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Middle East Car Rental Market,Car Rental Market Size, Car Rental Industry Analysis

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The market for car rental in Middle East has been driven by countries such as Oman, Qatar, and Kuwait. Countries such as Saudi Arabia and UAE constitute for a major portion of car rental revenues across the Middle East region. The market for car rental in the country has been driven by the rise in demand for local players in Middle East although the market has been dominated by players such as Hertz Corporation, Sixt, Avis Corporation and Europcar. – PowerPoint PPT presentation

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Title: Middle East Car Rental Market,Car Rental Market Size, Car Rental Industry Analysis


1
Middle East Car Rental and Leasing Market Report
2020 Ken Research
2
  • How the Middle East Car Rental Market Is
    Positioned?
  • The global car rental market has been recorded at
    USD billion in 2015 and is expected to reach
    USD billion by 2020 thereby registering a CAGR
    of during the forecast period 2015-2020. The
    market for car rental in Middle East has been
    driven by countries such as Oman, Qatar, Bahrain
    and Kuwait. Countries such as Saudi Arabia and
    UAE constitute for a major portion of car rental
    revenues across the Middle East region. The
    market for car rental in the country has been
    driven by the rise in demand for local players in
    Middle East although the market has been
    dominated by players such as Hertz Corporation,
    Sixt, Avis Corporation and Europcar. Local
    players predominant in the Middle East Car Rental
    Industry are Regency, Strong car rental, Auto
    rent, Market Rent- A- Car, Al- Mulla, Al Sayer
    and others. Improving economic conditions,
    stability, growth of tourism and investment in
    travel infrastructure has led to a growth in
    Middle East car rental industry.

3
  • Over the past five years from 2010-2015, the car
    rental industry in Middle East has posted an
    average annual growth rate of with revenues
    and fleet size growing to USD million and
    respectively in 2015. Middle East Car rental
    market segmentation on the basis of geography has
    been broadly dominated by Saudi Arabia car rental
    market. Saudi Arabia car rental market has
    dominated the overall Middle East car rental and
    has occupied a share of in terms of revenue in
    2015. In 2015, UAE is the second largest car
    rental market with a share of in terms of
    revenue in the Middle East region The
    international companies that have dominated the
    fleet in the Middle East are Avis Budget Group
    with cars followed by Hertz, Europcar and Sixt
    with fleet sizes of , and respectively in
    2015

4
  • Which Segments Have Driven Changes In Middle East
    Car Rental Market?
  • Majority of the population in the region prefers
    to switch their cars alternatively in order to
    suit their social needs. Car Leasing has been the
    most popular segment with share in revenue in
    the Middle East region due to high demand from a
    number of work expats around the region. It has
    been observed that around of the revenues of
    the car rental companies arise from the oil and
    gas companies followed by from the
    construction companies. The high per capita
    income in the region has promoted the culture of
    travelling in new cars for longer periods and
    hence increased the demand for short term car
    rentals in the Middle East region Short term Car
    Rental have accounted for of the revenues in
    2015 out of the total Middle East car rental
    market revenues. Rest of the revenues has been
    accounted by the chauffeur driven market.
    Chauffeur Driven Car Rentals are preferred by the
    tourists visiting the region for travel and
    leisure purposes.

5
  • What is the Future Outlook For Middle East Car
    Rental Market?
  • Since a major part of the population in the
    Middle East region comprises of the expatriate
    population therefore the demand for car rental
    market has always posed tremendous opportunities.
    The future growth of the car rental market can be
    expected to be favorable since this industry has
    stringent government legislations on purchase and
    car driving in the country therefore a major
    portion of the expatriate population and tourists
    in the country prefer to rent a car. The decline
    in expatriate population in various countries
    (majorly Kuwait) due to the enunciation of
    government regulation is likely to defy the long
    term car rental market in the region. FIFA world
    cup hosting by Qatar in 2022 and expansion of
    petroleum projects by Kuwait National Petroleum
    Corporation is likely to be one of the major
    drivers in the car rental market in the Middle
    East region. The revenues for the car rental
    market are expected to incline at a stupendous
    CAGR of during the period 2016-2020, with the
    revenues expected to be mounted at USD million
    by 2020. The fleet Size of car rental market in
    the region is expected to grow at a CAGR of to
    reach the levels of by 2020.

