How the Kuwait Car Rental and Leasing Market Is Positioned?
Kuwait car rental market showcased a significant growth in the previous years. In 2015, Kuwait car rental market was valued at USD ~ million as compared to the revenue in 2010 which was USD ~ million. The growth in the revenue has been largely due to an inclination in the expenditure on travel by the people in the country, primarily caused by rising number of foreign visitors. In 2014, the country has witnessed an inclination of ~% in the car rental market in terms of revenue as compared to 2013. In 2010, the car rental industry had witnessed revenue of USD ~ million which had further enhanced to USD ~ million in 2011 and USD ~ million in 2012.
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.
Significant rise in revenues have been witnessed for the car rental companies operating in the country due to diversification in their business opportunities in terms of new rental segments and business line. Major multinational car rental companies such as Hertz has enhanced their business by appointing local companies such as Transworld Company as its GSA (General Sales Agent) in Kuwait in efforts to increase the amount of outbound car rental reservations from Kuwait. Over the years, Kuwait car rental market has grown at a CAGR of ~% from 2010-2015 reaching to USD ~ million in 2015.
Moreover, the tourism sector is also impacting the revenues of car rental companies directly since most of the tourists opt for a car rental when they visit Kuwait, this provides them the flexibility of enjoying the clean and developed road infrastructure in the country with ability to stop at various places.
Which Segments have driven Kuwait Car Rental and Leasing Market?
Most of the off airport car rental is dominated by the long term car leasing and hence only a 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 the on airport car rental since most of the people which arrive at the airport opt for the chauffeur driven cars.
Kuwait has one of the best road systems among the Middle East countries with widely available car rental facilities in the country. In 2015, around ~% of the revenues of the car rental companies have been generated through the rental of luxury cars that comprises of limousine services along with large sized cars such as Ford Lincoln, Lexus ES 350 and others. Around ~% of the revenues were generated from medium sized cars in the country in 2015. Expats and tourist that prefer to rent cars for duration of 3 months-6 months usually prefer to rent small sized cars such as Hyundai Veloster, Mitsubishi Mirage, Nissan Micra and others.
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 (~ %) of their revenues through corporate clients.
It has been observed that around 60% of the GDP of the country comes from oil and gas sector accounting for 95% of Kuwait’s exports. These companies need rented vehicles (mostly commercial or the SUVs) to travel to the work sites and thus command ~% of the share in revenues. The construction industry is expected to indulge into a series of projects, owing to increasing demand from the private sector. Expansion of the Kuwait’s International Airport and increased focus on infrastructural projects to attain non-oil led growth are some factors leading to growth of construction sector in the country leading to a revenue share of ~%. Other sectors such as trading companies require most of the commercial vehicles to move their goods to and from ports to other parts in the country and thus provide revenues worth ~% of the industry revenues.
What is the Competition Scenario in Kuwait Car Rental and Leasing Market?
Competition in the vehicle rental industry is primarily based on price, service quality of customers, including utilization of booking systems and easiness of rental and return, accessibility of vehicles, dependability and domestic and international distribution. In addition to this, competition in the market is also influenced by advertising, marketing and brand reputation.
Most of the Kuwait car rental market is captured by local players in the country which command a major share in the industry. All Mulla has dominated the market for rental cars in Kuwait with 25.2% share in the total fleet of the car rental industry in the country. Al Sayer and Safeena are other major players which commanded a fleet size of 14.3% and 8.4% respectively.
Foreign players such as Sixt, Europcar, Avis and others also have their rental stations across the country.
Apart from all the major players, the rest of the Kuwait car rental market is tapped by small and independent as well as international players.
What is the Future Outlook for Kuwait Car Rental and Leasing Market?
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 that encourages people to recurrently change their vehicles so they will always be driving a new car of the newest model. Therefore, various new car rental companies are expected to introduce facilities such as “operational rent”, “rent promising to buy program” and others in order to cater to the demand of the car rental companies in the country. 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). The company plans to produce gasoline and diesel 90 kilometers south of the capital. This is further expected to augment the work force and car rental business in the country since employees would need to travel from the city to the work locations and the way back.
The car rental market in Kuwait is expected to reach USD 292.2 million by 2020 in terms of revenues and ~ in terms of the fleet size. It is also expected that the growth would be led by the car leasing market covering more than ~% of the market.
Companies Cited in the Report
Competitive Landscape
Companies Covered in the Report List of Companies
Kuwait Car Rental Al-Mullah
Al Sayer
Sefeena
Hertz
Sixt
Ousol
National
Payless
Budget
Key Factors Considered in the Report
- Comprehensive analysis of the Kuwait Car Rental and Leasing Market and its segments
- Listed major players and their positioning in the market
- Identified major industry developments in last few years and assess the future growth of the industry
- Government roles to understand the regulatory environment in each country
- Comprehensive analysis of major segments in the Car Rental and Leasing Market in Kuwait
To know more on coverage, click on the link below:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/kuwait-car-rental-leasing-market/42907-100.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204
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