UAE Electric Vehicle Market Size More than Doubles at CAGR of 13.38% to Reach USD 8.14 Billion by 2030

Published | 31 January 2024

UAE Electric Vehicle Market is flourishing because of the government’s favorable incentives and initiatives and an increasing demand for fuel-efficient, high-performance, and low emission vehicles.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the UAE Electric Vehicle Market size at USD 3.83 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the UAE Electric Vehicle Market size to expand at a CAGR of 13.38% reaching a value of USD 8.14 billion by 2030. Growing awareness about sustainability and carbon emissions, as well as the increasing number of new electric cars with cutting-edge features being introduced to the UAE market, are significant growth drivers for the electric vehicle market in the country. Additionally, it is anticipated that during the period in analysis, increasing government spending on EV charging infrastructure would fuel demand for electric vehicles in the UAE.

Opportunity: Government's support and favorable initiatives

With its Net Zero Emissions by 2050 scenario at the forefront, the UAE government has been proactively promoting the adoption of electric vehicles in the country. The Emirati government is significantly investing in charging station developments through investments and partnerships. For instance, the Ministry of Industry and Advanced Technology recently signed a letter of intent with Shahin, an electric mobility company owned by NEV Enterprise, to establish the first charging station in the UAE.

Impact of Escalating Geopolitical Tensions on UAE Electric Vehicle Market

Growing geopolitical tensions severely hindered the growth of the UAE electric vehicle market. For instance, Russia’s invasion of Ukraine and the outbreak of a full-fledged war between the two nations limited the production and supply chains of electric vehicles in the UAE market. Ukraine had been emerging as a lucrative EV manufacturing country as a major producer of many EV parts and components; however, the war led to a labor shortage due to the mass displacement of people and a lack of resources in the EV industry. Furthermore, Russia is a leading producer of lithium, a key component in electric vehicle batteries. As a result of sanctions imposed on Russia by other countries and international organizations, the EV market registered a significant shortage of lithium globally, which led to increased prices of electric vehicles, making them unaffordable for many consumers in the UAE market.

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UAE Electric Vehicle Market

Segmental Coverage

UAE Electric Vehicle Market – By Vehicle Class

Based on vehicle class, the UAE Electric Vehicle Market is segmented into mid-priced and luxury. The mid-priced vehicle class accounts for the highest share of the UAE Electric Vehicle Market. The mid-priced EVs range from around USD 30,000 to USD 45,000 and offer many limited features, such as infotainment, central locking, an anti-lock braking system, and Alexa compatibility. They are gaining significant traction among commercial uses, such as public transportation, which is contributing to their market growth. However, the luxury vehicle class is recording growth at a high CAGR in the UAE market owing to the high living standards and purchasing power of consumers.

Competitive Landscape

Major players operating in the UAE Electric Vehicle Market include Al Damani, Tesla, BMW, Nissan, Chevrolet, Renault Group, Hyundai, Ford, Porsche, and Jaguar.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Don’t miss the business opportunity in the UAE Electric Vehicle Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and the UAE Electric Vehicle Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the UAE Electric Vehicle Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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