GCC Electric Vehicle Market
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Understand The Key Trends Shaping This Market
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The GCC Electric Vehicle Market is expected to register a CAGR of around 35.5% during the forecast period (2024-2032), and the market is valued at around USD 1.9 billion in 2024. A rise in the sales of electric vehicles, governmental initiatives & support, and a surging level of consumer awareness are some of the prominent aspects infusing market growth. Electric vehicles (EVs) illustrate an eco-friendly mode of transportation that operates on electricity rather than traditional fossil fuels like gasoline or diesel, thus helping in minimizing or reducing the pollution level. These vehicles stand as a pivotal advancement within the automotive industry, aimed at mitigating the environmental issues associated with conventional vehicles & lowering reliance on finite fossil fuel resources.
Therefore, various initiatives & visions supported by GCC region governments to secure a sustainable future are encouraging the adoption of these vehicles across the region, thereby infusing the overall market size. For instance, in 2022, the Saudi Arabian government expressed its ambition for electric-powered cars to constitute at least 30% of its automotive fleet by 2030. Further, it aligns with its pledge to attain net zero carbon emissions by 2060.
Moreover, the GCC region's automotive sector heavily depends on traditional internal combustion engines. This region stands out as a substantial producer of crude oil, playing a fundamental role in its economy. Nevertheless, rising environmental apprehensions and the global technological shift towards electric vehicles are predicted to stimulate the acceptance of electric automobiles, primarily hybrid and plug-in hybrid electric vehicles, within the regional nations.
Additionally, as awareness of and demand for EVs continue to escalate, numerous automakers are actively engaged in the development & advancements of cutting-edge & innovative electric vehicles that align with the contemporary needs & preferences of consumers.
Also, the government & private entities of countries, like the UAE, Saudi Arabia, Qatar, etc., are making easy accessibility for EV charging stations for individuals who tend to travel longer distances but are hesitant to buy an electric vehicle due to the lack of charging stations. For instance, in May 2023, DEWA announced that the Green Charging initiatives had lured over 11,000 users, and this number is foreseen to double in the near future. Furthermore, Dubai has set a target to have more than 42,000 electric cars on its streets by 2030.
In addition, top electric vehicle companies are also investing in R&D to provide high-speed EV chargers at public charging stations, which would enhance demand for EVs. Hence, the easy availability of charging stations & amplified battery life of the EVs would support elevating the adoption rate, further infusing the GCC Electric Vehicle Market growth in the forthcoming years.
GCC Electric Vehicle Market Dynamics
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Favorable Government Initiatives & Policies to Promote a Sustainable Environment
The rising focus on environmentally friendly transportation solutions is one of the prominent factors affecting the increased demand for electric vehicles in the GCC region. Governments in the GCC are enforcing regulations to encourage the usage of electric vehicles, as a way to reduce carbon emissions. The UAE, Saudi Arabia, Bahrain, and Oman have made vows to reach net-zero emissions goals & are targeting to achieve it by 2030. For instance, Dubai Municipality has employed Green Building Regulations and Specifications for new constructions in the Emirate of Dubai, mandating that a 5% allocation of parking spaces must be reserved for eco-friendly or low-emission vehicles.
Thus, these government programs involve educating customers about the benefits of EVs & supporting the creation of local manufacturing facilities by newcomers to the market, all of which would support enhancing the GCC Electric Vehicle Industry growth.
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Lack of EV Model Variety to Restrict the Industry Expansion
In the GCC Electric Vehicle Market, the range of available EV models remains limited when compared to conventional vehicles. This limitation is becoming a prominent barrier to the market's growth. Consumers often have preferences for specific vehicle categories, like sedans or SUVs, for which the options of EVs are generally inadequate. As a result, the lack of a wide grounds of models and the restricted choices available may discourage potential EV buyers, further limiting the demand & hindering the industry growth across regional countries.
GCC Electric Vehicle Market Segment-wise Analysis
By Propulsion Type:
- Battery Electric Vehicle (BEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Hybrid Electric Vehicle (HEV)
Battery Electric Vehicle (BEV) is predicted to account for the majority of the share in the GCC Electric Vehicle Market as the sales of these propulsion types of vehicles are seen to be higher in comparison to others. Due to improvements in technology and the cost-effectiveness of Battery Electric Vehicles (BEVs), substantial strides have been made in battery technology. This has led to enrichments in the range & overall performance of BEVs.
Furthermore, BEVs incur lower maintenance and operational expenses due to their streamlined drivetrain architecture, which contains fewer mechanical components compared to traditional internal combustion engine vehicles. Thus, BEVs have become one of the most preferred choices across the automotive market.
By Battery Type:
- Lithium-Ion Battery
- Lithium Titanate Oxide
A significant percentage of the share available in the GCC Electric Vehicle Market relies on Lithium-Ion Battery, making it the dominant battery type among all the others. These batteries are in high demand due to their superior energy density, enabling them to store a considerable amount of energy in compact packages, resulting in an extended driving range. This heightened range addresses consumer concerns about range anxiety, making electric vehicles more attractive for everyday consumption and long-distance trips.
