United Arab Emirates (UAE) Car Rental Market Research Report, 2028

United Arab Emirates (UAE) Car Rental Market Research Report, 2028

Actual Market Research 30-01-2023 57 Pages Figures : 5 Tables : 10 Region : MEA Country : United Arab Emirates Category : Automotive & Transport Transportation

The car rental market in the UAE is rapidly expanding, with expansion visible in a variety of areas. The growth of the luxury car market is due to both private owners and rentals. Renting luxury cars is a common practise in the UAE. There are a number of online marketplaces where customers can rent cars by the hour or for a few days. Tourists who want to experience the UAE's luxury lifestyle in supercars are a growing segment of this market. The government is attempting to increase investment in tourist infrastructure development, which is propelling the market in the UAE. In the UAE, the government is pressuring rental companies to adopt sustainability in their fleets and replace gasoline vehicles with electric and hybrid vehicles. Few companies in the UAE, such as Toyota and Tesla, have already begun to maintain an electric fleet of cars, while others are still implementing the change. Due to the UAE's stringent government legislation on car purchase and driving, the long-term growth of the car rental market is favourable. Taking public transportation can be inconvenient and unpredictable. Furthermore, public transportation does not provide an end-to-end ride, which is especially inconvenient for tourists. The trend of renting a car online through apps has improved over time as app developers have designed mobile rental applications with more advanced booking features that offer more vehicle availability and comparable rental costs on a single platform. For instance, OneClickDrive is the United Arab Emirates' largest online platform for car rentals and car leasing. It offers users the choice of more than 700 cars from nearly 50 rent-a-car companies. According to the research report, "United Arab Emirates (UAE) Car Rental Market Research Report, 2028," published by Actual Market Research, the market is anticipated to grow by USD 0.97 billion by the end of 2028. Economy cars had the largest market share in the car rental market. One of the most important factors to consider when renting a car is its fuel economy; as it has an effect on operating costs. Low maintenance and procurement costs of economy car, propel most market players to use rental services. Furthermore, economy cars are compact in nature and provide adequate comfort to the passengers. A significant increase in the number of people travelling for business and pleasure across the country is fuelling demand for car rental services industry growth. Employees travelling to the United Arab Emirates for business purposes increase demand for United Arab Emirates car rental services to familiarise themselves with locations and business details. Rising internet penetration across developing as well as developed countries has further helped companies in the market capture a larger customer base with the help of dedicated mobile apps for the convenience of customers. The availability of a wide array of cars for rental purposes, such as SUVs and MUVs, increases demand for car rental in the United Arab Emirates. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the United Arab Emirates rental market. Some of the mobility start-ups in the UAE are Careem, Swvl, Ekar, Udrive, Fenix and Airbnb for cars. The arrival of a large number of tourists and business travellers in Dubai and Abu Dhabi has resulted in a high demand for limousine services. Customers in the UAE prefer standard and large vehicles from car brands such as Lexus and Infiniti, followed by luxury and ultra-luxury vehicles. Dubai and Abu Dhabi are the most populous Emirates, with the highest demand for limousine cars, followed by Sharjah. To meet that demand, Dubai and Abu Dhabi have the highest concentration of limousine companies. Individuals prefer to rent vehicles more than corporations. The increased number of tourists visiting the UAE contributes to increased demand for car rental services in the UAE. Rental services are typically for a very short period of time, less than a month, as these are typically hired by tourists who are in the country for 10–15 days. The UAE has seen an increase in demand for car rental services for periods ranging from 0 to 1 month. On-airport booking was observed to dominate the car rental market because booking a car right away from the airport provides more accessibility and comfort to tourists and corporate clients travelling in the UAE. Dubai is one of the world's most unique cities, and a rental car makes it so easy to explore. Renting a car in Dubai allows exploring the city as well as travelling to other parts of the UAE. Citizens from certain countries use their foreign licences when renting a car in Dubai. With new entrants' business growth, the UAE car rental, leasing, and limousine market is expected to grow at a positive rate. The UAE is a popular tourist destination and is expected to see an increase in tourist traffic. Corporate demand and market technological advancement are being driven by new government initiatives. Increasing Car Rentals and Leases due to COVID-19: The demand for rental and leased cars increased after the lockdown imposed due to the COVID-19 pandemic was lifted, but restrictions imposed by the UAE government on public transport continued. There was a shift in consumer preference due to various factors. Most noticeably, individuals and families moved to rent cars because of health concerns instead of using public transport. The growth of tech aggregators in the market also eased the process of selecting vehicles for rent or lease. Nonetheless, the behaviour of individuals and corporations varied, as individuals demanded cars for a shorter period of time more frequently than compared to corporations, which demanded vehicles for a longer period of time. Considered in this report • Geography: United Arab Emirates • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • United Arab Emirates Car Rental market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation 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 listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report 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 conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to 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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