Market Size of GCC Car Rental Industry
|2019 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2019 - 2022
|> 15.00 %
*Disclaimer: Major Players sorted in no particular order
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GCC Car Rental Market Analysis
The GCC Car Rental Market was valued at USD 600 Million in 2021 and is expected to reach USD 1600 Million by 2027, registering a CAGR of over 15% during the forecast period.
The COVID-19 pandemic had a severe negative impact on the car rental market. The sudden and complete transport halt due to the COVID-19 pandemic has forced the slowdown of the car rental market in the region. The reduced preference for shared mobility in the region further deteriorated the demand for rental cars in GCC countries. However, post-pandemic, as the tourist footfall has increased significantly, the demand for car rental has witnessed a significant increase across GCC and is expected to continue during the forecast period.
Car rental companies rent out cars for a suitable fee for a specific duration. Generally, hiring periods could range from a few hours to also a few days or weeks. With hassle-free, low maintenance, and cheap pricing, renting cars is also becoming popular in the GCC markets.
The market for car rental in all the GCC nations has been driven by growing economies like the United Arab Emirates and Oman. Saudi Arabia constitutes most car rental revenues amongst the GCC nations.
Car rentals can have various purposes, including airport transport, local usage, outstation, event transportation, self-drive, and employee transportation. They are also offering additional services such as entertainment systems, GPS navigation systems, and insurance. Rise of electric cars providing the same utility with an added benefit of reduced ill-effects on the environment is also becoming popular amongst the developed GCC countries.