GCC Car Rental Market- By Booking, By Vehicle, By Rental Duration, By End User, By Country - Opportunity Analysis & Industry Forecast, 2024-2030.

Report Code: AM 23098 Report Format: PDF + Excel

GCC Car Rental Market Overview:

GCC Car Rental Market size is estimated to reach $11.9 billion by 2030, growing at a CAGR of 6.7% during the forecast period 2024-2030 mainly driven by increasing tourism, infrastructure developments and the growing expatriate population. Government investments in tourism and transport infrastructure are reshaping the mobility landscape making rental services essential for both tourists and residents. The convenience of online booking has become central with platforms simplifying rental processes and attracting a tech-savvy customer base. As business travel surges, the demand for premium rental services is also expected to rise.

A major trend in the market is the growing concerns over sustainability and climate change. Growing awareness of the environmental impact has led some rental companies to introduce hybrid and electric vehicles catering to eco-conscious consumers. According to an article in the Khaleej Times dated December 2023, UAE-based multi-brand electric vehicle start-up, EVLAB, rolled out an all-in-one mobility app offering a comprehensive collection of EV brands in the region. Through this app, EVLAB aims to make adopting a sustainable lifestyle easier for drivers by enabling seamless rental, leasing and hosting of their EVs. Another trend is the integration of telematics. Car rental companies are adopting telematics for vehicle tracking, safety monitoring and streamlined fleet management to enhance operational efficiency.

GCC Car Rental Market- Report Coverage:

The “GCC Car Rental Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the GCC Car Rental Market.

Attribute Segment

By Booking

  • Online
  • Offline

By Vehicle

  • Luxury
  • Executive
  • Economic
  • SUV
  • Off Road

By Rental Duration

  • Short Term
  • Long Term
     

By End User

  • Self Driven
  • Chauffer Driven

By Country

  • Saudi Arabia
  • U.A.E.
  • Kuwait
  • Oman
  • Qatar
  • Bahrain

Impact of Covid and Russia Ukraine War:

  • The COVID-19 pandemic significantly impacted the GCC car rental market, with lockdowns, travel restrictions and reduced tourism resulting in decreased demand. The sharp drop in international and domestic travel led to a temporary reduction in rental bookings and long-term rentals while corporate and business rental services also experienced declines.
  •  The ongoing Ukraine-Russia conflict's impact on GCC Car Rental is indirect. The war contributed to global economic uncertainty and energy price volatility by leading to rising oil prices which increase fuel costs for rental companies and consequently affect rental rates.

Key Takeaways:

  • Saudi Arabia Leads Market

Saudi Arabia is the largest market within the GCC car rental industry mainly attributed to the high demand from domestic tourism. Additionally, a large expatriate population and expanding business travel drives the market. The government’s focus on tourism, economic diversification and infrastructure investment, along with major events such as the Hajj pilgrimage contribute to the high demand for car rentals. With an influx of tourists and businesses, rental companies have been expanding their presence and fleet offerings across Saudi Arabia. In June 2024, Changan Almajdouie, a leading automotive brand in Saudi Arabia, announced a continued significant partnership with Yelo, a premier car rental service in the Kingdom. This strategic collaboration will see Yelo integrate additional 2,000 units of Alsvin into their rental fleet additional to the 15,500 units sold across the years from various models which ensures further solidifying Changan’s presence in the Saudi market. This growing demand solidifies Saudi Arabia’s position as the leading country within the GCC car rental market.

1.    Online Booking is the Largest Segment

Online booking holds the largest share in the GCC car rental market driven by the convenience and flexibility it offers to customers. According to Ericsson Mobility Report, smartphone penetration in the GCC region was 82% at the end of 2020. In aggregate, the GCC is forecast to have 62 million 5G mobile subscriptions by the end of 2026. With a high rate of internet penetration and a digitally savvy population in the region, online booking platforms enable customers to quickly compare prices, view vehicle options and secure reservations. The ease of access through mobile apps and websites as well as exclusive online deals attract both residents and tourists boosting online booking usage. Additionally, the integration of real-time data, secure payment options and easy cancellation policies further streamline the process making online booking the preferred choice for car rentals in the GCC.

