Friday, 7 June 2019

Saudi Arabia Car Rental and Leasing Market Outlook to 2023


The report titled “Saudi Arabia Car Rental and Leasing Market Outlook to 2023- By Business Model (Car Leasing and Car Rental), By Fleet Type (Small Category, Medium Category, SUV, Premium/Luxury) and By End Users (Logistics, FMCG, Oil & Gas, Construction, Government and Others)”covers market size in terms of fleet size and revenue generated from car rental and leasing market along with market segmentation by car dealer & car rental companies, by type of vehicle (SUV with or without luggage & pickup cargo cars, medium category, small category , premium/luxury), by duration (1-2 year, more than 2 year but less than 4 years, 4 years and more than 4 years) and by region (central region, western region, eastern region, southern region and northern region),by end user (logistics, FMCG, oil& gas, construction, government & semi- government offices and others), by user (corporate and individual), by on airport & off airport. The report also covers emerging growth drivers and trends; issues and challenges; government regulations and competitive landscape of players in the market with special focus on United International Transportation Company (Budget), Hanco rent a car, Theeb rent a car, Avis rent a car, Al Wefaq rent a car, Al Tayyar rent a car, Autoworld rent a car, Key rent a car, Best rent a car and others. The report also explores the emerging technologies into car rental market, future outlook & projections along with analyst recommendation & macroeconomic variables highlighting the major opportunities & cautions to the readers.
Saudi Arabia Car Rental Market Summary
Market Overview: Saudi Arabia car rental market is at the growth stage witnessing intense competition. Increase in the tourist arrivals, employment rate and growing number of establishments in the kingdom has propelled momentum to the market. The GDP of Saudi Arabia has increased considerably during the review period. The market size of construction industry in the kingdom has increased aggregating a CAGR of close to 3.9% during 2013-2018 owing primarily to the higher demand for car leasing and rental. Major car rental companies such as United International Transportation Company, Hanco, Best Rent a Car, Hertz, Avis, Key, Al Wefaq, Al Tayyar, Enterprise, Samara and others have complimented the target audience in terms of availability of wide range of services. Saudi Arabia car rental & leasing market has witnessed sound growth at a CAGR of around 12.5% in terms of fleet size from leasing segment and 4.6% in terms of fleet size from rental segment during the revenue period 2013-2018.
Market Segmentation
By Car Dealer & Car Rental Companies
Car rental companies dominated the market owing to superior customized services to the clients. In addition, the car rental companies catered the demand of individuals for fewer cars as compared to dealers who focused on the demand for bulk orders only. However, in order to cope up with competition, the car dealers have started providing customized service to the clients at cheaper rate as compared to car rental/leasing companies. Thus, few end user industries have started to prefer car dealers in Saudi Arabia for their car leasing requirements. 
By Types of Vehicles (SUV with or without luggage & pickup cargo cars, Medium category, Small category, Premium/Luxury)
Among the five types of vehicles, SUV with or without luggage & pickup cargo cars have gathered the maximum market share in terms of fleet size in leasing segment due to their big size and availability of luggage compartment for transportation of equipment & tools. Medium category which includes cars such as Honda Accord and Toyota Corolla ranks second due to the increasing employment rate which further leads to higher purchasing power in the country. Small category which includes hatchbacks and sedans has been preferred by corporate for employee mobility and client visits and accounted for third largest market share in terms of total fleet size in the market.
By Sectors/Industries (Logistics, FMCG, Oil& Gas, Construction, Government & Semi- Government offices and others)
Logistics is the most prominent sector which demands car leasing services for facilitating employee mobility and goods transportation followed by the FMCG & E-commerce. Demand from construction sector has started increasing due to the increasing number of construction contracts in the country. Oil & Gas sector is the main pillar of the economy and thus, after recession and oil price stabilization, the demand from this sector has started increasing especially in the eastern region.
