Non-Oil Sector Diversification: Vision 2030 is encouraging new commercial entities to set up in the country which has increased demand for fleet management, leasing and last mile delivery during the recent period. Saudi Arabia’s non-oil business activity expanded at the fastest rate in seven years in November 2022, supported by a sharp rise in new orders and continued confidence in the growth outlook.
Expansion of Tourism and Travel Industry: Growing tourism in the kingdom’s western region, supported by new hospitality and tourism initiatives like red sea development and the introduction of e-visas for visitors from 49 countries for reasons other than religious and medical tourism. Other driving factors include religious tourists to holy sites like Mecca and Medina, and the growing medical tourism sector – with KSA’s state of art medical facilities attracting more medical tourists every year.
Sluggish Growth in Market: Slow growth in the market during 2016-2017 can be attributed to sluggish economic growth owing to cheap oil which led to fiscal consolidation weakening investor and consumer sentiment. Also, shortage of liquidity and capital crunch forced companies to cut costs, with even leasing companies were reducing their lease price to be competitive and to stay in business.
Severe Competition and Increasing Costs: Emergence of ride-hailing applications and rising popularity of online bookings are leading to further fragmentation in the market which is making competition intense. On the other hand, digitization has increased marketing costs incurred to build and maintain websites and mobile applications.
Analysts at Ken Research in their latest publication “KSA Car Rental and Leasing Market Outlook to 2027F- Driven by Infrastructure Development, Growing Tourism and Diversification of Economy” by Ken Research observed that Car Rental and Leasing market is an emergent automotive market in KSA at a growing stage from the economic crisis after pandemic. The rising government policies and introduction of EVs, growth in travel industry along with government initiatives is expected to contribute to the market growth over the forecast period. The market is expected to grow at a 11.7% CAGR during 2022-2027F owing to investment in tourism, infrastructure development and new government policies.
Key Segments Covered in the report:
KSA Car Rental and Leasing Market Segmentation:
- By type of vehicles:
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
- By Region:
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
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- By End-User:
- Private
- Commercial
- Government & Semi Government Contracts
KSA Car Leasing Market Segmentation:
- By type of leaser:
- Car Leasing Companies
- Car Dealers
- By Organization:
- Organized
- Unorganized
- By type of vehicles:
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
- By Duration for Fleets Leased:
- 1 years
- 2 years
- 3 years
- 4 years and more
- By Region:
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
- By End-User:
- Private
- Commercial
- Government & Semi Government Contracts
- By Commercial:
- Logistics Companies
- FMCG and E-commerce
- Oil, Gas & Refineries
- Construction
- Others- Remaining Industries
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KSA Car Rental Market Segmentation:
- By Organization:
- Organized
- Unorganized
- By Pickup Point:
- Off-airport
- On-airport
- By type of vehicles:
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
- By Region:
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
- By End-User:
- Private
- Commercial
- Government & Semi Government Contracts
Key Target Audience:
- Car Rental Service Providers
- Car Rental Companies aiming to establish in KSA
- KSA automotive industries
- Government Bodies & Regulating Authorities
- Venture Capitalist targeting the car rental market
- Automotive industry association
- Car Manufacturers
- Existing Car Rental Companies
- OEM Dealerships
- New Market Entrants
- Investors
- Car Rental Associations
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027F
Companies Covered:
- Budget Rent a Car
- Theeb
- Key Car Rental
- Hanco
- Avis
- Al jazira/ Auto World
- AL Jabr
- Best Rent a car
- Samara/SIXT
Key Topics Covered in the Report:
- KSA Automotive Market Overview
- Ecosystem and Business Cycle of KSA Car Leasing and Rental Market
- Timeline of players and Value Chain Analysis of KSA Car Leasing and Rental Market
- KSA Car Leasing and Rental Market Segmentation
- KSA Car Leasing Market Size and Segmentation
- KSA Car Rental Market Size and Segmentation
- Porter’s Five Forces Analysis of KSA Car Leasing and Rental Market
- Growth Drivers, Trends and Issues is KSA Car Leasing and Rental Market
- End User Analysis of KSA Car Leasing and Rental Market
- Competition Framework for KSA Car Leasing and Rental Market
- Future Outlook of KSA Car Rental and Leasing Market
- Case Study of Chinese Rental Market
- Analyst Recommendations and Interview with Industry Expert
For more information on the research reports, refer to below link:-
KSA Car Rental and Leasing Market Outlook to 2027F: Ken Research
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