The term car rental refers to the hiring of a passenger vehicle for self-drive, which includes cars and small vans, by both business and leisure travellers for short term duration; excluding leasing and long term rentals. The market has evolved intensely in the very recent years and is also expected to evolve in similar fashion in the near future. The number of operational cars available for short term rental in South America was calculated to be more than 345,200 vehicles in 2017. During the same year, the number of car rental transactions between a car rental company and consumers were over 16.85 Million. Manufacturers and consumers rely on various car rental schemes that are cost-effective, such as leasing cars from their owners for a period of three years and then putting these cars on rent through app-based bookings. On the other hand, renting a car in the historic Middle East and Africa allows user to experience history as well as some of the world's most beautiful architecture and iconic landscapes. The Middle East and Africa awe with their millennia-old culture, idyllic holiday resorts, and dazzling luxury metropolises. Taking public transportation can be inconvenient and unpredictable. Furthermore, public transportation does not provide an end-to-end ride, which is particularly inconvenient for tourists. Expanding economies such as Oman and the United Arab Emirates have fuelled the rental car market in every Middle Eastern country. According to the research report, “South America, Middle East & Africa Car Rental Market Research Report, 2028” published by Actual Market Research, the market is anticipated to add USD 7.14 Billion market size from 2023 to 2028. The increasing number of business and leisure trips across the region is also a critical factor propelling regional growth. Additionally, the region includes numerous popular tourist destinations that attract a large number of travellers that require car rental services, ultimately boosting the market growth. In South America today, some airports have as many as 17 companies, representing not only the three major U.S.-based brands but every international one as well. They compete predominantly as franchises, along with many regional players. However, local markets in many South American countries are still dominated by mom-and-pop shops with 30-car fleets. Car rentals are booming in the transportation markets because they offer numerous benefits such as increased concern and awareness of lower emissions compiled by reducing the number of cars on the road, making this market more reliable. Outstation, event, self-driving, employee transportation, airport transportation, and local use are just a few of the many applications for car rentals in the Middle East and Africa region. In addition, they offer insurance, entertainment systems, and other services. The developed Middle Eastern countries are also taking notice of the rise of electric cars, which provide the same functionality while having fewer negative environmental effects.
Asia-Pacific dominates the market and is the largest and fastest-growing market in the animal growth promoters industry globally
Download SampleBased on the countries, the booming population and internet and mobile phone penetration are expected to further fuel the market progress in Brazil. Countries of the region are densely populated and have been witnessing a high rate of urbanization, which has contributed significantly toward the rise in traffic congestion. Therefore, the market and car rental providers in the region have a great potential for growth. In addition to that, the country owes principally to the low quality of public transportation infrastructure, which does not suffice the requirement of the public in terms of both scalabilities across different areas and quality (overcrowding, frequent delays, and poor conservation). Therefore, the demand for car rental services is displayed as a relatively better option of conveyance, and observing increasing demand across the country. On the other hand, Saudi Arabia's tourism industry has expanded rapidly in recent years. A growing number of buyers prefer to rent or lease a car rather than own one. As a result, car rental companies are expected to be more interested in expanding their fleet of vehicles. The philosophy of Uber and others has also changed people's perceptions of owning a car. Furthermore, tourist arrivals in the GCC are expected to increase by 2023-28, bolstering the growth of car rental and travel firms in Saudi Arabia. Furthermore, many companies are providing a diverse range of services, such as long-term leasing, and are investing significant capital in order to expand their business in the country. The influx of tourists and corporate offices, on the other hand, has a significant impact on UAE Car Rental, Leasing, and Limousine. The emergence & increasing adoption of autonomous & electric vehicles across South America is projected to create remunerative growth opportunities for the South America car rental market during 2023-28. Several fleet managing companies are likely to adopt these vehicles and eliminate the requirement for drivers to operate the car. In addition, with enhanced connectivity & better services in autonomous vehicles, the prices of car rental are anticipated to fall marginally and gain increasing adoption among South Americans in the coming years. Moreover, the increasing inclination toward electric vehicles across the region would also emerge as an area of lucrative growth opportunities for the leading market players. It owes principally to the reduced cost of these vehicles in shared mobility due to no fuel expenses. Car rental services are available both at the airport and outside of the UAE. Tourists prefer to book it at the airport to save money on renting and travelling to the Emirates. As the number of tourists in the UAE grows, so does the demand for rental services. The corporate offices also rent cars for business purposes and for clients. During annual events and festivals such as the Dubai Shopping Festival, rental services are in high demand. With new events planned in Dubai and Abu Dhabi, rental services are expected to grow. The majority of car rental companies in the UAE can be found in Dubai and Abu Dhabi. Currently, the market is dominated by rental companies, including a mix of foreign players like Hertz Rent a Car, Thrifty, Europcar, Budget Rent a Car, Lease Plan, and others, as well as local players like Emirates Transport, Diamond Lease, and others.
