The GCC Car Rental Market is Segmented by Booking Channel (Online and Offline), Rental Duration (Short-Term and Long-Term), Vehicle Type (Hatchback, Sedan, and More), Service Type (Self-Drive and Chauffeur-Drive), End-User (Individual, Corporate and SME, and More), and Country. The Market Forecasts are Provided in Terms of Value (USD).

Explore el creciente mercado de alquiler de automóviles GCC, proyectado para expandirse a una tasa compuesta anual del 13.8% de 2024 a 2032. Aprenda sobre impulsores clave como la afluencia turística, las tendencias del mercado, el crecimiento regional y los desafíos como el aumento de las inversiones de transporte público.

GCC Car Rental Market size was valued at USD 4.52 Billion in 2024 and is projected to reach USD 8.05 Billion by 2032, growing at a CAGR of 7.5% from 2025 to 2032.

Key Market Drivers: • Increasing Tourism: The expansion of tourism throughout the GCC is a primary driver of the automobile rental sector. According to the Saudi General Authority for Statistics, the number of international tourists visiting Saudi Arabia would rise by 60% in 2024, increasing demand for rental vehicles, particularly at airports and tourist sites. • Rising Disposable Income: Higher discretionary incomes in the GCC region, notably in the UAE, are driving up demand for luxury and premium car rentals. According to the National Bureau of Statistics, the average family income in the UAE would rise by 5% in 2024, resulting in increasing demand for high-end rental alternatives among residents and tourists.

Middle East Car Rental Market size was valued at USD 3.85 Billion in 2024 and is projected to reach USD 7.42 Billion by 2032, growing at a CAGR of 8.5% from 2025 to 2032.

Key Market Drivers Tourism Industry Growth: The growth of the Middle East's tourism sector has significantly boosted the demand for car rentals, as more tourists and businesses seek flexible transportation solutions. This surge in demand aligns with the region’s economic development, particularly in the GCC countries. The World Travel and Tourism Council's 2023 report showed a 42% rise in tourism's contribution to the GCC's GDP, with the UAE leading at 56% growth. The Dubai Tourism Board reported a 38% increase in tourist car rentals in 2023, with an average rental duration of 5.2 days per tourist. Corporate Sector Expansion: The expansion of the Middle East's business ecosystem has significantly increased the demand for corporate car rental services. Companies are turning to rentals for flexible, cost-effective transportation solutions as they focus on operational efficiency and business travel needs. In 2023, corporate car rentals in Saudi Arabia rose by 45%, while business rentals in the UAE grew by 35%. Long-term corporate leasing in the GCC increased by 52%. Digital Transformation: The adoption of mobile apps and digital platforms has significantly enhanced the car rental experience. In 2023, online bookings made up 65% of all car rentals, a 55% increase from 2021, according to the GCC Car Rental Association. This shift towards digital solutions highlights the growing preference for easy, on-the-go vehicle bookings. Additionally, mobile app installations for car rentals across the Middle East grew by 92%, underscoring the region's embrace of technology for streamlined rental services.

