The Middle East EV market: A $54bn opportunity by 2035, shows report

As the global race towards sustainability intensifies, the Middle East is emerging as a key player in the electric vehicle (EV) revolution.

According to Bain & Company’s latest report, Is the Middle East Ready to Shift Gears to Electric Vehicles? the region is poised to tap into a $54bn EV market by 2035, with electric vehicles projected to account for 64 per cent of new car sales.

This growth is driven by a combination of shifting consumer preferences, government initiatives, and strategic private-sector investments in infrastructure.

However, this transition is not without its challenges. While the potential is vast, high costs, limited EV models, and insufficient charging infrastructure remain significant barriers.

Yet, for businesses and early movers, the opportunity to secure a foothold in this burgeoning sector is immense.

The report highlights that those who act quickly – by establishing charging infrastructure and expanding model offerings – can carve out a competitive edge in the market.

EV market: Middle East on the brink of a shift

Karim Henain, partner at Bain & Company Middle East, emphasises the importance of these early moves, stating, “The Middle East is at the brink of a transformative shift, but stakeholders must act now to position themselves for long-term success. The EV market offers not only environmental benefits but also substantial economic growth opportunities”

Bain’s report identifies three distinct consumer segments –EV enthusiasts, explorers, and sceptics – that businesses must understand to effectively drive adoption. Tailored strategies, from infrastructure investment to customer education, will be key in converting curious buyers into committed EV owners.

By leveraging a mix of government policies, dealership initiatives, and targeted infrastructure expansion, the region can unlock the full potential of its EV market, turning sustainability into an economic powerhouse.

“The shift toward electric vehicles in the Middle East is more than just an environmental necessity; it is a significant economic opportunity,” said Eric Zayer, partner at Bain & Company. “Governments and businesses must act now to capitalise on this momentum, paving the way for a more sustainable and prosperous future.”

The Middle East’s path to electrification represents not just an environmental milestone, but a profound economic opportunity, and those prepared to lead will shape the region’s automotive future, the report suggests.