Saudi Arabia Vehicle Rental Market (2026-2032) | Size, Share, Trends, Growth, industry, Forecast, Outlook

Saudi Arabia Vehicle Rental Market Growth Rate

According to 6Wresearch internal database and industry insights, the Saudi Arabia Vehicle Rental Market is projected to grow at a compound annual growth rate (CAGR) of 7.5% during the forecast period (2026-2032).

Five-Year Growth Trajectory of the Saudi Arabia Vehicle Rental Market with Core Drivers

Below mentioned is the evaluation of year-wise growth rate along with key growth drivers:

Topics Covered in the Saudi Arabia Vehicle Rental Market Report

The Saudi Arabia Vehicle Rental Market report thoroughly covers the market by Type, Service Type, Rental Type, Booking Type and Regions. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which help stakeholders devise and align their market strategies according to the current and future market dynamics.

Saudi Arabia Vehicle Rental Market Highlights

Saudi Arabia Vehicle Rental Market Synopsis

The Saudi Arabia Vehicle Rental Market is expected to experience strong growth, driven by the increasing demand for passenger vehicles, expanding urbanization, and the rise in business and leisure tourism. In addition, the increasing adoption of online platforms for car rentals and initiatives by governments to promote the renting industry, such as initiatives for improvement in the environmental impact of renting vehicles, are expected to drive growth in this market.

Evaluation of Growth Drivers in the Saudi Arabia Vehicle Rental Market

Below mentioned are some prominent drivers and their influence on the market dynamics:

The Saudi Arabia Vehicle Rental Market is expected to grow at a CAGR of 7.5% during the forecast period of 2026-2032. This is due to various reasons, like increased tourist activities, the government's initiatives, as well as innovation in the concept of vehicle rental and utilisation through mobile applications and other online platforms. Additionally, the rise in the number of short-term as well as long-term vehicle rentals also boosts this market.

Evaluation of Restraints in the Saudi Arabia Vehicle Rental Market

Below mentioned are some major restraints and their influence on the market dynamics:

Saudi Arabia Vehicle Rental Market Challenges

Although there will be some growth, the Saudi Arabia Vehicle Rental Market is also facing some challenges such as the high costs involved when renting vehicles, government regulations related to managing the vehicles, and the use of ride-sharing services like Uber. In addition, the unavailability of many vehicles in some areas and the dependence on economic conditions may hinder the growth of the market.

Saudi Arabia Vehicle Rental Market Trends

Key trends evaluating the landscape of the Saudi Arabia Vehicle Rental Market are:

• Expansion of Electric Vehicle Fleet: Rental companies are increasingly incorporating electric and hybrid vehicles to cater to the growing demand for sustainable transportation solutions.
• Short-Term Rentals for Tourists: There is a growing preference for short-term vehicle rentals, particularly in major tourist destinations like Riyadh and Jeddah, for business and leisure purposes.
• Corporate Fleet Rentals: Increasingly, more companies are renting vehicles for their employees rather than buying company vehicles, which is adding to the demand for commercial vehicles.

Investment Opportunities in the Saudi Arabia Vehicle Rental Market

A few of the prime investment opportunities in the Vehicle Rental Market in Saudi Arabia include:

• Sustainable Fleet Development: emphasis on investing and developing electric and hybrid vehicle fleets, driven by the demands for environmentally sustainable forms of travel and transport.
• Development of Online Platforms: Development of platforms that entail provision of convenience in vehicle booking and payment services for the benefit of tech-savvy consumers.
• Expansion in Tourism Hubs: Opening booths for car rental services in areas where a larger number of tourists can be found, such as places where tourism and business activities take place.

Top 5 Leading Players in the Saudi Arabia Vehicle Rental Market

Some leading players operating in the Saudi Arabia Vehicle Rental Market include:

1. Hertz Global Holdings

Hertz is one of the largest vehicle rental companies worldwide, providing rental services across Saudi Arabia.

2. Avis Budget Group

Avis offers a wide range of vehicles for short-term and long-term rentals in Saudi Arabia.

3. Europcar

Europcar provides both passenger and commercial vehicle rentals, with services in major cities across Saudi Arabia.

4. Sixt SE

Sixt operates a large fleet in Saudi Arabia, offering competitive pricing on short-term rentals.

5. Budget Car Rental

Budget Car Rental provides affordable and reliable rental services, specialising in passenger vehicles in Saudi Arabia.

Government Regulations Introduced in the Saudi Arabia Vehicle Rental Market

According to Saudi Government Data, various initiatives and policies are being adopted in order to facilitate the car rental industry. For instance, the “National Transport and Logistics Strategy” was adopted by the government in 2020 in order to develop the total transport infrastructure in the country. Additionally, the Ministry of Transport launched a scheme encouraging the adoption of electric vehicles in the car rental industry. The ministry provides tax incentives for companies adopting eco-friendly solutions.

Future Insights of the Saudi Arabia Vehicle Rental Market

The prospects for the Saudi Arabia Vehicle Rental Industry are bright on account of government-infrastructure development initiatives in Saudi Arabia, increased penetration of electric vehicles in the vehicle rental market in Saudi Arabia, along with rising corporate customer demand for such services. The market is expected to continue its rise with advancements in digital platforms and sustainable modes of transport to rank Saudi Arabia prominently in the Middle East vehicle rental market.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories:

Spot Rental to dominate the Market - By Service Type

According to Sahil, Senior Research Analyst, 6Wresearch, Spot rental services are expected to lead the Saudi Arabia vehicle rental market, contributing significantly to the Saudi Arabia vehicle rental market share. The growing preference for short-term rentals among tourists and business travellers is driving this trend. Rental services have flexible leasing periods, thus suitable for persons requiring a vehicle for days or weeks. The convenience in booking, besides the simple pickup and drop-off points, remains core to the growth of vehicle rentals in this market in Saudi Arabia.

Western to dominate the Market - By Regions

The Western region, particularly cities like Jeddah and Mecca, is expected to dominate the Saudi Arabia vehicle rental market, securing a large portion of the Saudi Arabia vehicle rental market share. The region’s high concentration of tourists and business activities is a significant factor in this growth. Jeddah and Mecca attract millions of visitors annually, driving the demand for rental vehicles. The region’s infrastructure development and increasing number of international events contribute to the Saudi Arabia vehicle rental market growth.

Key Attractiveness of the Report

• 10 Years of Market Numbers.
• Historical Data Starting from 2022 to 2025.
• Base Year: 2025.
• Forecast Data until 2032.
• 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 2022-2032F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Type, for the Period 2022-2032F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Service Type, for the Period 2022-2032F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Booking Type, for the Period 2022-2032F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Rental Type, for the Period 2022-2032F
• Historical Data and Forecast of Saudi Arabia Vehicle Rental Market Revenues, By Regions, for the Period 2022-2032F
• 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

Thereportprovides 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