UAE Car Rental, Leasing and Limousine Market Size 2021 COVID-19 Impact Analysis by Business Opportunities, Applications, Geography, Growth Drivers, and Future Outlook till 2025

1
UAE Car Rental, Leasing and Limousine Market Size
2021 COVID-19 Impact Analysis by Business
Opportunities, Applications, Geography, Growth
Drivers, and Future Outlook till 2025 The report
titled The UAE Car Rental, Leasing and Limousine
Market Outlook to 2025 (Second Edition) - Driven
by Reviving Tourism, altered Customer Preference
from Public Transport to Personal Cars owing to
Covid-19 provides a comprehensive analysis on
the status of the Car Rental, Lease and Limousine
industry in UAE. With respect to the car rental
and leasing market/industry the report covers
various aspects including fleet size market
size, segmentation by Emirates (Dubai, Abu
Dhabi, Sharjah, Others), Major Players in the
market and their market share, Types of Cars
(Economy, SUV, Luxury), End Users (Corporates or
Individuals), Duration of the Rentals (0-1
Month, 1-6 Months and 6-12 Months), and Booking
destinations (On Airport and Off Airport).
Furthermore, the report provides insight into
the Limousine Market in UAE by covering aspects
such as Fleet Size over the years, the Market
Size, Segmentation by Emirates (Dubai, Abu Dhabi,
Sharjah, Others), Type of Limousines (Standard,
Large Sized, Premium and Ultra Luxury), Revenue
of Cab Aggregators, Revenue By Source (Events and
Non-Events), and Major Players in the Limousine
Space. Additionally, the report also provides
details regarding the taxi business industry in
UAE with specifics related to the number of
trips done, number of people using the taxis,
and, fare estimation between different
companies. The report takes into account of the
qualitative and expected effects of Covid-19
pandemic on the above mentioned segments,
especially vis-à-vis the rental and leasing
market, where growth factors, information
regarding the strength, opportunity, potential
threat to the industry is also mentioned. The UAE
Car Rental and Leasing Market report concludes
with projections for the future industry
including forecasted sales revenue and volume by
2025, market segmentations and analysts take on
the future. UAE Car Rental Market Overview and
Size UAE Car Rental market has increased at a
negative CAGR of 0.6 during 2015-2020, mainly
due to the impact of taxation introduced by the
government coupled with the less number of cars
rented due the lockdown imposed in the country
owing to the global pandemic Covid-19. However,
an expected revival in tourism, strong
vaccination rates, increased technological
upgradation for both suppliers and customers,
favorable government initiatives in the form of
various events such as Expo 2020 and Abu Dhabi
Grand Prix, and favorable changes in customer
preference
2
towards personalized vehicles are all factors
that are expected to help the UAE Car Rental
Market grow in the forthcoming years. UAE Car
Rental Market Segmentations By Emirates Dubai
and Abu Dhabi lead as the Emirates with the
highest number of rented fleets with a combined
share of 80. The car rental market is expected
to grow in other Emirates such as Sharjah but
the bulk of the demand remains with these
emirates. By Types of Car The two most preferred
vehicles in the segment are the economy vehicle
and the SUVs, which have a combined share of
90 in the market. The economy segment
dominates on all the other segments due to
affordability and flexible with respect to the
duration of rentals permitted by the
companies. By Location of Car Bookings The
majority of the bookings happen through the
airports which accounted the highest share in
the market. However, this trend is expected to
change in the coming years with the introduction
of apps by aggregators who provide vehicles free
of delivery to major parts of various cities.
Therefore, the number of booking off airports is
expected to increase massively. By End Users Due
to the pandemic, small corporates have turned
towards leasing along with an increased demand
by individuals. However, the corporates edge out
individuals with a dominating share in the
rented market. By Duration of Car Rentals The
majority of car rentals are taken for a period of
less than 1 month. The same stands as a
characteristic for personal leasing and leasing
done by small corporates. It has a share of
45. Larger corporates and government agencies
prefer longer rentals that extends for either
half a year or a complete period of 12 months.
Due to the uncertainty in the commercial
practices across the country owning to the
pandemic, corporates and individuals shifted
preference towards short term rentals UAE Car
Leasing Market Overview and Size UAE Car Leasing
sector is in a growth phase, having grown at a
CAGR of 1.6 during 2015-2020 (5.1 CAGR
Pre-Covid during 2015-2019). The sector is
expecting a revival based on factors such as
increase in tourist footfall, increased
3
commercialization post Covid-19, and a movement
towards specialization of services provided to
corporates such as providing chillers for
logistic companies. The market has become less
fragmented due to small players, who were majorly
dependent on contracts of shorter duration being
pushed out of the market as a result of the
financial backlash of Covid-19 induced lockdown.
Thus, for a steady flow of business in this
uncertain environment, corporates have started
working with the well-established players in the
market.
UAE Car Leasing Market Segmentations By
Emirates The major commercial hubs of Dubai and
Abu Dhabi alone accounted for more than 80
share in the market. Where Dubai accounted the
highest share with respect to other Emirates. On
the other hand, in the near future it is
anticipated that Sharjah will increase of 10
CAGR over the next 5 years. By Types of Car The
most preferred vehicles in the segment is the
economy vehicle with a share of 60. SUVs is the
next most favored vehicle for the car leasing
industry. Pick-up vans
4
contribute a respectable 12 towards the segment
and is majorly used by the corporates of all
sizes. The economy segment dominates due to the
fact that most of the vehicles leased are for
lower level management and employees who have to
attend meetings or supervise clients which
requires features such as low cost, a satiable
mileage limit and durability. By Duration of Car
Rentals The majority of car leasing are taken for
a period of 3 years or more as the fleet leased
by the various companies in the industry for a
period of 3 years or more is 70. The primary
reason behind the same is that the companies
offering the leasing to the companies are able
to write off the depreciation as the duration of
the leasing increases. However, established
players to match customer expectations suggest a
period of 3 years for leasing compared to a
shorter duration of 1 years or 2 years. The time
period further increases for commercial vehicles
such as 15 seater or a chiller.
Request For Sample Report report.php?FrmdetailsN
DczMDMx By End Users
_at_ https//www.kenresearch.com/sample-
The corporates tend to edge over individuals in
the car leasing market. This pattern has
accelerated further due to the pandemic as both
the parties have moved towards a longer lease
periods with more value addition services. By End
Users under Corporates The corporate firms which
lease the highest number of fleets in the
industry is the facility management services
under which pick-ups vans are the most used
vehicles as facility management companies tend
to use the most manual labors and thus, require
these vans for transportation. The share of the
facility management industry stands at more than
25. It is followed by corporates engaged in the
industrial sector and food services. UAE
Limousine Market Overview and Snapshot on the
Landscape The Limousine Market remains relatively
fragmented compared to the rental and leasing
market with a number of small players and a
relatively small average fleet size of about 32
vehicles per company. The Limousine market
suffered greatly during the lockdown in the 3rd
Quarter of 2020 as almost 80 of the bookings
taking place are for events and are dependent on
bookings from the airports. Both of these
activities were prohibited. Furthermore, one of
the major player in the market is controlled by
the Government and there has been a push towards
making the Limousine space more eco-friendly by
increasing the number of electronic vehicles and
hybrid vehicles.
5

