GCC Electric Vehicle Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.36 Billion |
| Market Size (2029) | USD 10.42 Billion |
| CAGR (2024 - 2029) | 19.03 % |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
GCC Electric Vehicle Market Analysis
The GCC Electric Vehicle Market size is estimated at USD 4.36 billion in 2024, and is expected to reach USD 10.42 billion by 2029, growing at a CAGR of 19.03% during the forecast period (2024-2029).
The automotive industry in the GCC region is majorly dependent on conventional internal combustion engines. The region is one of the major producers of crude oil and accounts for the majority share of the economy. However, the introduction of electric vehicles in Saudi Arabia and the United Arab Emirates gained significant popularity as a sustainable transport option. This has resulted in the increasing adoption of electric vehicles in GCC countries. In this context, the governments of different countries are taking initiatives and making policies to achieve net zero emission goals and move to green mobility.
- For instance, in May 2023, the Ministry of Energy and Infrastructure launched a project called Global EV Market to make the United Arab Emirates a global market for electric vehicles. It aims to increase the share of EVs to 50% of total vehicles by 2050.
The United Arab Emirates has experienced rapid development in electric vehicle (EV) infrastructure and EV adoption, largely facilitated by the legal framework and government policies at both federal and emirate levels. Transport stands as one of the United Arab Emirates's core industries for decarbonization, aligning with its net zero 2050 strategy. Globally, the United Arab Emirates ranks seventh in the Global Electric Mobility Readiness Index 2023 (GEMRIX 2023) and boasts one of the world's highest ratios of charging stations to vehicles.
Furthermore, the Saudi Green Initiative 2030 intends to ensure that 30% of all automobiles in Riyadh, Saudi Arabia's capital, are powered by electricity. Significant steps are being taken in Saudi Arabia to expand the EV industry through direct investments, which are assisting in the creation of a more sustainable transportation system.
Thus, considering the points mentioned above, the market studied is expected to witness significant growth in the upcoming years.
GCC Electric Vehicle Market Trends
Huge Investments by Automakers for Electric Vehicles
Heavy investments from automakers are expected to cater to the growing demand for EVs and play a major role in the evolution of the electric vehicle market. OEMs offer electric vehicles in different segments ranging from hatchbacks such as the Nissan Leaf to high-end sedans like Tesla Model 3.
- In July 2023, PEUGEOT introduced its first fully electric light commercial vehicle, the PEUGEOT E-partner, in the United Arab Emirates. The vehicle was launched by PEUGEOT Abu Dhabi and Al Ain, the automotive division of Omeir Bin Youssef & Sons, and was delivered to EMOB, a sustainability company based in Abu Dhabi. EMOB specializes in providing EV charging services. The E-Partner, equipped with a robust electric propulsion system, offers efficient daily business operations.
Furthermore, the world’s top automotive companies are making huge investments in R&D activities, technological advances, product launches, and capacity & infrastructure expansion to produce millions of electric vehicles, along with batteries and raw materials.
- For example, in June 2023, Tata Motors announced plans to create a new electric vehicle subsidiary, which would require over INR 16,000 crore (USD 1.9 billion) of investment in the next five years. TPG Rise Climate and Abu Dhabi’s ADQ will be investing INR 7,500 crore (close to USD 1 billion) for an 11-15% stake to build and operate electric vehicle infrastructure across the United Arab Emirates and Abu Dhabi
- Similarly, in March 2023, United States-based electric vehicle maker Lucid Group, in which Saudi Arabia’s Public Investment Fund owns the majority, announced the setup of its first overseas factory to cater to the high demand for electric vehicles in the kingdom.
Thus, the above investments made by automotive giants for various production activities are projected to drive the market’s growth.
Stringent Government Policies Favor High Market Demand
- The governments in the region are introducing several programs and initiatives to promote green mobility, as transportation plays a crucial role in lowering the carbon footprint. The programs aim for electrification of public transportation systems and make them a better mode of transport.
- In May 2023, Saudi Arabia announced implementation policies to develop an electric vehicle sector with increased production capacity to cater to the domestic market and operate as an export-oriented manufacturing hub. The production of about 500,000 EVs a year is being targeted by 2030.
- The Dubai Electricity and Water Authority launched an initiative called the “Green Charger” initiative to build charging stations in Dubai to support the Dubai Green Mobility Strategy 2030. The incentives offered by the government and various financial institutions are encouraging the import of electric vehicles into the country. The high support from the government in the form of favorable government policies is expected to bolster the sales of electric vehicles in the future.
GCC Electric Vehicle Industry Overview
The electric vehicle market in the region is fairly consolidated, with major players like Toyota Motor Corporation, Nissan Motor Co. Ltd, Hyundai Motor Company, BMW AG, Audi AG, and Tesla Inc. capturing the major market share, amongst others. Many players are investing in new technologies to gain the upper hand over their competition and focusing on new launches.
