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Middle East & Africa Electric Vehicle Market is expected to grow over USD 10 Billion market size by 2025- Actual Market Research
Jan, 28
2021

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Middle East & Africa Electric Vehicle Market is expected to grow over USD 10 Billion market size by 2025- Actual Market Research

 

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According to the recent publication titled, ’Middle East & Africa Electric Vehicle Market Outlook, 2025‘ by Actual Market Research, the region is to remain the second least contributing region globally followed by Latin America. In particular, the Saudi Arabia and United Arab Emirates (UAE) are becoming early adopters of electric vehicles in the region. The seventh largest exporter of crude oil, the UAE is also a regional leader in adopting EVs. Promoting itself as a country committed to a low-carbon and sustainable economy, the UAE has an ambitious goal to boost its EV market in the next 20 years. Together, these two countries contributed to around 15% to the regional market.

The Middle East & Africa market was valued at 3.77 Thousand Units in the year 2014, with Tesla, Inc., Hyundai Motor Company, Volkswagen Motor Company LTM, Bayerische Motoren Werke AG, being the few key companies influencing the region’s market. The market is expected to grow to a market of over USD 10 Billion by the forecasted period.

South Africans have a high ability and willingness to pay for vehicles, even though electric vehicles currently cost more than the same price range. Unlike the conventional car market, the electric vehicles currently available in the market do not cater to the emerging middle-class group, added to the fact that the country is economically backward. The commercial vehicle segment accounted for USD 0.14 Billion in 2019, while the passenger segment is likely to cross a market of 180 Thousand Units by the end of the forecasted period. With low fuel prices and a passion for speed, luxurious electric automobile drivers have shown a slow shift towards the market. However, the adoption of electric cars will enter the fast lane in the Gulf, especially in tech-savvy urban hubs like Dubai.

Unlike the major global trend, the region is to grow collectively in the year 2020, despite the Covid pandemic reaching a market of 38.48 Thousand Units. However, considered individually the major countries show a considerable decline during the same. The proximity and resultant cheapness of petrol sands is a powerful disincentive to make the region switch away from fossil fuels. However, the region is not just promoting electric cars but has also launched e-scooters to reduce congestion and pollution in cities.

Gas stations are located every few miles in urban and suburban areas; however, public infrastructures for EVs are only in large metropolitan areas. The BEV segment was valued at USD 0.62 Billion in the year 2019, while the PHEV segment is anticipated to cross over USD 6.50 Billion by the end of 2025, continue with its dominance. Dubai gained the highest market share as compared to others in the region owing to the better electric vehicle supporting infrastructure. Authorities and private companies are working towards improving the charging technology that would reduce the charging time for electric vehicles. As part of Saudi Arabia’s Fiscal Balance Program 2024, the Saudi Cabinet has noted incremental price increases for gasoline and diesel. Inclusive of the VAT, standard gasoline prices increased by 83% in the year while premium gasoline prices increased by 127%.