6
  • How has Saudi Arabia Car Rental Market Performed?
  • The share of Saudi Arabia is the largest within
    the entire car rental market in Middle East with
    a contribution of around in overall revenues
    in 2015. Best, Hanco, Budget, Hertz Corporation
    and Europcar have been the leading brands in the
    Saudi Arabia car rental market. Saudi Arabia is
    one of the largest pilgrimage places in the
    Middle East region. The country has holy places
    such as Mecca and Medina that witnesses vast
    influx of tourist during Eid Al- Fitr and Eid Al-
    Adha festivals where rate of car rental services
    reaches as opposed to the normal days where
    the car rental services have around
    operations. Saudi Arabia car rental market has
    grown at a positive CAGR of , over the period,
    2010-2015 and enhanced to USD million in 2015
    from USD million during 2010. During 2015, car
    leasing has dominated the overall car rental
    market with the revenues share being accounted at
    in 2015. The higher domination of car leasing
    is mainly due to presence of numerous oil and gas
    and construction companies that hire commercial
    vehicles.

7
  • The car rental industry can also be segmented by
    on and off airport markets. On airport includes
    pick up and drop off to airports, whereas the off
    airport segment relates to all other rental
    services excluding the service in airports. The
    on airport segment commanded share in the
    revenues of chauffeur driven car rentals as of
    2015. Oil and gas sector has dominated the
    overall corporate car leasing with a share of
    in terms of revenues in 2015. In terms of the
    competition, Budget has been a clear leader in
    the market with the fleet size of in Saudi
    Arabia followed by Best rent a car and Hanco with
    and cars respectively. Lack of financial
    stability/ unstable job opportunities and
    continuous influx of tourists due to the presence
    of pilgrimage places such as Mecca and Medina has
    led to the rise in the number of car rental firms
    in Saudi Arabia. The car rental industry in Saudi
    Arabia is expected to have USD million revenues
    with a fleet size of around cars by 2020.

8
  • How the UAE Car Rental Market Positioned?
  • The share of car rental in UAE is the second
    largest within the entire car rental market in
    Middle East region with a contribution of around
    in overall revenues in 2015. Hertz
    Corporation, Thrifty, Europcar, Sixt and Avis
    Budget have been the leading players in the UAE
    car rental market with a combined market share of
    in 2015. UAE car rental market has grown at a
    CAGR of , over the period, 2010-2015 and
    increased to USD million in 2015 from USD
    million in 2010. The major operators in the
    industry have reduced car rental expenses,
    enhanced their fleet size and looked for
    opportunities in off-airport markets including
    insurance replacement, while others moved to
    enter into leisure segment of the market, which
    has been the possible growth driver of the
    industry. With an increase in the enterprises
    across UAE, the demand for car leasing enhanced
    that has pushed the fleets in UAE to during
    2015. UAE car rental market has majorly been
    driven by Dubai car rental market. Dubai accounts
    for a share of in 2015 in UAE car rental
    market. The country has witnessed a rise in the
    fleet size of various car rental firms. Although
    the country relies more on station booking yet
    the market has witnessed a rise due to business
    related car bookings. Others have accounted for
    around whereas Sharjah acts as another major
    tourist destination with a share of by revenue
    due to cheaper living locations and continuous
    transportation of people from Dubai to Sharjah. .
    During 2015, it has been witnessed that oil and
    gas has accounted for the largest share with
    in terms of revenues engendered by car leasing
    market.

9
  • Burj Khalifa, Dubai Museum, Bastakia, Sheikh-
    Saeedu Al- Maktoum House, Dubai Creek and others
    are some of the prevalent tourist gathering
    places throughout the year. Some of the leading
    companies in UAE car rental market are Europcar,
    Hertz, Avis Budget, Sixt, Europcar and others.
    Hertz has captured the dominant share in the
    market for rented cars in UAE with a share of
    around in 2015. Projection for the future
    suggests that the market for car rental is
    expected to witness promising growth, with their
    fleet size is expected to mount at cars by
    2016. During the period 2016-2020, the fleet
    sizes are expected to incline at a CAGR of ,
    while the fleet size is expected to be mounted at
    cars by 2020.
  • What are the Trends in Kuwait Car Rental Market?
  • It has been observed that the reducing oil prices
    have impacted the gulf economies to a large
    extent however Kuwait is one of the two
    countries who had a deficit of less than 10 even
    when the oil prices have plummeted from a high of
    USD 110 per barrel in 2014 to around USD 30 per
    barrel by the beginning of 2016. The government
    has provided an assurance to not decline its
    spending on infrastructural projects which would
    help resist the economy to fall into the
    depression, since most of the economy runs on the
    government spending in Kuwait. Kuwaits capital
    expenditure stands at of the whole budget.
    Inclination in the price levels and increasing
    competition among vehicle rental companies has
    been another rationale for rise in car rental
    business in the country. The car rental fleets in
    the country recorded a compound annual growth
    rate of and passenger car sales in Kuwait has
    grown at a CAGR of over the years 2010-2015.

