Saudi Arabia Vehicle Rental Market Outlook (2023-2029) | Size, Share, Trends, Growth, industry, Forecast, Outlook & COVID-19 IMPACT

The Saudi Arabia Vehicle Rental Market report thoroughly covers the market by type, service type, booking type and region. The Saudi Arabia vehicle rental market outlook report provides an unbiased and detailed analysis of the Saudi Arabia vehicle rental market trends, opportunities high growth areas, and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.

Latest 2023 Development of the Saudi Arabia Vehicle Rental Market

Saudi Arabia Vehicle Rental Market was growing rapidly and the market has undergone several new developments. The expansion of existing players as they are intensifying their fleets and adding new rental locations throughout the country is driven by the growing demand for rental vehicles from both tourists and locals. The market is also attracting new players, such as the car-sharing platform Careem. Additionally, several new start-ups are emerging in the market which aims to provide innovative solutions. Moreover, the vehicle rental market in Saudi Arabia is closely linked to the tourism sector, and many companies are partnering with hotels to provide bundled rental packages to tourists.

Many companies are introducing electric vehicles into their rental fleets to promote sustainable transport. The Vehicle Rental Industry is also undergoing a digital transformation as many companies are introducing various applications and online booking systems to streamline the rental process and enhance the customer experience. The vehicle rental market in Saudi Arabia is exhibited to grow strong growth and innovation. The major factors driving the growth of this industry include increasing demand from both tourists and locals, as well as the government's focus on sustainable transport

Saudi Arabia Vehicle Rental Market Synopsis

The Saudi Arabia vehicle rental market witnessed decent growth during the period 2017-2019 underpinned by rapid growth in tourism and rising urbanization in the country. However, the Covid-19 pandemic affected the revenues and fleet size of the vehicle rental market significantly due to the moratorium on tourism activities, downscaling of commercial activities, as well as public apprehension about the hygienic treatment of rental vehicles.

According to 6Wresearch, the Saudi Arabia Vehicle Rental Market size is projected to grow at a CAGR of 4.5% during 2021-2027F. The primary reason for the growth in the Saudi Arabia vehicle rental industry is the rapidly growing investment in the tourism sector, robust development of the logistics sector, as well as the rising preference of corporate players towards leasing cars. Furthermore, the government’s initiatives for the diversification of the economy away from oil, led by Saudi Vision 2030, would lead to the establishment of several new commercial entities in the country, thereby propelling the demand for transportation services over the coming years. This, in turn, would also augment the revenues of the vehicle rental market in Saudi Arabia.

Market by Types Analysis

In terms of types, passenger vehicles contributed a 67.7% revenue share in the Saudi Arabia vehicle rental market in 2020 owing to the preference of expats and tourists to rent or lease cars as a means to commute. Moreover, in the coming years rapidly growing tourism sector due to government initiatives to develop recreational and luxury tourism, through projects such as Red Sea Development, as well as the introduction of e-visas for tourists from 49 countries beyond the auspices of religious and medical tourism and easing of tourist restrictions such as strict dress code for women would further bolster the demand for rental vehicles in the country.

Market by Distribution Channels Analysis

In 2020, offline distribution channels acquired a 70.0% revenue share in Saudi Arabia vehicle rental market owing to inadequate know-how among people and a high preference for offline modes of booking in logistics and commercial sectors. However, the online booking type is expected to witness higher growth over the coming years, owing to additional services, a wider range of options and promotional offers provided by the companies through online mode. Additionally, COVID-19 also shifted consumer preference to online bookings which minimises social contact and the post-pandemic habit of booking through online sources is likely to sustain over the medium to long term.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2017 to 2020.
• Base Year: 2020
• Forecast Data until 2027.
• Key Performance Indicators Impacting the Market.

Key Highlights of the Report

• Saudi Arabia Vehicle Rental Market Overview
• Saudi Arabia Vehicle Rental Market Outlook
• Saudi Arabia Vehicle Rental Market Forecast
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, for the Period 2017-2027F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Type, for the Period 2017-2027F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Service Type, for the Period 2017-2027F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Booking Type, for the Period 2017-2027F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Rental Type, for the Period 2017-2027F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Regions, for the Period 2017-2027F
• Saudi Arabia Vehicle Rental Market Revenue Share, By Market Players
• Saudi Arabia Vehicle Rental Market Value Chain
• Covid-19 Impact on Saudi Arabia Vehicle Rental Market
• Saudi Arabia Vehicle Rental Market Drivers and Restraints
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Types

• Passenger Vehicle
• Commercial Vehicle

By Service Type

• Spot Rental
• Operating Lease
• Limo Services

By Rental Type

• Long Term
• Short Term

By Booking Type

• Online
• Offline

By Regions

• Eastern
• Central
• Western
• Southern