It forecasts its growth to US$1.77bn by 2028, a notable CAGR of 23.7% from 2023. This surge marks a pivotal shift in the UAE's approach to sustainable transportation and automotive technology.
From a modest US$60.3 million in 2017, the UAE's EV market has skyrocketed to US$329.1 million in 2022. This rapid growth trajectory, highlighted by Ken Research, is primarily fuelled by aggressive government initiatives aiming to reduce CO2 emissions and diversify economic revenue streams. The entry of renowned brands like Hyundai, Toyota, and luxury EV players like Tesla, BMW, and Mercedes-Benz, underscores the UAE's commitment to combining sustainable technology with luxury and comfort.
The UAE government's vision for a sustainable future is evident in its initiatives, such as Dubai's plan to establish over 1,000 public EV charging stations by 2030 and the RTA's ambition for 'Zero-Emission Public Transportation' by 2025. These efforts, according to Ken Research, are crucial drivers for the EV market's expansion.
The market is dominated by major players like Tesla, Porsche, and Volvo, which collectively hold 80% of the market share. Tesla's advanced vehicle models and charging infrastructure have set a high standard in the market. Ken Research provides a detailed analysis of these key players, offering insights into their strategies and market influence.
The market segmentation reveals a strong preference for 4W (Type 2/3) electric vehicles, accounting for more than 90% of the market share, indicating a preference for flexible and environmentally friendly transportation. In charger types, AC chargers dominate due to their compatibility with existing infrastructure and easier installation process.
Innovations in EV models, enhanced battery technology, and charging capabilities are reshaping consumer perceptions. Ken Research explores these advancements and the impact of government and manufacturer collaborations in enhancing the EV infrastructure.
The UAE EV market is set for continuous growth with increasing environmental awareness, technological advancements, and the expansion of charging networks. Entities like Abu Dhabi National Energy Company's plans to install over 70,000 charging points by 2030 indicate a robust future for the market.
