Middle East Electric Vehicle Market – Industry Trends and Forecast to 2030

Middle East Electric Vehicle Market Analysis and Insights

Electric vehicles are the promising renewable substitute to the gasoline power based vehicles for the protection of the environment, and many governments are taking initiatives to promote electric vehicles and are providing tax rebates, and redemption. The rise in the market of the electric vehicles in Middle East is because the technology is upgrading at a fast rate, is making the rise in the demand for electric vehicle in the market. Some of the factors that are driving the market are increasing demand for electric vehicles, incentive & subsidies by government for electric vehicles, increasing environmental concerns. However, high upfront cost is hampering the growth of the market.

Data Bridge Market Research analyses that the Middle East electric vehicle market will grow at a CAGR of 28.1% during the forecast period of 2023 to 2030.

Market Definition

An electric vehicle is a vehicle that runs fully or partially on electricity. Unlike conventional vehicles that just use fossil fuels, e-vehicles use an electric motor powered by a fuel cell or batteries. E-vehicle' or 'EV' are the common terms used for an electric vehicle. In most cases, the term includes both BEVs and PHEVs. The letters BEVs stand for battery electric vehicles, while PHEVs stand for plug-in hybrid electric vehicles. An electric vehicle (EV) operates on an electric motor instead of an internal-combustion engine that generates power by burning a mix of fuel and gases. Therefore, electric vehicles are seen as a possible replacement for current-generation automobiles to address the issue of rising pollution, global warming, and depleting natural resources. The range of an electric vehicle is the distance that it can cover on a single charge.

Middle East Electric Vehicle Market Dynamics

This section deals with understanding the market drivers, opportunities, challenges, and restraints. All of this is discussed in detail below:

Drivers

• Increase in the demand for electric vehicles

The automotive industry is showing an enormous growth over the years owing to rising demand for luxurious electric vehicles. Some of the factors driving the sales of the electric vehicles include stringent government regulations towards vehicles emissions, increasing demand of fuel-efficient, high performance and low emission.

• Incentives & subsidies by government for electric vehicles

It has been observed that governments of many specific states are raising the awareness among the citizens about the electric vehicles and providing more benefits like tax redemption or rebate. People are shifting towards more automated and technologically updated electric vehicle, as more number of electric vehicles has been observed on the roads.

Opportunity

• Cloud based charging stations (smart electric vehicle charging)

Cloud based charging allows EV charging stations connected to the internet and constantly communicate with a central system. In case of a server failure, the cloud system simply uses one of the multiple back servers and your charging station won't even notice any change. Cloud based charging stations creates a huge opportunity as it has many benefits, like easier to connect to the user and vehicle data, performs calculations a lot faster and being easier to replace and can easily be upgraded.

Restraint/Challenge

• Lack of charging infrastructure for electric vehicles in underdeveloped countries

The major requirement for the electric vehicle to grow is the availability of proper charging stations on adequate distance. However, there is a huge shortage of infrastructural development in underdeveloped countries, which is limiting the growth of electric vehicle market. There is shortage of charging stations, and companies are not taking the initiatives to launch new electric vehicles and electric bikes because of the prevailing shortage of charging stations.

COVID-19 Impact on Electric Vehicle Market

COVID-19 highly impacted the transportation of the public. During the time of social distancing, travellers were asked to avoid travel unless it's completely necessary. Also, the behavior of individuals has certainly changed during the pandemic, which has led to a decrease in the sale of automotive vehicles. The pandemic brought a huge drop in sales for the electric vehicle market as the lockdown prevailed in most of the regions. The lockdown led manufacturers and consumers to completely stop the processes for a few months.  The demand for electric vehicles faced a drastic downfall due to shut down of various automobile, transport and electronics industries. Also, global electric car sales experienced an unprecedented drop. However, things are getting normal day by day, and EV growth are now obsolete.

Manufacturers are making various strategic decisions to bounce back post COVID-19. The players are conducting multiple research and development activities to improve the performance and sales electric vehicle. With this, the companies will bring advanced electric vehicle to the market.

For instance,

• In April 2021, As per the Society of Electric Vehicle Manufacturers (SMEV) registration of all electric vehicles during year 2021 declined 20 percent against units sold in FY20. Electric two-wheelers witnessed a decline of 6 percent. Electric three-wheelers (E3W) saw a fall of 37 percent as against units sold in FY20

Thus, the COVID-19 has severely impacted the demand of electric vehicle in the market, limited supply and shortage of semiconductors and gadgets has significantly affected the supply of electric vehicle in the market.

Recent Developments

• In April 2022, TOYOTA MOTOR CORPORATION announced the launch of its all electric SUV bZ4X. It will be available with a choice between front-wheel-drive (FWD) and rear-wheel-drive (RWD), both of which will have a 71.4 kWh battery pack. Thus with this, the company will offer a SUV with longer driving range to their customers.
• In January 2022, Mercedes-Benz Group AG announced that their EQ division will launch the EQA, EQB and EQC SUVs as well as the EQE and EQS luxury sedans in the region. The cars will be sold and serviced through 36 specially appointed dealerships in the country. Thus with this, the company will expand its presence in the region.

Middle East Electric Vehicle Market Scope

The electric vehicle market is segmented based on propulsion type, vehicle drive type, vehicle speed, vehicle class, sales channel, electric motor type, power output, voltage range, charging station type, connectivity type, power train, battery form, battery type, and vehicle type. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Propulsion Type

• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)
• ICE And Micro Hybrid Vehicle

On the basis of propulsion type, the Middle East electric vehicle market is segmented into battery electric vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), fuel cell electric vehicle (FCEV), and ICE and micro hybrid vehicle.

