Middle East & Africa Electric Powertrain Market Research Report, 2029

The Middle East and Africa (MEA) region has reached the threshold of a changing leap to electric powertrains, driven by some of the environmental concerns, technological strides, and calculated strategic economic initiatives. Major drivers of the electric powertrain market in the MEA region embody environmental sustainability objectives and economical diversification strategies. Aggressive investments are being made in other renewable sources of energy and electric mobility by GCC countries like Saudi Arabia and the UAE. This can lead to a decrease in the dependence that results from the exploitation of fossil fuels and lesser carbon emissions as well. Government policy could thus turn out to be one of the main factors accelerating velocity in the shift toward electric power trains in MEA. Countries such as Morocco, Egypt, and Jordan have rolled out incentive packages that include tax incentives and subsidies aimed at making EV adoption realities within respective markets and attracting local investments in the manufacturing process and infrastructure building. Most of the regulatory support is given toward standards in vehicle emission, energy efficiency, and integration into smart city initiatives that enhance urban mobility with very low environmental impacts. Infrastructure is the major growth bottleneck in the MEA electric powertrain market. While some of the larger cities, like Dubai and Nairobi, are seeing a rapid rollout of public charging points, in general, infrastructure in rural areas and less developed regions is insufficient to accommodate any kind of wide diffusion of EVs. Huge opportunities with innovative potential exist in further growth for the electric powertrain market in the MEA region. The regional collaboration programs—the Arab Future Cities Program and the African Union's Agenda 2063)—are needed for alignment of policies, sharing of good practice, and promotion of cross-border partnership for sustainable transportation. Other factors that will influence further electrification in MEA with new energy storage and grid integration technologies, in combination with increased driving automation, will push electric mobility to new heights and fundamentally reshape the whole automotive industry landscape in this region. According to the research report "Middle-East & Africa Electric Powertrain Market Research Report, 2029," published by Actual Market Research, the Middle-East & Africa Electric Powertrain market is anticipated to grow at more than 18.3% CAGR from 2024 to 2029.The transition to electric powertrains in the MEA region brings large environmental and social benefits in terms of reduced air pollution, improved public health outcomes, and enhanced quality of life for urban citizens. Electric mobility solutions materialize relevant SDGs on clean air, climate action, and sustainable cities. Electric buses to city centers and rural electrification projects diffuse electric mobility benefits to underserved communities, that way promoting inclusive economic growth and environmental equity across diverse socio-economic landscapes. MEA countries increasingly invest in the establishment of local electric vehicle and component manufacturing capacity seeking reduced reliance on imports and creating local employment. For instance, Morocco has become a destination for investments by international automakers in the manufacture of electric vehicles and their batteries, strongly backed by incentive and industrial development strategies. A strong regional supply chain for EV parts, including batteries, motors, and electronic systems, improves industrial resilience and competitiveness in the global electric powertrain market. PPPs are driving infrastructure investments in charging networks and EVSE across MEA. Governments collaborate with international firms and financing institutions to finance deployments of fast-charging stations along main highways, business districts, and populated residential areas. Municipalities in MEA purchase smart city concepts that would prioritize electric mobility as one of the solutions to urban congestion, air pollution, and energy efficiency challenges. For example, in Dubai, the Smart Dubai initiative encourages the integration and use of electric buses, taxis, and private vehicles with respect to a more holistic approach geared toward developing urban mobility with less carbon dioxide emissions. Smart grids and digital investments would help in plugging EVs into city transport networks for the optimized use of energy—improving the livability of cities.

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Market Drivers • Diversification of Energy Resources: In the Middle East, the diversification of energy resources is a significant driver for the electric powertrain market. Oil-dependent economies are investing in renewable energy and electric mobility to reduce reliance on fossil fuels and combat climate change. For instance, the UAE’s Vision 2021 aims to achieve a sustainable environment by promoting the use of electric vehicles, fostering a conducive environment for the growth of the electric powertrain market. • Government-led Initiatives: Various governments in the MEA region are launching initiatives and pilot projects to promote electric vehicles. These initiatives include incentives for consumers, investments in infrastructure, and regulatory support to drive EV adoption. Saudi Arabia’s Vision 2030, for example, includes plans to develop a domestic electric vehicle industry, showcasing the region’s commitment to sustainable transportation. Market Challenges

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• Lack of Infrastructure and Consumer Awareness: A major challenge in the MEA region is the lack of adequate infrastructure and consumer awareness. Many countries lack the necessary charging infrastructure and policies to support electric vehicles. The consumer awareness about the benefits and availability of EVs is relatively low. Addressing these challenges requires significant investment in infrastructure development and comprehensive awareness campaigns to educate consumers about electric mobility. • High Vehicle Costs: The high cost of electric vehicles remains a significant barrier in the MEA region, where price sensitivity is higher. Many consumers cannot afford the premium price of EVs compared to traditional vehicles. Subsidies and incentives are needed to make EVs more affordable for a broader population. Local manufacturing and assembly initiatives could help reduce costs and increase market accessibility. Market Trends • Focus on Electric Buses and Public Transport: There is a growing trend towards electrifying public transport systems in the MEA region. Cities are increasingly investing in electric buses and taxis to reduce urban pollution and provide sustainable transportation options. These initiatives are supported by government policies and pilot projects aimed at demonstrating the feasibility and benefits of electric public transport, setting a precedent for broader adoption. • Local Assembly and Production: Countries in the MEA region are exploring local assembly and production of electric vehicles to reduce costs and create jobs. For example, the establishment of EV manufacturing facilities in countries like Egypt and Morocco aims to build a sustainable supply chain and support economic growth. Local production also helps overcome import barriers and makes EVs more accessible to the regional market.

