KSA Car Rental and Leasing Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of Car Rental and Leasing industry in KSA. The report covers an overview and genesis of the industry, market size in terms of revenue generated.

Its market segmentations include by types vehicle, by region, by end-user, by car dealers, by organization, by duration of fleet leased, by commercial and by pick-up point; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to publisher estimates, the KSA Car Rental and Leasing Market - which grew from approximately SAR ~13 Bn in 2017 to approximately SAR ~15 Bn in 2022 - is forecasted to grow further into SAR ~26 Bn opportunity by 2027F, owing to the New Government Policies under Vision 2030, technological development and infrastructure development.

KSA is already the largest market for new and used cars as well as car parts in the Gulf region and the Middle East. KSA imports vehicles and parts worth $21 Mn every year.

Jeddah and Dammam are the automotive manufacturing hubs in the Saudi Arabia. Three major global OEMs (Mercedes, Volvo and MAN) producing Heavy Duty Commercial Vehicles are operating in the Western Region.

Key Trends by Market Segment:

• By End Users: Short term rentals occupy 60-70% of demand in the market which is why private individuals are the main users of car rental services as tourism is the main growth driver. On the other hand, the main end users of leasing services are commercial, who lease cars for operations, facilitating employee mobility and other purposes
• By Region: Central region has the highest concentration of corporate offices, government offices and draws significant capital inflows. The region also has the highest working population as well
• By Type of Vehicle: Small Cars and Sedans are the most popular choice of car in Saudi Arabia because of the comfort and low price point. Small to medium cars are easier to maneuver, park, and manage overall, along with low maintenance cost

Competitive Landscape:

Future Outlook:

The KSA Car Rental and Leasing Market witnessed significant growth during the period 2017-2022, owing to growing tourism, vision 2030 and introduction of EVs.

With the booming logistics sector and Last Mile Delivery, the last major milestone in the supply chain process, where the item is sent out from a local warehouse or fulfillment center for its final delivery to the customer, we expect a rise in demand for pick-up truck rentals.