UAE Electric Vehicle Market Outlook (2022-2028) | Share, Size, Revenue, Value, Forecast, Trends, Growth, industry & COVID-19 IMPACT

Latest (2024) Development of the UAE Electric Vehicle Market

The UAE Electric Vehicle Market Share has seen remarkable growth over the years, reflecting the nation's commitment to sustainable transportation solutions. With the government's supportive policies, including incentives for EV buyers and investment in charging infrastructure, the adoption rate of electric vehicles has accelerated significantly. Major cities like Dubai and Abu Dhabi have rolled out extensive charging networks, making it more convenient for EV owners to recharge their vehicles.

In addition to infrastructure improvements, the UAE has also welcomed new EV models from renowned manufacturers, catering to a wider range of consumer preferences and budgets. Local and international partnerships have been forged to enhance technology transfer and development, ensuring that the UAE remains at the forefront of the electric vehicle revolution. The transition to electric mobility aligns with the UAE's broader environmental goals, contributing to reduced carbon emissions and a greener future.

Topics Covered in the UAE Electric Vehicle Market

The UAE Electric Vehicle Market report thoroughly covers the market by product types and regions. UAE electric vehicle market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Latest 2023 Developments of the UAE Electric Vehicle Market

The UAE Electric Vehicle Market is the most popular and lucrative market and it will remain popular and lucrative in the years to come as many developments are happening in the sector. Recently, the RIT (Rochester Institute of Technology) in Dubai signed an essential agreement with ONE MOTO in order to increase the use of electric motorbikes in the logistics & delivery markets with the Net Zero 2050 strategy of UAE. The M Glory Holding Group launched a new $408 million electric vehicle manufacturing unit with a goal to produce 55,000 EVs a year owing to the growing demand for green mobility in the UAE.

In the UAE, One Moto is a manufacturer of electric vehicles that offers a fleet of vehicles like electric bikes, motorcycles, delivery and grocery vans, and scooters, catering to the urban commuters and last-mile industry. This manufacturer is anticipated to rule the market in the near future as it focuses on innovation. The industry is a pivotal part of the Middle East Electric Vehicle Market.

Electric Cars in UAE play a crucial role in the Electric Vehicle Market in UAE, and electric cars are preferred the most in the country. The players in the sector focus on battery-based electric vehicles as they are growing in demand in the country. With the constant development of EV applications and promotion in every field of urban mobility, EVs in carsharing has become very popular. Electric Vehicle in UAE has taken a significant place as most people these days prefer them and they will shape the future of the vehicle market in the nation. 

UAE Electric Vehicle Market Synopsis

The UAE Electric Vehicle market is currently in its early stage and witnessed certain growth during the period 2018-2021 owing to the Electric Vehicle (EV) Green Charger initiative undertaken by the government of UAE. However, the COVID-19 pandemic affected market revenues during the year 2020 as the mobility restrictions led to supply chain disruptions for electric motors and halted manufacturing operations thereby resulting in a fall in market demand and hence the market revenues.

The UAE Electric Vehicle Market size is projected to grow at a CAGR of 24.2% in terms of revenues during 2022-2028. The UAE electric vehicle market would register growth during the forecast period on account of an increase in tourist footfall in the country which is going to expand the car rental business in the emirates, coupled with domestic consumption on the back of economic benefits provided by the government to promote the electric vehicle in the country.  Rising penetration towards the development of renewable and emission-less vehicles is adding to the UAE Electric Vehicle Market Growth. Additionally, the low maintenance and the initial cost of an electric vehicle are proliferating the growth of the market. 

Government Initiatives Introduced in the UAE Electric Vehicle Market

The government policies have been favorable for the electric vehicle market in the UAE. The UAE Vision 2021 strategy, launched in 2010, aims to achieve sustainable development in various sectors, including transportation. These activities have further strengthened the UAE electric vehicle market share. The strategy emphasizes green and sustainable transportation, which has led to the development of electric vehicle charging stations across the country. To encourage the adoption of EVs, the UAE government has also waived off charging fees for electric vehicles at public charging stations till the end of 2021.

Key Players in the UAE Electric Vehicle Market

The UAE EV market is gaining traction with increasing adoption rates by consumers and commercial sectors. The UAE government's efforts to promote the use of electric vehicles have also contributed to its growth. The market's key players are a mix of international and local brands, with a growing number of options available for consumers. Some of the major players include Tesla, Nissan, BMW, and Porsche. The major few companies hold crucial Middle East Electric Vehicle Market share. The potential growth opportunities within the commercial sector and the development of charging infrastructure will further accelerate the growth of the market.

Market by Vehicle Types Analysis

In terms of vehicle types, passenger vehicles contributed 95.1% of revenue in the UAE Electric Vehicle market share in 2021 owing to the increasing trend of rental car services in the country coupled with domestic residential buyers. Additionally, because of the limited scope for the implementation of commercial vehicles in the FMCG sector and transportation & logistic supply in UAE it holds the largest revenue share. However, in terms of volume two-wheeler segment is expected to grow during the forecasted period owing to gradual developments in logistics and food delivery services.

Market by Regions Analysis

In 2021, the Northern region acquired a 54.1% revenue share in the UAE electric vehicle market Revenue on account of rapid urbanization and the availability of charging infrastructure and maintenance centres in Dubai, Abu Dhabi. This trend is expected to persist in the coming years owing to the development of EV-supporting infrastructure such as charging stations and maintenance services increasing the number of EVs in the country.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2018 to 2020.
• Base Year: 2021
• Forecast Data until 2028.
• Key Performance Indicators Impacting the Market.

Key Highlights of the Report:

• UAE Electric Vehicle Market Overview
• UAE Electric Vehicle Market Outlook
• UAE Electric Vehicle Market Forecast
• Historical Data and Forecast of UAE Electric Vehicle Market Revenues, for the Period 2018-2028F
• Historical Data and Forecast of UAE Electric Vehicle Market Revenues, By Vehicle Type, for the Period 2018-2028F
• Historical Data and Forecast of UAE Electric Vehicle Market Revenues, By Region, for the Period 2018-2028F
• Historical Data and Forecast of UAE Electric Vehicle Market Volume, for the Period 2018-2028F
• Historical Data and Forecast of UAE Electric Vehicle Market Volume, By Vehicle Type, for the Period 2018-2028F
• Historical Data and Forecast of UAE Electric Vehicle Market Volume, By Region, for the Period 2018-2028F
• UAE Electric Vehicle Market Revenue Ranking, By Companies
• Covid-19 Impact on UAE Electric Vehicle Market
• Market Drivers and Restraints
• UAE Electric Vehicle Market Trends
• Industry life Cycle
• Porter’s Five Force Analysis
• Price Trend Analysis
• Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Vehicle Types

• Passenger Cars
• Two-Wheelers
• Commercial Vehicles

By Regions

• Northern
• Central
• Southern