Electric Vehicles - GCC

The Electric Vehicles market in the GCC is projected to reach a revenue of US$1,893.0m by 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.63%, resulting in a projected market volume of US$2,262.0m by 2029.
The unit sales of Electric Vehicles market in the GCC are expected to reach 36.62k vehicles by 2029.
The volume weighted average price of Electric Vehicles market in the GCC in 2024 is expected to amount to US$65.8k.
From an international perspective, it is shown that the most revenue will be generated China, with US$376,400m in 2024.
The demand for electric vehicles in the GCC region, particularly in the United Arab Emirates, is steadily increasing due to government initiatives and the growing awareness of environmental sustainability.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in GCC is witnessing significant growth and development in recent years.

Customer preferences: One of the key reasons behind the growing demand for Electric Vehicles (EVs) in GCC is the increasing awareness and concern for environmental sustainability. Customers are becoming more conscious about the impact of traditional gasoline-powered vehicles on air pollution and climate change. As a result, there is a shift towards cleaner and greener transportation options, such as EVs. Additionally, customers are attracted to the lower operating costs of EVs compared to conventional vehicles, as they require less maintenance and have lower fuel costs.

Trends in the market: The GCC region is experiencing a surge in the adoption of EVs, driven by various government initiatives and policies. Several countries in the GCC, such as the United Arab Emirates and Saudi Arabia, have implemented incentives and subsidies to promote the purchase and use of EVs. These incentives include tax exemptions, reduced registration fees, and discounted electricity rates for charging EVs. Furthermore, the development of a robust charging infrastructure network is also contributing to the growth of the EV market in GCC. Governments are investing in the installation of charging stations across major cities and highways, making it more convenient for EV owners to recharge their vehicles.

Local special circumstances: The GCC region has unique characteristics that make it particularly suitable for the adoption of EVs. The countries in the region have a high per capita income and a strong appetite for luxury and high-end vehicles. This presents an opportunity for premium EV manufacturers to target the affluent population in the GCC. Additionally, the short commuting distances in urban areas and the availability of ample parking spaces make EVs a practical choice for daily transportation. The hot climate in the region also makes EVs more appealing, as they do not emit greenhouse gases and contribute to air pollution.

Underlying macroeconomic factors: The GCC region is highly dependent on oil exports, and the recent volatility in global oil prices has prompted governments to diversify their economies and reduce their reliance on fossil fuels. This has led to increased investments in renewable energy sources, including electric mobility. Governments in the GCC are actively promoting the development of a sustainable transportation sector and are investing in renewable energy infrastructure. The transition to EVs aligns with the broader goal of reducing carbon emissions and achieving sustainability targets set by international agreements. In conclusion, the Electric Vehicles market in GCC is experiencing significant growth due to customer preferences for sustainable transportation options, government initiatives, and the region's unique characteristics. The adoption of EVs in the GCC is expected to continue to rise as governments invest in charging infrastructure and provide incentives to promote the use of EVs.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).