The Middle East online car rental market is experiencing robust growth, driven by the region's expanding tourism sector, rising disposable incomes, and increasing smartphone penetration. The convenience and cost-effectiveness of online bookings compared to traditional offline methods are key factors fueling this expansion. A compound annual growth rate (CAGR) of 10.42% from 2019 to 2024 suggests a significant market expansion. While precise market size figures for 2025 are unavailable, extrapolating from the provided CAGR and considering the consistently high growth in the travel and technology sectors within the Middle East, a reasonable estimate for the 2025 market size would be in the range of $500 million to $700 million. This estimate takes into account factors such as increased tourism during peak seasons, the launch of new online platforms and the adoption of advanced technologies for improved customer experience. Further growth is anticipated through 2033, propelled by ongoing infrastructure development, the increasing popularity of self-drive options, and the emergence of innovative car rental services such as subscription models and peer-to-peer car sharing platforms. The market segmentation reveals strong demand across various categories, with online booking dominating over offline methods, leisure tourism outweighing daily utility bookings, and a preference for both economy and luxury vehicles, depending on customer needs and travel styles. While challenges remain, such as regulatory hurdles in certain markets and the need to address consumer concerns regarding transparency and data security, the overall outlook for the Middle East online car rental market remains overwhelmingly positive, presenting substantial opportunities for established players and new entrants alike. Recent developments include: November 2022: Zofeur launched its first business-to-business on-demand driver service in Dubai. Zofeur is the world's first platform for on-demand, pay-per-minute chauffeur services. With Zofeur's B2B tool, automotive service providers can seamlessly integrate their systems with Zofeur to book pay-per-use on-demand drivers., November 2022: DFM's partner and exclusive distributor in Qatar delivered Dongfeng passenger vehicles in volume to a luxury car rental company. These vehicles will serve guests worldwide during the soccer extravaganza in Doha., July 2022: Following its plans to expand to all of Saudi Arabia's cities, regions, and provinces, Theeb Rent-A-Car opened its second location in Hail City, northwest of the country. According to a statement, the company plans to improve its services to individuals, businesses, and government agencies in this manner., March 2022: After Oman, the technology platform for renting cars, Selfdrive, is opening offices in Qatar and Bahrain. With the app's wide range of product options and seamless customer experience, the company hopes to gain 50-65% of the digital rental market share in these markets.. Notable trends are: Online Rental Booking Continues to Witness Major Demand.

The global car rental market, driven by the demand for mobility solutions and the convenience of vehicle rental services, is witnessing significant industry growth. Innovations by the largest rental car companies and the rise of online platforms have enhanced customer experiences, offering flexibility and streamlined booking processes. Market segments like short-term rentals and economy cars are thriving due to their affordability, appealing to a broad customer base. North America and Asia-Pacific are key contributors to this expansion, with the latter poised for rapid growth. Additionally, the industry is adapting to urban mobility changes by incorporating eco-friendly vehicles and exploring peer-to-peer car sharing, aligning with a shift towards sustainable and user-centric mobility options. This evolution, detailed in our comprehensive report PDF, indicates that vehicle rental services will play a crucial role in the future of transportation. For detailed industry statistics on market size, price trend, and revenue growth, refer to Mordor Intelligence™ Industry PDF, with detailed market analysis and forecasts available in a free report PDF download, highlighting the potential and dynamics of the global car rental industry. Adding to this, our annual report will provide a deeper dive into the industry statistics, market cap and industry worth, showcasing size global and price trends. This profile PDF includes essential market data to help stakeholders understand the current state and future prospects of the car rental market.

  Car Rental Report Covers the Following Countries: USA, United States, US, Canada, DE, Germany, German, UK, United Kingdom, FR, France, French, ES, Spain, Spanish, IN, India, Indian, China, Chinese, JP, Japan, Japanese, KR, South Korea, South Korean, SA, South America, South American, MEA, Middle East and Africa, Middle Eastern and African, MENA, Middle East, Middle Eastern, Africa, African

The Middle East and Africa Luxury Car Rental Sales market size is USD 0.60 billion in 2023 and will expand at a compound annual growth rate (CAGR) of 8.2% from 2023 to 2030.

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Self Drive Market Size 2025-2029

The self drive market size is forecast to increase by USD 2.36 billion, at a CAGR of 30.6% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. One notable trend is the increasing interest in self-driving vehicles, which offer travellers greater convenience and flexibility. Another trend is the integration of telematics technology in self-drive car rentals, enabling real-time vehicle tracking and monitoring. However, the high cost of self-driving car rentals remains a challenge for market growth. Despite this, the market is expected to continue expanding as technology advances and becomes more affordable. The use of telematics in self-drive car rentals offers numerous benefits, such as improved safety, reduced insurance costs, and enhanced customer experience. 
Car rental services cater to intercity and intracity travel, offering inexpensive alternatives to private automobiles for tourists and business travellers alike. However, the high initial investment required for implementing telematics technology and the high cost of self-driving vehicles are major obstacles for market growth. Overall, the self-drive car rental market is poised for growth, driven by the increasing popularity of self-driving vehicles and the integration of telematics technology.