- February 2024: Xpeng, a Chinese smart electric vehicle manufacturer, announced a strategic partnership with United Arab Emirates-based distributor Ali & Sons. This collaboration is a significant step in Xpeng’s international expansion following its entry into parts of the European market. Under its "Go Abroad 2.0" strategy, Xpeng seeks to attract more overseas distributors to deliver their smart EV technology to local consumers.
- February 2024: Kia United Arab Emirates and Africa introduced the 'Platform Beyond Vehicle' business, which is set to revolutionize mobility in the MEA region. Scheduled for availability in 2026, the PBV business will integrate purpose-built EVs with advanced software technology, moving beyond traditional automotive offerings.
- April 2023: Saudi Arabia’s Ministry of Investment signed a USD 5.6 billion deal with Chinese electric car maker Human Horizons for collaboration on the development and sale of vehicles.
- September 2023: Abu Dhabi's CYVN Holdings took a 7% stake in Chinese electric vehicle start-up Nio for USD 739 million.
GCC Electric Vehicle Market Leaders
-
Hyundai Motor Company
-
Tesla, Inc.
-
Volkswagen
-
Toyota Motor Corporation
-
BMW AG
-
Audi AG
*Disclaimer: Major Players sorted in no particular order
GCC Electric Vehicle Market News
- January 2024: Newrizon, a portfolio company of Nio Capital, initiated its global expansion strategy by exporting electric trucks to the United Arab Emirates. The iC1, Newrizon's first line of electric light-duty trucks, has been loaded at a port and is on the way to the United Arab Emirates.
- October 2023: United Arab Emirates officially launched its innovative all-electric vehicles, the Kia EV9, EV6, and concept EV5, at the Geneva International Motor Show in Doha, Qatar. Held at the Doha Exhibition & Convention Centre from October 5 to October 14, 2023, this event marked a milestone as the region’s first dedicated electric vehicle showcase, inviting media attendees and VIP customers to test drive the new models.
- July 2023: Pravaig, an Indian electric vehicle manufacturer, tied up with Saudi India Venture Studio to set up a manufacturing facility of electric vehicles and advanced batteries in Saudi Arabia.
GCC Electric Vehicle Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Huge Investments by Automakers for Electric Vehicles
4.2 Market Restraints
4.2.1 High Initial Investment of Installing Electric Vehicle Infrastructure
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.2 By Propulsion Type
5.2.1 Battery Electric
5.2.2 Plug-in Hybrid
5.2.3 Fuel Cell Electric
5.2.4 Hybrid Vehicles
5.3 By Country
5.3.1 United Arab Emirates
5.3.2 Saudi Arabia
5.3.3 Qatar
5.3.4 Oman
5.3.5 Kuwait
5.3.6 Bahrain
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Tesla, Inc.
6.2.2 Nissan Motor Co. Ltd
6.2.3 Hyundai Motor Company
6.2.4 Volkswagen
6.2.5 General Motors Company
6.2.6 Toyota Motor Corporation
6.2.7 Groupe Renault
6.2.8 NWTN Motors
6.2.9 BMW AG
6.2.10 Audi AG
6.2.11 Ceer Motors
6.2.12 Barq EV
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
GCC Electric Vehicle Industry Segmentation
The electric vehicle operates on an electric motor instead of an internal combustion engine. Therefore, the electric vehicle is a possible replacement for the current-generation automobile in the near future to address environmental challenges.
The GCC electric vehicle market is segmented by vehicle type, propulsion type, and country. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By propulsion type, the market is segmented into battery electric vehicles, plug-in electric vehicles, fuel cell electric vehicles, and hybrid electric vehicles. By country, the market is segmented into the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain. The report offers market size and forecasts for the electric vehicle market in value (USD) and volume (Units) for the above segments.
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| By Propulsion Type | |
| Battery Electric | |
| Plug-in Hybrid | |
| Fuel Cell Electric | |
| Hybrid Vehicles |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Qatar | |
| Oman | |
| Kuwait | |
| Bahrain |
GCC Electric Vehicle Market Research Faqs
How big is the GCC Electric Vehicle Market?
The GCC Electric Vehicle Market size is expected to reach USD 4.36 billion in 2024 and grow at a CAGR of 19.03% to reach USD 10.42 billion by 2029.
What is the current GCC Electric Vehicle Market size?
In 2024, the GCC Electric Vehicle Market size is expected to reach USD 4.36 billion.
Who are the key players in GCC Electric Vehicle Market?
Hyundai Motor Company, Tesla, Inc., Volkswagen, Toyota Motor Corporation, BMW AG and Audi AG are the major companies operating in the GCC Electric Vehicle Market.
What years does this GCC Electric Vehicle Market cover, and what was the market size in 2023?
In 2023, the GCC Electric Vehicle Market size was estimated at USD 3.53 billion. The report covers the GCC Electric Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Electric Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Electric Vehicle Industry Report
Statistics for the 2024 GCC Electric Vehicle market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Electric Vehicle analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