Besides, there is a noticeable trend of establishing numerous EV manufacturing facilities in the region, which is predicted to augment the availability of electric vehicles, specifically those equipped with lithium-ion batteries. Hence, this advancement is poised to have a positive impact on the GCC Electric Vehicle Market size in the projected years.
Regional Projection of the GCC Electric Vehicle Industry
The GCC Electric Vehicle Market is geographically diversified, covering:
- The UAE
- Saudi Arabia
- Qatar
- Oman
- Bahrain
- Kuwait
The UAE is poised to dominate the GCC Electric Vehicle Market during 2024-32. The adoption of electric cars is expected to accelerate, particularly in tech-savvy urban centers like Dubai. While the country is still in the early stages of accepting electric vehicles and has not yet introduced incentives such as free charging stations or Greenbank loans, there are initiatives in place that are likely to enhance EV demand as deployment scales up. Notably, the UAE government has demonstrated a strong commitment to promoting EV usage as part of its goal to achieve zero carbon emissions by 2050.
The demand for EVs in the UAE market has steadily increased in recent years, and the Global Electric Mobility Readiness Index published in 2022 by international consultancy firm Arthur D. Little predicts a compound annual growth rate (CAGR) of 30% between 2022 & 2028. Therefore, due to the growing focus on sustainable transportation solutions nationwide, the future of the UAE Electric Vehicle Market appears to be extremely promising.
What Does Our GCC Electric Vehicle Market Research Study Entail?
- The GCC Electric Vehicle Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
- The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
- The GCC Electric Vehicle Market Research Report entails details about the most critical shifts in market share in the prominent regions.
- Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.
Table of Contents
- Introduction
- Objective of the study
- Product Definition
- Market Segmentation
- Study Variables
- Research Methodology
- Secondary Data Points
- Companies Interviewed
- Primary Data Points
- Break Down of Primary Interviews
- Secondary Data Points
- Executive Summary
- Consumer Survey
- How many car buyers have ever driven an electric vehicle?
- Advantages and disadvantages while buying an electric vehicle
- Do you think an electric vehicle is a good return of investment?
- How many kilometres of range should a fully charged Electric Vehicle give for you to consider buying one?
- How many hours should it take to fully charge an Electric Vehicle for you to consider buying one?
- How likely are you to consider buying an Electric Vehicle in the next 2 years?
- Industry Stakeholders and Their Impact
- Market Dynamics
- Drivers
- Challenges
- Opportunity Assessment
- Recent Trends and Developments
- Government Initiative - Key Measures Taken for Adoption of Electric Vehicles
- Oman
- Qatar
- Bahrain
- Kuwait
- UAE
- Saudi Arabia
- GCC Electric Vehicle Charging Infrastructure
- GCC Electric Vehicle Market Overview (2020-2032)
- Market Size, Value (in USD Millions)
- Market Size, Units Sold (in Thousand)
- Market Share, By Vehicle Type
- Two Wheeler
- Passenger Car
- Commercial vehicle
- Market Share, By Propulsion Type
- Battery Electric Vehicle (BEV)
- Plug-In Hybrid Electric Vehicle (PHEV)
- Hybrid Electric Vehicle (HEV)
- Market Share, By Battery Type
- Lithium-Ion Battery
- Lithium Titanate Oxide
- Market Share, By Capacity
- Upto 40kWh
- 40.1 Kwh to 70 Kwh
- 70.1 Kwh to 100 Kwh
- Above 100 Kwh
- Market Share, By Km Range
- Short Range (Upto 250 Km)
- Medium Range (251 Km to 400 Km)
- Long range (Above 400 Kms)
- Market Size, By Country
- UAE
- Qatar
- Bahrain
- Kuwait
- Oman
- Saudi Arabia
- Market Share, By Company
- Competition Characteristics
- Revenue Shares & Analysis
- UAE Electric Vehicle Market Overview (2020-2032)
- Market Size, By Value (in USD Millions)
- Market Size, By Units Sold (in Thousand Units)
- Market Share, By Type
- Vehicle Type
- By propulsion Type
- By Battery Type
- By Capacity
- By Range
- Oman Electric Vehicle Market Overview (2020-2032)
- Market Size, By Value (in USD Millions)
- Market Size, By Units Sold (in Thousand Units)
- Market Share, By Type
- Vehicle Type
- By propulsion Type
- By Battery Type
- By Capacity
- By Range
- Kuwait Electric Vehicle Market Overview (2020-2032)
- Market Size, By Value (in USD Millions)
- Market Size, By Units Sold (in Thousand Units)
- Market Share, By Type
- Vehicle Type
- By propulsion Type
- By Battery Type
- By Capacity
- By Range
- Bahrain Electric Vehicle Market Overview (2020-2032)
- Market Size, By Value (in USD Millions)
- Market Size, By Units Sold (in Thousand Units)
- Market Share, By Type
- Vehicle Type
- By propulsion Type
- By Battery Type
- By Capacity
- By Range
- Qatar Electric Vehicle Market Overview (2020-2032)
- Market Size, By Value (in USD Millions)
- Market Size, By Units Sold (in Thousand Units)
- Market Share, By Type
- Vehicle Type
- By propulsion Type
- By Battery Type
- By Capacity
- By Range
- Saudi Arabia Electric Vehicle Market Overview (2020-2032)
- Market Size, By Value (in USD Millions)
- Market Size, By Units Sold (in Thousand Units)
- Market Share, By Type
- Vehicle Type
- By propulsion Type
- By Battery Type
- By Capacity
- By Range
- Competitive Outlook (Company Profiles – Partial List)
- Tesla Inc.
