GCC Electric Vehicles Market: Current Analysis and Forecast (2023-2030)

Report Description

The GCC Electric Vehicles market was valued at USD 4.33 billion in 2022 and is expected to grow at a CAGR of 22.06% during the forecast period (2023-2030). due to rising fuel prices in the GCC countries. The electric vehicles have exhibited and astonishing growth during the recent years due to various factors as impounding demand for low/no carbon vehicles, reduction in the operational cost of the vehicles, introduction of AI and self-driving capabilities, etc.

In recent years, the Electric Vehicle market has witnessed a surge in demand, primarily driven by the establishment of the manufacturing sector in the GCC economies. The Saudi Arabia and the UAE have emerged as dominant players in the market. Some of the companies such as Ceer, Lucid, etc., have established their manufacturing units in the region as well as others such as GM, tesla, etc., are also intending to set up their manufacturing units in the coming years. Considering the promising growth of the market as well as government focus in line with the rising environmental concerns, the demand for electric vehicles in the region is anticipated to rise in the coming period.

For instance, in 2022, a Dubai based company M Glory Holding Group announced to open electric vehicle manufacturing plant with an aim to produce 55,000 cars per year. The plant will span an area of 93,000 square meters and will be one of the largest in the Middle East region.

Some of the major players operating in the market include Tesla Inc., Volkswagen, BMW, Audi, Hyundai Motor Company, Nissan Motor Co. Ltd., Toyota, General Motor Company, Group Renault, BYD, etc. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Vehicle Type, the Passenger segment dominated the market in 2022.”

Based on Vehicle type, the market is divided into passenger vehicles and commercial vehicles. Among these passenger vehicles have grabbed a significant market share in the two due to various factors such as higher demand for electric vehicles from the individual buyers in order to reduce the operational cost of the vehicles. Additionally, many of the buyers in the GCC region have also shifted from conventional fuel vehicles to electric vehicles in order to reap the taxation benefits provided by the government in the respective countries. In line with the rising demand from the passenger car segment many of the leading car manufacturing companies have started offering fast charging solutions as well as enhanced functionality to the customers such as AI and Adaptive driving solutions that help provide a better driving experience. Commercial usage of vehicles are majorly targeted at taxis providing riding services for intercity and airport travel solutions. In line with the government focus towards improving urbanization as well as developing smart cities and moving towards carbon neutral economy the adoption of electric vehicles is further anticipated to grow in the coming period.

“Based on Propulsion Type, the BEV segment generated the highest revenue in 2022.”

Based on propulsion type the market is bifurcated into BEV (battery electric vehicles) and Hybrid and Plug-in hybrid electric vehicles. Of these two, the battery electric vehicles have grabbed the major market share in the GCC region. Some of the factors that have been attributed to the growth of the market include battery electric vehicles being more convenient in terms of reduction of the running cost. Additionally, the rapid development of the charging infrastructure of both level 1 and level 2 has significantly reduced the range anxiety among the buyers further leading to the adoption of battery electric vehicles. Hybrid and plug-in hybrid vehicles have played a pivotal role in acting as a steppingstone from the conventional fuel to battery electric vehicles as they operate with the combination of both conventional fuel as well as using an electric battery that charges from the engine/independently and providing additional range in need. These vehicles offer lower operational cost as opposed to their fully conventional fuel counterparts, however, still noticeably lesser than BEV. With the affordable options available in the BEV many of the buyers have shifted towards battery electric vehicles in the region.

“Saudi Arabia and the UAE dominated the market for Electric Vehicles market in 2022.”

For a better understanding of the market adoption of the electric vehicle industry, the market is analyzed based on its regional presence in countries such as Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, and Oman. The UAE and Saudi Arabia have held major market share in the GCC Electric vehicle market dominated the market and is expected to behave in the same fashion in the forecast period. Over the past few years, the automobile market in the UAE and Saudi Arabia has experienced remarkable growth. This growth can be attributed to several factors including the rising population, increasing demand for transportation, advancements in technology, growing electronics industry, and manufacturing industry. This region is also extensively focusing on building a robust charging infrastructure in order to promote the adoption of commercial as well as private electric vehicles in the coming years. Many of the electric vehicle manufacturers have also announced to open new manufacturing units in the region. For instance, M Glory Holding Group announced to open an electric vehicle manufacturing plant in the UAE in 2022. The plant spanning around 93,000 square meters would be built with a total cost of USD0.5 billion.

Electric Vehicles Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The GCC Electric Vehicles market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the GCC Electric Vehicles Market Analysis (2023-2030)

Analyzing the historical market, estimating the current market, and forecasting the future market of the GCC Electric Vehicles market were the three major steps undertaken to create and analyze the adoption of Electric Vehicles in major countries in the GCC. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the GCC Electric Vehicles market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the Electric Vehicles market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Electric Vehicles market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report such as vehicle type and propulsion type. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the GCC Electric Vehicles market. Further, we conducted factor analysis using dependent and independent variables such as vehicle type and propulsion type of the GCC Electric Vehicles market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the GCC Electric Vehicles market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the GCC Electric Vehicles market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets in the GCC. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the GCC Electric Vehicles market across the major markets domestically.
• All percentage shares, splits, and breakdowns of market segments and sub-segments.
• Key players in the GCC Electric Vehicles market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the GCC Electric Vehicles market, data was split into several segments & sub-segments after studying various parameters and trends in the areas of vehicle type and propulsion type in the GCC Electric Vehicles market.

The main objective of the Electric Vehicles Market Study

The current & future market trends of the GCC Electric Vehicles market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Electric Vehicles market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of vehicle type and propulsion type.
• Define and analyze the regulatory framework for the Electric Vehicles
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the Electric Vehicles market for the major region.
• Major countries of regions studied in the report include Saudi Arabia, The UAE, Qatar, Kuwait, Bahrain, and Oman
• Company profile of the GCC Electric Vehicles market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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