By Region/Provinces (Central, Western, Eastern, Southern, Northern)
In terms of regions, maximum demand is accounted from central region due to the presence of large industrial area in this region. Riyadh and Jeddah are the most populous cities of central region and thus, the demand for individual and corporate car rental & leasing is high from this region. Western region ranks second in terms of demand for car rental & leasing service. This is due to the presence of cities such as Mecca & Medina which are the major tourist attraction for pilgrimage. Though there are number of universities and institutions in this region which also propels the demand for car rental and leasing services. Eastern region is the major hub of oil companies, cities such as Dammam and Al-Khobar generates the highest demand for car rental and leasing services from this region. Southern & Northern region have low demand for car rental & leasing service owing to low population and less developed industrial area in these regions.
Competitive Landscape
Competition stage in the country’s car rental & leasing market is witnessed to be concentrated on the basis of fleet size with presence of both international and local car rental/leasing companies in 2018. Companies compete on the basis of pricing, fleet size, brand value, service portfolio or value added services. Some of the major players operating within this segment include United International transportation Company (Budget), Hanco, Best, Theeb, Key, Hertz, Avis, Autoworld, Samara and others. Few cars dealers have also established themselves at the forefront such as Ford Al-Jazirah, Al Jomaih and Universal Motors. The number of service centers or retail points and diversified client base are considered vital in order to reach a wider target audience in the country.
Saudi Arabia Car Rental & Leasing Market Future Outlook
Over the forecasted period, Saudi Arabia car rental & leasing market will witness a high growth from the period 2018 to 2023E as the market becomes more competitive. It is forecasted to witness a CAGR (2018-2023) of close to 10.2% in terms of fleet size of car leasing market and car rental market is expected to grow at a CAGR (2018-2023) of close to 6.1% due to the increase in number of establishments and tourism in Saudi Arabia. Companies are focusing more towards adding younger fleet in car rental market due to the increasing demand for new cars from corporate and individuals.
Key Segments Covered in Saudi Arabia Car Rental & Leasing Market
By Car Dealers & Car Rental Companies (On the basis of fleet size)
Car Dealers
Car Rental Companies
By Type of vehicle (On the basis of fleet size)
SUV with or without luggage and pickup & cargo cars
Medium category
Small category
Premium/ Luxury
By Duration (On the basis of fleet size)
1-2 years
More than 2 years but less than 4 years
4 years
More than 4 years
By Region (On the basis of fleet size)
Central
Western
Eastern
Southern
Northern
By End User (On the basis of fleet size)
Logistics
FMCG & e-commerce
Oil & Gas
Construction
Government& semi- government offices
Other Industries
By User (On the basis of fleet size)
Corporate
Individual
By On Airport & off Airport (On the basis of revenue)
On Airport
Off Airport
Time Period Captured in the Report:
Historical Period: 2013-2018
Forecast Period: 2019-2023
Key Target Audience
Car Rental Companies
Car Dealers
End User Industries
Individuals
Companies Covered:
United International Transportation Company (Budget)
Hanco rent a car
Best rent a car
Theeb rent a car
Al Wefaq rent a car
Hertz rent a car
Avis rent a car
Autoworld rent a car
Samara rent a car
Al Tayyar rent a car
Key rent a car
Ford Aljazerah
Al Jomaih
Universal Motors
Key Topics Covered in the Report
Executive Summary
Research Methodology
Saudi Arabia Car Rental & Leasing Market Size
Saudi Arabia Car Rental & Leasing Market Segmentation
SWOT Analysis of Saudi Arabia Car Rental & Leasing Market
Trends and Development in Saudi Arabia Car Rental & Leasing Market
Issues and Challenges in Saudi Arabia Car Rental & Leasing Market
Regulatory Scenario of Saudi Arabia Car Rental & Leasing Market
Recent Developments in Saudi Arabia Car Rental & Leasing Market
Emerging Technologies in Saudi Arabia Car Rental & Leasing Market
Competitive Scenario in Saudi Arabia Car Rental & Leasing Market
Company Profiles of Major Players in Saudi Arabia Car Rental & Leasing Market
Saudi Arabia Car Rental & Leasing Market Future Outlook and Projections, 2018-2023E
Analyst Recommendation in Saudi Arabia Car Rental & Leasing Market
For more information on the research report, refer to below link:
Related Reports

No comments:

Post a Comment