Electric Vehicles - United Arab Emirates

United Arab Emirates

The projected revenue in the Electric Vehicles market in the United Arab Emirates is expected to reach €1,738.0m in 2024.
This market segment is also anticipated to show an annual growth rate (CAGR 2024-2029) of 3.47%, resulting in a projected market volume of €2,061.0m by 2029.
The unit sales of Electric Vehicles market in the United Arab Emirates are expected to reach 36.62k vehicles in 2029.
In 2024, the volume weighted average price of Electric Vehicles market in the United Arab Emirates is expected to amount to €60.5k.
From an international perspective, it is shown that China is projected to generate the most revenue in the Electric Vehicles market, with €345,400m in 2024.
The United Arab Emirates is experiencing a surge in electric vehicle adoption, with government incentives and infrastructure development driving the market growth.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in United Arab Emirates has been experiencing significant growth in recent years. Customer preferences for eco-friendly and sustainable transportation options, coupled with government initiatives and favorable policies, have contributed to this trend.

Customer preferences: Customers in the United Arab Emirates are increasingly showing a preference for electric vehicles due to their environmental benefits. Electric vehicles produce zero emissions, reducing air pollution and contributing to a cleaner and healthier environment. Additionally, customers appreciate the lower operating costs of electric vehicles compared to traditional gasoline-powered vehicles. The rising awareness of climate change and the need to reduce carbon footprints have also influenced customer preferences towards electric vehicles.

Trends in the market: The United Arab Emirates government has been actively promoting the adoption of electric vehicles through various initiatives and policies. One of the key drivers of the market growth is the availability of a robust charging infrastructure. The government has invested in the development of charging stations across the country, making it convenient for electric vehicle owners to charge their vehicles. This has addressed one of the major concerns of potential buyers - range anxiety. Furthermore, the government has implemented incentives and subsidies to encourage the purchase of electric vehicles. These incentives include tax exemptions, reduced registration fees, and financial incentives for electric vehicle buyers. These measures have made electric vehicles more affordable and attractive to customers.

Local special circumstances: The United Arab Emirates has a unique set of circumstances that contribute to the growth of the electric vehicle market. The country is known for its high per capita income and a strong focus on sustainability. The government has set ambitious targets to reduce carbon emissions and promote renewable energy sources. Electric vehicles align with these goals and are seen as a key solution to achieve a greener and more sustainable future.

Underlying macroeconomic factors: The United Arab Emirates has a strong economy with a high standard of living. This provides individuals with the financial means to invest in electric vehicles, which are generally more expensive than traditional vehicles. Additionally, the government's commitment to diversify the economy away from oil has led to increased investment in renewable energy and sustainable technologies, including electric vehicles. In conclusion, the Electric Vehicles market in United Arab Emirates is growing rapidly due to customer preferences for eco-friendly transportation options, government initiatives and policies, the availability of a robust charging infrastructure, and the country's focus on sustainability. The combination of these factors has created a favorable environment for the adoption of electric vehicles in the United Arab Emirates.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).