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Middle-East and Africa Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 80 Pages
  • August 2022
  • Region: Africa
  • Mordor Intelligence
  • ID: 5318418
Middle-East and Africa Electric Vehicle Market was valued at USD 40.25 million in 2021, and it is expected to reach USD 93.10 million by 2027. It is anticipated to register a CAGR of 15% during the forecast period. (2022 - 2027).

The impact of the COVID-19 pandemic on the Middle-East and African electric vehicle market is inevitable, as it affected almost every other industry in the market. Manufacturing units have been shut down due to the continuous lockdowns, with social distancing norms to follow and limited staff available to run production lines with all safety measures, owing to the slowdown of the electric vehicle market in the region.

However, the market is expected to witness substantial growth owing to the swiftly escalating Y-o-Y 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, the United Arab Emirates, 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 are expected to make large power capacity investments in the next decade.

Countries like Saudi Arabia and the United Arab Emirates are becoming early adopters of electric vehicles in the Middle East region. The Saudi Arabian Standards Organization (SASO) has plans to issue regulations for the use of electric vehicles. In the United Arab Emirates, the Road Transport Authority (RTA) has issued advisory and worked to develop efficient charging stations in the country.

Key Market Trends

Rise of Electric Mobility in the Middle-East and 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 for several Middle Eastern countries, the respective governments are focusing on renewable energy and clean transportation technologies and implementing 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. It gave competing manufacturers a reason to expedite the process of dedicating resources to create fully electric models in the United Arab Emirates. Dubai has been working toward its long-term goal of electrification. It has launched several initiatives over the past few years to encourage sustainable choices among its residents. For instance,
  • To promote the United Arab Emirates' plans for green mobility solutions and as part of its plan to have 25% of the city’s trips converted into driverless journeys by 2030,
Although the electric vehicle market in the African region is in the nascent stage, various key players in the market are trying to establish new facilities for product development, thereby increasing their presence in the market. For instance,
  • In March 2021, Volvo launched XC40 Recharge Pure Electric - the first all-electric car from the Swedish luxury brand - will be available in South Africa by July 2021.

Gulf Countries and 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 EVs are in the nascent stage in the country, it has not yet set out incentives for deploying 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 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 United Kingdom 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.
The United Arab Emirates is another most developed market for EVs regarding sales and charging infrastructure, with Dubai having some 200 charging stations and Abu Dhabi around 2020. The UAE government is targeting 42,000 electric cars on the roads in a few years. Moreover, favorable government policies and incentives offer lucrative opportunities to major players to promote the adoption of electric vehicles over the coming years in the region.

Competitive Landscape

The Middle-East and African electric vehicle market is consolidated by a few players, such as Tesla Motors Inc., Volkswagen AG, Toyota Motor Corporation, Nissan Motor Co. Ltd, and Geely. As the demand for electric vehicles is growing in the region, the companies are entering into partnerships, joint ventures, and acquisitions with major players in the market. For instance,
  • In Feb 2022, The new Mercedes-EQ division will launch the EQA, EQB, and EQC SUVs around April 2022, as well as the EQE and EQS luxury sedans. The range will be sold and serviced through 36 specially appointed South African dealerships.
Some other key players in the market include Ford Motor Company, Foton Motor, Groupe PSA, Kia Motors Corporation, Groupe Renault, Daimler AG, BMW, Hyundai Motor Company, BYD Company Ltd, Continental AG, etc.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces 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
5.1 By Drive Type
5.1.1 Plug-in Hybrid
5.1.2 Pure Electric
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 By Country
5.3.1 United Arab Emirates
5.3.2 Saudi Arabia
5.3.3 South Africa
5.3.4 Egypt
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

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Volkswagen AG
  • Tesla Motors Inc.
  • Hyundai Motors
  • Toyota Motor Corporation
  • BMW AG
  • Nissan Motor Co. Ltd
  • Jaguar Land Rover Limited
  • Zhejiang Geely Holding Group Co. Ltd