2.    Self Driven is the Largest Segment

The self-driven segment is the largest in the GCC car rental market favored by tourists and residents who prefer independence and flexibility when traveling. Self-driven rentals enable customers to explore the region at their own pace and have become popular due to easy access through online booking platforms. This segment particularly appeals to tourists from Europe and America who seek the freedom to plan their schedules without dependency on chauffeur services. For instance, according to Visit Dubai, the Official Tourism Board of Dubai, citizens of the UK, USA, Canada, Germany, South Korea, France and Japan can drive in the city with the driving licence issued from their own country. Additionally, rental companies in the GCC provide a wide range of vehicle options and price points, making self-driven rentals accessible and attractive to diverse customer segments.

3.    Growing Tourism Industry Drives the Market

The flourishing tourism industry is a major driver of the GCC car rental market, with cities like Dubai, Riyadh and Doha attracting millions of international visitors each year. Dubai welcomed 9.31 million international overnight visitors from January to June 2024, a 9% increase over the 8.55 million tourist arrivals in the first half of 2023, according to data published by Dubai Department of Economy and Tourism (DET). The influx of tourists has increased the demand for car rentals. Government initiatives to promote tourism and major events further fueled this demand. In 2022, Qatar saw a remarkable surge in international tourist arrivals, reaching 2.6 million visitors, a significant increase from the 0.6 million recorded in 2021. Major events like the FIFA World Cup, Lusail Super Cup, Darb Lusail Festival and the Qatar Motor Cycle Grand Prix contributed to this sharp rise in visitor numbers. The continued rise in leisure and business tourism is expected to drive sustained growth for the car rental market in the region, benefiting both short-term rentals and premium services. 

4.    Rising Prices to Hamper the Growth

Rising prices poses a challenge to the GCC car rental market by increasing operational costs which impacts pricing for customers. The cost of vehicle acquisition, maintenance and fuel has risen due to inflation compelling rental companies to adjust prices to offset these expenses. With higher rental rates, some consumers may reduce discretionary spending on rentals or opt for short-term use instead of extended rentals. Additionally, inflation affects traveler budgets, potentially reducing the frequency and duration of rentals among tourists and expatriates.

GCC Car Rental Market: Market Share (%) by Geography, 2023

 

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Key Market Players: 

The top 10 companies in the GCC Car Rental Market are:

  1.  SIXT
  2.  Hertz
  3. Hanco (Al Tala’a International Transportation Co. Limited)
  4. Avis Budget Group, Inc.
  5. Europcar Mobility Group
  6. Speedy Drive Car Rental
  7. Budget Rent A Car LLC
  8.  Autostrad Rent a Car
  9. Selfdrive Mobility
  10.  Gulfcar Rental

Scope of Report:

Report Metric Details

Base year considered

2023

Forecast period

2024–2030

CAGR

6.7%

Market Size in 2030

11.9 Billion

Segments covered

By Booking, By Vehicle, By Rental Duration, By End User and By Country

Companies covered

  1. SIXT
  2. Hertz
  3. Hanco (Al Tala’a International Transportation Co. Limited)
  4. Avis Budget Group, Inc.
  5. Europcar Mobility Group
  6. Speedy Drive Car Rental
  7. Budget Rent A Car LLC
  8. Autostrad Rent a Car
  9. Selfdrive Mobility
  10. Gulfcar Rental

 

 

