Market Size of united arab emirates hybrid and electric vehicles Industry
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Study Period | 2017 - 2030 |
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Base Year For Estimation | 2023 |
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Market Size (2024) | USD 2.21 Billion |
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Market Size (2030) | USD 9.03 Billion |
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CAGR (2024 - 2030) | 26.48 % |
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Market Concentration | High |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Hybrid and Electric Vehicles Market Analysis
The United Arab Emirates Hybrid and Electric Vehicles Market size is estimated at 2.21 billion USD in 2024, and is expected to reach 9.03 billion USD by 2030, growing at a CAGR of 26.48% during the forecast period (2024-2030).
2.21 Billion
Market Size in 2024 (USD)
9.03 Billion
Market Size in 2030 (USD)
48.32 %
CAGR (2017-2023)
26.48 %
CAGR (2024-2030)
Fastest-growing Segment by Vehicle Body Type
35.84 %
value share, Sedan, 2023
Sedans typically offer a balance of comfort, performance, and affordability, making them an attractive option for a wide range of consumers.
Largest Segment by Fuel Category
52.81 %
value share, HEV, 2023
HEVs dominate due to their fuel efficiency, ability to switch between electric and combustion power, and strong government support for sustainable transportation in the UAE.
Fastest-growing Segment by Fuel Category
34.94 %
Projected CAGR, BEV, 2024-2030
BEVs are the fastest-growing segment due to significant government incentives, expanding charging infrastructure, and increasing consumer awareness of environmental benefits.
Leading Market Player
58.13 %
market share, Toyota Motor Corporation, 2023
Diversified product portfolio offerings, high production capabilities, and extensive supply chain network and strong brand value marks Toyota as the leader in UAE Hybrid and Electric Vehicles Market
Second leading Market Player
11.87 %
market share, Hyundai Motor Company, 2023
Hyundai Motor Company is a key player due to its innovative hybrid and electric vehicle technology, strong brand presence, and commitment to expanding its market share in the UAE.
The market is growing in line with the UAE's vision to incorporate hybrid and electric vehicles across segments, supporting its sustainability and technological advancement goals
- The United Arab Emirates is emerging as a leading sustainable transportation hub in the Middle East, witnessing a notable surge in the market for hybrid and electric vehicles (HEVs and EVs). Within these markets, the passenger car segment takes the lead, reflecting a rising consumer preference for eco-friendly and energy-efficient rides.
- Government initiatives, including incentives for green vehicles, widespread charging station installations, and reduced fees for electric car registration, have bolstered the market. Notably, luxury electric sedans and SUVs are gaining significant traction, resonating with the United Arab Emirates' penchant for high-end automobiles. Hybrid vehicles are also finding favor, serving as a transitional choice for consumers seeking to reduce their carbon footprint without fully committing to electric variants.
- The commercial segment is gradually embracing hybrid and electric technologies, with a particular emphasis on logistics and public transportation. As part of its sustainable urban development vision, the United Arab Emirates is electrifying its public bus fleets and introducing electric taxis. For commercial fleets, the adoption of HEVs and EVs is driven by factors like cost savings, corporate sustainability goals, and compliance with emerging environmental regulations. However, the growth of this segment hinges on the expansion of charging infrastructure and targeted government incentives for commercial operators. Additionally, electric two-wheelers, such as scooters and motorcycles, are gaining popularity in urban centers, where traffic congestion and parking challenges make them an appealing choice for short commutes.
Understand The Key Trends Shaping This Market
United Arab Emirates Hybrid and Electric Vehicles Industry Segmentation
Commercial Vehicles, Passenger Vehicles, Two-Wheelers are covered as segments by Vehicle Type. FCEV, HEV, PHEV are covered as segments by Fuel Category.
- The United Arab Emirates is emerging as a leading sustainable transportation hub in the Middle East, witnessing a notable surge in the market for hybrid and electric vehicles (HEVs and EVs). Within these markets, the passenger car segment takes the lead, reflecting a rising consumer preference for eco-friendly and energy-efficient rides.
- Government initiatives, including incentives for green vehicles, widespread charging station installations, and reduced fees for electric car registration, have bolstered the market. Notably, luxury electric sedans and SUVs are gaining significant traction, resonating with the United Arab Emirates' penchant for high-end automobiles. Hybrid vehicles are also finding favor, serving as a transitional choice for consumers seeking to reduce their carbon footprint without fully committing to electric variants.
- The commercial segment is gradually embracing hybrid and electric technologies, with a particular emphasis on logistics and public transportation. As part of its sustainable urban development vision, the United Arab Emirates is electrifying its public bus fleets and introducing electric taxis. For commercial fleets, the adoption of HEVs and EVs is driven by factors like cost savings, corporate sustainability goals, and compliance with emerging environmental regulations. However, the growth of this segment hinges on the expansion of charging infrastructure and targeted government incentives for commercial operators. Additionally, electric two-wheelers, such as scooters and motorcycles, are gaining popularity in urban centers, where traffic congestion and parking challenges make them an appealing choice for short commutes.
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Need A Different Region Or Segment?
United Arab Emirates Hybrid and Electric Vehicles Market Size Summary
The United Arab Emirates is rapidly establishing itself as a prominent hub for sustainable transportation within the Middle East, with a significant increase in the market for hybrid and electric vehicles (HEVs and EVs). The passenger car segment is at the forefront of this growth, driven by a growing consumer inclination towards eco-friendly and energy-efficient vehicles. Government initiatives, such as incentives for green vehicles, extensive charging station networks, and reduced registration fees for electric cars, have significantly supported this market expansion. Luxury electric sedans and SUVs are particularly popular, aligning with the UAE's affinity for high-end automobiles. Hybrid vehicles are also gaining traction as a transitional option for consumers aiming to lower their carbon footprint without fully switching to electric models.
The commercial sector is gradually adopting hybrid and electric technologies, focusing on logistics and public transportation as part of the UAE's sustainable urban development vision. This includes electrifying public bus fleets and introducing electric taxis. The adoption of HEVs and EVs in commercial fleets is motivated by cost savings, corporate sustainability objectives, and compliance with emerging environmental regulations. However, the growth of this segment is contingent on the expansion of charging infrastructure and targeted government incentives for commercial operators. Additionally, electric two-wheelers are becoming increasingly popular in urban areas, offering a practical solution to traffic congestion and parking challenges. The market is fairly consolidated, with major players like Audi AG, Hyundai Motor Company, Peugeot S.A., Toyota Motor Corporation, and Volvo Car AB dominating the landscape.
United Arab Emirates Hybrid and Electric Vehicles Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Vehicle Type
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1.1.1 Commercial Vehicles
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1.1.1.1 Buses
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1.1.1.2 Heavy-duty Commercial Trucks
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1.1.1.3 Light Commercial Pick-up Trucks
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1.1.1.4 Light Commercial Vans
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1.1.1.5 Medium-duty Commercial Trucks
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1.1.2 Passenger Vehicles
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1.1.3 Two-Wheelers
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1.2 Fuel Category
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1.2.1 FCEV
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1.2.2 HEV
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1.2.3 PHEV
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United Arab Emirates Hybrid and Electric Vehicles Market Size FAQs
How big is the United Arab Emirates Hybrid and Electric Vehicles Market?
The United Arab Emirates Hybrid and Electric Vehicles Market size is expected to reach USD 2.21 billion in 2024 and grow at a CAGR of 26.48% to reach USD 9.03 billion by 2030.
What is the current United Arab Emirates Hybrid and Electric Vehicles Market size?
In 2024, the United Arab Emirates Hybrid and Electric Vehicles Market size is expected to reach USD 2.21 billion.