Vehicle Drive Type

• FWD
• RWD
• AWD

On the basis of vehicle drive type, the Middle East electric vehicle market is segmented into FWD, RWD, and AWD.

Vehicle Speed

• Less Than 100 MPH
• 100 TO 125 MPH
• More Than 125 MPH

On the basis of vehicle speed, the Middle East electric vehicle market is segmented into less than 100 MPH, 100 To 125 MPH, and more than 125 MPH.

Vehicle Class

• Mid-Priced
• Luxury

On the basis of vehicle class, the Middle East electric vehicle market is segmented into mid-priced and luxury.

Sales Channel

• OEM
• Aftermarket

On the basis of sales channel, the Middle East electric vehicle market is segmented into OEM and aftermarket.

Electric Motor Type

• DC Motors
• Brushless DC Motors
• Permanent Magnet Synchronous Motors
• Three Phase Induction Motors

On the basis of electric motor type, the Middle East electric vehicle market is segmented into DC motors, brushless DC motors, permanent magnet synchronous motors, and three phase induction motors.

Power Output

• Less Than 100 KW
• 100 TO 250 KW
• More Than 25O KW

On the basis of power output, the Middle East electric vehicle market is segmented into less than 100 KW, 100 to 250 KW, and more than 100 KW.

Voltage Range

• Less Than 48 Volt
• More Than 48 Volt

On the basis of voltage range, the Middle East electric vehicle market is segmented into less than 48 Volt and more than 48 Volt.

Charging Station Type

• Normal Charging
• Super Charging

On the basis of charging station type, the Middle East electric vehicle market is segmented into normal charging and super charging.

Connectivity Type

• V2B OR V2H
• V2G
• V2V
• V2X

On the basis of connectivity type, the Middle East electric vehicle market is segmented into V2B OR V2H, V2G, V2V, and V2X.

Power Train

• Parallel Hybrid
• Series Hybrid
• Combined Hybrid

On the basis of power train, the Middle East electric vehicle market is segmented into parallel hybrid, series hybrid, and combined hybrid.

Vehicle Type

• Passenger Cars
• Commercial Vehicle
• Two Wheeler

On the basis of vehicle type, the Middle East electric vehicle market is segmented into passenger vehicles, commercial vehicle, and Two Wheeler.

Battery Type

• Lithium Ion
• Nickel Metal Hydride
• Solid State
• Lead Acid
• Sodium Ion Battery

On the basis of battery type, the Middle East electric vehicle market is segmented into lithium ion, nickel metal hydride, solid state, lead acid, and sodium ion battery.

Battery Form

• Prismatic
• Pouch
• Cylindrical

On the basis of battery form, the Middle East electric vehicle market is segmented into prismatic, pouch, and cylindrical.

Middle East Electric Vehicle Market Analysis

The electric vehicle market is analyzed, and market size insights and trends are provided by the propulsion type, vehicle drive type, vehicle speed, vehicle class, sales channel, electric motor type, power output, voltage range, charging station type, connectivity type, power train, vehicle type, battery type, battery form, and countries as referenced above.

Middle East electric vehicle market is covers countries such as Saudi Arabia, U.A.E., Bahrain, Qatar, Kuwait, Oman, and the Rest of the Middle East.

 Saudi Arabia is expected to dominate the Middle East electric vehicle market as Saudi Arabia is a regional leader in adopting EVs. The Saudi Arabia government aims to boost its own EV use by 20 percent in the year 2021, which will help to extend EV growth and the growth of the country in the Middle East electric vehicle market. Moreover, Saudi Arabia has the largest number of EV charging stations in the Middle East region. The highest concentration of charging stations is in Dubai. Initiatives such as Dubai Green Mobility which promotes the use of low-carbon transportation, motivate their residents and businesses to use electric and hybrid vehicles is promoting the growth of EVs. Also, the Dubai Supreme Council of Energy mandated that 10 percent of all new cars in the Emirate must be electric or hybrid by 2020, and 10 percent of all cars should be green by 2030. Saudi Arabia has also established an incentive system such as free charging stations, discounted car registrations and renewal, toll exemptions, bonus warranties for EVs, free parking in certain areas and other perks to boost EV adoption in the country. All these factors were contributing to the growth of the country in the Middle East electric vehicle market.

The country section of the electric vehicle market report also provides individual market impacting factors and changes in regulations in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, disease epidemiology and import-export tariffs are some of the significant pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands and the impact of sales channels are considered while providing forecast analysis of the country data.

Competitive Landscape and Middle East Electric Vehicle Market Share Analysis

The electric vehicle market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, solution launch, product width and breadth, application dominance. The above data points are only related to the companies' focus on the electric vehicle market.

Some of the major players operating in the Middle East electric vehicle market are BMW AG, Nissan Motor Co., Ltd., MITSUBISHI MOTORS CORPORATION, Hyundai Motor Company, Mercedes-Benz Group AG, Tesla, TOYOTA MOTOR CORPORATION, Ford Motor Company, BYD Motors Inc., General Motors Company, Mahindra & Mahindra Ltd., MG MOTOR, JAGUAR LAND ROVER AUTOMOTIVE PLC, Renault Group, Geely Automobile Holdings Limited., Lucid Group, Inc., among others.

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