Middle East and Africa (MEA) electric Commercial Vehicles Market Outlook to 2028

Middle East and Africa (MEA) Electric Commercial Vehicles Market Overview

The Middle East and Africa (MEA) electric commercial vehicles market was valued at USD 1.06 billion in 2023. The substantial growth in market size is primarily driven by the increased adoption of electric commercial vehicles (ECVs) in urban areas to curb pollution levels and reduce dependence on fossil fuels. Government initiatives, such as subsidies and incentives for purchasing electric vehicles, coupled with advancements in battery technology, have made ECVs more viable for commercial use.

Prominent players in the MEA electric commercial vehicles market include BYD Co. Ltd., Tesla Inc., AB Volvo, Daimler AG, and Nidec Corporation. These companies have been instrumental in pioneering the development and deployment of electric commercial vehicles in the region, offering a range of products from electric buses to light commercial vehicles.

BYD Co. Ltd. In January 2018, BYD signed an agreement with the Egyptian Passengers Transportation Authority to provide 15 electric buses for Alexandria's public transit fleet. This was the first time Egypt used electric buses for public transportation. This order marks a major milestone in Egypt's transition towards sustainable transport solutions.

In 2023, Dubai accounted a major part of the total electric commercial vehicles market share in the MEA region. Dubai being at the forefront due to its aggressive sustainability targets and substantial investments in electric vehicle infrastructure., owing to its strategic initiatives, such as the Green Mobility Initiative, which aims to promote sustainable transport and reduce carbon emissions by 20% by 2024.

Middle East and Africa (MEA) Electric Commercial Vehicles Market Segmentation

The MEA Electric Commercial Vehicles Market is segmented into vehicle type, battery type, and region.

By Vehicle Type: The market is segmented by vehicle type into electric buses, electric trucks, and electric vans. In 2023, electric buses held a dominant market share, due to government-backed public transport electrification initiatives across major cities in the MEA region. Countries like Egypt and South Africa are heavily investing in electric bus fleets to reduce urban pollution and improve public transport efficiency.

Vehicle Type

Market Share (2023)

Electric Buses

40%

Electric Trucks

30%

Electric Vans

30%

By Battery Type: The market is segmented by battery type into lithium-ion batteries, nickel-metal hydride batteries, and solid-state batteries. Dominating the battery type segment, lithium-ion batteries in 2023. Their dominance is attributed to their high energy density, long cycle life, and declining costs, making them the preferred choice for electric commercial vehicles in the region.

Battery Type

Market Share (2023)

Lithium-Ion Batteries

70%

Nickel-Metal Hydride Batteries

20%

Solid-State Batteries

10%

By Region: The market is also segmented by region into Israel, United Arab Emirates, Jordan, Morocco, South Africa and Rest of MEA. South Africa holds the dominant market share in 2023 due to its proactive government policies, extensive electric vehicle infrastructure, and robust support for electric vehicle adoption. The region's focus on sustainable transport solutions and significant investments in electric vehicle manufacturing have propelled its leading position in the MEA electric commercial vehicles market.

Market Segmentation by Region

Region

Market Share (2023)

Israel

20%

United Arab Emirates

25%

Jordan

5%

Morocco

10%

South Africa

30%

Rest of MEA

10%

Middle East and Africa (MEA) electric Commercial Vehicles Market Competitive Landscape

Company

Establishment Year

Headquarters

BYD Co. Ltd.

1995

Shenzhen, China

Tesla Inc.

2003

Palo Alto, USA

AB Volvo

1927

Gothenburg, Sweden

Daimler AG

1926

Stuttgart, Germany

Nidec Corporation

1973

Kyoto, Japan

Daimler AG: DICV announced its entry into the battery-electric market with the all-electric light-duty truck, the e Canter, which is set to launch in India within the next 6 to 12 months. In 2023, Daimler Truck reported a remarkable increase in sales of battery-electric vehicles, which surged by 277% to 3,443 units, compared to 914 units in the previous year. This growth reflects the company's expanding product portfolio.

