Market Size of Middle East Car Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 10.42 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle East Car Rental Market Analysis
The Middle East Car Rental Market size is expected to grow from USD 2.28 billion in current year to USD 3.74 billion, at a CAGR of 10.42% during the forecast period.
The market for car rentals was severely impacted by the COVID-19 pandemic. The COVID-19 pandemic has caused the region's car rental market to slow down completely due to the sudden and complete suspension of transportation. The Middle Eastern countries' rental car demand continued to decline as a result of the region's declining preference for shared mobility.However, in the aftermath of the pandemic, as the number of tourists has significantly increased, the Middle Eastern's demand for car rentals has significantly increased and is anticipated to continue throughout the forecast period.
Over the long term, the car rental market's growth is favorable due to stringent government legislation on purchase and car driving in the country. Using public transportation can become time-consuming and unpredictable. Moreover, public transport doesn't give an end-to-end ride, which is especially unfavorable among tourists.
In every Middle Eastern nation, expanding economies like Oman and the United Arab Emirates have fueled the rental car market.Among the Middle Eastern countries, Saudi Arabia generates the most revenue from car rentals.Outstation, event, self-driving, employee transportation, airport transportation, and local use are just a few examples of the many uses for car rentals.In addition, they are providing insurance, entertainment systems, and additional services.The developed Middle Eastern nations are also starting to take notice of the rise of electric cars, which offer the same functionality with the added benefit of having fewer negative environmental effects.
In every Middle Eastern nation, expanding economies like Oman and the United Arab Emirates have fueled the rental car market.Among the Middle Eastern countries, Saudi Arabia generates the most revenue from car rentals. Outstation, event, self-driving, employee transportation, airport transportation, and local use are just a few examples of the many uses for car rentals.In addition, they are providing insurance, entertainment systems, and additional services.The developed Middle Eastern nations are also starting to take notice of the rise of electric cars, which offer the same functionality with the added benefit of having fewer negative environmental effects.
Middle East Car Rental Industry Segmentation
Car rental companies rent cars for a reasonable fee for a particular duration. Generally, hiring periods range from a few hours to days or weeks. Car rentals can contain various purposes, including airport transport, local usage, outstation, event transportation, self-drive, and employee transportation.
The Middle East Car Rental Market is segmented by booking type (online booking and offline booking), application type (leisure/tourism and daily utility), vehicle type (economy cars and luxury cars), end-user type (self-driven and chauffeur), and country (Saudi Arabia, Kuwait, United Arab Emirates, Qatar, and rest of Middle-East). The report offers market size and forecasts for Middle East car rental in terms of value (USD) for all the above segments.
| Booking type | |
| Online booking | |
| Offline booking |
| Application | |
| Leisure/Tourism | |
| Daily utility |
| Vehicle Type | |
| Economy cars | |
| Luxury cars |
| End-User Type | |
| Self-driven | |
| Chauffeur |
| Country | |
| Saudi Arabia | |
| Kuwait | |
| United Arab Emirates | |
| Qatar | |
| Rest of Middle East |
Middle East Car Rental Market Size Summary
The Middle East car rental market is poised for significant growth, driven by a resurgence in tourism and economic expansion in countries like Oman and the United Arab Emirates. The market, which faced challenges during the COVID-19 pandemic due to a decline in shared mobility preferences, is now experiencing a robust recovery as tourist numbers rise. This growth is further supported by government regulations that favor car rentals over public transportation, which is often seen as less convenient. Saudi Arabia stands out as the leading revenue generator in the region, with a diverse range of rental services including outstation, self-driving, and airport transportation. The market is also witnessing a shift towards electric vehicles, aligning with global sustainability trends.
The increasing adoption of digital technologies is transforming the car rental landscape in the Middle East. Online booking services are becoming the preferred choice for renters, facilitated by the region's high internet penetration. This digital shift is enhancing user experience through features like e-signing, cashless transactions, and detailed vehicle information. Major rental companies are expanding their operations and forming strategic partnerships to enhance their market presence. The region's strategic location and economic growth have made it a hub for international tourism, further boosting the demand for car rentals. As the market evolves, companies are focusing on sustainability and innovation to maintain a competitive edge.
Middle East Car Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Value in USD)
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2.1 Booking type
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2.1.1 Online booking
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2.1.2 Offline booking
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2.2 Application
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2.2.1 Leisure/Tourism
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2.2.2 Daily utility
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2.3 Vehicle Type
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2.3.1 Economy cars
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2.3.2 Luxury cars
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2.4 End-User Type
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2.4.1 Self-driven
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2.4.2 Chauffeur
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2.5 Country
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2.5.1 Saudi Arabia
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2.5.2 Kuwait
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2.5.3 United Arab Emirates
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2.5.4 Qatar
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2.5.5 Rest of Middle East
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Middle East Car Rental Market Size FAQs
What is the current Middle East Car Rental Market size?
The Middle East Car Rental Market is projected to register a CAGR of 10.42% during the forecast period (2024-2029)
Who are the key players in Middle East Car Rental Market?
Avis Budget Group Inc., Hertz Corp., Enterprise Holdings Inc., Fast Rent a Car and Sixt SE are the major companies operating in the Middle East Car Rental Market.