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Mercedes-Benz
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Nissan Motor Company Ltd.
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Porsche
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- General Motors Company
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Bayerische Motoren Werke (BMW) AG
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Hyundai Motor Company
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- MG Motors
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Toyota
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Others
- Tesla Inc.
- Contact Us & Disclaimer
List of Figure
Figure 1: Market Segmentation of GCC Electric Vehicle Market
Figure 2: Research Methodology Flowchart
Figure 3: Distribution of Primary Interviews by Region and Designation
Figure 4: Percentage of Consumers Who Have Ever Driven an Electric Vehicle
Figure 5: Key Advantages and Disadvantages of Buying an Electric Vehicle (Survey Results)
Figure 6: Consumer Perception: Is an EV a Good Return on Investment?
Figure 7: Preferred Range (in Km) for EV Purchase Consideration
Figure 8: Preferred Charging Time (in Hours) for EV Purchase Consideration
Figure 9: Likelihood of Buying an EV in the Next 2 Years
Figure 10: Stakeholder Impact on the EV Market
Figure 11: Market Drivers, Challenges, and Opportunities
Figure 12: Key Government Initiatives for EV Adoption in GCC Countries
Figure 13: EV Charging Infrastructure Distribution in GCC Countries
Figure 14: GCC EV Market Size by Value, 2020–2032 (USD Million)
Figure 15: GCC EV Units Sold, 2020–2032 (Thousand Units)
Figure 16: Market Share by Vehicle Type (Two Wheeler, Passenger Car, Commercial Vehicle)
Figure 17: Market Share by Propulsion Type (BEV, PHEV, HEV)
Figure 18: Market Share by Battery Type (Lithium-Ion, Lithium Titanate Oxide)
Figure 19: Market Share by Battery Capacity Range
Figure 20: Market Share by Driving Range Category
Figure 21–26: Country-wise Market Size and Share (UAE, Qatar, Bahrain, Kuwait, Oman, Saudi Arabia)
Figure 27: Market Share by Company (Top Players)
Figure 28: Competitive Positioning of Key EV Companies in GCC
Figure 29: Revenue Share of Key Companies in the GCC EV Market
List of Table
Table 1: Key Study Variables and Definitions
Table 2: Data Sources Used for Secondary Research
Table 3: List of Companies Interviewed
Table 4: Break Down of Primary Interviews by Country and Designation
Table 5: Consumer Survey Results – Have You Ever Driven an EV?
Table 6: Advantages and Disadvantages of Buying an EV (Ranked by Importance)
Table 7: Perceived ROI of EVs – Survey Responses
Table 8: Desired EV Range (in Km) – Consumer Expectations
Table 9: Acceptable Charging Time for EV Buyers
Table 10: Purchase Likelihood in the Next 2 Years – Survey Results
Table 11: Key Industry Stakeholders and Their Roles
Table 12: Market Drivers and Restraints
Table 13: Opportunity Assessment for EV Market in GCC
Table 14: Recent Developments and Trends in GCC EV Market
Table 15: Government Initiatives and Policies by Country
Table 16: EV Charging Infrastructure by Country
Table 17: GCC EV Market Size (USD Million), 2020–2032
Table 18: GCC EV Market Size (Thousand Units Sold), 2020–2032
Table 19: Market Share by Vehicle Type, 2024
Table 20: Market Share by Propulsion Type, 2024
Table 21: Market Share by Battery Type, 2024
Table 22: Market Share by Battery Capacity, 2024
Table 23: Market Share by Driving Range, 2024
Table 24–29: Country-wise Market Size and Share (UAE, Qatar, Bahrain, Kuwait, Oman, Saudi Arabia) – Value and Volume
Table 30: Country-wise Market Share by Vehicle Type
Table 31: Country-wise Market Share by Propulsion Type
Table 32: Country-wise Market Share by Battery Type
Table 33: Country-wise Market Share by Battery Capacity
Table 34: Country-wise Market Share by Driving Range
Table 35: Market Share by Company – GCC EV Market
Table 36: Revenue Share of Key Companies in GCC
Table 37–45: Company Profiles – Key Metrics (Tesla, Mercedes-Benz, Nissan, Porsche, GM, BMW, Hyundai, MG, Toyota)
Table 46: Strategic Partnerships and Alliances – Summary Table
Table 47: Financial Highlights of Leading Players
Top Key Players & Market Share Outlook
- Tesla Inc.
- Mercedes-Benz
- Nissan Motor Company Ltd.
- Porsche
- General Motors Company
- Bayerische Motoren Werke (BMW) AG
- Hyundai Motor Company
- MG Motors
- Toyota
Frequently Asked Questions