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  1.    GCC Car Rental Market- Market Overview
        1.1    Definitions and Scope 
  2.    GCC Car Rental Market - Executive Summary
        2.1    Key Trends by Booking
        2.2    Key Trends by Vehicle
        2.3    Key Trends by Rental Duration
        2.4    Key Trends by End User
        2.5    Key Trends by Country
  3.    GCC Car Rental Market – Comparative analysis 
        3.1    Market Share Analysis- Major Companies
        3.2    Product Benchmarking- Major Companies
        3.3    Top 5 Financials Analysis
        3.4    Patent Analysis- Major Companies
        3.5    Pricing Analysis (ASPs will be provided)
  4.    GCC Car Rental Market - Startup companies Scenario Premium 
        4.1    Major startup company analysis:
                4.1.1 Investment
                4.1.2 Revenue
                4.1.3 Product portfolio
                4.1.4 Venture Capital and Funding Scenario
  5.    GCC Car Rental Market – Industry Market Entry Scenario Premium 
         5.1    Regulatory Framework Overview
         5.2    New Business and Ease of Doing Business Index
         5.3    Successful Venture Profiles
         5.4    Customer Analysis – Major companies
  6.    GCC Car Rental Market - Market Forces
         6.1    Market Drivers
         6.2    Market Constraints
         6.3    Porters Five Force Model
                  6.3.1    Bargaining Power of Suppliers
                  6.3.2    Bargaining Powers of Buyers
                  6.3.3    Threat of New Entrants
                  6.3.4    Competitive Rivalry
                  6.3.5    Threat of Substitutes 
  7.    GCC Car Rental Market – Strategic Analysis
         7.1    Value/Supply Chain Analysis
         7.2    Opportunity Analysis
         7.3    Product/Market Life Cycle
         7.4    Distributor Analysis – Major Companies 
  8.    GCC Car Rental Market – By Booking (Market Size –$Million/$Billion)
         8.1    Online
         8.2    Offline
  9.    GCC Car Rental Market – By Vehicle (Market Size –$Million/$Billion)
          9.1    Luxury
          9.2    Executive
          9.3    Economic
          9.4    SUV
          9.5    Off Road
  10.    GCC Car Rental Market – By Rental Duratio(Market Size –$Million/$Billion)
         10.1    Long Term
         10.2    Short Term
  11.    GCC Car Rental Market – By End User (Market Size –$Million/$Billion)
         11.1    Self Driven
         11.2    Chauffer Driven
  12.    GCC Car Rental Market - By Country (Market Size -$Million/Billion)
          12.1 Saudi Arabia
          12.2 U.A.E.
          12.3 Kuwait
          12.4 Oman
          12.5 Qatar
          12.6 Bahrain
  13.    GCC Car Rental Market – Entropy
          13.1    New Product Launches
          13.2    M&As, Collaborations, JVs and Partnerships
  14.    GCC Car Rental Market – Industry/Segment Competition Analysis 
         14.1    Company Benchmarking Matrix – Major Companies
         14.2    Market Share by Key Region - Major companies
         14.3    Market Share by Key Country - Major companies
         14.4    Market Share by Key Vehicle - Major companies
  15.    GCC Car Rental Market – Key Company List by Country Premium 
  16.    GCC Car Rental Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
         16.1    SIXT
         16.2    Hertz
         16.3    Hanco (Al Tala’a International Transportation Co. Limited)
        16.4    Avis Budget Group, Inc.
        16.5    Europcar Mobility Group
        16.6    Speedy Drive Car Rental
        16.7    Budget Rent A Car LLC
        16.8    Autostrad Rent a Car
        16.9    Selfdrive Mobility
        16.10    Gulfcar Rental
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LIST OF TABLES

