2018 - 2026
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The Middle East & Africa Electric Vehicle Market was valued at USD 35 Million in 2020 and is expected to reach USD 84 Million by 2026 registering a CAGR of over 15% during the forecast period (2021 - 2026).
The Impact of the COVID-19 pandemic on the Middle East & Africa Electric Vehicle (EV) Market is inevitable as it affected almost every other industry in the market. Manufacturing units have been shut down due to the continuous lockdowns and with social distancing, norms to follow limited staff available to run production lines with all safety measures owing slowdown of Electric Vehicle Market in the region.
However, the market is expected to witness substantial growth owing to the swiftly escalating year-on-year adoption rate of electric vehicles across the region. The growing focus of the governments across the region to promote the use of electric vehicles and increased awareness about energy storage solutions in the renewable-based power sector is expected to drive the market during the forecast period. Moreover, expanding the 5th Generation based telecommunication network and implementation of Vision Documents in Saudi Arabia, UAE, Qatar and Kuwait are likely to further aid the Middle East & Africa EV market in the coming years.
Sub-Saharan African (SSA) countries are in urgent need of alternative energy sources for transport to stave off the growing burden of fuel dependency and subsidies, as well as an electricity storage solution to leverage their abundant renewable energy resources. Electric Vehicles (EVs), powered by electricity and running on battery storage, offer a potential solution to both these problems. Many SSA countries will be making large investments in power capacity in the next decade.
In the Middle East region, countries such as Saudi Arabia and UAE are becoming early adopters of electric vehicles. The Saudi Arabian Standards Organization (SASO) has plans to issue regulation for the use of electric vehicles. In UAE, the Road Transport Authority (RTA) has issued advisory and working for the development of efficient charging stations in the country.
Scope of the Report
An Electric Vehicle (EV) is one that operates on an electric motor, instead of an internal-combustion engine that generates power by burning a mix of fuel and gases. Therefore, such a vehicle is seen as a possible replacement for current-generation automobile, in order to address the issue of rising pollution, global warming, depleting natural resources, etc.
The Middle East & Africa Electric Vehicle Market report covers the latest trends, covid-19 impact followed by technological developments in the market. The scope of the report covers segmentation based on Drive type,Vehicle Type and Geography.By Drive type, the market is segmented into Plug-in Hybrid, Pure Electric.
By Vehicle type,the market is segmented into Passenger Cars and Commercial Vehicles and By Geography the market is segmented into United Arab Emirates,Saudi Arabia,South Africa, Egypt, Rest of Middle East&Africa.For each segment market sizing and forecast have been done on basis of value USD Million.
Key Market Trends
Rise Of Electric Mobility In Middle East & Africa Region
The Middle East electric vehicle market is expected to register significant growth over the coming years. Although oil constitutes a major source of national revenue and domestic fuel of several Middle Eastern countries, the respective governments are focusing on renewable energy and clean transportation technologies along with the implementation of economic and energy diversification plans.
Tesla’s entry into the EV (Electric Vehicle) market rattled the automobile industry with its all-electric range of vehicles and gave competing manufacturers a reason to expedite the process of dedicating resources to create fully-electric models in the UAE, Dubai has been working towards its long-term goal of electrification and has launched several initiatives over the past few years to encourage sustainable choices among its residents. For Instance,
- To promote the emirate’s plans of green mobility solutions and as part of its plan to have 25 percent of the city’s trips converted into driverless journeys by 2030, the city completed the construction of 200 charging stations in the emirate by 2018 and is currently exempting registered electric vehicles from charging fees until the end 2021 and parking fees till 2022.
Though Electric Vehicle Market in Africa region is in nascent stage, various key players in market trying to establish new facilities for product development,thereby increasing their presence in market.For instance,
- In October 2019, Volkswagen with Siemens signed new agreement to start electric mobility feasibility project. This new project will be carried out at Africa region at Rwanda location. With this agreement the company will increase their presence in Africa market.