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The strategies for economic diversification, initiative by governments, and considerations to the environment are some of the key factors driving the lead of passenger cars in the electric powertrain market in the MEA region. Oil-dependent economies, such as UAE and Saudi Arabia, are exploring investment opportunities in renewable energy and electric mobility as part of respective long-term economic diversification plans. For instance, Saudi Arabia's Vision 2030 aims at sustainable transport solution through electric passenger cars to bring down dependency on fossil fuel and ensure economic sustenance. Government incentives and policies are very key to encouraging electric powertrains within the countries of MEA. These vary from tax benefits, subsidies on the purchase of EVs, to exemption from vehicle import duties, hence offering better financial prospects for electric cars among consumers. High levels of solar irradiance in the region also support the feasibility of solar-powered electric vehicles, cutting operational costs and enhancing sustainability. Considering theInfrastructural gaps and economic disparities, MEA countries embrace electric passenger cars as one of the measures to reduce greenhouse gas emissions that bring improvement in terms of security related to energy flow and promote technological innovation. Notably, investments in charging infrastructure and collaboration with international partners further augment growth in electric mobility solutions across the region. Battery electric powertrains have a bright future in the Middle East and Africa region, driven by the need to diversify economies and through government initiatives and environmental agendas. Essentially, countries dependent on oil, such as the UAE and Saudi Arabia, intend to invest in alternative renewable energy and electric mobility as part of respective long-term economic plans. Initiatives like Saudi Arabia's Vision 2030 have brought out minimum dependence on fossil fuel-based transportation and maximum economic sustenance with clean sources, including battery-electric vehicles. Government incentives and policies promote battery electric powertrains in MEA countries. They incentivize through reduction of tax, subsidies on the purchase of EVs, and exemption from vehicle import duties, hence making electric cars more affordable for people. High levels of solar irradiance in the region also back the feasibility of solar-powered electric vehicles that bring down operation costs to near zero, hence enhancing sustainability. Despite infrastructure gaps and wide-ranging economic disparities, MEA countries are quickly adopting battery electric powertrains to ensure a reduction in GHG emissions, better energy security, and acquiring technologies without much hassle. Investments in recharging infrastructure and cooperation with overseas partners further back the growth of battery electric vehicles across the region. The MEA Electric Powertrain market was leading in BEV due to leapfrogging traditional infrastructure and opportunity to bypass extensive gasoline distribution networks. There are significant variations in BEV adoption from one country to another in the landscape of the Middle East and Africa. At least in the Gulf Cooperation Council (GCC) countries, with their immense energy resources, the population interest in BEVs is surfacing, a part of broad economic diversification and smart city initiatives. The United Arab Emirates, especially Dubai, has taken the lead in promoting the adoption of electric vehicles through incentives, including waiving parking fees, exemptions from road toll charges, and charging infrastructure. In Israel, which has a small territory, this orientation toward technological innovation has also placed it at the forefront of the rapid growth in BEV adoption. The Middle East at large, has the challenge of extremely hot weather that can impair the performance of batteries, as well as abundant, cheap oil resources that lower the economic incentive of the shift to electric. In Africa, major inhibiting factors have so far kept BEVs at very low adoption rates: limited infrastructure and poor affordability. At the same time, there is a growing recognition in Africa of how BEVs could be important in solving issues such as urban air pollution and dependence on fuel imports. South Africa, Morocco, and Kenya are just among the few nations beginning to embrace electric mobility, with most of the efforts channeled towards two-wheelers and public transportation as entry gases. The African market contains unique opportunities for innovative BEV solutions, which, for example, do not find grid reliability in regions where the leapfrogging potential of conventional automotive technologies is the greatest. Success of the uptake of BEVs in these regions will depend on a tailor-made approach to local climates, not without their infrastructure difficulties and economic realities South Africa is poised to lead the electric vehicle market in Africa, an expected market throughout the established automotive industry and government initiatives and increasing consumer awareness. South Africa positions itself as a state ready to play a vital role in this sub-Saharan region's migration towards electric mobility, through the leveraging of its strong automotive manufacturing base and grass-rooting activity. The country has the most developed automotive industry on the continent, producing both for the local and export markets. This existing infrastructure affords excellent grounds for the development and production of electric powertrains. The need for electrification in the country's automotive sector has already been identified by the South African government, who has initiated policies to catalyze this process. These range from approving an Electric Vehicle Roadmap recently to negotiating a reduction of import duties on electric vehicles. It is the host country for many critical minerals, such as manganese and platinum group metals, used in the production of batteries, thus making it potentially well placed for the new EV supply chain. Major automakers that have plant operations include Volkswagen and BMW, which have begun the introduction of electric vehicle models into the local market and are contemplating local production of the vehicles and components themselves. In this respect, the country is unlike the vast majority of African countries, as the relatively well-developed electricity grid provides a basis for the deployment of charging infrastructure, even though large expansion is still to be undertaken. South Africa is committed to reducing carbon emissions and fighting climate change; this strongly encourages the population's interest in more ecological transportation solutions. While the current market state of electric vehicles is relatively small in South Africa, growth is occurring rapidly, with sales doubling year after year. More importantly, perhaps, the potential for leadership in the African electric powertrain market lies less in current market dominance by the country and more in the positioning for future growth, of a potential key role in regional electric vehicle adoption. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Electric Powertrain market Research Report with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Vehicle Type • Passenger Car • Commercial Vehicle By Component • Battery • Power Electronic Controller • Motor/Generator • Converter • Transmission • On-Board Charger By Application • BEV • HEV/PHEV The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Powertrain industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.