Gurugram, India, May 22, 2024 (GLOBE NEWSWIRE) -- The Kingdom of Saudi Arabia car rental and leasing market is shifting gears towards high growth! Ken Research's report, KSA Car Rental and Leasing Market Outlook to 2028: A $11.7 Billion Cruise Fueled by Tourism & Expanding Demand, explores this dynamic landscape. The report predicts a smooth ride ahead, with the market value expected to reach a staggering $11.7 billion by 2028, propelled by a healthy 9.2% CAGR. This press release dives into the key factors driving this acceleration and offers valuable insights for car rental companies, leasing providers, and stakeholders seeking to capitalize on the opportunities within the KSA car rental and leasing market.
Tourism Fuels Demand for Rentals:
A significant driver of the KSA car rental market is the country's burgeoning tourism sector. Government initiatives like Vision 2030 are attracting a growing number of tourists, who often rely on car rentals for convenient exploration. This trend is expected to continue fueling demand for rental vehicles in the coming years.
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Short-Term Rentals Lead the Pack:
Currently, short-term rentals hold the dominant share (62%) of the KSA car rental market. This segment caters to tourists, business travelers, and individuals requiring temporary transportation solutions. Convenience and competitive pricing are key factors driving the popularity of short-term rentals.
Long-Term Leasing Gains Traction:
The long-term leasing segment is experiencing significant growth, with a projected market share of 38% by 2028. This trend is driven by factors such as increasing disposable income, a preference for new cars without the burden of ownership, and attractive financing options offered by leasing companies.
Online Booking Platforms Gain Traction:
Digitalization is transforming the way consumers access car rental services in KSA. Online booking platforms offer a convenient and user-friendly way to compare prices, book rentals, and manage reservations. Ken Research predicts that 45% of car rentals in KSA will be booked online by 2028.
Fleet Modernization Takes Center Stage:
Car rental and leasing companies are increasingly focusing on fleet modernization to enhance customer experience and safety. This includes investing in fuel-efficient vehicles, offering a wider variety of car models, and implementing regular maintenance programs.
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A Smooth Ride Ahead:
The KSA car rental and leasing market is positioned for continued growth in the coming years, driven by several key trends:
- Focus on Customer Experience: Offering a wide range of car options, competitive pricing, and exceptional customer service will be crucial for attracting and retaining customers.
- Strategic Partnerships: Collaboration between car rental companies, tourism agencies, and ride-hailing services can unlock new growth opportunities.
- Government Regulations: Supportive government policies and regulations will create a stable and transparent operating environment for the car rental and leasing industry.
Why This Report Matters:
This report empowers various stakeholders to navigate the KSA car rental and leasing market:
- Car Rental Companies: Gain insights into evolving customer preferences, identify high-growth segments like online rentals and long-term leasing, and invest in technology to enhance online booking capabilities.
- Leasing Providers: Develop competitive leasing packages, cater to specific customer needs like corporate leasing, and leverage digital marketing strategies to reach a wider audience.
- Government Agencies: Develop policies that promote tourism growth, encourage fleet modernization within the industry, and ensure fair competition within the market.
Building a Collaborative Ecosystem:
By leveraging the insights and opportunities outlined in this report, stakeholders can collaborate to create a thriving ecosystem within the KSA car rental and leasing market:
- Data Sharing and Integration: Collaboration between car rental companies and tourism platforms can improve customer experience and create targeted marketing strategies.
- Investment in Technology & Innovation: Developing mobile apps for easy booking, real-time tracking of rentals, and integrating AI-powered customer service solutions.
- Focus on Sustainability: Promoting the use of eco-friendly vehicles within rental fleets and adopting responsible waste management practices.
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The Road Ahead for KSA's Car Rental & Leasing Market:
The KSA car rental and leasing market presents a promising future for all stakeholders. By working together and leveraging valuable insights from this report, they can ensure a smooth ride ahead, characterized by:
- A focus on innovation: Embracing technological advancements to enhance customer experience and improve operational efficiency.
- A commitment to sustainability: Promoting eco-friendly practices and a focus on responsible fleet management.
- Enhanced customer service: Prioritizing convenience, transparency, and exceptional service to build customer loyalty.
Taxonomy
KSA Car Rental and Leasing Market Segmentation
By type of vehicles
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
By Region
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
By End-user
- Private
- Commercial
- Government & Semi Government Contracts
KSA Car Leasing Market Segmentation
By type of leaser
- Car Leasing Companies
- Car Dealers
By Organization
- Organized
- Unorganized
By type of vehicles
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
By Duration for Fleets Leased
- 1 years
- 2 years
- 3 years
- 4 years and more
By Region
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
By End-user
- Private
- Commercial
- Government & Semi Government Contracts
By Commercial
- Logistics Companies
- FMCG and E-commerce
- Oil, Gas & Refineries
- Construction
- Others- Remaining Industries
KSA Car Rental Market Segmentation
By Organization
- Organized
- Unorganized
By Pick-up Point
- On-airport
- Off-airport
By type of vehicles
- Small Cars
- Sedans
- SUVs and MUVs
- Pick-up trucks
- Premium and Luxury
By Region
- Central Region
- Western Region
- Eastern Region
- Others (Northern and Southern)
By End-user
- Private
- Commercial
- Government & Semi Government Contracts
For More Insights On Market Intelligence, Refer To The Link Below: –
KSA Car Rental and Leasing Market
Related Reports by Ken Research: –
The market is expected to grow substantially during 2022-2027 owing to factors such as Increasing tourism, the need for mobility, technology integration and government initiatives to develop the economy. Under the Saudi Vision 2030, the demand for leasing would further increase as other sectors like imported goods have to be transported by trucks which will increase the demand for them to be leased trucks in country.
The market will grow at a CAGR of 9.8% during 2022-2027 due to increasing tourism industry & improvements in transportation. As the global automotive industry moves towards sustainability, there might be an increase in demand for electric vehicles. Car rental and leasing companies in Kuwait may explore adding electric or hybrid vehicles to their fleets to cater to environmentally conscious customers.
The market will grow at a CAGR of 6.4% during 2022-2027 owing to factors such as the Increase in Tourism and Business Travel along with Rising Expatriate Population and Infrastructure Development. The government has set a target of 40 million tourists by 2031, with the tourism sector expected to generate $123 billion in income, as per the UAE Tourism Strategy 2031. The market for taxi aggregators will immediately profit from the growing number of tourists who choose app-based transportation because of its accessibility and convenience.
According to Ken Research estimates, the Philippines Car Rental Market – which is at $~293.0 Mn in 2022 – is forecasted to grow further into a $ ~ 448.7 Mn by 2027, owing to the expansion of the tourism industry, the increase in internet penetration and adoption of smart phones in the country.
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Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
Ankur@kenresearch.com
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