A recent research report published by MarkNtel Advisors states that the UAE Rent a Car Market would register around 8.9% CAGR during 2023-28. The growth of the market is likely to be driven primarily by favorable policies & easy licensing in the UAE, i.e., demonstrating an increasing vehicle fleet and the growing consumer inclination toward rental cars for local commutation and, in turn, surging the demand for cab & taxi services across the country.
Besides, massive footfall of tourists, pilgrims, and migrants in the country owing to the rapidly expanding tourism sector and hosting of events like Auto Expos spanning across 6 months with around 3 million people, are also anticipated to promulgate the demand for car rental services in the UAE and drive the market through 2028.
Moreover, growing competition between leading players and their active participation in the market by providing new services, deals, and benefits to the people, principally to expand customer base & visibility across the UAE, is another crucial aspect projected to fuel the overall market growth over the coming years, further states the research report, “UAE Rent a Car Market Analysis, 2023.”
Ease & Convenience of Online Bookings to Boost the Market
Online bookings are likely to grab the largest share in the UAE Rent a Car Market during 2023-28. It owes to the growing inclination of numerous car rental service providers toward digital platforms to provide customers with more convenience when booking cabs & taxis, along with choosing an extensive range of vehicles and comparing the best deals.
Besides, increasing competition between prominent car rental service providers for offering value-added services to a larger consumer base and expanding their visibility & service portfolio throughout the country is another crucial aspect projected to boost the UAE Rent a Car Market during the forecast period for online bookings.
With Rising Tourism, Dubai to Lead in the UAE Rent a Car Market through 2028
Across the UAE, Dubai would be dominating the Rent a Car Market with the largest share through 2028, principally on the back of the city being the tourist attraction, i.e., portraying a massive pool of tourists, pilgrims, & migrants in the country. It, in turn, is generating growth opportunities for the leading market players to expand their service reachability among people and attain substantial revenue generations.
Moreover, massive government investments in infrastructural developments of Dubai, including improvement in road connectivity, are also attracting numerous tourists & companies to establish their corporate offices in the city. As a result, the demand for car rental services is rapidly accelerating and propelling the overall market growth.
The major companies in the UAE Rent a Car Market include Thrifty, Hertz, Emirates Transport, Massar Solutions, Sixt Rent a Car, Fast rent a car, Kayak, Europcar, Avis Rent a Car, and Dollar Rent a Car.
Key Questions Answered in the Research Report