Oman Electric Vehicle Market Research Report: Forecast (2023-2028)

Market Definition

With climate change and rising pollution levels, the impact of global warming on the environment is getting severe and is instigating the need for clean & renewables-based transportation. Fossil fuel-based vehicles are likely to become obsolete as more & more people adopt EVs (Electric Vehicles) in the future. Governments of different countries, including Oman, are taking several initiatives toward promoting green mobility to mitigate climate change, reduce GHG emissions, and allow the country to achieve its zero-carbon goals.

Market Insights & Analysis: Oman Electric Vehicle Market (2023-28)

The Oman Electric Vehicle Market is expected to grow at a considerable CAGR during the forecast period, i.e., 2023-28. At present, the market is in the nascent stage but expects rapid growth in the forthcoming years. The primary factors expected to drive the industry include the hot climate of the country and the severe impact of global warming on the environment due to excessive use of fossil fuels, i.e., resulting in alarming levels of carbon emissions.

In addition, active government efforts toward promoting the use of cleaner & renewable energy to reduce carbon footprints and achieve green transportation, i.e., one of the objectives of Oman Vision 2040, is another prominent aspect projected to fuel the adoption of Plug-in Electric Vehicles (PEVs) in the country over the coming years.

PEVs currently have a higher upfront cost than ICE-based vehicles in Oman. However, with reducing battery prices and the emergence of new models, including electric SUVs, the shift to green mobility in the country is ultimately inevitable. The Authority for Electricity Regulations is working on developing a clear framework for EVs, which includes building adequate charging infrastructure, road modifications, etc.

Moreover, various initiatives by the power sector authorities in pushing the transition toward low-carbon & renewables-based electricity generation shall further bode well for EV adoption in Oman through 2028. The country is making rigorous efforts toward bringing innovations in the current transition of its power sector from fossil fuels to renewables, with plans to improve energy efficiency, reduce energy consumption, and promote smart mobility. These trends are set to spur growth in the Oman Electric Vehicle Market in the forecast years and generate opportunities for automakers to widen their reach in the country, further enhancing the market size.

Market Dynamics

Key Driver: Government Efforts Toward Reducing Carbon Emissions & Promoting Green Mobility

In order to mitigate climate change, reduce carbon footprints, and minimize the consumption of fossil fuels, the government of Oman is taking various initiatives toward raising awareness of electric mobility and laying out favorable policies for automakers to extend their reach in the country. Renewable & clean energy production, one of the objectives of Oman Vision 2040, is further creating scope for EV manufacturers to attain a larger consumer base in Oman over the coming years. These aspects are set to drive the Oman Electric Vehicle Market during 2023-28 and allow the country to attain zero-carbon targets and a cleaner environment.

Growth Restraint: Regulatory Challenges & Emerging Macro Trends

Like many countries worldwide, Oman is facing several regulatory challenges in its transition to electric mobility. Geographic hurdles, consumer preferences, current availability & variety of electric vehicles, and uncertainty regarding the leasing options, ownership costs, & economics are the most prominent aspects currently hampering the Oman Electric Vehicle Market.

Market Segmentation

Based on Vehicle Type:

• Two-wheelers
• Passenger Vehicles
• Commercial Vehicles

Of them all, passenger vehicles are projected to attain a noteworthy share of the Oman Electric Vehicle Market during 2023-28. It owes to the growing consumer interest in private vehicle ownership and the ever-increasing need for high-performance, low-emission, & fuel-efficient cars. In addition, various government initiatives for promoting green mobility, gradually reducing costs of EV batteries, rapid climate change, and rising concerns over the alarming levels of carbon emissions are other prominent aspects projected to stimulate the market growth for passenger electric vehicles in Oman over the forecast years.

Based on the Power Source:

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

Here, BEVs (Battery Electric Vehicles) are anticipated to attain a considerable market share through 2028. It owes to the active government efforts toward promoting the use of eco-friendly vehicles in the country. With lower operational & maintenance costs than ICE-based vehicles, Omani residents are showing active interest in BEVs for their daily commute. Moreover, benefits like improved air quality, reduced carbon emissions, enhanced efficiency of electric motors are other crucial factors projected to augment the demand for BEVs in Oman in the coming years.

Recent Development in the Oman Electric Vehicle Market

• In February 2022, Mays Motors, in cooperation with Oman Technology Fund, launched Oman’s first electric car, with 100 units already pre-booked in the first production stage.

Gain a Competitive Edge with Our Oman Electric Vehicle Market Report

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