1.Global Car Rental Market By Type Of Car Market 2023-2030 ($M)
1.1 Luxury Car Market 2023-2030 ($M) - Global Industry Research
1.2 Executive Car Market 2023-2030 ($M) - Global Industry Research
1.3 Economical Car Market 2023-2030 ($M) - Global Industry Research
1.4 Sport Utility Vehicle Market 2023-2030 ($M) - Global Industry Research
1.5 Multi Utility Vehicle Market 2023-2030 ($M) - Global Industry Research
2.Global Car Rental Market By Rental Category Market 2023-2030 ($M)
2.1 On Airport Market 2023-2030 ($M) - Global Industry Research
2.2 Off Airport Market 2023-2030 ($M) - Global Industry Research
2.2.1 Local Usage Off Airport Car Rental Market 2023-2030 ($M)
2.2.2 Outstation Off Airport Car Rental Market 2023-2030 ($M)
3.Global Car Rental Market By Type Of Car Market 2023-2030 (Volume/Units)
3.1 Luxury Car Market 2023-2030 (Volume/Units) - Global Industry Research
3.2 Executive Car Market 2023-2030 (Volume/Units) - Global Industry Research
3.3 Economical Car Market 2023-2030 (Volume/Units) - Global Industry Research
3.4 Sport Utility Vehicle Market 2023-2030 (Volume/Units) - Global Industry Research
3.5 Multi Utility Vehicle Market 2023-2030 (Volume/Units) - Global Industry Research
4.Global Car Rental Market By Rental Category Market 2023-2030 (Volume/Units)
4.1 On Airport Market 2023-2030 (Volume/Units) - Global Industry Research
4.2 Off Airport Market 2023-2030 (Volume/Units) - Global Industry Research
4.2.1 Local Usage Off Airport Car Rental Market 2023-2030 (Volume/Units)
4.2.2 Outstation Off Airport Car Rental Market 2023-2030 (Volume/Units)
5.North America Car Rental Market By Type Of Car Market 2023-2030 ($M)
5.1 Luxury Car Market 2023-2030 ($M) - Regional Industry Research
5.2 Executive Car Market 2023-2030 ($M) - Regional Industry Research
5.3 Economical Car Market 2023-2030 ($M) - Regional Industry Research
5.4 Sport Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
5.5 Multi Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
6.North America Car Rental Market By Rental Category Market 2023-2030 ($M)
6.1 On Airport Market 2023-2030 ($M) - Regional Industry Research
6.2 Off Airport Market 2023-2030 ($M) - Regional Industry Research
6.2.1 Local Usage Off Airport Car Rental Market 2023-2030 ($M)
6.2.2 Outstation Off Airport Car Rental Market 2023-2030 ($M)
7.South America Car Rental Market By Type Of Car Market 2023-2030 ($M)
7.1 Luxury Car Market 2023-2030 ($M) - Regional Industry Research
7.2 Executive Car Market 2023-2030 ($M) - Regional Industry Research
7.3 Economical Car Market 2023-2030 ($M) - Regional Industry Research
7.4 Sport Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
7.5 Multi Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
8.South America Car Rental Market By Rental Category Market 2023-2030 ($M)
8.1 On Airport Market 2023-2030 ($M) - Regional Industry Research
8.2 Off Airport Market 2023-2030 ($M) - Regional Industry Research
8.2.1 Local Usage Off Airport Car Rental Market 2023-2030 ($M)
8.2.2 Outstation Off Airport Car Rental Market 2023-2030 ($M)
9.Europe Car Rental Market By Type Of Car Market 2023-2030 ($M)
9.1 Luxury Car Market 2023-2030 ($M) - Regional Industry Research
9.2 Executive Car Market 2023-2030 ($M) - Regional Industry Research
9.3 Economical Car Market 2023-2030 ($M) - Regional Industry Research
9.4 Sport Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
9.5 Multi Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
10.Europe Car Rental Market By Rental Category Market 2023-2030 ($M)
10.1 On Airport Market 2023-2030 ($M) - Regional Industry Research
10.2 Off Airport Market 2023-2030 ($M) - Regional Industry Research
10.2.1 Local Usage Off Airport Car Rental Market 2023-2030 ($M)
10.2.2 Outstation Off Airport Car Rental Market 2023-2030 ($M)
11.APAC Car Rental Market By Type Of Car Market 2023-2030 ($M)
11.1 Luxury Car Market 2023-2030 ($M) - Regional Industry Research
11.2 Executive Car Market 2023-2030 ($M) - Regional Industry Research
11.3 Economical Car Market 2023-2030 ($M) - Regional Industry Research
11.4 Sport Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
11.5 Multi Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
12.APAC Car Rental Market By Rental Category Market 2023-2030 ($M)
12.1 On Airport Market 2023-2030 ($M) - Regional Industry Research
12.2 Off Airport Market 2023-2030 ($M) - Regional Industry Research
12.2.1 Local Usage Off Airport Car Rental Market 2023-2030 ($M)
12.2.2 Outstation Off Airport Car Rental Market 2023-2030 ($M)
13.MENA Car Rental Market By Type Of Car Market 2023-2030 ($M)
13.1 Luxury Car Market 2023-2030 ($M) - Regional Industry Research
13.2 Executive Car Market 2023-2030 ($M) - Regional Industry Research
13.3 Economical Car Market 2023-2030 ($M) - Regional Industry Research
13.4 Sport Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
13.5 Multi Utility Vehicle Market 2023-2030 ($M) - Regional Industry Research
14.MENA Car Rental Market By Rental Category Market 2023-2030 ($M)
14.1 On Airport Market 2023-2030 ($M) - Regional Industry Research
14.2 Off Airport Market 2023-2030 ($M) - Regional Industry Research
14.2.1 Local Usage Off Airport Car Rental Market 2023-2030 ($M)
14.2.2 Outstation Off Airport Car Rental Market 2023-2030 ($M)