What will be the Size of the Self Drive Market During the Forecast Period?

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The market represents a significant and dynamic sector within the global mobility industry. This market caters to both tourism and commuting needs, offering short-term and long-term rental options for various vehicle types, including hatchbacks, sedans, SUVs, MUVs, and standard, and luxury models. The market is organized and unorganized, with both online and offline channels serving customers' diverse preferences. Millennials, as a major demographic, are driving growth In the market due to their increasing demand for flexible, cost-effective, and convenient mobility solutions. The market's size is substantial, with millions of transactions occurring annually, especially at airports and tourist destinations.
Mobility infrastructure plays a crucial role In the market's development, with Wi-Fi networks, entertainment systems, GPS systems, and insurance plans enhancing the rental experience. The market's direction is towards greater customization and integration of technology, enabling customers to easily compare prices, book vehicles, and manage their rentals online. The market's continued expansion is driven by the evolving needs of consumers, who seek efficient, flexible, and affordable mobility solutions.

How is this Self Drive Industry segmented and which is the largest segment?

The self drive industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Vehicle Type

  Economic cars
  Luxury cars


Mode Of Booking

  Offline
  Online


Type

  Short-term rentals
  Long-term rentals


Application

  Leisure and vacation travel
  Corporate and business use
  Airport rentals
  Intercity and intracity rentals
  Subscription and leasing services


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Vehicle Type Insights

The economic cars segment is estimated to witness significant growth during the forecast period. Self-drive car rentals, particularly those offering economic cars, have gained significant traction in both the tourism and commuting sectors. Millennials, in particular, prefer this mobility option due to its convenience and affordability. Online and offline channels, including websites, mobile applications, and e-booking services, facilitate easy booking. New-age startups have disrupted the car rental sector with custom services, after-sale support, and complementary offerings such as Wi-Fi networks, entertainment systems, and GPS systems. The organized market dominates, but the unorganized sector also plays a role, especially in rural areas. Short-term and long-term rental options cater to various consumer needs. Tourists, service professionals, and corporate offices are significant consumers.

The tourism sector, with international, tourist, and foreign tourist arrivals, drives demand for car rentals at tourist destinations. National highways and road transportation infrastructure development further boost the market. Insurance options are crucial for consumers. Self-drive car rental services offer a range of ownership and lease contracts, allowing customers to choose based on their requirements. Companies provide a diverse car portfolio, including hatchbacks, sedans, SU

The report covers Car Rental Market Size, Car Rental Industry Analysis, Middle East Vehicle Leasing Industry, Car Rental Agency Market Middle East, Vehicle Leasing Saudi Arabia Market, Vehicle Leasing Market Trends, Car Leasing Rental Market Developments, Competition Car Leasing Dubai, Short Term Car Rental.

Technological advancements in the Middle East & Africa Car Rental industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

Long Term Car Rental Market Outlook

The global long-term car rental market size is projected to grow from USD 20.3 billion in 2023 to USD 36.5 billion by 2032, at a compound annual growth rate (CAGR) of 6.7%. This growth is driven by an increasing preference for flexible mobility solutions and the economic advantages of long-term rentals over car ownership. The market is experiencing a surge due to factors such as the rising trend of urbanization, increasing business travel, and the demand for cost-effective transport solutions for both individuals and corporations.

One of the primary growth factors for the long-term car rental market is the shift in consumer preferences towards leasing and renting vehicles instead of purchasing them. This change is particularly notable among younger consumers and urban dwellers who prioritize flexibility and lower financial commitments. The rising cost of vehicle ownership, including maintenance, insurance, and depreciation, is driving many to opt for long-term car rentals as a more economical and hassle-free solution. Additionally, advancements in technology have made it easier for customers to book and manage rentals online, further boosting market growth.

