UAE Car Rental, Leasing, and Limousine Market: Projected to Reach AED 14.3 Billion by 2027
In-Depth Analysis by Ken Research
GURUGRAM, India, Feb. 5, 2024 /PRNewswire/ -- The UAE Car Rental, Leasing, and Limousine Market, as analyzed by Ken Research, is anticipated to grow to AED 14.3 billion by 2027, demonstrating a CAGR of 6.4% from 2022. This growth trajectory is a testament to the dynamic nature of the UAE's transport sector, reflecting an evolving landscape shaped by increasing tourism, business travel, and a growing expatriate population.
Market Evolution and Transformation
Since 2017, the market has shown consistent growth, evolving from a value of AED 8090.9 million to AED 10478.6 million in 2022. This progression is driven by a diversified market structure and a blend of organized and unorganized sectors, with small fleet operators holding the largest market share of 45.6%.
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Segmentation and Dominance by Region
Dubai remains the leading region in the market, attributable to its dense concentration of government and corporate offices, and substantial wealth inflows. Abu Dhabi follows, with its diversifying corporate climate boosting demand for car leasing. The market segmentation reveals a majority preference for economy cars, accounting for 65% of the market share, due to their affordability and availability.
Competitive Landscape and Key Players
The market is moderately fragmented, with major players like Emirates Transport, Thrifty Rent a Car, and Leaseplan holding a significant stake. Emirates Transport leads in fleet size with 13,800 vehicles, while in the limousine segment, Private Limousine boasts the largest fleet size with 200 cars.
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Emerging Trends and Market Dynamics
The influx of tourists and rapidly changing infrastructure in the UAE have increased the demand for short-term car rental services. In the limousine market, standard limos are popular for their practicality and versatility, suitable for various occasions.
Future Market Projections and Growth Factors
With the government's goal of attracting 40 million tourists by 2031, as per the UAE Tourism Strategy 2031, the market is poised for growth. The shift towards e-hailing services, driven by collaborations like that between the RTA of Dubai and Careem, is anticipated to boost the market further.
Ken Research: The Authority in Market Analysis
For a detailed and authoritative analysis of the UAE Car Rental, Leasing, and Limousine Market, turn to Ken Research. Our extensive report provides comprehensive insights into market trends, competitive landscapes, and strategic predictions for the future. Explore our research offerings at Ken Research for unparalleled market intelligence in this sector.
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Taxonomy
By Type of Vehicle
Economy
SUV
Luxury
By Type of End-User
Commercial
Private
Government
By Type of Gender
Standard Limousine
Large Sized Limousine
Premium Limousine
Ultra Luxury Limousine
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UAE Car Rental Leasing and Limousine Market
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The market is expected to grow substantially during 2022-2027 owing to factors such as Increasing tourism, the need for mobility, technology integration and government initiatives to develop the economy. Under the Saudi Vision 2030, the demand for leasing would further increase as other sectors like imported goods have to be transported by trucks which will increase the demand for them to be leased trucks in country.
The market will grow at a CAGR of 9.8% during 2022-2027 due to increasing tourism industry & improvements in transportation. As the global automotive industry moves towards sustainability, there might be an increase in demand for electric vehicles. Car rental and leasing companies in Kuwait may explore adding electric or hybrid vehicles to their fleets to cater to environmentally conscious customers.
UAE used car market to witness growth slowdown in 2023 due to improved conditions in the new car market related to semiconductor shortages. Reduced waiting periods for new cars shift consumer preference, but strong demand in the used car market persists, especially for mid-level cars.
The future EV Market in UAE is predicted to increase at a CAGR of 23.7% (2023-2028) owing to the continued expansion of charging infrastructure and favourable government policies. Dubai Electricity and Water Authority By 2030, DEWA wants more than 1,000 public charging stations to be accessible throughout Dubai.
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