Saudi Arabia Car Rental Market Driven by Growth in End User Industries, Increase in Number of Establishments and Growing Working Force: Ken Research

Saudi Arabia long term car leasing market in terms of transaction value, segmentation on the basis of end users (Logistics, FMCG & Home Delivery, Construction, Oil & Gas Sector, Government sector and others), by regions (Central, Western, Eastern, Northern and Southern region), by players (car rental companies and car dealers on the basis of fleet size). The report also covers car rental/ leasing eco-system demand side and supply side, trends and developments, regulatory scenario and a case study on 'budget' car rental company and its success factors and key operation metrics. Competitive landscape of the industry and comprehensive profile of leading players (Budget, Hanco, Best Rent A Car, Theeb Rent A Car, Shary Rent A Car, Avis, Auto World, Hertz, Key Rent A Car and Samara) Market share of major car dealers and car rental companies in the market, car leasing fleet by car category, competition success factors.

o Expected growth in logistics and construction industries, advancement in technology platforms for better fleet management and client servicing, increasing number of players in long term car leasing industry will drive growth of Saudi Arabia long term car leasing market in upcoming years.
o It is expected that logistics, FMCG and Home Delivery, Oil & Gas sector will account for more than 75% of the total transaction value by 2022.

Saudi Arabia long term car leasing industry is expected to grow at a moderate growth rate during the forecasted period on the back of strong tourist flows, growth in end user industries such as FMCG, Construction, Oil & Gas and other sectors. The car rental companies will dominate the long term car leasing service market by expansion of services to other regions, reducing service prices and increasing their fleet size to meet increasing demand. During the forecasted period, car rental companies are expected to upgrade their IT platform to deliver better service experience, flexibility and security to the customers for better fleet management.

With slump in Oil and Gas sector in the past few years, the car rental businesses have been increasingly focusing on non-oil sectors such as FMCG, Logistics, Construction to boost their revenue and expand market share, it will also help them to reduce dependence on the Oil & Gas sector's growth. Under the National Transformation Program (NTP) 2020 and the Saudi Arabia Vision 2030, the government plans to develop sea ports, railway lines, airports and manufacturing facilities, with an aim to reduce the country's dependency on the oil sector and reduce unemployment, which makes construction as an end user segment, a promising market for car leasing services players.

The car rental companies are also expected to increase the number of fleets as to meet the increased demand from end users such as travel companies, logistics, home delivery, construction sector and to support their expansion plans to regions which are still undeveloped.

With the presence of large number of government offices, large MNC'S and rising capital inflows, Central Region seems to be a promising region for car leasing companies in future. Riyadh is the top spot for hotel construction in the country with about 50 projects underway, which makes this province quite promising for car leasing services, according to the Analyst at Ken Research.

Ken Research in its latest study, "Saudi Arabia Car Leasing Market Outlook to 2022 - By Car Rental and Car Dealers, By End Users (Logistics, FMCG & Home Delivery, Oil and Gas, Construction, Government offices, Others)", suggests that demand for long term car rental/leasing services in the country will grow at a positive growth rate owing to growth in end user industry, emergence of new establishment and growing workforce, coupled with car leasing service providers focusing on expanding their service portfolio and increasing their fleet size.

For more information on the research report, refer to below link:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/saudi-arabia-vehicle-leasing-market/143546-100.html

Related Reports by Ken Research:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/uae-car-rental-leasing-market/42906-100.html

https://www.kenresearch.ae/automotive-transportation-and-warehousing/automotive-and-automotive-components/thailand-car-rental-market/137098-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-car-rental-market/136319-100.html

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