Saudi Arabia Car Rental Market Overview
Market Size in 2025: USD 797.4 Million
Market Forecast in 2034: USD 976.7 Million
Market Growth Rate 2026-2034: 2.28%
According to IMARC Group's latest research publication, "Saudi Arabia Car Rental Market Report by Booking Type (Offline Booking, Online Booking), Rental Length (Short Term, Long Term), Vehicle Type (Luxury, Executive, Economy, SUVs, and Others), Application (Leisure/Tourism, Business), End User (Self-Driven, Chauffeur-Driven), and Region 2026-2034", The Saudi Arabia car rental market size reached USD 797.4 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 976.7 Million by 2034, exhibiting a growth rate (CAGR) of 2.28% during 2026-2034.
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How Digital Innovation is Reshaping the Future of Saudi Arabia Car Rental Market
- AI-driven fleet management systems in Saudi Arabia optimize car rentals by reducing idle time and increasing vehicle utilization by nearly 30%, cutting operational costs significantly.
- Government technology initiatives support AI integration in rental platforms, enhancing customer experience through personalized offers and faster, paperless bookings across mobile apps.
- Companies like LUMI deploy AI chatbots and virtual assistants, increasing customer service efficiency by 40% and enabling 24/7 support for booking and inquiries.
- AI-powered predictive analytics help rental firms forecast demand accurately, adjusting pricing dynamically and improving revenue management in Saudi Arabia’s fluctuating market.
- Autonomous vehicle testing and AI telematics are paving the way for safer, smarter car rentals, aligning with Saudi Arabia’s Vision 2030 goals for smart city transportation.
Saudi Arabia Car Rental Market Trends & Drivers:
Rising domestic and international tourism substantially drives Saudi Arabia’s car rental market, fueled by Vision 2030’s focus on expanding travel infrastructure and attracting millions of visitors. The growing number of business travelers linked to mega-projects like NEOM creates consistent rental demand. Modern airports and urban centers boost availability and convenience, making car rentals essential for tourists and professionals navigating the country’s increasing mobility needs. This tourism boom, coupled with expanding infrastructure, is the market’s primary growth engine, enhancing transport options on both short- and long-term rental models.
Urbanization and rising disposable incomes fuel increasing reliance on flexible transportation solutions like car rentals, especially in major cities such as Riyadh and Jeddah. As about 83% of the population lives in urban areas, more residents seek cost-effective alternatives to vehicle ownership. Digital platforms and mobile apps simplify booking processes, facilitating access to wider vehicle choices and fostering customer loyalty. Additionally, the growing expatriate population drives rental demand for both personal and corporate uses, positioning flexible car rental services as practical solutions for diverse mobility needs amid rapid urban expansion.
Government reforms and regulatory support under Vision 2030 accelerate market growth by encouraging innovation and sustainability. Initiatives target green mobility through incentives for electric vehicle (EV) fleets in rentals, complementing Saudi Arabia’s clean energy goals. Public investment funds collaborate with rental companies to develop tech-driven fleets featuring AI-based predictive maintenance and telematics, reducing operational costs and boosting efficiency. Policy drives favor leasing over ownership patterns in both public and private sectors, standardizing practices and growing demand for managed rental services aligned with economic diversification strategies.
Saudi Arabia Car Rental Industry Segmentation:
The report has segmented the market into the following categories:
Booking Type Insights:
- Offline Booking
- Online Booking
Rental Length Insights:
- Short Term
- Long Term
Vehicle Type Insights:
- Luxury
- Executive
- Economy
- SUVs
- Others
Application Insights:
- Leisure/Tourism
- Business
End User Insights:
- Self-Driven
- Chauffeur-Driven
Regional Insights:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Recent News and Developments in Saudi Arabia Car Rental Market
- August 2025: Major car rental companies launch integrated mobile applications with AI-powered features, enabling seamless booking and enhancing customer experience across all regions.
- July 2025: Introduction of electric and hybrid vehicle fleets by leading rental companies to support Saudi Green Initiative and meet growing environmental consciousness among consumers.
- June 2025: Strategic partnerships between car rental companies and tourism authorities to provide integrated transportation solutions for Vision 2030 mega-projects and tourist destinations.
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