United Arab Emirates Hybrid and Electric Vehicles Market Size

United Arab Emirates Hybrid and Electric Vehicles Market Analysis

The United Arab Emirates Hybrid and Electric Vehicles Market size is estimated at 2.21 billion USD in 2024, and is expected to reach 9.03 billion USD by 2030, growing at a CAGR of 26.48% during the forecast period (2024-2030).

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2.21 Billion

Market Size in 2024 (USD)

9.03 Billion

Market Size in 2030 (USD)

48.32 %

CAGR (2017-2023)

26.48 %

CAGR (2024-2030)

Fastest-growing Segment by Vehicle Body Type

35.84 %

value share, Sedan, 2023

Sedans typically offer a balance of comfort, performance, and affordability, making them an attractive option for a wide range of consumers.

Largest Segment by Fuel Category

52.81 %

value share, HEV, 2023

HEVs dominate due to their fuel efficiency, ability to switch between electric and combustion power, and strong government support for sustainable transportation in the UAE.

Fastest-growing Segment by Fuel Category

34.94 %

Projected CAGR, BEV, 2024-2030

BEVs are the fastest-growing segment due to significant government incentives, expanding charging infrastructure, and increasing consumer awareness of environmental benefits.

Leading Market Player

58.13 %

market share, Toyota Motor Corporation, 2023

Diversified product portfolio offerings, high production capabilities, and extensive supply chain network and strong brand value marks Toyota as the leader in UAE Hybrid and Electric Vehicles Market

Second leading Market Player

11.87 %

market share, Hyundai Motor Company, 2023

Hyundai Motor Company is a key player due to its innovative hybrid and electric vehicle technology, strong brand presence, and commitment to expanding its market share in the UAE.

The market is growing in line with the UAE's vision to incorporate hybrid and electric vehicles across segments, supporting its sustainability and technological advancement goals

United Arab Emirates Hybrid and Electric Vehicles Industry Segmentation

Commercial Vehicles, Passenger Vehicles, Two-Wheelers are covered as segments by Vehicle Type. FCEV, HEV, PHEV are covered as segments by Fuel Category.

• The United Arab Emirates is emerging as a leading sustainable transportation hub in the Middle East, witnessing a notable surge in the market for hybrid and electric vehicles (HEVs and EVs). Within these markets, the passenger car segment takes the lead, reflecting a rising consumer preference for eco-friendly and energy-efficient rides.
• Government initiatives, including incentives for green vehicles, widespread charging station installations, and reduced fees for electric car registration, have bolstered the market. Notably, luxury electric sedans and SUVs are gaining significant traction, resonating with the United Arab Emirates' penchant for high-end automobiles. Hybrid vehicles are also finding favor, serving as a transitional choice for consumers seeking to reduce their carbon footprint without fully committing to electric variants.
• The commercial segment is gradually embracing hybrid and electric technologies, with a particular emphasis on logistics and public transportation. As part of its sustainable urban development vision, the United Arab Emirates is electrifying its public bus fleets and introducing electric taxis. For commercial fleets, the adoption of HEVs and EVs is driven by factors like cost savings, corporate sustainability goals, and compliance with emerging environmental regulations. However, the growth of this segment hinges on the expansion of charging infrastructure and targeted government incentives for commercial operators. Additionally, electric two-wheelers, such as scooters and motorcycles, are gaining popularity in urban centers, where traffic congestion and parking challenges make them an appealing choice for short commutes.