated that Sharjah will increase of ~10%
CAGR over the next 5 years.
By
Types of Car
The most preferred vehicles
in the segment is the economy vehicle with a share of ~60%. SUVs is the next
most favored vehicle for the car leasing industry. Pick-up vans contribute a
respectable 12% towards the segment and is majorly used by the corporates of
all sizes. The economy segment dominates due to the fact that most of the
vehicles leased are for lower level management and employees who have to attend
meetings or supervise clients which requires features such as low cost, a
satiable mileage limit and durability.
By
Duration of Car Rentals
The majority of car leasing
are taken for a period of 3 years or more as the fleet leased by the various
companies in the industry for a period of 3 years or more is ~ 70%. The primary
reason behind the same is that the companies offering the leasing to the companies
are able to write off the depreciation as the duration of the leasing
increases. However, established players to match customer expectations suggest
a period of 3 years for leasing compared to a shorter duration of 1 years or 2
years. The time period further increases for commercial vehicles such as 15
seater or a chiller.
By
End Users
The corporates tend to edge
over individuals in the car leasing market. This pattern has accelerated
further due to the pandemic as both the parties have moved towards a longer
lease periods with more value addition services.
By
End Users under Corporates
The corporate firms which
lease the highest number of fleets in the industry is the facility management
services under which pick-ups vans are the most used vehicles as facility
management companies tend to use the most manual labors and thus, require these
vans for transportation. The share of the facility management industry stands
at more than 25%. It is followed by corporates engaged in the industrial sector
and food services.
UAE
Limousine Market Overview and Snapshot on the Landscape
The Limousine Market remains
relatively fragmented compared to the rental and leasing market with a number
of small players and a relatively small average fleet size of about 32 vehicles
per company. The Limousine market suffered greatly during the lockdown in the
3rd Quarter of 2020 as almost 80% of the bookings taking place are for events
and are dependent on bookings from the airports. Both of these activities were
prohibited. Furthermore, one of the major player in the market is controlled by
the Government and there has been a push towards making the Limousine space
more eco-friendly by increasing the number of electronic vehicles and hybrid
vehicles. Additionally, there have been heavy fines imposed on Limousines which
have been running for more than 5 years in the market. On the positive side for
the Limousine Market, reorganization of business events, fairs, expos and
sporting events provide an opportunity.
Competitive
Landscape of UAE Car Rental and Leasing Market
There exists intense
competition between various companies prevailing in the market. The market is
primarily dominated by 10-12 major players which include government backed
organizations such as Emirates Transport, international players such as Avis
and Hertz, and big regional players such as Fast Rent A Car. The market became
slightly less fragmented due to the uniformity in price triggered by the
aggregators as all these players are currently trying to register their fleets
with these aggregators. Therefore, the major players are avoiding to engage in
a price war and are trying to gain market share by providing differentiated
valued added services. Furthermore, some players such as Hertz are moving
almost exclusively towards providing vehicles to corporates. The medium and
smaller players are competing in a more traditional way of providing rental and
leasing services as per the demand of the businesses.
UAE Car Rental and Leasing Market Future
Outlook
& Projections
The Rental Market is
supposed to see an increase in the market size with a CAGR of ~8% during 2020-2025.
The growth factors behind this are the aggregators and change in consumer
preference that is being experienced in the market. The role of the aggregators
is still in the nascent stage with a few companies trying to gain the market.
In terms of Emirates, Dubai and Abu Dhabi are expected to dominate the rental
and leasing space due to the increased commercialization. Vis-à-vis Sharjah in
the Rental Space, it is expected to see an increase of CAGR 10% in the next 5 years owing to the
increased commercialization taking place in the emirate. The Leasing Market is
expected to grow at a CAGR of ~5% during 2020-2025. The Car Rental, Leasing and
Limousine market has to be vary of government regulations that would be imposed
with respect to the introduction of electronic vehicles in the market. The
Government agencies have been slowly trying to move towards more eco-friendly
options and there is a nudge towards the same with half of the taxi fleet in
Dubai being either Electric or Hybrid.
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
- AutoRent
Limousine
Companies
- Dubai Taxi Corporation
- Emirates Transport
- CityLink Limousine
- Private Limousine
- Avis Limousine
- Transguard Limousine
- Limoinuae
- National Transport
- Sharjah Roads and Transport Authority
- Hot Wheels Limo
- Global Wings Limousine
- Cityway 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, refer to below link:-
UAE Car Rental Market Research Report
2021
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Ankur Gupta, Head Marketing &
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