Why budget has the highest share in car rental - Ken Research
by Ashish Kumar Market ResearcherThe report titled “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)” provides a comprehensive analysis of the
long term car leasing market in Saudi Arabia. The report covers various aspects
such as overall market size of Saudi Arabia long term car leasing market in
terms of fleet and revenue, average contract 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 category (Premium/Luxury, Pickup and Cargo
Cars, Medium Category, Small Category Cars), by players (car rental companies
and car dealers on the basis of fleet size). The report also covers car rental
and leasing eco-system basis demand side and supply side, trends and
developments, regulatory scenario, competitive landscape 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). The report provides market share of
major car dealers, car leasing fleet by car category, competition success
factor, market leader case study and key operation metrics along with future
outlook and projections.
Saudi Long Term Car
Leasing Market
During the period 2012-2017, Saudi Arabia car leasing market
grew at a CAGR of ~% in terms of transaction value and ~% in terms of fleet
size. Several factors which influenced the growth of long term car leasing
market in the country include growth of end user industries, rate of tourist
arrivals, number of business travelers, and other factors. In terms of
transaction value, the long term car leasing market augmented positively from
SAR ~ million during 2012 to SAR ~ million during 2015. The tourist arrivals to
the country positively influenced the long term car leasing market to a large
extent. Saudi Arabia witnessed an increase in inbound arrival, growing from ~
million trips to the country during 2012 to ~ million during 2017 to the holy
city of Makkah & Madinah and for business travel to cities like Riyadh and
Jeddah.
The industry witnessed overall increase in fleet size owing
to growing competition, increasing demand and increasing market penetration
across various cities/provinces in the country. Increasing competition in the
market has raised the quality of services offered by Long Term Car leasing
companies in the country which has attracted more number of customers. The
gradual up gradation of technology in the country has increased the
accessibility to service.
Saudi Arabia Long Term
Car Leasing Market Segmentation
By Market Players: In terms of revenues, the long term
car leasing market is dominated by car rental companies which accounted for a share
of ~% (SAR ~ million) during 2017. The car rental companies in the Saudi Arabia
long term car leasing market dominate in terms of fleet size as they are
abundant in the most demanded rental locations namely, Riyadh, Jeddah, Dammam
Eastern regions and others. The major factors that supported the domination of
car rental companies are accessibility, reliability, quality of services,
popularity, online booking and similar other factors. The car dealers accounted
for a share of ~% (SAR ~ million) during 2017.
By Regions: In terms of transaction value,
central region has the highest share in the market as it is the most developed
in terms of infrastructure and has presence of large number of establishments
of varied sectors, it accounted for ~% (on the basis of fleet size) during
2017. Western region holds its importance due to holy city of Makkah, Medina
and commercial hub in Jeddah with tourism and hospitality sector becoming major
industries present in these regions. Eastern region is the largest region by
area in the Kingdom of Saudi Arabia and holds a prominent position as it has
the second largest oil and gas reservoir in the world. Its share fell slightly
due to slump in Oil & Gas sector in Saudi Arabia and it accounted for ~%
(on the basis of fleet size) during 2017. Southern and Northern region has the
lowest share as cities in these regions are still under-developed and there is
less number of establishments present in these regions
By End Users: The demand for car leasing services
is highly dependent upon the growth of end user industries. Majority of the end
users preferred to avail car leasing services usually for an average of ~
months. Logistics accounted for the largest share ~% on the basis of fleet size
during 2017 followed by FMCG and Oil and Gas sector. Construction sector also
had a significant share and accounted for ~%.
Future Outlook of Saudi
Arabia Long Term Car Leasing Market
The Saudi Arabia car leasing market is projected to grow
between 2018-22 at a CAGR of ~% owing to growing number of inbound tourists,
increasing fleet size, growing competition in the market, and rise in number of
working population and establishments and growth in end user industries. During
the forecasted period, car rental companies are expected to increasingly
upgrade their IT platforms to handle information more accurately and faster, to
deliver better service experience, flexibility and security to the end users
and for better fleet management. Expansion of operations to smaller cities by
car leasing companies will also play a pivotal role in the revenue growth of
the industry. 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. Growth in car leasing market in the country is most likely to be
influenced by lower annual payments, wide variety of cars, insignificant
maintenance costs, lower upfront cash outlay, comprehensive insurance coverage
and negligible registration cost.
Key Topics Covered in
the Report
Car rental market in Saudi Arabia
Car leasing services in Saudi Arabia
Long Term Car Leasing Market in Saudi Arabia
Long Term Car Leasing Market in Saudi Arabia by Fleet Size
Saudi Arabia Car Rental Market Size
Major Players in Saudi Arabia Car Rental
Car Rental Companies in Saudi Arabia
Competition in Saudi Arabia Car Rental
Saudi Arabia Car Rental/Leasing Market Future Growth
Avis Car Rental/Leasing Market Share in Saudi Arabia
Budget Car Rental/Leasing Market Share in Saudi Arabia
Hanco Car Rental/Leasing Market Share in Saudi Arabia
Best Rent Car Revenue from Car Rental
Future of Saudi Arabia Car Rental/Leasing Market
Trends in Car Rental/Leasing Market in Saudi Arabia
Market share of leading car rental companies in Saudi Arabia
Major companies in car leasing market in Saudi Arabia
Why budget has the highest share in car rental
Future outlook of car leasing market in Saudi Arabia
For more information on
the research report, refer to below link:
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Created on Mar 6th 2018 05:00. Viewed 230 times.