Saudi Arabia Vehicle Rental Market Outlook (2023-2029) | Size, Share, Trends, Growth, industry, Forecast, Outlook

Saudi Arabia Vehicle Rental Market Size Growth Rate

The Saudi Arabia Vehicle Rental Market is projected to grow at a CAGR of 4.7% from 2023 to 2029, driven by the expansion of the tourism and logistics sectors, rising corporate demand for leased vehicles, growing internet penetration boosting online bookings, and government initiatives under Vision 2030 promoting economic diversification and infrastructure development.

Saudi Arabia Vehicle Rental Market Synopsis

The Saudi Arabia vehicle rental market is expected to witness growth, primarily backed by the rapidly growing investment in the tourism sector, robust development of the logistics sector, as well as the rising preference of corporate players towards leasing cars. Furthermore, the government’s initiatives for the diversification of the economy away from oil, led by Saudi Vision 2030, would lead to the establishment of several new commercial entities in the country, thereby propelling the demand for transportation services over the coming years. This, in turn, would also augment the revenues of the vehicle rental market in Saudi Arabia.

According to 6Wresearch, Saudi Arabia Vehicle Rental Market size is projected to grow at a CAGR of 4.7% during 2023-2029. The rapidly growing internet penetration in the country along with the growing inclination of customers, especially young users, to make travel bookings through online and mobile platforms, would bolster the market for online vehicle rental bookings. The airport and seaport expansion projects in the kingdom to strengthen the logistics industry would further drive the demand for commercial rental vehicles over the coming years. The coronavirus pandemic and oil price crash had a significant impact on the Saudi Arabia vehicle rental industry in 2020 on account of reduced mobility, temporary suspension of tourism and commercial activities, as well as reduced spending capacity of people. However, the resumption of tourism and commercial activities, combined with an increase in potential consumer base on account of the anticipated reduction in sales of new cars due to the imposition of 15% VAT from July 2020 and the projected shift of users of public transport to other means for commuting due to hygiene concerns, would help the vehicle rental market to gradually recover in the kingdom over the coming years.

Market by Type

Passenger vehicles are the leading contributors to the overall vehicle rental market in Saudi Arabia, owing to the preference of expats and tourists to rent or lease cars as a means to commute. The country’s expanding logistics sector due to growing trade and e-commerce in the country, along with airport and seaport expansion projects, would drive the demand for commercial rental vehicles in the kingdom over the coming years.

Market by Service Type

The spot rental segment held the major share in the overall vehicle rental market in Saudi Arabia in 2020, owing to medical and business travelers in the kingdom, who preferred renting cars for short durations.  Suspension or slowdown of tourism and business activities in 2020 on account of COVID-19 affected the spot rental and limo service market severely while the operating lease segment was relatively resilient as existing owners continued to renew their leases.

Market by Rental Type

The term vehicle rental type garnered a notable revenue share in Saudi Arabia vehicle rental market in 2020 owing to its higher demand from the logistics and industrial sector. In the coming years, the long-term rental type is expected to maintain its dominance on the back of rising hospitality and corporate infrastructure in the kingdom.

Market by Booking Type

The online booking type is expected to witness higher growth over the coming years, owing to additional services, a wider range of options, and promotional offers provided by the companies through online mode. Additionally, COVID-19 also shifted consumer preference to online bookings which minimizes social contact and the post-pandemic habit of booking through online sources is likely to sustain over the medium to long term.

Market by Regions

The central region secured the highest revenue share among all the regions of Saudi Arabia in the overall vehicle rental market during 2020. So, the central region should be a focus region. However, the western region is expected to witness the highest growth due to the growing investments and increasing number of tourists in the western region respectively.

Key Attractiveness of the Report

• 11 Years Market Numbers.
• Historical Data Starting from 2019 to 2022.
• Base Year: 2022
• Forecast Data until 2029.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Saudi Arabia Vehicle Rental Market Overview
• Saudi Arabia Vehicle Rental Market Outlook
• Saudi Arabia Vehicle Rental Market Forecast
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, for the Period 2019-2029F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Type, for the Period 2019-2029F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Service Type, for the Period 2019-2029F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Booking Type, for the Period 2019-2029F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Rental Type, for the Period 2019-2029F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Regions, for the Period 2019-2029F
• Saudi Arabia Vehicle Rental Market Revenue Share, By Market Players
• Saudi Arabia Vehicle Rental Market Value Chain
• Covid-19 Impact on Saudi Arabia Vehicle Rental Market
• Saudi Arabia Vehicle Rental Market Drivers and Restraints
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Type

• Passenger Vehicle
• Commercial Vehicle

By Service Type

• Spot Rental
• Operating Lease
• Limo Services

By Rental Type

• Long Term
• Short Term

By Booking Type

• Online
• Offline

By Regions

• Eastern
• Central
• Western
• Southern