According to the Transport General Authority (TGA), the car rental sector's unified e-contracts recorded a large number of rental transactions via unified electronic contracts after adopting the unified e-contracts. The decision's mandatory implementation is to limit the issuance of all rental car contracts to the Tajeer service on the Naql e-platform beginning in 2022. Riyadh topped the list of the most regions carrying the greatest number of total contracts registered in the sector, with 891,000 contracts, followed by Makkah region with 639,000 contracts, then the Eastern region (Al-Sharqiyah) with 435,000 contracts, and the remaining Saudi regions with 712,000 contracts. Brazil-based Kovi is a car subscription platform that aims to make car ownership and rentals more accessible to drivers in South America. The company also offers insurance and maintenance services to users. In 2020, the company reportedly experienced a 70% increase in its user base, with 11,000 users registered in Brazil and Mexico. It now has an operational fleet of 12,000 cars, which the company rents from OEMs like Toyota and Volkswagen. In August 2021, Kovi, a car rental startup, has raised $104M in Series B funding. The round drew participation from Valor Capital Group, Prosus Ventures, Quona Capital, Broadhaven Capital Partners, and Norte Ventures, among others. The company also rose $20M in debt from undisclosed investors. The markets related to the vehicle rental market are having the inclined growth. As the key players like Avis budget group and Carzonrent Ltd. have seen good growth from past few years. On the other hand, based in Germany, Sixt offers a variety of vehicles in several South American cities — including the BMW 740i in Santiago de Chile and the company can sometimes provide Rolls Royce vehicles upon request in some locations in South America. Enterprise Rent-A-Car has 100+ airport branches at most major cities in South America and the Caribbean. Many are open 24/7. Advantage Rent A Car Canadian Owned car rental company acquired value priced car rental company named E-Z Rent-A-Car Group Holding, LLC. One of the biggest deal in the car rental market was the acquisition of Dollar Thrifty Automotive Group by Hertz. Also,Fox Rent A Car has announced the new corporate location grand opening in San Antonio, Texas.
Udrive is the UAE's first pay-per-minute car rental concept, launched in 2016, that provides drivers in the UAE and, more recently, the Kingdom of Saudi Arabia (KSA) with a cost-effective, short-term driving solution. Drivers can use the Udrive app to book a car for their trip, find it in a convenient location, and then simply drive. Cars are outfitted with an Internet of Things (IoT) device that allows remote opening, locking, monitoring, and disabling of the vehicle. Instead of renting cars by the day from expensive car rental companies, both tourists and residents can drive a car even if they only need it for a few minutes. Avis Budget Group Inc, SIXT, Hertz Corp, Theeb Rent A Car, Enterprise Holdings Inc, and others are among the international and regional players in the Middle East Car Rental Market. To gain a competitive advantage, major rental companies are forming joint ventures and partnerships to launch newer products. Drivus Car Rental, UAE announced its Middle East expansion strategy in December 2022, opening doors to its customers in Qatar through the first Drivus Franchise in the Middle East. Drivus Car Rental is a leading car rental company based in the United Arab Emirates. Drivus provides a diverse range of options to meet the needs of all customers. The brand has evolved over time to become one of the most trusted car rental brands in the world. Furthermore, as part of the Emirate's Vision 2021, the UAE's Ajman Public Transport Authority (APTA) announced the launch of car rental services in December 2021 to assist federal institutions in establishing an equal and comprehensive transportation system. The change is intended to make it easier for clients to obtain high-quality services. The Transport Authority's Vehicle Rental Section established this service as part of its luxury car rental services. Humax announced in February 2021 that it will provide the WTC mobility service platform, which will allow customers to simplify luxury car rental services. Recent Developments: • In January 2022, ekar, a UAE-based car-sharing platform, will partner with some of Saudi Arabia's largest rental car companies to provide a car subscription leasing service across the country. The delivery of subscription cars to customers' doors includes insurance, maintenance, and roadside assistance. The cars can be exchanged, upgraded, or returned at any time. In addition, in May 