• Additionally, there have been heavy fines imposed
  on Limousines which have been running for more
  than 5 years in the market. On the positive side
  for the Limousine Market, reorganization of
  business events, fairs, expos and sporting events
  provide an opportunity.
• Competitive Landscape of UAE Car Rental and
  Leasing Market
• There exists intense competition between various
  companies prevailing in the market. The market
  is primarily dominated by 10-12 major players
  which include government backed organizations
  such as Emirates Transport, international players
  such as Avis and Hertz, and big regional players
  such as Fast Rent A Car. The market became
  slightly less fragmented due to the uniformity in
  price triggered by the aggregators as all these
  players are currently trying to register their
  fleets with these aggregators. Therefore, the
  major players are avoiding to engage in a price
  war and are trying to gain market share by
  providing differentiated valued added services.
  Furthermore, some players such as Hertz are
  moving almost exclusively towards providing
  vehicles to corporates. The medium and smaller
  players are competing in a more traditional way
  of providing rental and leasing services as per
  the demand of the businesses.
• UAE Car Rental and Leasing Market Future Outlook
  Projections
• The Rental Market is supposed to see an increase
  in the market size with a CAGR of
• 8 during 2020-2025. The growth factors behind
  this are the aggregators and change in consumer
  preference that is being experienced in the
  market. The role of the aggregators is still in
  the nascent stage with a few companies trying to
  gain the market. In terms of Emirates, Dubai and
  Abu Dhabi are expected to dominate the rental and
  leasing space due to the increased
  commercialization. Vis-à-vis Sharjah in the
  Rental Space, it is expected to see an increase
  of CAGR 10 in the next 5 years owing to the
  increased commercialization taking place in the
  emirate. The Leasing Market is expected to grow
  at a CAGR of 5 during 2020-2025. The Car
  Rental, Leasing and Limousine market has to be
  vary of government regulations that would be
  imposed with respect to the introduction of
  electronic vehicles in the market. The Government
  agencies have been slowly trying to move towards
  more eco-friendly options and there is a nudge
  towards the same with half of the taxi fleet in
  Dubai being either Electric or Hybrid.
• Key Segments Covered for Car Rental
• By Emirates
• Dubai
• Abu Dhabi
• Sharjah

