Market Research Report
Middle East & Africa Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Published by||Mordor Intelligence Pvt Ltd||Product code||1005680|
|Published||Content info||80 Pages
Delivery time: 2-3 business days
|Middle East & Africa Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
|Published: April 21, 2021||Content info: 80 Pages||
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.
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,
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,
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,
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.
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,
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.