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Car Rentals - Saudi Arabia

Saudi Arabia

Saudi Arabia is expected to see a significant rise in revenue within the Car Rentals market.
It is projected to reach €1.05bn in 2024 and grow annually at a rate of 3.22%, resulting in an estimated market volume of €1.23bn by 2029.
The number of users is also expected to grow, reaching 5.67m users by 2029.
The user penetration rate is projected to be 12.1% in 2024 and 14.2% by 2029.
The average revenue per user (ARPU) is expected to be €232.00.
Online sales are also expected to play a significant role, generating 62% of total revenue by 2029.
It is worth noting that United States will continue to generate the most revenue in the Car Rentals market, with an estimated €29,240m in 2024.
Car rental companies in Saudi Arabia are investing in luxury vehicle options to cater to the high-end market.

Key regions: United States, Saudi Arabia, Thailand, South America, Malaysia

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Analyst Opinion

The Car Rentals market in Saudi Arabia has been experiencing significant growth in recent years. Customer preferences for convenient and flexible transportation options, coupled with the local special circumstances and underlying macroeconomic factors, have contributed to the development of the market. Customer preferences in Saudi Arabia have shifted towards more convenient and flexible transportation options. With the increase in tourism and business travel, there is a growing demand for car rentals as they offer the freedom to explore and travel at one's own pace. Additionally, car rentals provide a convenient mode of transportation for locals who prefer not to own a car due to the associated costs and maintenance. Trends in the market indicate that car rental companies in Saudi Arabia are expanding their fleets and services to meet the growing demand. They are offering a wide range of vehicles, including luxury cars and SUVs, to cater to different customer preferences. Moreover, there is a rise in the popularity of online booking platforms, allowing customers to easily compare prices and make reservations. This trend has further increased the accessibility and convenience of car rentals in the country. Local special circumstances, such as the lack of a comprehensive public transportation system in Saudi Arabia, have also contributed to the growth of the car rentals market. While major cities like Riyadh and Jeddah have some public transportation options, they are often limited and do not cover all areas. As a result, many residents and tourists rely on car rentals as a primary mode of transportation. Additionally, the country's vast size and diverse landscapes make car rentals an attractive option for travelers who want to explore different regions. Underlying macroeconomic factors have played a role in the development of the car rentals market in Saudi Arabia. The country's Vision 2030 initiative, which aims to diversify the economy and promote tourism, has led to an increase in the number of tourists and business travelers. This has created a greater demand for car rentals as visitors seek convenient and flexible transportation options. Furthermore, the government's efforts to improve infrastructure, such as the construction of new roads and airports, have also contributed to the growth of the market. In conclusion, the Car Rentals market in Saudi Arabia has experienced significant growth due to customer preferences for convenient and flexible transportation options, local special circumstances, and underlying macroeconomic factors. As the country continues to invest in tourism and infrastructure development, the market is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car rental services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.