The Electric Vehicle Market | MaaS Middle East

Electric Car Sales (Global EV Sales)

The electric vehicle (EV) has become an increasingly attractive alternative in recent years with all the positive environmental impact on our roads and the communities that we live in.

It’s estimated that the global market size of electrical vehicles to reach more than $500,000 million by 2025, growing at a CAGR of around 22% from 2018 to 2025 (Source: Allied Market Research)

Global Sales for Electric Vehicles exceeded 2 millions cars in 2018 with some estimates to claim a much bigger volumes of sales (more than 4 millions considering other forms of EVs) compared to 78 millions of passenger cars sold globally in 2018. Apparently, there is a still long way to go for Electric Cars to be the most popular option in the light-vehicle market globally. But with more than 60% annual growth and accelerating, the future looks electric.

It’s estimated that the global market size of electrical vehicles to reach more than $500,000 million by 2025, growing at a CAGR of around 22% from 2018 to 2025
Source: Allied Market Research

Global Market for EVs

Globally, Norway remains the number one market for Electric Cars with more than half of the new cars sold in Norway this year being electric. China ranks seconds from the demand side, but leads by far in the production of EVs with more 1 million cars produced in 2018.

Source: McKinsey&Company

Factors Driving the Growth in the EV Market

According to Deloitte, there are two factors are driving this change: Policy and regulation & customer demand.

Policy and regulation

Policy and regulation regarding electric vehicle market include a governmental policy of fuel economy and emissions standards, incentives in the form of subsidies, no registration tax, no VAT, free parking and no road tax for electric vehicles.

Customer demand

The next generation BEVs have a greater range, makes home and workplace charging more than sufficient for a customer’s daily commute and reduced charging time. Within the next ten years, battery technology will be improved and used at fast charging stations. The time will require only 30 minutes achieving an 80 percent charge in a 60 KWh battery, equivalent to a range of 200 miles.

The electric vehicle industry faces some challenges such as high purchasing cost, limited driving range and long recharging time. Customer demand means to overcome these challenges by increasing driving range, decreasing the lack of infrastructure, minimizing the time required to charge and decreasing cost premium.

UAE perspective

Though it is not obligated, the UAE has chosen to reduce its emissions, including monitoring and tracking GHG emissions. The UAE’s largest emirates, Abu Dhabi, has committed more than USD 15 billion to renewable energy program through the Masdar Initiative. Dubai will spend millions of dirhams on incentives to have 42,000 electric vehicles (EVs) on the Emirates’ streets by 2030. It has installed 200 electric charging stations in important areas and establishments and expected to invest tens of millions of dollars to leverage its EV infrastructure.