Dubai Electric Vehicle Market Share, Trends, Revenue, Growth Drivers, Technologies, Challenges and Future Investment Strategies Till 2033


Dubai Electric Vehicle Market Share, Trends, Revenue, Growth Drivers, Technologies, Challenges and Future Investment Strategies Till 2033: SPER Market Research

 Published: Dec-2023
 Author: SPER Analyst

UAE Electric Vehicle Market is projected to be worth USD 1107.57 million by 2033 and is anticipated to surge at a CAGR of 8.79%.

An electric vehicle is run by electricity as opposed to gasoline. These cars are propelled by an electric motor rather than an internal combustion engine, which needs a steady stream of energy from batteries to run. Different kinds of batteries are used in these cars. Examples of these include lithium ions, molten salt, zinc-air, and different nickel-based designs. The main purpose of the electric vehicle is to displace environmentally harmful conventional forms of transportation. Furthermore, as they are carbon-neutral and run on non-fossil fuels, electric vehicles (EVs) have the potential to slow down the rate of climate change, as CO2 emissions from industry and traffic continue to have a negative impact on the environment.

UAE Electric Vehicle Market Driving Factors and Challenges

Drivers: Many factors, such as the growing demand for high-performance, fuel-efficient, and low-emission vehicles; stringent government regulations regarding vehicle emissions; declining costs for electric vehicle batteries; and rising fuel prices, are expected to contribute to the growth of the electric vehicle market. It is also expected that factors like serviceability, high manufacturing costs, range anxiety, and a lack of charging infrastructure will hinder the growth of the electric vehicle (EV) market. Furthermore, the major players in the electric vehicle market should have plenty of opportunities thanks to the development of self-driving electric vehicle technology, proactive government initiatives, and technological advancements.

Expensive Initial Costs: Purchasing an electric car usually comes with a higher initial cost than purchasing a traditional gasoline-powered car. This price difference is due to the cost of the electric drivetrain and battery. Even though EVs require less fuel and maintenance over time, their higher initial cost may deter many potential buyers, especially in price-sensitive market segments. Infrastructures for Charging: Despite substantial investments made by the UAE to develop its infrastructure for charging, problems persist. These include ensuring nationwide coverage and providing faster charging options, especially in crowded areas.

Impact of COVID-19 on UAE Electric Vehicle Market
The United Arab Emirates (UAE) electric vehicle (EV) market is facing a number of opportunities and challenges as a result of the COVID-19 pandemic. Supply chain interruptions caused production and delivery delays for electric vehicles early in the pandemic. Furthermore, the entire automotive industry—including the EV sector—was impacted by decreased consumer spending and economic uncertainty. However, as the world grappled with the crisis's effects on the environment, eco-friendly and sustainable solutions came into sharper focus.

UAE Electric Vehicle Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; BMG AG, Ford Motor Technologies LTD, General Motor Company, Groupe Renault, Hyundai Motor Company, Mitsubisgi Fuso Truck and Bus Corporation, Rivian, LLC, Tesla, Inc, Volkswagen Motor Company LTM, Others.

UAE Electric Vehicle Market Segmentation:

By Vehicle Type: Based on the Vehicle Type, UAE Electric Vehicle Market is segmented as; Two-Wheeler, Passenger Car, LCV, M&HCV, OTR.

By Propulsion: Based on the Propulsion, UAE Electric Vehicle Market is segmented as; BEV, HEV, PHEV, FCEV.

By Range: Based on the Range, UAE Electric Vehicle Market is segmented as; 50 Miles, 51-150 Miles, 151-200 Miles, 201-400 Miles, Above 400 Miles.

By Region: This research also includes data for Dubai, Abu Dhabi, Sharjah, Others.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

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