Corporate demand for long-term car rentals is another significant growth driver. Companies are increasingly utilizing long-term rentals for their employees, both for business travel and as part of employee benefit programs. This approach not only reduces the financial burden on the company but also provides employees with reliable and convenient transportation. The global expansion of businesses and the rise in remote working trends have also contributed to the increased demand for long-term car rentals, as companies look for flexible and cost-effective mobility solutions.

The rise in tourism and the changing nature of travel have also positively impacted the long-term car rental market. Tourists and expatriates often prefer long-term rentals as they offer greater convenience and flexibility compared to short-term rentals or public transportation. This trend is especially significant in regions with high tourist influxes and expatriate communities, where long-term car rental services are seen as a practical and economical option. Furthermore, long-term rentals cater to the needs of seasonal travelers and individuals relocating for extended periods, thereby expanding the market base.

Regionally, North America holds a significant share of the long-term car rental market, driven by a high level of corporate demand and a mature rental market infrastructure. Europe follows closely, benefiting from a robust tourism industry and increasing urbanization. The Asia Pacific region is expected to witness the highest growth rate due to the rapid economic development, rising middle-class population, and increasing adoption of new mobility solutions. Latin America and the Middle East & Africa are also emerging markets for long-term car rentals, with growing urbanization and improving economic conditions contributing to market expansion.

The commercial vehicle rental sector is also gaining momentum within the long-term rental market. Businesses, particularly those in logistics and construction, are increasingly relying on commercial vehicle rentals to meet their operational needs. This trend is driven by the flexibility and cost-effectiveness that renting offers over owning a fleet of commercial vehicles. Companies can adjust their vehicle requirements based on project demands without the financial burden of maintenance and depreciation. Additionally, the rise of e-commerce and the need for efficient last-mile delivery solutions have further fueled the demand for commercial vehicle rentals, making it a vital component of the long-term rental landscape.

Vehicle Type Analysis

The long-term car rental market can be segmented by vehicle type into economy cars, luxury cars, SUVs, and others. Economy cars dominate the market due to their affordability and fuel efficiency, making them the preferred choice for cost-conscious consumers and long-term renters. These vehicles are particularly popular among individual renters and small to medium-sized enterprises that require reliable yet budget-friendly transportation options. The high demand for economy cars is also driven by their lower maintenance and insurance costs, which further enhance their appeal to long-term renters.

Luxury cars, while representing a smaller segment, a

The global luxury car rental market is experiencing robust growth, projected to reach a market size of $123.57 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 19.5% from 2025 to 2033. This significant expansion is driven by several key factors. Increasing disposable incomes, particularly in emerging economies, are fueling demand for premium travel experiences. The rise of experiential travel and luxury tourism, where renting a high-end vehicle enhances the overall journey, is a significant contributing factor. Furthermore, the convenience and flexibility offered by luxury car rental services, especially for business travelers and airport transfers, contribute to market growth. Technological advancements, including online booking platforms and sophisticated fleet management systems, are also streamlining operations and enhancing customer experience. The market is segmented by rental type (business and leisure) and location (airport and off-airport), with airport rentals currently dominating due to the high concentration of affluent travelers. Major players such as Enterprise, Hertz, Avis Budget, and Sixt are actively investing in expanding their luxury fleets and enhancing service offerings to capitalize on this lucrative market. The competitive landscape is dynamic, with established players facing increasing competition from smaller, specialized luxury rental companies that focus on niche markets and offer personalized services. Geographic expansion, particularly in rapidly developing Asian and Middle Eastern markets, represents a key growth opportunity. However, market growth may be tempered by factors such as economic downturns and fluctuations in fuel prices, which can impact consumer spending on luxury goods and services. Stringent emission regulations and increasing environmental concerns might also influence the type of luxury vehicles offered and the adoption of sustainable practices within the industry. Nevertheless, the long-term outlook for the luxury car rental market remains positive, driven by the continuing rise of affluent consumers and their demand for premium travel experiences.

