Market Research Report
Middle East Car Rental Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||925266|
|Published||Content info||65 Pages
Delivery time: 2-3 business days
|Middle East Car Rental Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 65 Pages||
The middle east car rental market is expected to register a CAGR of 4.32%, during the forecast period, 2020-2025.
Online Rental Booking Continues to Witness Major Demand
In the region, most of the customers prefer renting cars online. As the car rental market experiences a growth in the demand during peak holiday seasons, people tend to book cars in advance. Only a handful of cars are booked through rental stores, and that too, mostly during the off season.
Currently, booking online also serves a variety of purposes, such as verification of documents of the renter, offering information to the renter regarding the car, determining the details of drop and pickup of the rented car at a certain place, e-signing of contracts, and cashless transactions. These have helped the car rental companies to gain a competitive edge over their peers, during the past few years.
Furthermore, the trend of online renting a car through apps has improved over the period. As app developers have been designing mobile rental applications with more advanced booking features that offer more vehicle availability and comparable rental costs on a single platform. For instance, OneClickDrive.com is the United Arab Emirates' largest online platform for car rentals and car leasing. It offers users the choice of more than 700 cars from 50 rent-a- car companies at one place.
Saudi Arabia Capturing a Major Market Share
The country has an annual visitor count of over 16 million, most of which occurs in the month of Ramadan, and thus, majority of the tourism in the country is considered religious. As per the WTTC, tourism contributed 9% to the Saudi Arabian GDP of USD 65 billion. Most visitors in the country are from Asia and nearby Middle Eastern countries. Bangladeshi and Pakistani nationals are the biggest contributors among the tourists, followed by Indonesia, Yemen, India, and Egypt.
Additionally, the country has recently lifted a ban on women from driving vehicles. This move allowed numerous women to drive and helped the demand in the car rental market grow by leaps and bounds, as many women with valid driving licenses were finally able to access rented cars on their own.
The intensity of competition in the market has been growing over the past five years with emergence of both international players as well as local players. Some of the major and well-known car rental players in the region include Hertz, Avis. Sixt SE, Enterprise, Hanco etc.