Press Release Description
Expanding Fleet of Electric Vehicles & Growing Tourism to Boost Rent a Car Market
Saudi Arabia Rent a Car market is projected to grow at a CAGR of around 9.8% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The market depicts considerable growth in historical years owing to the local & airport ride-hailing services. It is a well-established industry with numerous service providers, including Theeb, Udrive, Europcar, and several others, that consistently offer competitively priced car rentals to customers. Additionally, enhanced security provided by online rental platforms, such as vehicle tracking & easy booking drive, supports revenue growth for the domestic market. Rising settlements, growing well-established infrastructure construction activities at major tourist attractions, and more job opportunities within the country due to inflated foreign direct investment in sectors other than oil have further supplemented the foreign population in the country. This would boost the demand for car rentals in Saudi Arabia.
Moreover, rising tourism activity in the country & growing spending on leisure, business, and related activities have upsurged the demand for self-driving & chauffeured car rental services. Moreover, soaring local & expatriate populations in the country are expected to enhance the need for car rental in the market. Furthermore, to support the country's decarbonization efforts, the Saudi government is taking several steps to build a robust automotive industry in the country, as the electric vehicle (EV) market grows. As part of its National Transport and Logistics Services Strategy, Saudi Arabia aims to augment the proportion of zero-carbon transport vehicles on the country's roads to almost 45% of the total number of conventional vehicles.
Therefore, along with the boom in government electric vehicle initiatives, car rental companies are also entering into agreements & contracts to expand the fleet size of electric vehicles, which would drive the market growth in the forecast years, further states the research report, “Saudi Arabia Rent a Car Market Analysis, 2023.”
Commercial Sector to Outgrow in the Saudi Arabia Market
Based on the application, the market is further bifurcated into Leisure & Commercial. Of them, the Commercial sector depicts a significant revenue share in Saudi Arabia Rent a Car market in recent years. The rapid development of the domestic service sector & the Saudi government's impulse for growth to attract foreign direct investment into the country has had a considerable impact on the demand for mobile car rentals at a myriad of establishments. The growing presence of various domestic & international organizations has supplemented the need for car rentals to provide mobility services to employees due to macroeconomic benefits such as an efficient workforce, easy entry & exit, and appropriate business policies. Therefore, as more & more companies expand their operations in the country, a significant boost in inbound & regular business travel is expected in Saudi Arabia, further increasing the demand for rent a car services in the country in the coming period.
Self-driving Car Rentals Gain Momentum in the Market
Based on the drive type, the market is classified into Self-driving & Chauffeur. Among the two, Self-driving cars garnered significant momentum in the market, owing to the increased flexibility, cost-effective products, and privacy. Self-driving car rentals give customers the freedom to travel anywhere, anytime, without being restricted to chauffeur-driven services. Customers can plan itineraries according to their schedules & explore different destinations at their own pace. These rental cars are often cheaper than chauffeured services & offer more privacy, especially for long-term rentals. Moreover, customers can also avoid the cost of professional drivers, thus saving on transportation costs, thus generating market demand from this segment.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Theeb, Hertz, Sixt Rent a Car, Europcar, LUMI, Avis Rent A Car System, LLC, Thrifty, Enterprise Rent a Car, Yel, Hanco (Al Tala’a International Transportation Co. Limited) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report
- What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
- What are the trends influencing the current scenario of the market?
- What key factors would propel and impede the industry across the region?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition been shaping across various countries?
- How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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