6

• Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman
  and Umm Al Quwain)
• By Types of Car
• Economy
• SUV
• Luxury
• By End User
• Corporate
• Personal
• By Source of Booking
• On-Airport
• Off-Airport
• By Duration of Car Rental
• 0-1 Month
• 1-6 Months
• 6-12 Month

7

• More than 3 Years
• By End User
• Facility Management
• Industrial Sector
• Food Services
• Logistics
• Others
• Key Segments Covered for Limousine Car
• By Emirates
• Dubai
• Abu Dhabi
• Sharjah
• Others (Ras Al Khamiah, Sharjah, Al-Ain, Ajman
  and Umm Al Quwain)
• By Limousine Companies in Emirates (Number of
  Companies)
• Dubai

8

• Direct from Corporate
• Corporate Payments
• By Purpose of Limousine
• Leisure
• Corporate
• Companies Covered
• Rental and Lease Companies
• Thrifty Rent a Car
• Emirates Transport
• Hertz
• Diamondlease
• Massar Car Rental
• Leaseplan
• Shift Rent a Car
• National Car Rental
• Avis Rent a Car

9

• Insaf Limousine
• Onak Limousine
• Dubai Exotic Limo
• Major Dealer
• Al Habtoor
• Al Futtaim
• Al Rostamani
• Al Tayer Group
• Ali and Sons
• Key Target Audience
• Car Rental companies
• Car Leasing companies
• Limousine Companies
• Tourism Industries
• Tour and Travel Aggregator

10

• Car Leasing Market Segmentation
• Future Outlook of the UAE Car Leasing Market,
  2020-2025F
• Competition in Car Rental and Leasing Market
• Company Profiles of Rental and Lease Companies
• Limousine Car Market Overview
• Limousine Car Market Segmentation
• Competition in Limousine Service Market Overview
• Future Outlook of the UAE Limousine Car Market,
  2020-2025F
• Covid-19 Impact on the Industry the way forward
• Analysts Recommendations
• For More Information, refer to below link- UAE
  Car Rental Market Research Report 2021 Related
  Reports
• UAE E-Commerce Logistics Market Outlook to 2025
  Driven by Growth in Online Shoppers along with
  Introduction of New Age Technologies by Logistics
  Players
• UAE Experiential Learning Market Outlook to 2025-
  Concentrated Activity Box and E-Learning Segment
  Paving Ways for International Players to Expand
• Contact Us-
• Ken Research
• Ankur Gupta, Head Marketing Communications
• support_at_kenresearch.com