Saudi Arabia Vehicle Rental Market Research Report 2021-2027

Posted by arshiyashaikh on March 4th, 2022

Market Reports on Saudi Arabia Provides the Trending Market Research Report on Saudi Arabia Vehicle Rental Market Outlook (2021-2027): Market Forecast By Types (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) And Competitive Landscape under Services Market Research Reports category. The Vehicle Rental Market Database in Saudi Arabia is projected to exhibit highest growth rate over report offers a collection of superior market research, market analysis, and competitive intelligence and industry reports.

The Saudi Arabia Vehicle Rental Market Report thoroughly covers the market by type, service type, booking type and regions. The Saudi Arabia vehicle rental market outlook report provides an unbiased and detailed analysis of the Saudi Arabia vehicle rental 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.

Saudi Arabia Vehicle Rental Market Synopsis

The Saudi Arabia vehicle rental market witnessed a decent growth during the period 2017-2019 underpinned by rapid growth in tourism and rising urbanization in the country. However, the Covid-19 pandemic affected the revenues and fleet size of the vehicle rental market significantly due to the moratorium on tourism activities, downscaling of commercial activities, as well as public apprehension about the hygienic treatment of rental vehicles.

The Saudi Arabia Vehicle Rental Market size is projected to grow at a CAGR of 4.5% during 2021-2027F. The primary reason for growth in the Saudi Arabia vehicle rental industry is 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 of cars. Furthermore, the government’s initiatives for the diversification of economy away from oil, led by Saudi’s Vision 2030, would lead to 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.

Market by Types Analysis
In terms of types, passenger vehicle contributed 67.7% revenue share in the Saudi Arabia vehicle rental market in 2020 owing to the preference of expats and tourists to rent or lease cars as means to commute. Moreover, in the coming years rapidly growing tourism sector due to government initiatives to develop recreational and luxury tourism, through projects such as Red Sea Development, as well as introduction of e-visas for tourists from 49 countries beyond the auspices of religious and medical tourism and easing of tourist restrictions such as strict dress code for women would further bolster the demand for rental vehicles in the country.

Market by Distribution Channels Analysis
In 2020, offline distribution channel acquired 70.0% revenue share in Saudi Arabia vehicle rental market owing to inadequate know-how among people and high preference of offline mode of booking amongst logistics and commercial sector. However, the online booking type is expected to witness higher growth over the coming years, owing to additional services, 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 minimises social contact and the post-pandemic habit of booking through online sources is likely to sustain over the medium to long term.

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