10
  • The car rental market in Kuwait is expected to
    reach USD 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. 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. In
    term of the chauffeur driven car rental on
    airport car rental has dominated with of the
    share in revenues in 2015. 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. In 2015, around of the
    revenues in the country were generated through
    car leasing services (Car rental greater than 6
    months). All Mulla has dominated the market for
    rental cars in Kuwait with share in the total
    fleet of the car rental industry 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).

11
  • How has Egypt Car Rental Market Performed?
  • The car rental market in Egypt has been on a
    downward trend since the past few years from
    2010-2015 majorly due to the presence of various
    obstacles such as local supply, poor roads, GPS,
    government regulation and poor infrastructure
    facilities. Various companies in the country have
    been closed due to the increasing dominance of
    local companies. Although majority of the
    visiting businesspeople, students and expats that
    travel to the country prefer to rent a car for
    long term/ service tenure. Egypt car rental
    market has declined at a CAGR of , over the
    period, 2010-2015 and slumped to USD million in
    2015 from USD million in 2010. There was a
    decline in the international tourists arrival
    which has greatly affected the market for car
    rental in the country along with poor driving
    behavior, poorly market roads, lack of road signs
    and other such factors especially during 2011 and
    2013. This has led the market for car rental
    decline from USD million in 2010 to USD
    million in 2013. On the other hand, the
    continuous revolutions in Egypt from 2011 to 2013
    have set the country on a downward path. The
    improvement of the tourist arrival despite slow
    start has set the industry to a recovery path as
    seen in lower decline rate in 2015. The economic
    summit in Egypt has been a major factor
    contributing to the tourism recovery.

12
  • Egypt Chauffeur driven car segment has
    experienced higher share of in on airport
    revenues as compared to off-airport in 2015. The
    proportionate share of the physical and online
    booking was valued at and with in terms of
    Chauffeur driven car rental market in 2015.
    Greater Cairo is the largest metropolitan in
    Egypt. The region has been the centre of
    attraction for most of the activities in the
    country. The revenue contributed by urban areas
    such as Cairo and Alexandria has grown with the
    rise in the number of business expats and working
    population that prefers to rent cars for longer
    duration. Cairo and Alexandria have contributed a
    share of and respectively in 2015. The
    Egypt car leasing has been characterized by a
    high amount of revenue from the trading companies
    in comparison to oil and gas companies which
    account for a higher revenue share in other
    countries such as UAE and Saudi Arabia. The
    Egypt car rental industry has been predominantly
    held by four major players namely Europcar,
    Sixt, Avis Hala, Budget and Others. The
    announcement of the Red Sea Bridge joining Saudi
    Arabia and Egypt has provided hopes for the car
    rental market in the Egypt since a large portion
    of the car rental market especially the leasing
    market is derived by the trading companies. The
    fleet size of the Egypt car rental market is
    expected to grow at a CAGR of from 8,800 in
    2015 to around by 2020 with incline in the
    fleet by local players as well, for instance-
    Smart Cars- a local company plans to double its
    fleet by 2018.

13
  • How has Oman Car Rental Market Been Positioned?
  • The overall car rental business in the country
    has been growing at a compound annual growth rate
    of during the year 2010-2015. Situational
    factors have kept the industry fairly buoyant in
    the region. It has been estimated that around
    car rental market in Oman has been driven by
    leisure tourists in the country and rest from an
    increasing number of infrastructure projects
    since the year 2010. The increasing expenditure
    by government to increase the tourism in the
    country has directly influenced the car rental
    industry. The investments are made in the view of
    preserving the national historical heritage as
    well as new developments such as Oman Convention
    and Exhibition Centre, Madinat Al Irfan Urban
    development and others. The Oman car rental
    market has increased from USD million in 2010
    to USD million in 2015. The fleet size in Oman
    has registered an increase at a CAGR of from
    2010-2015 The market has witnessed an increase in
    car leasing market and has a share of in 2015
    in terms of revenue. In 2015, short term car
    rental held a share of in terms of revenues
    due to the increase in on-airport car rental
    services and tourist arrivals in the country.

