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Car-sharing - Saudi Arabia

Saudi Arabia

Saudi Arabia is expected to witness a significant growth in revenue in the Car-sharing market, with a projection of reaching €106.10m by 2024.
This growth is expected to continue with a Compound Annual Growth Rate (CAGR 2024-2029) of 4.58%, resulting in a projected market volume of €132.70m by 2029.
The number of users in this market is also expected to increase and reach 0.76m users by 2029.
In terms of user penetration, the projection is 1.6% in 2024 and 1.9% by 2029.
The average revenue per user (ARPU) is expected to be €182.10.
Furthermore, it is expected that 94% of the total revenue in the Car-sharing market will be generated through online sales by 2029.
It is noteworthy to mention that in global comparison, United States is projected to generate the most revenue in the Car-sharing market, with a projection of €2,769m in 2024.
However, the growth in the Car-sharing market in Saudi Arabia is expected to be significant and is set to make a notable impact on the market.
The introduction of female drivers in Saudi Arabia has increased demand for car-sharing services, particularly among women.

Key regions: Europe, Germany, India, United States, Malaysia

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Analyst Opinion

The Car-sharing market in Saudi Arabia is experiencing significant growth and development in recent years.

Customer preferences: Car-sharing has become increasingly popular among consumers in Saudi Arabia due to its convenience and cost-effectiveness. Many people in urban areas are opting for car-sharing services as a more affordable alternative to owning a car. Additionally, car-sharing allows individuals to have access to a vehicle without the hassle of maintenance, insurance, and parking.

Trends in the market: One of the key trends in the car-sharing market in Saudi Arabia is the emergence of technology-driven platforms. These platforms allow users to easily find and book a car-sharing service through mobile applications, making the process more convenient and efficient. This trend is driving the growth of car-sharing services in the country, as it appeals to tech-savvy consumers who value convenience and ease of use. Another trend in the market is the increasing focus on sustainability and environmental consciousness. Car-sharing services in Saudi Arabia are often promoted as a greener alternative to traditional car ownership, as they reduce the number of vehicles on the road and promote resource efficiency. This trend is particularly appealing to younger consumers who are more concerned about the impact of their actions on the environment.

Local special circumstances: Saudi Arabia has a relatively high population density in urban areas, which creates a demand for efficient transportation solutions. The car-sharing market in the country is driven by the need for convenient and affordable transportation options, especially in congested cities. Additionally, the government of Saudi Arabia has been actively promoting car-sharing as part of its efforts to reduce traffic congestion and air pollution.

Underlying macroeconomic factors: The growth of the car-sharing market in Saudi Arabia is also influenced by macroeconomic factors such as the increasing urbanization and rising disposable income of the population. As more people move to urban areas and experience higher levels of income, the demand for convenient transportation options, such as car-sharing, is expected to increase. Additionally, the government's investment in infrastructure development and smart city initiatives is creating an enabling environment for the growth of the car-sharing market. In conclusion, the car-sharing market in Saudi Arabia is experiencing significant growth and development due to customer preferences for convenience and cost-effectiveness, as well as the emergence of technology-driven platforms. The focus on sustainability and environmental consciousness, along with the local special circumstances of high population density and government support, are also driving the growth of the market. The underlying macroeconomic factors of urbanization and rising disposable income further contribute to the expansion of the car-sharing market in Saudi Arabia.

Methodology

Data coverage:

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