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GCC Car Rental Market Size (2024 - 2029)

The GCC car rental market is experiencing significant growth, driven by an increase in tourist footfall and a rising preference for rental services post-pandemic. Despite the initial negative impact of COVID-19, the market has rebounded as shared mobility preferences have shifted. The expanding economies within the region, particularly in countries like the United Arab Emirates and Oman, are contributing to this growth, with Saudi Arabia leading in revenue generation. The market's expansion is further supported by the diverse purposes of car rentals, including airport transport and self-drive options, as well as the introduction of electric cars, which offer environmental benefits.

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Market Size of GCC Car Rental Industry

GCC Car Rental Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 15.00 %
Market Concentration Low

Major Players

GCC Car Rental Market Major Players

*Disclaimer: Major Players sorted in no particular order

GCC Car Rental Market Analysis

The GCC Car Rental Market was valued at USD 600 Million in 2021 and is expected to reach USD 1600 Million by 2027, registering a CAGR of over 15% during the forecast period.

The COVID-19 pandemic had a severe negative impact on the car rental market. The sudden and complete transport halt due to the COVID-19 pandemic has forced the slowdown of the car rental market in the region. The reduced preference for shared mobility in the region further deteriorated the demand for rental cars in GCC countries. However, post-pandemic, as the tourist footfall has increased significantly, the demand for car rental has witnessed a significant increase across GCC and is expected to continue during the forecast period. 

Car rental companies rent out cars for a suitable fee for a specific duration. Generally, hiring periods could range from a few hours to also a few days or weeks. With hassle-free, low maintenance, and cheap pricing, renting cars is also becoming popular in the GCC markets.

The market for car rental in all the GCC nations has been driven by growing economies like the United Arab Emirates and Oman. Saudi Arabia constitutes most car rental revenues amongst the GCC nations.

Car rentals can have various purposes, including airport transport, local usage, outstation, event transportation, self-drive, and employee transportation. They are also offering additional services such as entertainment systems, GPS navigation systems, and insurance. Rise of electric cars providing the same utility with an added benefit of reduced ill-effects on the environment is also becoming popular amongst the developed GCC countries.

GCC Car Rental Industry Segmentation

The GCC Car Rental Market is segmented by Vehicle Type (Economy/Budget and Premium/Luxury), by Vehicle Body Style (Hatchback, Sedan, and Sport Utility Vehicle), and by Booking Channel (Online and Offline) and by Country (United Arab Emirates (UAE), Saudi Arabia, Qatar, and Rest of GCC Countries). The report offers market size and forecasts for GCC Car Rental in terms of value (USD Million) for all the above segments.

Vehicle Type
Offline
Online
Vehicle Body Style
Hatchback
Sedan
Sport Utility Vehicle
Booking Channel
Online
Offline
Country
United Arab Emirates (UAE)
Saudi Arabia
Qatar
Rest of GCC Countries
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GCC Car Rental Market Size Summary

The GCC car rental market is experiencing a robust recovery and growth trajectory following the setbacks caused by the COVID-19 pandemic. The initial decline in demand due to travel restrictions and reduced preference for shared mobility has been reversed, with a significant increase in demand driven by rising tourist footfall in the region. The market is characterized by a diverse range of rental services, including airport transport, local usage, and event transportation, with companies offering additional features like GPS navigation and entertainment systems. The adoption of electric vehicles is also gaining traction, aligning with the region's sustainability goals. The market's expansion is supported by favorable government policies and the growing economies of GCC countries, particularly the United Arab Emirates and Saudi Arabia, which are key contributors to the region's car rental revenues.

The shift towards digitalization is a significant trend in the GCC car rental market, with online booking channels gaining prominence. The convenience of app-based rentals and advanced booking features is enhancing customer experience and increasing market penetration. The UAE, with its strategic location and tourist attractions, plays a pivotal role in the market's growth, supported by government initiatives and technological advancements. The market is highly fragmented, with numerous startups and established players like Budget, Thrifty, and Hertz competing for market share. Collaborative efforts, such as joint ventures and partnerships, are common as companies strive to innovate and expand their service offerings. The influx of investment in startups and the development of state-of-the-art booking platforms are further propelling the market forward, making car rentals more accessible and efficient across the GCC region.

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GCC Car Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Vehicle Type

      1. 2.1.1 Offline

      2. 2.1.2 Online

    2. 2.2 Vehicle Body Style

      1. 2.2.1 Hatchback

      2. 2.2.2 Sedan

      3. 2.2.3 Sport Utility Vehicle

    3. 2.3 Booking Channel

      1. 2.3.1 Online

      2. 2.3.2 Offline

    4. 2.4 Country

      1. 2.4.1 United Arab Emirates (UAE)

      2. 2.4.2 Saudi Arabia

      3. 2.4.3 Qatar

      4. 2.4.4 Rest of GCC Countries

GCC Car Rental Market Size FAQs

The GCC Car Rental Market is projected to register a CAGR of greater than 15% during the forecast period (2024-2029)

Thrifty, Sixt, Hertz Corporation, Fast Rent a car and KAYAK are the major companies operating in the GCC Car Rental Market.

GCC Car Rental Market Report Snapshots

GCC Car Rental Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)