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Gulf Countries & South Africa Expected To Witness Significant Growth In Region
The adoption of electric cars is set to enter the fast lane in the Gulf, especially in tech-savvy urban hubs like Dubai. As the EVs are in the nascent stage in the country, the country has not yet set out incentives for the deployment of EVs, such as free charging stations, Greenbank loans, etc. EV incentives are yet to be developed, especially when EV deployment starts on a commercial scale. However, the country has taken a few initiatives which are likely to boost the EV demand in the country. For instance,
- Saudi Electricity Company has signed a deal with Nissan Motor, Takaoka Tokyo and Tokyo Electric Power Company for the first EV pilot project in Saudi Arabia. Reportedly, the agreement provides for the development of fast-charger EV stations.
- Saudi Arabia has signed a memorandum of understanding (“MoU”) with the UK in a move to reduce carbon emissions and support Saudi Vision 2030. The MoU commits both countries to cooperate and share expertise to develop technologies including smart grids and EVs.
UAE is another most developed market for EVs, not only regarding sales but also regarding charging infrastructure, with Dubai having some 200 charging stations and Abu Dhabi around 20. The UAE government targeting to have 42,000 electric cars on the roads in a few years. Moreover, favorable government policies, incentives offer lucrative opportunities to major players to promote the adoption of electric vehicles over the coming years in the region.
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The Middle East and Africa electric vehicle market is consolidated by few players such as Tesla Motors Inc., Volkswagen AG, Toyota Motor Corporation, Nissan Motor Co Ltd, Geely and others. As the demand for electric vehicles is growing in the region, the companies are entering into partnerships, joint ventures, acquisitions with major players in the market. For instance,
- In October 2019, Volkswagen launched a pilot project in partnership with Siemens to test the feasibility of electric mobility in an African country. The pilot project is part of Volkswagen’s operations in Rwanda. Volkswagen has signed a joint development agreement with Siemens to provide the charging infrastructure.
- In November 2019, Foton Motor to start localized production of new energy buses in Egypt. The Foton AUV pure-electric buses delivered at the ceremony will be put into operation in Cairo. Foton Motor will start the localized production of pure-electric buses in Egypt and provide relevant manufacturing and new energy technologies.
Some of the other key players in the market includes Ford Motor Company,Foton Motor, Groupe PSA, Kia Motors Corporation,Groupe Renault, Daimler AG, BMW, Hyundai Motor Company, BYD Company Ltd., Continental AG etc.
- In February 2021, Rubicon a commercial solar components and solutions supplier in South Africa announced that it is bringing a Tesla Model X Performance Edition all-electric SUV into the country to emphasize its focus on electric mobility in country.
- In June 2020, Nissan announced a four year business strategy for middle east,africa and India to increase its presence in these regions.Nissan plans to introduce 8 new models, focus on core segments to channel investment to profitable products and give regional priority on Sports Utility Vehicles (SUV) and affordable sedan models (B-sedan segment) as a part of this strategy.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining power of suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Drive Type
5.1.1 Plug-in Hybrid
5.1.2 Pure Electric
5.2 Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3.1 Middle East & Africa
188.8.131.52 United Arab Emirates
184.108.40.206 Saudi Arabia
220.127.116.11 South Africa
18.104.22.168 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Volkswagen AG
6.2.2 Tesla Motors, Inc.
6.2.3 Hyundai Motors
6.2.4 Toyota Motor Corporation
6.2.5 BMW AG
6.2.6 Nissan Motor Co., Ltd
6.2.7 Jaguar Land Rover Limited
6.2.8 Zhejiang Geely Holding Group Co., Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Middle East & Africa Automotive Electric Vehicle Market market is studied from 2018 - 2026.
What is the growth rate of Middle East & Africa Automotive Electric Vehicle Market?
The Middle East & Africa Automotive Electric Vehicle Market is growing at a CAGR of >15% over the next 5 years.
What is Middle East & Africa Automotive Electric Vehicle Market size in 2018?
The Middle East & Africa Automotive Electric Vehicle Market is valued at 35 Million USD in 2018.
What is Middle East & Africa Automotive Electric Vehicle Market size in 2026?
The Middle East & Africa Automotive Electric Vehicle Market is valued at 84 Million USD in 2026.
Who are the key players in Middle East & Africa Automotive Electric Vehicle Market?
- Volkswagen AG
- Tesla Motors, Inc.
- Toyota Motor Corporation
- Zhejiang Geely Holding Group Co., Ltd
- Nissan Motor Co., Ltd
Are the major companies operating in Middle East & Africa Automotive Electric Vehicle Market.