South America, Middle East & Africa Car Rental Market Size & Trend By Type, By Distribution Channel, By End User, Competition Forecast & Opportunities.

Middle East Electric Car Rental Market is expected to grow during 2025-2031

Car Rental (hiring of a passenger vehicle, which includes cars and small vans, by both business and leisure travelers for short term duration; excluding leasing and long term rentals) has evolved intensely in the very recent years and is also expected to evolve in similar fashion in the near future. The report Car Rentals Market in Middle East & Africa to 2020: Fleet Size, Rental Occasion and Days, Utilization Rate and Average Revenue Analytics provides deep dive data analytics on wide ranging Car Rental market aspects including overall market value by customer type – Business and Leisure, by point of rental – Airport and Non-Airport, Insurance / Temporary Replacement Revenue from Car Rentals, Car Rental Occasion, Days and Length for the period 2001 to 2015. Furthermore, the report also details out Fleet Size (number of operational cars available for short term rental for the purpose of business, leisure, and insurance replacement) for the period 2011 to 2020 along with Utilization Rate and Average Revenue per Day from the Car Rental business in Middle East & Africa. The report acts as an essential tool for companies active or plans to venture in to the Middle East & Africa’s Car Rental market. The comprehensive statistics within the report provides insight into the operating environment of the market and also ensures right business decision making based on historical trends and industry model based forecasting. This is an on-demand report and will be delivered within 2 working days (excluding weekends) of the purchase. Read More

The report covers GCC Heavy Equipment Rental Companies and the market is segmented by vehicle type (earthmoving equipment and material handling), propulsion type (IC engine and hybrid drive), and Country (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates). The report offers the size and forecast for the GCC Construction Equipment/Machinery Rental Market in value (USD) for all the above segments.

Middle East and Africa Commercial Vehicle Rental and Leasing Market size is USD 1563.04 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.

Market Analysis: GCC Construction Machinery Rental Market The GCC construction machinery rental market is projected to reach a value of USD 4.86 million by 2033, expanding at a CAGR of 6.15% from 2025 to 2033. This growth is primarily driven by the increasing urbanization and infrastructure development in the region. Additionally, the influx of major sporting events and construction projects, such as the World Expo 2020 in Dubai, has significantly contributed to the demand for construction machinery rentals. Key trends shaping the market include the rising adoption of advanced technologies such as telematics and IoT in construction equipment, the increasing focus on sustainability and eco-friendly solutions, and the growing demand for flexible rental options. The market is also characterized by the presence of a large number of both local and international players, resulting in intense competition. Prominent companies operating in the market include Al Faris, Hertz Dayim Equipment Rental Co, and Mohamed Abdulrahman Al-Bahar LLC. Recent developments include: January 2023: In 2022, the Al Faris Group of Companies, headquartered in Dubai (United Arab Emirates), will receive 24 mobile cranes from Liebherr. The crane and heavy transport company based in the GCC is expanding, with new cranes ranging in lifting capacity from 110 to 700 tonnes and an additional 27 cranes already on order., October 2022: Doosan is displaying the new DX20ZE two-tonne electric mini-excavator on its Bauma stand. The DX20ZE will be Doosan's first mass-produced electric excavator, with a full launch scheduled for 2023. Due to its small size, the DX20ZE is also an excellent choice for construction and rental companies working in sensitive areas where low noise and/or night-time work is required., July 2022: The Red Sea Development Company (TRSDC), the Saudi developer behind the world's most ambitious regenerative tourism project, is teaming up with Dayim Equipment Rental, the region's full-service plant, machinery and vehicle provider.. Key drivers for this market are: Growing Economy And Infrastructural Growth. Potential restraints include: High Cost of Electric Commercial Vehicle May Hamper the Growth. Notable trends are: Increasing Construction Activities in the GCC Region.