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GCC Electric Vehicle Market Size (2024 - 2029)

The GCC Electric Vehicle Market is poised for significant growth, driven by increasing environmental concerns and a global shift towards electric vehicles. Despite the region's traditional reliance on internal combustion engines and its status as a major crude oil producer, the market is expected to expand as hybrid and plug-in hybrid electric vehicles gain traction. Challenges such as limited charging infrastructure have hindered adoption, but efforts by private entities to install charging facilities are boosting market demand.

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Market Size of GCC Electric Vehicle Industry

GCC Electric Vehicle Market Summary
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

GCC Electric Vehicle Market Major Players

*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 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
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GCC Electric Vehicle Market Size Summary

The GCC electric vehicle market is poised for significant growth, driven by a shift from traditional internal combustion engines to electric vehicles, including hybrids and plug-in hybrids. This transition is influenced by increasing environmental concerns and technological advancements observed globally. Despite the region's historical reliance on oil production and conventional vehicles, the market is experiencing a gradual transformation. The adoption of electric vehicles is being supported by private sector initiatives to expand charging infrastructure, such as the installation of charging stations by companies like Marriott and partnerships like those between Schneider Electric and GREENER by IHCC. These efforts are complemented by government programs aimed at promoting green mobility and reducing carbon footprints through incentives and infrastructure development.

The market landscape is characterized by substantial investments from automakers and strategic partnerships to enhance e-mobility infrastructure. Key players such as Toyota, Nissan, Hyundai, and Jaguar Land Rover dominate the market, while countries like the UAE and Saudi Arabia are making strides in increasing the number of charging stations and electric vehicles on the road. Government initiatives, such as Dubai's Green Building Regulations and the UAE's Green Charger initiative, are further bolstering the market by encouraging the adoption of low-emission vehicles. The region's electric vehicle market is expected to continue its upward trajectory, supported by favorable policies, infrastructure development, and a growing commitment to sustainable mobility solutions.

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GCC Electric Vehicle Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Huge Investments by Automakers for Electric Vehicles

    2. 1.2 Market Restraints

      1. 1.2.1 High Initial Investment of Installing Electric Vehicle Infrastructure

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Vehicle Type

      1. 2.1.1 Passenger Cars

      2. 2.1.2 Commercial Vehicles

    2. 2.2 By Propulsion Type

      1. 2.2.1 Battery Electric

      2. 2.2.2 Plug-in Hybrid

      3. 2.2.3 Fuel Cell Electric

      4. 2.2.4 Hybrid Vehicles

    3. 2.3 By Country

      1. 2.3.1 United Arab Emirates

      2. 2.3.2 Saudi Arabia

      3. 2.3.3 Qatar

      4. 2.3.4 Oman

      5. 2.3.5 Kuwait

      6. 2.3.6 Bahrain

GCC Electric Vehicle Market Size FAQs

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.

In 2024, the GCC Electric Vehicle Market size is expected to reach USD 4.36 billion.

GCC Electric Vehicle Market Report Snapshots

GCC Electric Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)