Bahrain Car Rental Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of Car Rental Industry in Bahrain. The report covers an overview and genesis of the industry, market size in terms of number of cars rented and revenue generated.

Its market segmentations include by Type of Market Structure, by Type of Car, By Booking Type, By End User Type and By Vehicle Type; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, the Bahrain car rental market is expected to witness healthy growth during the forecast period of 2017P-2027F This growth can be attributed to the increasing demand for car rental services from tourists, business travelers, and locals. Additionally, the increasing number of international flights to Bahrain and the growing disposable income of the population are expected to further drive the growth of the market.

The fluctuating prices of fuel, the rising competition from ride-hailing services, and the increasing regulation on car rentals by the government are expected to restrain the growth of the Bahrain car rental market during the forecast period.

• Bahrain was ranked first in the Middle East and Africa (MEA) for attracting the highest tourism capital investment in 2020, according to the FDI Intelligence Tourism Investment Report 2021.
• As well as being one of the region’s top holiday destinations, Bahrain is widely regarded as the best place to live and work in the GCC. Locals and expats are well-integrated both socially and professionally, which is unusual in the region.
• Bahrain secured $492 million of tourism capital investment in 2020.

Key Trends by Market Segment:

By Rental Type: The market share of self-driven rental companies in Bahrain is estimated to be around ~%. The remaining ~% of the market share is held by chauffeur driven rental companies. On the other hand, self-driving segment is likely to be the fastest growing segment, which is expected to grow at a CAGR of ~% over the forecast period.

By Booking Type: According to a 2019 survey conducted by the Bahrain Tourism and Exhibitions Authority, around ~% of cars in Bahrain were rented online. Moreover, the growth of the hospitality sector in Bahrain and the increasing number of hotels and restaurants, introduction of new technologies such as AI are likely to create a further demand for car rental services.

Competitive Landscape

In Bahrain Car Rental Market there are about ~ players operating in the overall market, and top players accounted ~% share in the market in terms of revenue. The major strength on which these players compete includes increasing demand for car rental services from tourists, business travelers, and locals, introduction of new technologies such as AI and the increasing number of hotels and restaurants.

Future Outlook

The Kingdom of Bahrain has seen a massive growth in population from 1.5Mn in 2017 to 1.52 Mn in 2022 which has led to a remarkable increase in the number of vehicles and expansion of road networks, according to WHO.

BTEA has announced launch of special travel packages to welcome GCC tourists, in collaboration with tourist partners which will increase the requirement of rental cars.

Selfdrive, a UAE car rental tech platform is expanding to Qatar and Bahrain due to increase adoption of digital car rental market. Seamless customer experience and range of product offerings will be required.

The enhance infrastructure cooperation, Bahrain and Saudi are committed to cooperate in developing infrastructure, road services etc. leading to rise in demand for rented cars.