Saudi Arabia Car Rental Market Size to Hit USD 976.7 Million by 2034 At CAGR of 2.28%

Saudi Arabia Car Rental Market Overview

Market Size in 2025: USD 797.4 Million
Market Size in 2034: USD 976.7 Million
Market Growth Rate 2026-2034: 2.28%

According to IMARC Group's latest research publication, "Saudi Arabia Car Rental Market Report by Booking Type (Offline Booking, Online Booking), Rental Length (Short Term, Long Term), Vehicle Type (Luxury, Executive, Economy, SUVs, and Others), Application (Leisure/Tourism, Business), End User (Self-Driven, Chauffeur-Driven), and Region 2026-2034", The Saudi Arabia car rental market size reached USD 797.4 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 976.7 Million by 2034, exhibiting a growth rate (CAGR) of 2.28% during 2026-2034​.

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-car-rental-market/requestsample

How Digital Innovation is Reshaping the Future of Saudi Arabia Car Rental Market

● AI-powered chatbots like SelfDrive's SIA handle bookings in 40+ languages, slashing wait times and boosting user satisfaction with instant, natural conversations for seamless rentals.​

● Companies such as Aljomaih and Yelo use AI telematics to cut fuel costs and downtime through real-time tracking and predictive maintenance, aligning with Transport General Authority subsidies.​

● AI fleet analytics optimize vehicle use and pricing dynamically, with Lumi Rental leveraging it for demand prediction and 24/7 customer chatbots to enhance efficiency.​

● Vision 2030 drives AI integration in tourism, where 21.5% of internet users engage AI apps for personalized car rentals and smart travel planning.​

● Startups like Telgani and Invygo apply AI for paperless KYC and behavior monitoring, reducing operational costs while improving safety and repeat business.

How Vision 2030 is Transforming Saudi Arabia Car Rental Market Industry?

Vision 2030 is transforming the Saudi Arabia car rental market by driving mobility modernization, tourism expansion, and digital adoption. Growing domestic travel, rising international visitors, and major giga-projects are boosting demand for flexible, short-term transportation solutions. The strategy's focus on smart cities, improved road infrastructure, and seamless mobility services is encouraging rental companies to expand fleets, adopt electric vehicles, and integrate app-based booking platforms, ultimately enhancing service efficiency, customer convenience, and market competitiveness across the Kingdom.

Saudi Arabia Car Rental Market Trends & Drivers:

The surge in tourism and business travel is one of the biggest forces pushing the Saudi Arabia car rental market forward. With millions of tourists and business professionals visiting the Kingdom each year, there's a growing need for convenient, flexible transportation options. The government's Vision 2030 strategy has made tourism a top priority, leading to new mega-projects and infrastructure developments that attract even more visitors. Rental companies are responding by expanding their fleets and services to meet this demand, especially in cities like Riyadh, Jeddah, and NEOM, where business and leisure travel is booming. This trend is supported by the fact that many tourists prefer the freedom and comfort of having their own vehicle while exploring the country.​

Another major factor is the increasing adoption of digital platforms and online booking systems. With smartphone and internet penetration at an all-time high, customers can now book rentals, compare prices, and manage reservations with just a few taps. This convenience is especially popular among younger, tech-savvy travelers and corporate clients who value efficiency. Rental companies are investing heavily in mobile apps and digital customer service to stay competitive. The rise of subscription-based models and digital payment options is also making it easier for both individuals and businesses to access vehicles without the hassle of long-term ownership.​

Government regulations and initiatives are also shaping the market in meaningful ways. Recent policies, such as Cabinet Decision No. 545 in 2025, encourage government entities to lease vehicles rather than purchase them, which is creating new opportunities for rental providers. At the same time, the nationalization of the car rental sector is boosting local employment and ensuring better service quality. These regulatory changes are driving more transparency and standardization in the industry, making it easier for both customers and operators to navigate the market. As a result, more companies are entering the space, and existing players are expanding their offerings to stay ahead.​

Buy the Latest 2026 Edition: https://www.imarcgroup.com/checkout?id=20871&method=1315

Saudi Arabia Car Rental Industry Segmentation:

The report has segmented the market into the following categories:

Booking Type Insights:

● Offline Booking
● Online Booking

Rental Length Insights:

● Short Term
● Long Term

Vehicle Type Insights:

● Luxury
● Executive
● Economy
● SUVs
● Others

Application Insights:

● Leisure/Tourism
● Business

End User Insights:

● Self-Driven
● Chauffeur-Driven

Regional Insights:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Car Rental Market

● November 2025: SelfDrive launches SIA, region's first conversational AI chatbot, enabling instant multilingual bookings for rentals.

● October 2025: Digital car rental contracts hit 1.8m in Q3, up 21%, led by Riyadh at 32%, boosting efficiency via TGA's unified electronic system.​

● October 2025: Budget Saudi Arabia named Best Car Rental Company 2025 by World Business Outlook for excellence in service innovations.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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This release was published on openPR.