Saudi Arabia Light Vehicle Leasing and Rental Market to Grow with a CAGR of 9.60% through 2030
Growing tourism and business travel, rising demand for short-term
vehicle access, and increasing digital leasing platforms are the factors
driving the market in the forecast period 2026–2030.
According to TechSci Research report, “Saudi Arabia Light
Vehicle Leasing and Rental Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, The Saudi Arabia Light
Vehicle Leasing and Rental Market was valued at USD 2.52 Billion in 2024 and is
expected to reach USD 4.37 Billion by 2030 with a CAGR of 9.60% during the
forecast period.
The Saudi Arabia light vehicle leasing and rental market is undergoing a
transformative phase, propelled by evolving regulatory frameworks, rapid
urbanization, and increased infrastructure development. Major drivers include
government-led reforms under Vision 2030, which aim to boost non-oil sectors,
including tourism, logistics, and urban mobility, thereby increasing demand for
short-term and long-term vehicle leasing. Enhanced business activity, as
demonstrated by the issuance of over 154,000 new commercial records in Q1 2025,
reflects a growing need for flexible vehicle solutions among startups, SMEs,
and multinational corporations entering the market.
The rise in demand for commercial mobility solutions across
construction, FMCG, and e-commerce sectors is further fueling fleet-based
rentals. Companies are increasingly relying on leased light vehicles for
last-mile delivery, project logistics, and workforce mobility due to cost
efficiency and ease of fleet scalability. Rental operators are aligning
offerings with seasonal fluctuations in tourism and pilgrimage traffic, which
spike vehicle demand in specific months.
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Saudi Arabia Light Vehicle Leasing and
Rental Market Is Segmented by Vehicle Type, End Use Industry, Booking,
Lease Type, and Region.
In 2024, passenger cars
became the fastest-growing segment in Saudi Arabia’s light vehicle leasing and
rental market. Demand surged among urban residents, tourists, and professionals
seeking flexible and affordable mobility without ownership burdens. The rise in
business registrations, corporate mobility needs, and tourism activity fueled
rentals of sedans, compact cars, and SUVs. Younger users favored app-based
platforms offering quick booking, digital verification, and clear pricing. The
versatility of passenger cars for daily use, cost efficiency, and comfort
increased their appeal over light commercial vehicles. Operators expanded
fleets with economy and mid-range cars to meet rising demand during peak
travel, business events, and religious seasons.
The Northern and Central
Region led the country in light vehicle leasing and rental growth in 2024.
Riyadh’s position as a business and administrative hub created sustained demand
from professionals, government entities, and corporate clients. The area's
commercial infrastructure, tech parks, and frequent events supported high
rental activity. A large share of new business registrations in this region
also increased leasing needs. Digital adoption, strong road connectivity, and
widespread use of mobile platforms made rentals more accessible. The region
offered stable rental cycles and repeat customers, encouraging operators to
prioritize fleet growth and service enhancements there.
Major Market Players
Operating in Saudi Arabia Light Vehicle Leasing and Rental Market Are:
- Budget Rent a Car System, Inc
- Yelo
- Avis Budget Group Inc.
- Key Car Rental
- LUMI Rental Co. Ltd.
- Hanco (Al Tala'a International Transportation Co.
Limited)
- Al FARIS RENT A CAR
- eZhire (Al Jazirah rent a Car)
- AutoWorld
- Yahma Rent A Car
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Leasing providers are increasingly incorporating electric and hybrid vehicles into their fleets in response to growing environmental awareness and customer demand for sustainable transport options. These vehicles help clients meet sustainability goals and reduce fuel expenses. For leasing companies, offering low-emission vehicles opens up new market segments and aligns with evolving environmental regulations. While initial acquisition costs may be higher, the long-term savings on fuel and maintenance often offset these investments. Green vehicles are particularly appealing to corporations with ESG mandates, which drives demand for eco-friendly fleet options. Leasing also allows customers to experience the benefits of electric mobility without the high upfront costs of purchase”, said Mr.
Karan Chechi, Research Director of TechSci Research, a research-based global
management consulting firm.
“Saudi Arabia Light Vehicle Leasing and Rental Market By Vehicle Type (Passenger Cars, Light Commercial Vehicle), By End-Use Industry (FMCG, Construction, Corporate, E-Commerce), By Booking (Offline, Online), By Lease Type (Finance Lease, Full Rental), By Region, Competition, Forecast and Opportunities, 2020-2030F”, assesses the market's future growth potential and provides data on
market size, trends, and forecasts. It aims to offer comprehensive market
insights, helping decision-makers make informed investment choices. The report
also highlights emerging trends, key drivers, challenges, and opportunities in
the Saudi Arabia Light Vehicle Leasing and Rental Market.
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