The Car Rental and Vehicle Leasing Market in Kuwait is Expected to Reach over USD 290 Million by 2020: Ken Research
Posted on 26 August 2016 by KenResearch Automotive, Transportation and Warehousing,
- Car rental companies in Kuwait to provide “operational rent” to people who own cars on rent for a longer duration which offers them to change their cars for once or more in a year along with insurance, maintenance and parts replacement facilities.
- Al-Mullah, Al Sayer and Safeena are some of the major car rental companies in the Kuwait car rental market apart from foreign players such as Hertz, Sixt, Europcar, Avis and others that have their rental stations across the country.
The publication on “Kuwait Car Rental and Leasing Market Forecast to 2020 – High per Capita Income and Demand for Car Leasing to Drive Growth” provides a comprehensive analysis of the Car Rental Market in Middle East. The report covers various aspects such as market size of Kuwait car rental and leasing market on basis of revenues and fleet size, segmentation on the basis of Car Leasing, short term car rental and chauffeur driven car rental, on airport and off airport, regions, mode of booking, purpose of booking, and organizational structure for car rental market in Kuwait, car leasing market size and segmentation by industry verticals, term of contracts and vehicle type for car leasing market in Kuwait. The report is useful for industry consultants and analysts, car rental companies and new players venturing in the market.
It has been observed that the reducing oil prices have impacted the gulf economies to a large extent; however Kuwait is one of the two countries who had a deficit of less than 10% even when the oil prices have plummeted from a high of USD 110 per barrel in 2014 to around USD 30 per barrel by the beginning of 2016. The government has provided an assurance to not to decline its spending on infrastructural projects which would help resist the economy to fall into the depression, since most of the economy runs on the government spending in Kuwait. Kuwait’s capital expenditure stands at 16.2% of the whole budget. Moreover, investment by government to support tourism such as development of Kuwait International Airport to reach a lodging capacity of 25 million passengers per year is also providing a boost to tourism and thus directly impacting the car rental market positively.
Inclination in the price levels and increasing competition among vehicle rental companies has been another rationale for rise in car rental business in the country. The car rental fleets in the country recorded a compound annual growth rate of 5.7% and passenger car sales in Kuwait has grown at a CAGR of 5.6% over the years 2010-2015.
Most of the off-airport car rental is dominated by the long term car leasing and hence only limited revenue of chauffeur driven cars is obtained through the off-airport car rental. On the other hand Chauffeur driven car rental market has been dominated by on-airport car rental since most of the people which arrive at the airport opt for the chauffeur driven cars. Kuwait car rental market has been segmented on the basis of types of clients (corporate/ work expats or retail/ tourists) that prefer to rent cars or book cars for their travelling purpose. Since Kuwait is home to a large expat population from various countries therefore car rental companies generate a major portion (80%) of their revenues through corporate clients.
All Mulla has dominated the market for rental cars in Kuwait with highest share in the total fleet of the car rental industry in the country. The firm is one of the largest diversified privately held business groups in Kuwait.
A major part of the population in Kuwait comprises of work expatriates that usually prefer to rent and change their cars on a frequent basis due to the culture of Kuwaiti society. The social norm encourages people to recurrently change their vehicles so they will always be driving a new car of the newest model. The market for car rental services is expected to enhance in the country due to the expansion of construction contracts of KNPC (Kuwait National Petroleum Company). This would amplify the demand for car leasing contracts by the oil and gas companies. The car rental market in Kuwait is expected to reach over USD 290 million by 2020 in terms of revenues.
Key Topics Covered in the Report:
Kuwait Car Rental and Leasing Market
- Market Size by Revenue and Fleet Size
- Market Segmentation by
- Business Segments
- Chauffeur driven on airport or off airport
- Booking method
- Car trips
- Major cities
- Organized- unorganized
- Car leasing by industry verticals, term of contract and car type
- Trends and Development
- Government Regulations
- Traveler’s Profile by age and gender
- Competition and Market Share
- Future Outlook
- Macro Economic Variables
Key Products Mentioned in the Report
Short Term Car Rental
Chauffeur Driven Car Rental
Companies Covered in the Report
Ankur Gupta, Head Marketing & Communications