Saudi Arabia Car Rental and Leasing Market Growth Analysis - Forecast Trends and Outlook (2024-2032)

Saudi Arabia Car Rental and Leasing Market Size

The Saudi Arabia car rental and leasing market size reached approximately USD 2.52 billion in 2023. The market is projected to grow at a CAGR of 9.20% between 2024 and 2032, reaching a value of around USD 5.59 billion by 2032.

Key Trends in the Market

Car rental or leasing refers to renting automobiles for a short period of time, ranging from a few hours to a few weeks. Car rental services were traditionally located near primary locations in cities like airports, railway stations, or other busy areas. However, now the services can be availed over the internet on a website or mobile application. Car rental services are essential for people without their own vehicles or tourists visiting a country.

• The Saudi Arabia car rental and leasing market growth can be attributed to the rapidly growing tourism sector in Saudi Arabia. Travellers and tourists who wish to have flexibility, independence, and comfort while visiting another country opt for car rental or leasing services. The rising investments by Saudi Arabia's government to develop public and private infrastructure and roads, highways, and bridges are also supporting the market growth.

• The rapidly rising population with smartphone and internet access in Saudi Arabia is one of the major Saudi Arabia car rental and leasing market trends. The growth of online car rental services owing to the availability of numerous car models and types, including hatchback, sedan, multi-utility vehicles, and sport utility vehicles, allows users to choose vehicles as per the occasion and destination. The rising inclination towards luxury cars in Saudi Arabia is likely to expand the market for luxury rental cars in Saudi Arabia.

• Saudi Arabia is a hub of holy sites like Mecca and Medina that witness an influx of devotes, especially around the festivals of Eid Al-Fitr and Eid Al-Adha, resulting in a heightened demand for rental vehicles. Moreover, Saudi Arabia's government is offering various tax rebates and concessions to attract key players across various sectors to set up offices in the country. An increase in foreign investment in Saudi Arabia has resulted in a rise in the working population that requires cars for their daily commute, which is supporting Saudi Arabia car rental and leasing market demand.

Market Analysis

Based on type, the market is segmented into car rental and car leasing. On the basis of propulsion, the market can be bifurcated into ICE and electric. Based on vehicle type, the market is categorised into hatchback, sedan, and multi-utility vehicle and sport utility vehicle. On the basis of mode, the market is divided into online and offline. Based on end use, the Saudi Arabia car rental and leasing market segmentation includes individual and corporation.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Saudi Arabia car rental and leasing market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• The Hertz Corporation 

• Avis Budget Group, Inc. 

• SIXT SE  

• Hanco (Al Tala’a International Transportation Co. Limited)  

• Key Car Rental Company  

• Enterprise Holdings, Inc. (National Car Rental)  

• Yelo (Alwefaq Transportation Solutions)  

• Bin Hadi  

• Europcar International S.A.S.U  

• Samara (Alturki holding)  

• Others

Market Share by Vehicle Type

As per the Saudi Arabia car rental and leasing market analysis, sports utility vehicles, or SUVs, are expected to witness high demand in Saudi Arabia over the forecast period. SUVs offer more space and comfort as compared to hatchbacks and sedans, hence families usually prefer renting SUVs for family outings and trips. This also encourages automobile manufacturers to launch more price-sensitive SUVs with advanced features. Moreover, the rise in subscription-based car rental services in Saudi Arabia is also expected to aid the market growth in the forecast period.

Market Share by Type

Car leasing is expected to hold a significant portion of the Saudi Arabia car rental and leasing market share over the forecast period. Consumers usually prefer to lease a vehicle if it is needed for a longer period of time as it is cost-effective and offers greater flexibility in terms of duration, mileage and type and model of vehicle.

Consumers who require a car for daily commutes and other family requirements also prefer to lease cars instead of renting.

Competitive Landscape

The Hertz Corporation is an American multinational car rental company that was started in 1918. Hertz is one of the largest worldwide vehicle rental companies by sales, locations, and fleet size. Hertz is currently operational in more than 160 countries around the globe.

Avis Budget Group, Inc., founded in 1946, is an American car rental agency holding company. Avis is headquartered in Parsippany, New Jersey, and is the parent company of various top car rental brands, including Avis car rental, Maggiore, MoriniRent, and Zipcar.

SIXT SE is an international mobility service-providing company that deals in the areas of vehicle rental, car sharing, ride-hailing, and subscription. SIXT IS headquartered in Pullach, Munich, Germany and is currently operational in more than 100 countries with offices at over 2000 locations around the globe.

Other market players included in the Saudi Arabia car rental and leasing market report are Hanco (Al Tala’a International Transportation Co. Limited), Key Car Rental Company, Enterprise Holdings, Inc. (National Car Rental), Yelo (Alwefaq Transportation Solutions), Bin Hadi, Europcar International SASU, and Samara (Alturki holding), among others.

Key Highlights of the Report