GCC Electric Vehicle Market Report and Forecast 2024-2032

GCC Electric Vehicle Market Outlook

The GCC electric vehicle market size was approximately USD 1.62 billion in 2023. The market is estimated to grow at a CAGR of 22.30% between 2024 and 2032, reaching a value of USD 10.44 billion by 2032.

Key Takeaways

• To support EV adoption, several countries in the GCC region have implemented incentives on the federal as well as local level, like the UAE.

• The region is focusing on building charging stations to encourage the use of electric vehicles, with both governments and private companies investing in the development of charging infrastructure.

• The emphasis on sustainable transportation in the GCC's smart city projects, like NEOM in Saudi Arabia and Masdar City in the UAE, is set to accelerate the use of electric vehicles.

Sustainability plays a crucial role in smart city projects of the Middle Eastern countries, leading governments to enhance the uptake of electric vehicles and reduce reliance on fossil fuels. This aligns with their efforts to develop sustainable infrastructure and leverage advanced technologies for energy conservation.

As per the GCC electric vehicle market analysis, luxury electric vehicles are expected to witness a growth in demand because of people’s higher affinity for sophisticated and high-quality vehicles. The increasing number of high-net-worth individuals in the region drives the demand for luxury vehicles that facilitate improved driving experience. Low and medium range EVs are expected to be demanded by households that seek to gain the benefits of technologically advanced vehicles within a limited budget.

Saudi Arabia is expected to account for a significant GCC electric vehicle market share. The Public Investment Fund (PIF), a $700 billion sovereign wealth fund of Saudi Arabia, aims to manufacture 500,000 electric vehicles annually by 2030, an increase from the initial target of 150,000 for 2026. Furthermore, Saudi Arabia has allocated a substantial amount of funds to enhance its competitiveness in the electric vehicle (EV) sector. The nation has made a significant investment of no less than $10 billion in Lucid Motors, an American company. Additionally, Saudi Arabia has established its own EV company, Ceer (which opened in September 2023) and constructed a factory dedicated to producing EV metals.

Market Segmentation

GCC Electric Vehicle Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Passenger Cars

• Commercial Vehicles

Market Breakup by Propulsion Type

• Hybrid Vehicles

• Battery Electric

• Plug-in Hybrid

• Fuel Cell Electric

Market Breakup by Speed

• Less Than 150 mph

• More Than 150 mph

Market Breakup by Vehicle Drive

• Rear Wheel Drive

• Front Wheel Drive

• All Wheel Drive

Market Breakup by Price

• Low and Medium Range

• Luxury

Market Breakup by Country

• Saudi Arabia

• United Arab Emirates

• Kuwait

• Oman

• Qatar

• Bahrain

• Others

Competitive Landscape

The market participants are focusing on manufacturing high-performing electric vehicles and developing robust charging infrastructure to support the uptake of EVs.

• Mercedes Benz Group AG

• Volkswagen AG

• Nissan Motor Co. Ltd.

• Bayerische Motoren Werke AG

• Hyundai Motor Company

• BYD Company Limited

• General Motors Company (Chevrolet)

• Tesla Inc.

• Renault SA

• Toyota Motor Corp.

• Others

Key Highlights of the Report