KSA Car Rental and Leasing Market Outlook to 2027F
Driven by Infrastructure Development, Growing Tourism and Diversification of Economy
Region:Middle East
Author(s):Anushi Chhabra, Anoushka Chawla and Srijan Kishore
Product Code:KR1275
December 2022
108
About the Report
The report provides a comprehensive analysis of the potential of Car Rental and Leasing industry in KSA. The report covers an overview and genesis of the industry, market size in terms of revenue generated.
Its market segmentations include by types vehicle, by region, by end-user, by car dealers, by organization, by duration of fleet leased, by commercial and by pick-up point; 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 KSA Car Rental and Leasing Market – which grew from approximately SAR ~13 Bn in 2017 to approximately SAR ~15 Bn in 2022 – is forecasted to grow further into SAR ~26 Bn opportunity by 2027F, owing to the New Government Policies under Vision 2030, technological development and infrastructure development.
- KSA is already the largest market for new and used cars as well as car parts in the Gulf region and the Middle East. KSA imports vehicles and parts worth $21 Mn every year.
- Jeddah and Dammam are the automotive manufacturing hubs in the Saudi Arabia. Three major global OEMs (Mercedes, Volvo and MAN) producing Heavy Duty Commercial Vehicles are operating in the Western Region.
Key Trends by Market Segment:
By End Users: Short term rentals occupy 60-70% of demand in the market which is why private individuals are the main users of car rental services as tourism is the main growth driver. On the other hand, the main end users of leasing services are commercial, who lease cars for operations, facilitating employee mobility and other purposes.
By Region: Central region has the highest concentration of corporate offices, government offices and draws significant capital inflows. The region also has the highest working population as well.
By Type of Vehicle: Small Cars and Sedans are the most popular choice of car in Saudi Arabia because of the comfort and low price point. Small to medium cars are easier to maneuver, park, and manage overall, along with low maintenance cost.
Competitive Landscape:
Future Outlook:
The KSA Car Rental and Leasing Market witnessed significant growth during the period 2017-2022, owing to growing tourism, vision 2030 and introduction of EVs.
With the booming logistics sector and Last Mile Delivery, the last major milestone in the supply chain process, where the item is sent out from a local warehouse or fulfillment center for its final delivery to the customer, we expect a rise in demand for pick-up truck rentals.
Scope of the Report
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KSA Car Rental and Leasing Market Segmentation |
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By type of vehicles |
Small Cars Sedans SUVs and MUVs Pick-up trucks Premium and Luxury |
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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 |
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KSA Car Leasing Market Segmentation |
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By type of leaser |
Car Leasing Companies Car Dealers |
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By Organization |
Organized Unorganized |
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By type of vehicles |
Small Cars Sedans SUVs and MUVs Pick-up trucks Premium and Luxury |
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By Duration for Fleets Leased |
1 years 2 years 3 years 4 years and more |
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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 |
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By Commercial |
Logistics Companies FMCG and E-commerce Oil, Gas & Refineries Construction Others- Remaining Industries |
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KSA Car Rental Market Segmentation |
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By Organization |
Organized Unorganized |
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By Pick-up Point |
On-airport Off-airport |
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By type of vehicles |
Small Cars Sedans SUVs and MUVs Pick-up trucks Premium and Luxury |
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By Region |
Central Region Western Region Eastern Region Others (Northern and Southern) |
|
By End-user |
Private Commercial Government & Semi Government Contracts |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- 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
Major Players Mentioned in the Report:
- Budget Rent a Car
- Theeb
- Key Car Rental
- Hanco
- Avis
- Al jazira/ Auto World
- AL Jabr
- Best Rent a car
- Samara/SIXT
Table of Contents
1. Executive Summary
1.1 Executive Summary: KSA Car Rental and Leasing Market
2. Country Overview of KSA
2.1 Country Demographics and Socioeconomic Indicators, 2021
2.2 KSA Population Analysis, 2021
2.3 KSA Employment Analysis, 2021
2.4 Macroeconomic Trends in KSA
3. KSA Automotive Market Overview
3.1 KSA Automotive Market Overview
3.2 KSA Motor Vehicles Import Export Scenario
3.3 KSA Passenger Vehicle Overview
3.4 Passenger Car Landscape and Major Car Brands in the KSA Automotive Market
4. KSA Car Leasing and Rental Market Overview
4.1 Ecosystem of KSA Leasing and Rental Market
4.2 KSA Car Leasing and Rental Market and Business Cycle
4.3 Timeline of Major Players in KSA Car Leasing and Rental Market
4.4 KSA Car Leasing and Rental Market Value Chain Analysis
4.5 KSA Car Leasing and Rental Market, 2017-2022
5. KSA Car Leasing and Rental Market Segmentation
