Electric Vehicles (EVs) are vehicles powered by electric motors & energy stored in batteries. These vehicles involve low running costs, less maintenance, and are highly eco-friendly as they do not use fossil fuels. With various measures to mitigate pollution, shifts in consumer preferences, subsidies for EV buyers by the governments of major GCC countries, EVs show immense potential to hamper the demand for fossil fuels around the region in the coming years.
According to a new study by MarkNtel Advisors, the GCC Electric Vehicle Market is expected to grow at an exponential rate through 2028. The market growth primarily owes to the growing concerns over future energy savings, greenhouse gas emissions, and surging economies in the GCC region, owing to the massive consumption of fossil fuels and the ever-increasing traffic congestions.
The introduction of EVs, particularly across Saudi Arabia & the UAE, is expected to be a promising option to address rampant environmental pollution & future economy-related fears. In this regard, the governments of the member countries are taking initiatives and proposing a set of policies, enabling these countries to pace up their efforts and achieve the intended Green House Gas (GHG) emission reduction goals.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-27|
|Regions Covered||The UAE, Saudi Arabia, Qatar, Oman, Bahrain, Kuwait, Rest of GCC|
|Key Companies Profiled||Tesla, Inc., Nissan Motor Company, Ltd., Hyundai Motor Company, Volkswagen Motor Company LTM, General Motors Company, Groupe Renault, Rivian Automotive, Inc. , Fisker Inc, MG Motor, BYD Auto, Others|
|Unit Denominations||USD Million/Billion|
Besides, the UAE & Qatar are making notable efforts toward adopting Green Mobility solutions by introducing several policies to promote sustainable transportation through EVs. Additionally, Saudi Arabia, in 2021, unveiled its first zero-carbon city, The Line, at NEOM, which is in line with its Saudi Vision 2030 national development program. Hence, the pointers cited above indicate the significant extension of the Electric Vehicle Market in the GCC region through 2028.
Rising Government Support to Support the Adoption of EVs
The mounting support from the governments of the member countries in the region through various initiatives & programs toward curbing the prevailing environment pollution and diversifying the economic resources by reducing dependency on oil is the prime factor anticipated to drive the GCC Electric Vehicle Market in the forecast period.
Under Developing Charging Infrastructure Could Restrain the Market Growth
The relatively underdeveloped public transportation infrastructure including charging stations, coupled with the low cost of fossil fuels that eliminates the need for fuel-efficient vehicles, might restrain the market from growing during 2023-28. In addition, the unavailability of appropriate EV models to attract mass market, where a car remains a symbol of status, shall further challenge the market growth in the coming years.
Based on Vehicle Type:
Among these, Electric Trucks & Buses are expected to observe a larger sales volume across GCC countries owing to the various government initiatives toward the electrification of public transport fleets, coupled with the growing requirements for zero-emission vehicles across e-commerce & logistic sectors.
FIFA 2022 World Cup Host, Qatar, aims to colonize the area with clean energy transit and become one of the first countries to integrate electric bus systems. It plans to transform 25% of its public transportation to electric energy by 2022 and 100% by 2030 in line with the Qatar Public Transportation Plan (QPTP), 2030 of the Ministry of Transport and Communications. The complete transformation shall include public bus services, government school buses, and Doha Metro’s busses, as mentioned in a report issued by the US-Qatar Business Council (USQBC).
Based on the Power Source:
Hybrid Electric Vehicles (HEVs) are anticipated to witness more sales in the coming years, principally due to more power, enhanced fuel efficiency, reduced emissions, and the excellent backup provided by HEVs, enabling long-distance driving without battery degradation.
In the region, Saudi Arabia aims to reduce their oil dependency and diversify their economic resources through various government initiatives in line with its Saudi Vision 2030 toward promoting the adoption of EVs & HEVs.
Riyadh, the country’s capital, is expected to host an e-Motor Show in February 2022, to enhance awareness about EVs & HEVs, while reflecting the future of transportation. The show is likely to bring substantial investments toward the manufacturing, application, imports, & exports of these vehicles and create lucrative opportunities for the market leaders in the coming years, states MarkNtel Advisors in their research report, “GCC Electric Vehicle Market Analysis, 2023.”
Based on the Country:
Here, the popularity of EVs is more significant in the UAE, having more than 300 EV charging stations. The prime reasons behind its accelerating pace in the shift toward EVs are the participation of the government, banks, and auto dealers through various incentives and increased awareness regarding the environment among people. Moreover, the UAE is expecting to take several initiatives & programs to encourage “Green Mobility” and reduce the carbon footprints, which is another crucial aspect that would propel the sales volume of EVs in the country in the years to come.
On the other hand, in 2021, Kuwait Ports Authority (KPA) announced to make Kuwait the region's first city to offer ports for all logistic services to the leading EV manufacturers in the market for producing EVs in the country. This initiative would be under Kuwait Vision 2035, which aims to establish the country as a financial & commercial centre by enhancing its investment attractiveness & competitiveness.
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Frequently Asked Questions
A. The GCC Electric Vehicle Market is likely to witness an exponential growth in the coming years.
A. Tesla, Inc., Nissan Motor Company, Ltd., Hyundai Motor Company, Volkswagen Motor Company LTM, General Motors Company, and Groupe Renault are the leading players in the GCC Electric Vehicle Market.
A. Hybrid Electric Vehicles (HEVs) are anticipated to emerge as a key opportunity area for the leading players in the GCC Electric Vehicle Market in the years to come.
A. The prime factor expected to drive the GCC Electric Vehicle Market during 2023-28 is the various initiatives & programs by the governments of the member countries toward reducing environmental pollution & diversifying the economic resources by reducing dependency on oil.
A. With the rising government focus on promoting EVs to conserve renewable resources and the resumption of import/export activities in the region, the market is projected to expand significantly and create lucrative opportunities for the leading companies in the industry during 2023-28.