14
  • Chauffeur Driven Car Rental market in Oman has
    been largely driven by the rise in the
    Off-Airport segment car rental market.
    Off-Airport car rental segment has occupied a
    share of in terms of revenue in Oman car
    rental market in 2015. As of 2015 around of
    the tourists arrival was for Leisure
    Recreation while only of the tourists arrival
    was for business purposes while rest of the
    tourists visit was for other purposes such as
    visiting family or friends. Oil and gas revenues
    constituted of total government revenues over
    the period 2010- 2015 and thereby formed a major
    business segment in Oman. Projection for the
    future suggests that the market for car rental is
    expected to mount to USD million by 2020.
    During the period 2015-2020, the revenues are
    expected to incline at a CAGR of . It is also
    expected that the fleet size of the car rental
    industry will increase from in 2015 to in
    2020 inclining at a CAGR of between 2015 and
    2020.
  • How have other countries performed in Middle East
    Car Rental Market?
  • Qatar Car Rental Market
  • Booming online car rental booking market in terms
    of both domestic and worldwide bookings and
    developments such as booking in Arabic has also
    provided an impetus to the car rental market over
    the period 2010-2015. Overall, during the period
    of 2010-2015, the car rental industry witnessed a
    CAGR of .

15
  • The market has witnessed an inclination in terms
    of rise in the number of car rental services
    along with the introduction of different types of
    cars variants such as Sedan, SUV, 44 and mini
    cars. The car rental market in Qatar has
    witnessed a modest increase in the fleet size
    over the years 2010-2015 at a CAGR of which
    has valued the car rental fleet size at Qatar at
    vehicles. Increase in price competitiveness
    among the local and global players has resulted
    in expansion in fleet size in terms of
    introduction of various car variants that has led
    to the rise in number of car rental vehicles in
    the country. Fast growing economy and rapid
    growth in the population has demanded the
    improved means of transport in the country and
    hence higher investment in the space. This is
    backed by the fact that the country is getting
    ready for the 2022 FIFA World Cup by increasing
    the investment spending on transport and travel
    segment. As of September 2014, the Ministry of
    Transport has planned to put in USD billion in
    transport infrastructure by 2019. The revenues
    for the car rental market are expected to incline
    at a stupendous CAGR of during the period
    2015-2020, with the revenues are expected to be
    mounted at USD million by 2020. It has also
    been anticipated that the car rental market would
    increase at a CAGR of in terms of the fleet
    size that are expected to increase from
    vehicles in 2015 to vehicles in 2020.

16
  • Bahrain Car Rental Market
  • Bahrain car rental industry has enhanced at a
    CAGR of over the period of 2010-2015. The
    revenues of the car rental industry in Bahrain
    has showcased a gradual increase as the market in
    2010 was valued at USD million that has
    increased to USD million in 2012 and further to
    USD million in 2015. The car rental industry in
    Bahrain is estimated to grow at a CAGR of over
    the period 2015-2020, attaining the revenues of
    USD million by 2020. The proceeds of the
    industry are expected to be encouraged by tourism
    industry growth. The government is predicted to
    undertake various initiatives to promote tourism
    in the country. For instance, Manama has held the
    title of Capital of Arab Tourism in 2013 for
    which the Ministry of Culture had planned a
    year-long program of performances, seminars, and
    other events showcasing Arab culture.The Causeway
    which joins Saudi Arabia and Bahrain is gearing
    up for the expansion. The construction of second
    crossing to Saudi Arabia (King Hamad Causeway) is
    expected to ease the existing problem of
    congestion. The car rental fleets in Bahrain is
    expected to grow at a CAGR of in the next five
    years from 2015-2020 with the number of fleets
    reaching to in 2020, inclining from in 2015.

17
  • Jordan Car Rental Market
  • Car rental industry in Jordan has advanced at a
    sturdy pace over the past 5 years from 2010-2015.
    The outlets for rented cars in Jordan are majorly
    concentrated in the city of Amman/ King Abdullah
    Garden Shmeshan that comprises of offices of
    around rental car companies.The car rental
    business in the country has grown at a CAGR of
    over the period 2010-2015. The revenues of the
    industry in Jordan have showcased a balanced
    growth as the market in 2010 was USD million
    which inclined to USD million in 2015.The fleet
    size of the Jordan car rental market has grown at
    an average annual growth rate of in the period
    of 2010-2015. In 2010, the number of car rental
    fleets was vehicles which inclined to nearly
    in 2015.Car rental industry in Jordan is
    forecasted to grow at a compound annual growth
    rate of from 2015-2020, with the revenue
    inclining to USD million by 2020. The industry
    will largely be driven by number of international
    tourist arrivals in the country that have
    enhanced at a CAGR of over the period
    2010-2014 and are expected to enhance at a CAGR
    of in future till 2020

18
  • Source https//www.kenresearch.com/automotive-tra
    nsportation-and-warehousing/automotive-and-automot
    ive-components/middle-east-car-rental-leasing-mark
    et/42895-100.html
  •  Contact Ken ResearchAnkur
    Gupta, Head Marketing CommunicationsAnkur_at_kenre
    search.com91-9015378249
  • Website https//www.kenresearch.com/

19
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