2021, ekar will collaborate with CarPro, a rental fleet management platform, to allow car rental and leasing companies with over 500,000 rental cars to digitally rent cars through the ekar platform. • Theeb Rent A Car opened its second location in Hail city, in the northwest of the country, in July 2022, as part of its plans to expand to all of Saudi Arabia's cities, regions, and provinces. The company intends to improve the services it provides to individuals, businesses, and government agencies in this way, according to a statement. • Amazon will begin offering online car rental services in the UAE under its home services umbrella in June 2021. The rentals will last from a day to a month, with deliveries to the chosen address taking as little as three hours from the time of booking. South America: Major sites for Car Rental: Avis car rental, Car Hire, Chile Car Rental, Payless Car Rental Most Popular Airport for Rental Car Locations: Sao Paulo Airport, Bogota Airport, Rio de Janeiro Airport, Brasilia Airport, Santiago Airport, Lima Airport, Belo Horizonte Airport, Buenos Aires Airport, Fortaleza Airport, Medellin Airport, San Juan Airport, San Jose International Airport, Cancun International Airport, Santo Domingo Airport, Quito Airport Most Popular City for Rental Car Locations: Sao Paulo, Medellín, Bogotá, Salvador, Santiago, Buenos Aires, Lima, Montevideo, Puerto Natales, Rio de Janeiro, Guayaquil, Salta, Punta, Arenas, Puerto Montt, Fortaleza, Asuncion, Arica, Porto Alegre, El Calafate, Ushuaia, Patagonia, Pantanal, Chapada dos Veadeiros, Serra Gaucha, Serra da Bocaina, Amazon Rainforest, Grande Vitoria, Serra da Canastra, Marajó, Ilha Grande, Ilhabela Island Most popular car rental agents: Alamo, Hertz, Mex Rent a Car, Thrifty, Avis Budget Group Inc., Localiza – Rent a Car SA, Advantage Rent-a-car Corporation, Carzonrent Ltd., Fox-Rent-a-car, National Car rental, Unidas, Enterprise, Europcar, Sixt, Budget, Avis, FlexWays car rental , Yes Rent A Car Most popular rental car models: Chevrolet Onix (mini), Hyundai Accent (economy), Kia Sportage (SUV), Ford Fusion (full-size), Jeep Wrangler (4x4) Middle East & Africa: Middle East’s top mobility start-ups: Careem (UAE), Swvl (UAE), Yassir (Algeria), ekar (UAE), Udrive (UAE), Fenix (UAE), Telgani (Saudi Arabia), Ousta (Egypt), KOI Ride (UAE), Urent (UAE) Major sites for Car Rental: Arabian Dreams, Fast Rent A Car, Parklane Car Rental, SIXT UAE, Solitaire Limousine, Thrifty UAE, United Arab Emirates , Apex Saudi, 4x4 Kenya, Avis , Car Rental Kenya, Car Rental South Africa, Cheap Rates, Elite Car Rental, Hertz, Madagascar Car Rental, Morocco Dreamscar, Morocco4x4, Pata Dinga, Zimbabwe Most Popular Airport for Rental Car Locations: Hamad Airport, Dubai Airport, Abu Dhabi Airport, Al Maktoum Airport, Bahrain Airport, Medina Airport, Riyadh Airport, Muscat Airport, Salalah Airport, Dammam Airport, Tel Aviv Airport, Johannesburg Airport, Cape Town Airport, Nairobi Airport, Durban Airport, Pretoria Airport, Gaborone Airport Most Popular City for Rental Car Locations: Dubai, Tel Aviv, Amman, Abu Dhabi, Beirut, Jerusalem, Jeddah, Riyadh, Muscat, Doha, Aqaba, Manama, Dammam, Sharjah, Erbil, Medina, Kuwait City, Salalah, Haifa, Al Khobar, Central, Dead Sea Israel, Dead Sea Most popular car rental agents: Europcar, Budget, Hertz, Sixt, Thrifty, Avis, Enterprise, Dollar, keddy by Europcar, National, Alamo, Payless, Bidvest, Tempest Most popular rental car models: Suzuki Swift (economy), Toyota Corolla (compact), Mazda 6 (standard), Mazda CX-5 (SUV), Mitsubishi Pajero (4x4), Honda Odyssey (7 seat), Volkswagen Polo (economy), Renault Duster (SUV), Toyota Fortuner (4x4), Toyota Avanza (7 seat) Major Companies present in the market: Localiza Rent a Car SA, Avis Budget Group Inc, Hertz Global Holdings Inc, Enterprise Holdings Inc, Sixt SE, Fast Rent a Car (Emirates National Group), Bettercar Rental LLC, Europcar Mobility Group, Renault Eurodrive, Al-Futtaim Vehicle Rentals Company LLC, Uber Technologies, Inc, Budget Rent A Car System, Inc Considered in this report • Geography: South America, Middle East & Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South America, Middle East & Africa Car Rental market with its value and forecast along with its segments • Country-wise Car Rental market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • Brazil • UAE • Saudi Arabia • South Africa By Car Type: • Luxury car • Executive car • Economy car • Sports utility vehicle (SUV) car • Multi utility vehicle (MUV) car By Application Type: • Leisure/Tourism • Business The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Car Rental industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
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