The car rental and leasing market in the UAE is expected to be boosted

Main findings

Historically, public transport has been the preferred mode of travel in the UAE. However, the pandemic has caused a shift in consumer preference for the industry with the increased movement of the population towards personal transportation for health reasons.

The shift in consumer preferences has been facilitated by greater technology adoption, government regulations, and health concerns.

Consumers are moving away from traditional methods of booking vehicles for rentals directly from the airport to booking vehicles from any part of the city through the apps of different aggregators.

Major market players such as Diamond lease, Avis, Hertz and Shifty and many more are expanding their fleets as aggregators have entered the market and the need for “off the shelf vehicles” has increased. One of the ways major players have expanded their fleet size is by acquiring fleets from companies that have suffered financially from the effects of the pandemic.

Increase in car rentals and leases due to Covid-19: Demand for rental and leasing cars increased after the lockdown imposed due to the Covid-19 pandemic was lifted, but restrictions imposed by the government of the United Arab Emirates on public transport continued. There has been a shift in consumer preferences due to various factors. Most notably, the health concerns of individuals and families have shifted to renting cars instead of using public transportation. The growth of technology aggregators in the market has also facilitated the process of selecting vehicles for rental or leasing. Nevertheless, the behavior of individuals and businesses varied, with individuals requesting cars for a shorter period more frequently than companies requesting vehicles for a longer period.

Opportunities through trade events and tourism revival: Businesses in this space are bullish on Expo 2020, with the event spanning a period of over 6 months and with an expected arrival of over 3 million people for the event. In the Limo space, businesses are bullish on the event due to increased pre-bookings made by businesses for the event. In addition, the market expects tourism to pick up due to high vaccination rates and the attitude of the government in this regard has been seen as quite positive.

Transition to Electric/Hybrid Vehicles: The UAE government has made a strong commitment to a transition to electric vehicles by offering monetary and non-monetary incentives. Taxi and limo companies working in the industry would feel the most direct impact, as government-owned companies have already begun to convert their fleets to hybrid or electric vehicles, giving them a first-mover advantage. By comparison, rental companies currently use a very small number of electric vehicles in their fleet, but are expected to similarly increase in the coming years.

Emphasis on value-added services: In the near future, a similar trend can be observed for rental and limousine companies, as players compete by providing superior value-added services instead of moving towards a higher value-added service. price war. Services include a sliding-scale termination policy, bundled business mileage services for after-lease services, and guaranteed vehicle replacement during maintenance. Easy financing opportunities will be offered to businesses as well as individuals.

Ken Research analysts in their latest publication “The UAE Car Rental, Leasing and Limousine Market Outlook to 2025 – Driven by Reviving Tourism, modified Customer Preference from Public Transport to Personal Cars due to Covid-19” observed that the market for Rental and car rental business in the UAE is in a growth phase and is recovering strongly from the post-pandemic economic crisis. The major factors driving the sector’s gains are the rebound in tourism, favorable government initiatives in the form of various events such as Expo 2020 and the Abu Dhabi Grand Prix for Formula 1. Additionally, the development customer preference towards renting and leasing vehicles aided by increased technology adoption. The UAE car rental market is expected to grow at a CAGR of 8.5% based on revenue for the period 2020-2025F.

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Key segments covered for car rental

By Emirates

dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By car types

Economy

SUV

Luxury

Per end user

Company

Personal

By booking source

At the airport

Outside airport

By car rental duration

0-1 month

1-6 months

6-12 months

Key segments covered for car leasing

By Emirates

dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By car types

Economy

SUV

Luxury

Vans

By type of car rented

Company

Personal

By car rental duration

1 year

2 years

3 years

More than 3 years

Per end user

Facilities Management

Industrial sector

Food services

Logistics

Others

Key segments covered for the limo car

By Emirates

dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By limousine companies in the Emirates (number of companies)

dubai

Abu Dhabi

Sharjah

Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman and Umm Al Quwain)

By car types

Standard

Big size

Prime

Ultra-luxury

By company

Event

excluding event

By source of activity (for taxi companies)

Airport

Outside airport

By business source

Taxi companies

No – Taxi companies

By payment source

Direct from the company

Business payments

By limo lens

Hobbies

Company

Companies covered

Rental and leasing companies

Thrifty Rent a Car

Emirates Transportation

Hertz

Diamondlease

Massar car rental

Rental plan

Shift Rent a Car

National Car Rental

Reviews Rent a Car

Europcar

Budget Rent a Car

Quick car rental

Dollar

Nirvana Travel and Tourism

Car rental

Limo companies

Dubai Taxi Company

Emirates transportation

City Link Limousine

Private Limousine

Limousine Reviews

Transguard Limousine

limoinuae

National transport

Sharjah Roads and Transport Authority

Hot Wheels Limo

Global Wings Limousine

Cityway Limousine

Royal Falcon limousine

Insaf Limousine

Onak Limousine

Exotic Dubai Limo

Major dealer

Al-Habtoor

Al-Futaim

Al Rostamani

Al Tayer Group

Ali and son

Key target audience

Car rental companies

Car leasing companies

Limo companies

Tourism industries

Tour and travel aggregator

Automotive companies

Taxi companies

Cabin aggregators

technology provides

Investors and venture capitalists

Government associations

Time period entered in the report: –

Historical period – 2015-2020

Forecast Period – 2021-2025

Main topics covered in the report

Overview of the car rental, leasing and limousine industry in the UAE

Government Regulations, Initiatives and Procedures for Starting a Car Rental and Leasing Business

Overview of the car rental market

Size of the car rental market

Segmentation of the car rental market

UAE Car Rental Market Future Outlook 2020-2025F

Overview of the car rental market

Size of the car rental market

Segmentation of the car rental market

UAE Car Rental Market Future Outlook 2020-2025F

Competition in the car rental and leasing market

Business Profiles of Rental and Leasing Companies

Limousine Car Market Overview

Limousine car market segmentation

Limousine Services Market Competition Overview

UAE Limo Car Market Future Outlook 2020-2025F

Impact of Covid-19 on the industry and the way forward

Analyst Recommendations

For more information on the research report, refer to the link below:

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/uae-car-rental-leasing-and-limousine-market-outlook-to-2025/473031-100. html

Related reports:

https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/uae-e-commerce-logistics-market-outlook-to-2025/466156-100.html

https://www.kenresearch.com/education-and-recruitment/education/uae-experiential-learning-market-outlook-to-2025/392125-99.html

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Ken Research is a research-based management consulting firm. We provide strategic advice to help clients on critical business insights: strategy, marketing, organization, operations and technology transformation, advanced analytics, corporate finance, mergers and acquisitions, and sustainability across all industries and geographies. We provide business intelligence services and operational advice in over 300 verticals highlighting disruptive technologies, emerging business models with analysis of precedents and success case studies. Some of the best consulting firms and market leaders seek our intelligence to identify new revenue streams, customer/vendor paradigm and pain points and competitive due diligence.

This press release was published on openPR.

About Tammy N. McFarlane

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