Nidec Corporation: Nidec Aerospace, a joint venture with Embraer, will develop and manufacture electric propulsion systems for e VTOL vehicles, with the aim of providing the system to non-e VTOL vehicles in the future. The investment will support Eve's research & development as it prepares for air-worthiness certification of its e VTOL aircraft by the end of 2026.

Middle East and Africa (MEA) electric Commercial Vehicles Industry Analysis

Growth Drivers

Expansion of Charging Infrastructure: In Abu Dhabi, there were around 250 public EV charging stations as of late 2023. This expansion has been crucial in supporting the growing fleet of electric commercial vehicles aiming to reduce range anxiety among electric vehicle operators and promote greater adoption of electric commercial vehicles.

Increased Investment in Battery Technology: Investment in battery technology has been a great driver for the electric commercial vehicle market in the MEA region. Developing high-capacity batteries with longer life cycles and faster charging times, which are essential for the commercial vehicle sector. The introduction of new battery technologies is expected to lower the cost of electric commercial vehicles, making them more accessible to a broader range of customers.

Growth of the E-Commerce Sector: The rapid growth of the e-commerce sector in the MEA region is driving the demand for electric commercial vehicles. In 2023, the MEA e-commerce market is gaining traction. Companies like Amazon and Alibaba have invested heavily in electric vehicle fleets to enhance their delivery operations in major cities such as Dubai and Johannesburg, further boosting the electric commercial vehicles market.

Challenges

Insufficient Charging Infrastructure in Rural Areas: While urban centers have seen considerable investment in charging infrastructure, rural areas across the MEA region lag behind. Making long-distance travel and logistics challenging for electric commercial vehicles in rural areas. This lack of infrastructure in less populated areas limits the operational range of electric commercial vehicles and slows market growth.

Lack of Skilled Workforce for Maintenance and Repair: The adoption of electric commercial vehicles in the MEA region is also hindered by a shortage of skilled technicians capable of maintaining and repairing these advanced vehicles. This lack of expertise can lead to longer downtimes for vehicles requiring maintenance, increasing operational costs for businesses that rely on electric commercial vehicles.

Government Initiatives

Subsidies for Electric Commercial Vehicle Purchases: Egypt's EV market is still nascent, but growing rapidly. Industry estimates suggest there are 3,500 to 4,000 electric cars on the road as of 2024, up from 1,000 to 1,800 in 2021. The government has implemented policies to encourage EV adoption, such as offering subsidies of up to EGP50,000 which is around USD2,500 on the purchase of locally manufactured EVs.

Investment in Local Battery Manufacturing: The Egyptian government announced in 2023 a strategic investment plan to establish a local battery manufacturing facility. This initiative aims to reduce the dependence on imported batteries, lower the cost of electric vehicles, and support the local economy by creating jobs. The facility is expected to become operational by the end of 2024, providing a critical boost to the electric commercial vehicles market.

Middle East and Africa (MEA) electric Commercial Vehicles Market Future Outlook

The MEA electric commercial vehicles market is projected to grow exponentially by 2028. This growth is expected to be driven by ongoing investments in charging infrastructure, further advancements in battery technology, and increasing government mandates for zero-emission vehicles.

Future Trends

Advancements in Charging Technology: The development and deployment of ultra-fast charging technology is anticipated to revolutionize the electric commercial vehicle market in the MEA region. By 2028, it is expected that ultra-fast charging stations capable of delivering 350 k W of power will become more widespread, reducing charging times to less than 30 minutes for long-haul trucks.

Integration of Autonomous Driving Technology: The integration of autonomous driving technology in electric commercial vehicles is expected to become a major trend in the MEA region by 2028. Investments in autonomous vehicle technology are projected to exceed with several companies, including Tesla and Rivian, leading the development of self-driving electric trucks.
Please Note: It will take 5-7 business days to complete the report upon order confirmation