LIST OF FIGURES

1.US GCC Car Rental Market Revenue, 2023-2030 ($M)
2.Canada GCC Car Rental Market Revenue, 2023-2030 ($M)
3.Mexico GCC Car Rental Market Revenue, 2023-2030 ($M)
4.Brazil GCC Car Rental Market Revenue, 2023-2030 ($M)
5.Argentina GCC Car Rental Market Revenue, 2023-2030 ($M)
6.Peru GCC Car Rental Market Revenue, 2023-2030 ($M)
7.Colombia GCC Car Rental Market Revenue, 2023-2030 ($M)
8.Chile GCC Car Rental Market Revenue, 2023-2030 ($M)
9.Rest of South America GCC Car Rental Market Revenue, 2023-2030 ($M)
10.UK GCC Car Rental Market Revenue, 2023-2030 ($M)
11.Germany GCC Car Rental Market Revenue, 2023-2030 ($M)
12.France GCC Car Rental Market Revenue, 2023-2030 ($M)
13.Italy GCC Car Rental Market Revenue, 2023-2030 ($M)
14.Spain GCC Car Rental Market Revenue, 2023-2030 ($M)
15.Rest of Europe GCC Car Rental Market Revenue, 2023-2030 ($M)
16.China GCC Car Rental Market Revenue, 2023-2030 ($M)
17.India GCC Car Rental Market Revenue, 2023-2030 ($M)
18.Japan GCC Car Rental Market Revenue, 2023-2030 ($M)
19.South Korea GCC Car Rental Market Revenue, 2023-2030 ($M)
20.South Africa GCC Car Rental Market Revenue, 2023-2030 ($M)
21.North America GCC Car Rental By Application
22.South America GCC Car Rental By Application
23.Europe GCC Car Rental By Application
24.APAC GCC Car Rental By Application
25.MENA GCC Car Rental By Application
26.Avis Budget Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Carzonrent India Pvt Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Enterprise Holding Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Europcar, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.The Hertz Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Sixt, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Uber Technology Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Localiza, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Eco Rent A Car, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Budget Rent A Car System, Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)

The GCC Car Rental Market is forecast to grow at 6.7% during the forecast period 2024 -2030

GCC Car Rental Market size is estimated to be US billion in 2023 and is projected to reach US$11.9 billion by 2030.

SIXT, Hertz, Hanco (Al Tala’a International Transportation Co. Limited), Avis Budget Group, Inc., Europcar Mobility Group and others.

The growing interest in sustainability and integration of telematics are the major trends that will shape the market in the future.

The growing tourism industry, rising business travel, government investments in infrastructure and growing digital economy investments are set to drive the growth of the GCC Car Rental Market during the forecast period 2024-2030.