Mays Ibrahim (ABU DHABI)
The UAE is witnessing a remarkable surge in electric vehicle (EV) adoption, as highlighted by 2024 market insights from Statista, an online platform specialised in data gathering. Its projections reveal a promising trajectory for the UAE’s EV market, with an anticipated revenue of $270.3 million in 2024.
“This market segment is also anticipated to show an annual growth rate (CAGR 2024-2028) of 8.21%, resulting in a projected market volume of $370.6m by 2028,” according to Statista.
It forecasts that the unit sales of EVs in the UAE will soar to 6,624 vehicles by 2028, while the volume-weighted average price of electric vehicles in the UAE is projected to amount to $56,000 in 2024.
Statista attributed this surge in electric vehicle adoption to several factors, including government incentives and infrastructure development aimed at bolstering the EV market’s growth.
“From an international perspective, it is shown that in China is projected to generate the most revenue in the Electric Vehicles market, with $319,000m in 2024,” its market insights report stated.
Global Outlook Despite global challenges such as the COVID-19 pandemic, supply chain disruptions, and rising production costs, the electric vehicle market continues to thrive worldwide, according to Statista.
Should this trend persist, EVs are poised to surpass the sales of conventionally propelled vehicles, namely those with internal combustion engines. In 2021 alone, sales of new EVs more than doubled compared to 2020, marking an increase equal to 108%. Consequently, EV sales accounted for approximately 5% of global passenger car sales in 2021.
“China topped the global sales charts in 2021 with more electric vehicles sold than the rest of the world combined and almost five times more than Germany, which was in second place,” it stated. Statista attributed this to government subsidies and the availability of affordable EV brands contributing to the country’s exponential growth in EV sales.
It further noted that Europe also experienced a notable increase in EV sales, driven by stricter CO2 emission standards and zero-emissions vehicle mandates, along with the availability of more models, market expansion and purchase incentives.
“Overall, Europe recorded an increase between 2020 and 2021, reaching about 66%, with the plug-in hybrid share of all electric vehicle sales being the biggest in the world”. However, Statista noted that the growth of the electric vehicle market remains uneven across regions, with China, Europe, and the US dominating global sales. Slow progress in these regions was attributed to factors such as insufficient public charging infrastructure and the high prices of EVs.