Saudi Arabia Car Rental and Leasing Market Overview
Market Size in 2024 : USD 2.8 Billion
Market Size in 2033: USD 3.6 Billion
Market Growth Rate 2025-2033: 2.90%
According to IMARC Group’s latest research publication,“Saudi Arabia Car Rental and Leasing Market Size, Share, Trends and Forecast by Type, Category, Distribution Channel, and Region, 2025-2033“, Saudi Arabia car rental and leasing market size reached USD 2.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.6 Billion by 2033, exhibiting a growth rate (CAGR) of 2.90% during 2025-2033.
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Growth Factors in the Saudi Arabia Car Rental and Leasing Market
- Surge in Tourism and Religious Pilgrimage
The rapid expansion of Saudi Arabia’s tourism sector, driven by Vision 2030, has significantly boosted the car rental and leasing market. The government’s investments in destinations like AlUla, NEOM, and the Red Sea Project, alongside relaxed visa regulations, have attracted millions of international and domestic tourists. Additionally, the annual Hajj and Umrah pilgrimages draw millions to Mecca and Medina, creating a consistent demand for flexible transportation. For instance, companies like Theeb Rent A Car have expanded their fleets to cater to pilgrims, offering affordable rental options at airports and holy cities, illustrating how tourism fuels market growth.
- Rapid Urbanization and Lifestyle Shifts
Saudi Arabia’s fast-paced urbanization, particularly in cities like Riyadh, Jeddah, and Dammam, has transformed consumer preferences, driving demand for car rentals and leasing. Many urban residents, especially younger generations, prefer renting or leasing vehicles over ownership due to high maintenance costs, parking challenges, and environmental concerns. This shift is evident in the popularity of short-term rentals for daily commutes or weekend trips. For example, ekar’s car-sharing platform, launched in 2024, targets urban dwellers seeking on-demand mobility, highlighting how changing lifestyles and urban growth create opportunities for market expansion.
- Corporate Demand and Economic Diversification
Economic diversification under Vision 2030 has led to an influx of businesses, increasing corporate demand for car leasing. Companies in logistics, construction, and e-commerce prefer leasing fleets to avoid the costs of vehicle ownership, such as depreciation and maintenance. For instance, Aljomaih Auto Rental expanded its fleet by 27% in 2021 to meet corporate needs, offering tailored leasing packages for employee mobility and equipment transport. This trend is supported by government initiatives encouraging private sector growth, which attract multinational corporations and startups, further driving the need for flexible, cost-effective transportation solutions in the market.
Key Trends Saudi Arabia Car Rental and Leasing Market
- Digital Transformation and Online Booking
The car rental and leasing industry in Saudi Arabia is undergoing a digital revolution, with online platforms reshaping consumer behavior. Mobile apps and websites allow customers to compare prices, book vehicles, and manage rentals seamlessly. In 2023, over half of car rentals were booked online, a trend accelerated by the COVID-19 pandemic’s emphasis on contactless services. Companies like Lumi Car Rentals have invested in user-friendly apps, offering features like real-time vehicle tracking and digital contracts. This shift enhances convenience and transparency, aligning with Vision 2030’s focus on digital innovation and transforming the customer experience.
- Rise of Electric and Sustainable Vehicles
Sustainability is a growing priority in Saudi Arabia’s car rental and leasing market, with companies introducing electric vehicles (EVs) and hybrids to align with environmental goals. The government’s push for green energy, including EV charging infrastructure, supports this trend. For example, Budget Saudi partnered with Electromin in 2023 to develop EV charging stations at rental facilities, while Sixt Rent a Car added Audi e-tron EVs to its fleet in 2022. These initiatives cater to eco-conscious consumers and corporate clients seeking to reduce carbon footprints, reflecting a broader shift toward sustainable mobility solutions in the Kingdom.
- Growing Popularity of SUVs
The preference for SUVs is a prominent trend in Saudi Arabia’s car rental and leasing market, driven by their versatility and appeal to families and tourists. SUVs are favored for their spacious interiors and ability to handle diverse terrains, making them ideal for group travel or desert outings. Companies like Hertz and Avis have expanded their SUV fleets, including models from Toyota and Hyundai, to meet this demand. For instance, Udrive’s expansion into Saudi Arabia in 2022 focused on offering SUVs for tourists and residents, underscoring how consumer preferences shape fleet compositions and drive market growth.
The Saudi Arabia car rental and leasing market report provides a comprehensive overview of the industry. This analysis is essential for stakeholders aiming to navigate the complexities of the biochar market and capitalize on emerging opportunities.
Saudi Arabia car rental and leasing Industry Segmentation:
The report has segmented the market into the following categories:
Type Insights:
- Car Rental
- Car Leasing
Vehicle Type Insights:
- Economy/Budget
- Premium/Luxury
Vehicle Body Style Type Insights:
- Hatchback
- Sedan
- Multi-Utility Vehicle and Sports
- Utility Vehicle
Booking Type Insights:
- Online
- Offline
Regional Insights:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Future Outlook
The Saudi Arabia car rental and leasing market is poised for robust growth, fueled by Vision 2030’s emphasis on tourism, digital transformation, and sustainability. As the Kingdom continues to develop infrastructure, such as new airports and resorts, demand for flexible mobility solutions will rise, particularly in urban centers and tourist hubs. The integration of advanced technologies like AI and telematics will enhance operational efficiency, while the adoption of EVs will align with environmental goals. Strategic partnerships, such as those between rental firms and airlines, will further streamline services. Despite challenges like regulatory complexities, the market’s future looks promising, with opportunities for innovation and expansion.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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