Title: Kuwait Car Rental and Leasing Market Forecast to 2020: Ken Research
1Kuwait Car Rental and Leasing Market Forecast to
2020, Demand For Car Leasing to Drive Growth Ken
Research
2How the Kuwait Car Rental and Leasing Market Is
Positioned? Kuwait car rental market showcased a
significant growth in the previous years. In
2015, Kuwait car rental market was valued at USD
million as compared to the revenue in 2010
which was USD million. The growth in the
revenue has been largely due to an inclination in
the expenditure on travel by the people in the
country, primarily caused by rising number of
foreign visitors. In 2014, the country has
witnessed an inclination of in the car rental
market in terms of revenue as compared to 2013.
In 2010, the car rental industry had witnessed
revenue of USD million which had further
enhanced to USD million in 2011 and USD
million in 2012. Investment by government to
support tourism such as development of Kuwait
International Airport to reach a lodging capacity
of 25 million passengers per year is also
providing a boost to tourism and thus directly
impacting the car rental market positively.
3- Significant rise in revenues have been witnessed
for the car rental companies operating in the
country due to diversification in their business
opportunities in terms of new rental segments and
business line. Major multinational car rental
companies such as Hertz has enhanced their
business by appointing local companies such as
Transworld Company as its GSA (General Sales
Agent) in Kuwait in efforts to increase the
amount of outbound car rental reservations from
Kuwait. Over the years, Kuwait car rental market
has grown at a CAGR of from 2010-2015 reaching
to USD million in 2015. - Moreover, the tourism sector is also impacting
the revenues of car rental companies directly
since most of the tourists opt for a car rental
when they visit Kuwait, this provides them the
flexibility of enjoying the clean and developed
road infrastructure in the country with ability
to stop at various places. - Which Segments have driven Kuwait Car Rental and
Leasing Market? -
- Most of the off airport car rental is dominated
by the long term car leasing and hence only a
limited revenue of chauffeur driven cars is
obtained through the off airport car rental. On
the other hand Chauffeur driven car rental market
has been dominated by the on airport car rental
since most of the people which arrive at the
airport opt for the chauffeur driven cars.
4- Kuwait has one of the best road systems among the
Middle East countries with widely available car
rental facilities in the country. In 2015, around
of the revenues of the car rental companies
have been generated through the rental of luxury
cars that comprises of limousine services along
with large sized cars such as Ford Lincoln, Lexus
ES 350 and others. Around of the revenues were
generated from medium sized cars in the country
in 2015. Expats and tourist that prefer to rent
cars for duration of 3 months-6 months usually
prefer to rent small sized cars such as Hyundai
Veloster, Mitsubishi Mirage, Nissan Micra and
others. - Kuwait car rental market has been segmented on
the basis of types of clients (corporate/ work
expats or retail/ tourists) that prefer to rent
cars or book cars for their travelling purpose.
Since Kuwait is home to a large expat population
from various countries therefore car rental
companies generate a major portion ( ) of their
revenues through corporate clients. - It has been observed that around 60 of the GDP
of the country comes from oil and gas sector
accounting for 95 of Kuwaits exports. These
companies need rented vehicles (mostly commercial
or the SUVs) to travel to the work sites and thus
command of the share in revenues. The
construction industry is expected to indulge into
a series of projects, owing to increasing demand
from the private sector.
5- Expansion of the Kuwaits International Airport
and increased focus on infrastructural projects
to attain non-oil led growth are some factors
leading to growth of construction sector in the
country leading to a revenue share of . Other
sectors such as trading companies require most of
the commercial vehicles to move their goods to
and from ports to other parts in the country and
thus provide revenues worth of the industry
revenues. - What is the Competition Scenario in Kuwait Car
Rental and Leasing Market? - Competition in the vehicle rental industry is
primarily based on price, service quality of
customers, including utilization of booking
systems and easiness of rental and return,
accessibility of vehicles, dependability and
domestic and international distribution. In
addition to this, competition in the market is
also influenced by advertising, marketing and
brand reputation. - Most of the Kuwait car rental market is captured
by local players in the country which command a
major share in the industry. All Mulla has
dominated the market for rental cars in Kuwait
with 25.2 share in the total fleet of the car
rental industry in the country. Al Sayer and
Safeena are other major players which commanded a
fleet size of 14.3 and 8.4 respectively.
6- Foreign players such as Sixt, Europcar, Avis and
others also have their rental stations across the
country. Apart from all the major players, the
rest of the Kuwait car rental market is tapped by
small and independent as well as international
players. - What is the Future Outlook for Kuwait Car Rental
and Leasing Market? - A major part of the population in Kuwait
comprises of work expatriates that usually prefer
to rent and change their cars on a frequent basis
due to the culture of Kuwaiti society that
encourages people to recurrently change their
vehicles so they will always be driving a new car
of the newest model. Therefore, various new car
rental companies are expected to introduce
facilities such as operational rent, rent
promising to buy program and others in order to
cater to the demand of the car rental companies
in the country. The market for car rental
services is expected to enhance in the country
due to the expansion of construction contracts of
KNPC (Kuwait National Petroleum Company). The
company plans to produce gasoline and diesel 90
kilometers south of the capital. This is further
expected to augment the work force and car rental
business in the country since employees would
need to travel from the city to the work
locations and the way back. - The car rental market in Kuwait is expected to
reach USD 292.2 million by 2020 in terms of
revenues and in terms of the fleet size. It is
also expected that the growth would be led by the
car leasing market covering more than of the
market.
7- Companies Cited in the ReportCompetitive
Landscape - Companies Covered in the Report List of
Companies - Kuwait Car Rental
Al-Mullah -
Al Sayer -
Sefeena -
Hertz -
Sixt -
Ousol -
National -
Payless -
Budget - Key Factors Considered in the Report
- Comprehensive analysis of the Kuwait Car Rental
and Leasing Market and its segments - Listed major players and their positioning in the
market
8- Identified major industry developments in last
few years and assess the future growth of the
industry - Government roles to understand the regulatory
environment in each country - Comprehensive analysis of major segments in the
Car Rental and Leasing Market in Kuwait - To know more on coverage, click on the link
below - https//www.kenresearch.com/automotive-transportat
ion-and-warehousing/automotive-and-automotive-comp
onents/kuwait-car-rental-leasing-market/42907-100.
html - Contact
- Ken Research
- Ankur Gupta, Head Marketing Communications
- query_at_kenresearch.com
- 91-124-4230204
9(No Transcript)
10(No Transcript)
11(No Transcript)