GURUGRAM, India, July 1, 2019 /PRNewswire/ --
- The number of establishments in Saudi Arabia is expected to positively incline registering a CAGR of close to 3.0% with growth in the number of construction projects and oil and gas projects during 2019-2023. The construction sector is expected to grow with a CAGR of close to 3.9% and oil and gas sector with a CAGR of 5.0% during this period. This will lead to proportionate rise in the corporate demand for car rental and leasing service in the country by the end of 2023.
- The ban on the women driving in Saudi Arabia was lifted in 2018, which reflected positively on the economy and the spending power of families of Saudi Arabia. The women population in the year 2018 in Saudi Arabia was 10.2 million which is expected to reach 15 million in 2020, 20% of which are projected to drive, resulting in growing economy and the growing demand for car rental and leasing service in the country.
- The car rental market is also expected to grow due to the increase in number of tourist arrivals in the country with an annual growth anticipated at around 1.1% till 2023. The western province of Saudi Arabia is expecting a growth of 20.0% in the number of tourist arrivals in Mecca by 2022. This would surge the demand for rental cars in the country in future.
Growth Enablers: Saudi Arabia car rental and leasing market growth will be facilitated by increasing number of establishments, growing size of construction, logistics and oil & gas sector, increasing employment and GDP and growing number of tourist arrivals in the country. The car rental and leasing market is still dominated by corporate users due to their bulk demand for variety of cars as compared to individuals. The individual demand is mainly supported by tourist industry especially from central and western region. This demand is highest during festivals such as Eid Al- Fitr and Eid Al- Adha.
Competition: Many new rental companies and car dealers might enter the market in the coming years. There could be an opportunity for new car dealers to enter in the market with customized services, attractive fleet and low pricing strategy. Companies will focus on differentiating themselves on the basis of value added services (personalized relationship manager) provided to prospective clients, reducing the service cost and introducing newer models into their fleet to capture a significant share in the market.
Regional Demand: In terms of regional demand in car rental industry in Saudi Arabia, it is expected that western and eastern regions will have high demand for car rental due to increase in number of establishment in eastern region and surge in tourism activities in western region. The central region will have comparatively low and matured demand due to intense competition. The central region hosts a mix of sectors with high penetration of retail business. The southern and northern region has stable or low demand as compared to other major regions of Saudi Arabia owing low infrastructure and tourism development in these regions.
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)" believe that the market is expected to register positive CAGR of 12.1% in terms of revenue and 10.6% in terms of fleet in car leasing segment and 6.1% growth in term of fleet in car rental segment during the forecasted period 2018-2023.
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)
By End User (On the basis of fleet size)
- FMCG & e-commerce
- Oil & Gas
- Government& semi- government offices
- Other Industries
By User (On the basis of fleet size)
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
- 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 market research report please refer to the link below:
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Ankur Gupta, Head Marketing
Ken Research Private Limited
SOURCE Ken Research