GCC Electric Vehicle
Market is predicted to grow at 25.16% CAGR to reach USD10,684 million by 2028 due to increasing logistics and travel activities in
GCC Electric Vehicle Market Overview
The GCC electric vehicle market is expanding as
traditional vehicles are replaced with zero-emission vehicles. Furthermore,
with rising pollution levels and the rising expense of fossil fuels, many GCC countries
are shifting to green energy. Electric cars are the main technology for
decarbonizing the road transportation sector, which accounts for 16% of all
global emissions. According to the International Energy Agency (IEA), passenger
electric cars are gaining popularity, and it is projected that 13% of new cars
sold in the coming years will be electric. Electric vehicles are
majorly classified into four categories based on their propulsion: BEV,
HEV, PHEV. Due to its zero emissions, BEV, which is purely battery-reliant, is
becoming more and more popular. HEVs have internal combustion engines that are
supplemented by one or more electric motors that draw power from batteries that
cannot be charged separately. IC engines and battery-powered motors are used
independently to power PHEV electric vehicles.
Electric Vehicle Market Drivers
Increasing Adoption and
Due to their low
operating costs and decreased carbon impact due to absence of emissions,
electric vehicles are becoming more and more popular in the GCC region. Several
governments are launching a number of projects and programs to encourage green
mobility all around the region. In addition, as oil costs have risen, so has
the desire for electric cars. By offering tax breaks and incentives, the
governments of the GCC region are encouraging the use of electric vehicles.
Also, the infrastructure for charging electric vehicles is rapidly developing
in many GCC nations. As a consequence, charging has become effective and range
anxiety has minimized among consumers. Additionally, while demand is rising
significantly, many firms are increasing their manufacturing capacity and
dealership network across GCC countries. Owing to this, it is anticipated that
GCC electric vehicle market will grow at considerable rate by 2028.
Electric Vehicle Market
The automotive aftermarket
has had ups and downs in performance over the last two years as a result of the
pandemic, as with all industries. Furthermore, due to a declining
customer base, a reduction in vehicle miles travelled (VMT), and consumers'
lower purchasing power, the demand for automotive aftermarket products has
decreased resulting in slower adoption of vehicles in the region. Also, during
the COVID pandemic, several automotive manufacturers delayed the assembly of
their vehicles due to part shortages, particularly microprocessor shortages,
which slowed the expansion of the electric vehicle sector. Overall, it is
anticipated that the growth rate of electric vehicles in the GCC will be
sluggish in the early years due to the considerations mentioned above.
Electric Vehicle Market
Emerging New Players in the Market
The demand in the GCC for
more advanced electric vehicles is growing as the automotive sector develops
quickly. Furthermore, to meet the growing demand, numerous manufacturing
businesses made investments in vehicle manufacturing and charging
infrastructure industry's research and development over the period of the
few years. Additionally, new players, including startups and established
automakers, are entering the GCC EV market and launching cutting-edge, novel EV
models, collaborating with local battery manufacturers, service providers to
establish their business. For instance, in 2021 the GCC region saw the
introduction of the Lucid Air, a luxury electric automobile from Saudi startup
Lucid Motors. As a result, new technologies are adopted, which will increase
the GCC Electric Vehicle Market during the forecast years.
the next ten years, Saudi Arabia plans to invest over USD 50 billion in the
production of electric vehicles.
2022, Saudi Arabia announced a USD 6 billion investment in a steel plate mill
complex and an EV battery factory. Saudi Arabia also inked a contract with
Lucid Group Inc. to buy 50-100,000 electric vehicles over a 10-year period.
2022, The Khalifa Industrial Zone Abu Dhabi (KIZAD) of AD Ports Group inked a
contract to develop an electric car assembly facility in Abu Dhabi with the
Chinese electric vehicle manufacturer NWTN.
rising commercial activities in many countries in GCC region have increased the
sales of electric vehicles. In addition to rising sales, development of smart
and sustainable battery management systems further boosts the market in coming
years. The rapid penetration of electric vehicles provided
manufacturers more opportunities to diversify their product offerings. Additionally,
the region could benefit from the global transition to electric vehicles, which
would improve advanced battery technology in electric vehicles. Because of
the aforementioned factors, there are many opportunities for manufacturers and
suppliers to build distribution networks across the region to keep up with
rising demand in upcoming years.