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UAE Car Rental Market|Thrifty UAE Car Rental|Europcar Fleet Size UAE

UAE Car Rental and Leasing Market Forecast to 2020 - Demand from Work Expats and E-Bookings to Drive Growth" provides a comprehensive analysis of the Car Rental and Leasing Market in UAE. The report covers various aspects such as market size of UAE car rental and leasing market on basis of revenues and fleet size, segmentation on the basis of car Leasing, short term car rental and chauffeur driven car rental, on-airport and off-airport, regions, mode of booking, purpose of booking, and organizational structure for Car Rental

AnkurGupta
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UAE Car Rental Market|Thrifty UAE Car Rental|Europcar Fleet Size UAE

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  1. UAE Car Rental and Leasing Market Report – 2020: Ken Research

  2. How the UAE Car Rental and Leasing Market Is Positioned? The share of car rental in UAE is the second largest within the entire car rental market in Middle East region with a contribution of around ~% in overall revenues in 2015. Hertz Corporation, Thrifty, Europcar, Sixt and Avis Budget have been the leading players in the UAE car rental market with a combined market share of ~% in 2015. UAE car rental market has grown at a CAGR of ~%, over the period, 2010-2015 and increased to USD ~ million in 2015 from USD ~ million in 2010. Initially car rental market in UAE was driven by on-airport car rental services but with the rise in the number of business men and working Emiratis there has been a rise in the number of number of long term car rentals in the country. The major operators in the industry have reduced car rental expenses, enhanced their fleet size and looked for opportunities in off-airport markets

  3. while others moved to enter into leisure segment of the market, which has been the possible growth driver of the industry. UAE car rental market is majorly dependent on the air travel industry as most of the revenue is generated from the airport travelers, so any unrest in the air travel industry has a major impact on the car rental market in UAE. In 2014, the airport travelers contributed a major portion in UAE car rental market and recorded value sales worth USD ~ million in the overall car rental market worth USD ~ million in 2014. During 2015, the phenomenal growth in travelers, coupled with rising demand from Dubai has driven the revenues of car rental industry to USD ~ million. The growth in the number of tourists in the country has been majorly due to expansion of Emirates airline’s and Flydubai’s fleet network. The growth in Dubai’s cruise industry has helped by the opening of a third cruise terminal and better accessibility to Dubai.

  4. Which Segments have Driven Changes in UAE Car Rental and Leasing Market? A substantial portion of the revenues are generated by spending of consumers on long-term car rentals in the country. UAE car rental industry can also been further segmented on the basis of airport and off-airport renting of cars with a significant contribution of former in the industry over the past 5 years since 2010. UAE, being a major tourist destination witnesses a large number of travelers throughout the year, who rent cars from the airport premises in the country, which has strengthened the revenues of the on-airport segment in overall car rental market in the past few years. UAE car rental market has majorly been driven by Dubai car rental market. Dubai accounts for a share of ~% in 2015 in UAE car rental market. During 2015, it has been witnessed that oil and gas has accounted for the largest share with ~% in terms of revenues engendered by car leasing market. The leasing term for 1-2 years has accounted for ~% share in the number of contracts during 2015. Primarily, the companies who work on specific projects go for leasing term for 1-2 years.

  5. What is the Future Outlook for UAE Car Rental and Leasing Market? UAE car rental market over the past few years has witnessed series of activities such as influx of both inbound and outbound tourists, rise in the number of car rental firms in the country, increasing number of car variants for rental services and rise in the number of long term car rental as compared to short term car rentals and is expected to witness the same in future. On the front of car leasing the decline in economic activity due to continuous plunge in oil prices is anticipated to push local emirates to look for car leasing options for personal use. Additionally, the incumbents of enterprises in UAE will enhance the demand for car leasing as well. It is estimated that the industry will grow at a CAGR of ~% in the next 5 years with an increase in the number of international visitors and growing preference towards self drive car rental market. The market is projected to reach USD ~ million by 2017In the longer run the market is expected to reach USD ~ million by 2020. The market is also expected to witness a rise in the number of Luxury cars since the market is largely driven by increasing levels of both business and leisure tourism.

  6. What is the Competition Scenario in UAE Car Rental and Leasing Market? Burj Khalifa, Dubai Museum, Bastakia, Sheikh- Saeedu Al- Maktoum House, Dubai Creek and others are some of the prevalent tourist gathering places throughout the year. This has resulted in difficulties in getting a cab to tour the entire place. Car rental market in UAE is mature with majority of the firms operating on “Competitive Pricing” strategy. Firms such as Hertz, Avis Hala, Budget, Europcar and others are one of the major players in UAE car rental market. Thus, the car rental facilities are increasingly being availed by outstation tourists in UAE which has presented an easy, less priced option to relish the trip to the country. Additionally, to ensure best travelling facilities, a large number of car rental companies, operating in UAE provide reasonable prices of rents and various other facilities.

  7. Hertz has captured the dominant share in the market for rented cars in UAE with a share of around ~% in 2015. Avis Hala held a share of ~% in UAE car rental market in terms of fleets owed to generation of revenues through leisure rentals, ~% from corporate rentals and rest from insurance replacement services. The company has around ~ fleets operating in UAE both for car leasing, and short term car rental purposes. The share of Thrifty was ~% in 2015 in terms of overall car rental fleet in UAE. Europcar is another major player in the car rental market with a share of ~% in 2015. Sixt has been consistently expanding its range of products and services with modern online and mobile solutions, in order to meet increasing demand due to which the firm held a share of ~% in 2015. Other players such as Diamond Lease, Auto Rent, and Patriot Rent a Car and Super Price Rent a Car have commanded a share of ~% in the overall market.

  8. Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/uae-car-rental-leasing-market/42906-100.html • Contact: Ken ResearchAnkur Gupta, Head Marketing & CommunicationsAnkur@kenresearch.com+91-9015378249

  9. Thank you

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