Saudi Arabia Vehicle Rental Market (2020-2026)
Posted by arshiyashaikh on December 30th, 2020
Market Reports on Saudi Arabia Provides the Trending Market Research Report on “ Saudi Arabia Vehicle Rental Market (2020-2026)” under Auto Services category. The Saudi Arabia Vehicle Rental Market is projected to exhibit highest growth rate over report offers a collection of superior market research, market analysis, and competitive intelligence and industry reports.
Saudi Arabia Vehicle Rental Market (2020-2026): Market Forecast By Type (Passenger Vehicle, Commercial Vehicle), By Service Type (Spot Rental, Limo Service, Operating Lease), By Booking Type (Online, Offline), By Regions (Central, Southern, Eastern, Western) And Competitive Landscape
Saudi Arabia Vehicle Rental Market is expected to witness growth, primarily backed by the rapidly growing investments in the tourism sector, robust development of the logistics sector, as well as the rising preference of corporate players towards leasing of cars. Furthermore, the government’s initiatives for the diversification of the economy away from oil, led by Saudi’s 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.
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Saudi Arabia Vehicle Rental Market is projected to grow at a CAGR of 7.5% during 2020-26. By type, the passenger vehicle segment dominated the market revenue share in 2019 and is expected to witness significant growth, on account of the surge in investments in the tourism sector. The rapidly growing internet penetration in the kingdom 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 during the forecast period. 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 is expected to significantly impact the vehicle rental market 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.
The Central region acquired the majority revenue share in the overall vehicle rental market in 2019, owing to the high density of the working population and infrastructural developments in the region. Growing tourism in the western region of the kingdom, on the back of new hospitality and tourism projects such as red sea development and the introduction of e-visas for tourists from 49 countries for reasons other than religious and medical tourism in 2019, would propel the market for vehicle rental services in the western region of Saudi Arabia during the forecast period.
The report thoroughly covers the market by type, service type, booking type, and regions. The report provides an unbiased and detailed analysis of the market trends, opportunities high growth areas, market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics. The Saudi Arabia vehicle rental market is expected to register significant growth in the coming timeframe as a result of an increase in the medical and vocational tourism in the country. The country has the best in class and state of art medical facilities and welcomes a large footfall with context to medical tourism and is anticipated to positively impact the growth of the vehicle rental market. Also, the months of June and July are the profit-making months for the vehicle rental market, as these are the months of Hajj in Makkah and Medina in the country and attract a large number of muslin pilgrimage tourism each year. These tourist visits lead to high demand for the rented vehicles to witness the beauty of the country and as a result, is a boom period for the rented vehicles. Hence, for all the potential industrialists, increased tourism in the country is a positive growth contributing factor.
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