5.1 By End Users (Commercial, Private and Government), 2022
5.2 By Region (Central, Western, Eastern and Others), 2022
5.3 By Type of Vehicle (Sedan, Small Cars, SUV/MUVs, Pickup Trucks, Luxury), 2022
6. KSA Car Leasing Market Size and Segmentation
6.1 KSA Car Leasing Market Sizing Analysis, 2017-2022
6.2 By type of leaser (Leasing Company, Car Dealer) and organization (organized, unorganized), 2022
6.3 By Type of Vehicle (Sedan, Small Cars, SUV/MUVs, Pickup Trucks, Luxury), 2022
6.4 By Duration of Lease (1 year, 2 Years, 3 Years, 4 and More Years), 2022
6.5 By end users (Commercial, Private, and Government and Semi Government) and by Regions (Western, Central, Eastern and Others), 2022
7. KSA Car Rental Market Size and Segmentation
7.1 KSA Car Rental Market Sizing Analysis, 2017-2022
7.2 By Organization (Organized and Unorganized) and Pick-Up Point (On airport, off airport), 2022
7.3 By Type of Vehicle (Sedan, Small Cars, SUV/MUVs, Pickup Trucks, Luxury), 2022
7.4 By end users (Commercial, Private, and Government and Semi Government) and by Regions (Western, Central, Eastern and Others), 2022
8. Industry Analysis of KSA Car Leasing and Rental Services
8.1 Porter’s Five Forces Analysis of Rental and Leasing market
8.2 Trends and Development in KSA Car Rental and Leasing Market
8.3 Infrastructure Development Overview
8.4 Growth Drivers of KSA Car Rental Market
8.5 Government Regulations of KSA Car Rental Market
8.6 Government Regulations and EV Adoption in KSA Car Rental Market
8.7 Challenges of KSA Car Rental and Leasing Market
9. End User Analysis of KSA Car Leasing and Rental Market
9.1 Market Share by commercial end user, 2022
9.2 Recent Trends Affecting End Users of leasing market
9.3 Future Demand Potential of Commercial and Government End Users
9.4 Factors Influencing Choice of Vehicle
10. Competition Framework for KSA Car Leasing and Rental market
10.1 KSA Car Leasing and Rental Market Competition Sizing by Size and Split of Fleet, 2022
10.2 Fleet Split of Players in KSA Car Rental and Leasing by Type of Car, 2022
10.3 Competition Landscape in KSA Rental Market, 2022
10.4 Competition Landscape in KSA Leasing Market
10.5 Competitive Cross Comparison
10.6 Strengths and Weaknesses of Major Players in KSA Car Leasing and Rental market
11. Future Outlook of the Industry
11.1 KSA Car Leasing and Rental Market, 2017-2022
11.2 By End Users (Commercial, Private and Government), 2022
11.3 By Region (Central, Western, Eastern and Others), 2022
11.4 By Type of Vehicle (Sedan, Small Cars, SUV/MUVs, Pickup Trucks, Luxury), 2022
12. Future Outlook of KSA Car Leasing Market
12.1 KSA Car Leasing Market, 2023-2027F
12.2 By end users (Commercial, Private, and Government and Semi Government) and by Regions (Western, Central, Eastern and Others), 2027F
12.3 By Organization (Organized and Unorganized) and Type of leaser (leasing company and car dealer), 2027F
12.4 By Type of Vehicle (Sedan, Small Cars, SUV/MUVs, Pickup Trucks, Luxury), 2027F
12.5 By Duration of Lease (1 year, 2 Years, 3 Years, 4 and More Years), 2027F
13. Future Outlook of KSA Car Rental Market
13.1 KSA Car Rental Market Sizing Analysis, 2022-2027F
13.2 By Organization (Organized and Unorganized) and Pick-Up Point (On airport, off airport), 2027F
13.3 By Type of Vehicle (Sedan, Small Cars, SUV/MUVs, Pickup Trucks, Luxury), 2027F
13.4 By end users (Commercial, Private, and Government and Semi Government) and by Regions (Western, Central, Eastern and Others), 2027F
14. Case Study of Chinese Rental Market
14.1 Case Study of Chinese Rental Market
14.2 Growth Drivers of Chinese Rental Services Market
15. Analyst Recommendations and Industry Speaks
15.1 Success Factors to Capture Future Market
15.2 Marketing Recommendations for Car Rental Business
15.3 Industry Speaks Interview with Mr. Rauf Ahmed, Regional Operations Manager- Hanco Rent a Car
16. Research Methodology
16.1 Market Definitions and Assumptions
16.2 Abbreviations
16.3 Market Sizing Approach
16.4 Consolidated Research Approach
16.5 Sample Size Inclusion
16.6 Limitation and Future Conclusion
Disclaimer
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Research Methodology
Step 1: Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step 2: Market Building:
Collating statistics on rental and leased car over the years, penetration of fleet size compute overall revenue generated for cars. We will also review portfolio of car company statistics to understand revenue generated which can ensure accuracy behind the data points shared.
Step 3: Validating and Finalizing:
Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step 4: Research output:
Our team will approach multiple car rental and leasing providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from rental car providers.
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The KSA Car Rental and Leasing Market is covered from 2017–2027F in this report, including a forecast for 2022-2027F.
02 What is the Future Growth Rate of the KSA Car Rental and Leasing Market?
The KSA Car Rental and Leasing Market is expected to witness a CAGR of ~12 % over the next years.
03 What are the Key Factors Driving the KSA Car Rental and Leasing Market?
New Government Policies under Vision 2030, introduction of EVs, technological development and Entry of Women Drivers is likely to fuel the growth in the KSA Car Rental and Leasing market.
04 Which is the Largest Car Type Segment within the KSA Car Rental and Leasing Market?
The sedan car type segment held the largest share of the KSA Car Rental and Leasing Market in 2022.
05 Who are the Key Players in the KSA Car Rental and Leasing Market?
Budget, Theeb and Avis.
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