Underpinned by government initiatives, rising consumer demand, and quick infrastructural advances, the electric vehicle (EV) industry in the UAE is expected to undergo a dramatic shift in 2025.
By 2030, EVs are predicted to account for 20% of all vehicles on UAE roadways, with the market expected to increase at a compound annual growth rate (CAGR) of 32.1% between 2023 and 2028 as the country works towards its Net Zero by 2050 Strategic Initiative.
The top five trends that will influence the EV environment in 2025:
Innovative EV charging business models
Convenience and accessibility are being fuelled by advancements in EV charging for users around the United Arab Emirates. Particularly among city inhabitants without access to home chargers and companies with sizable EV fleets, subscription-based models, on-demand mobile charging units, and valet charging services are gaining traction. Installing fixed chargers is also extremely difficult for city dwellers, particularly those who live in apartments, due to the buildings' low electrical capacity. As portable "charge as a service" solutions are developed to solve this particular problem, they will become more popular and provide EV users a useful and effective substitute.
Increasing regulation and infrastructure for charging
With the help of private sector investments and regulatory frameworks, the UAE's EV charging network is expanding quickly. By establishing uniform pricing structures for charge point operators (CPOs) — set at AED 0.7 per kWh for AC charging and AED 1.2 per kWh for DC charging — and putting policies in place to guarantee grid capacity and network dependability, government organisations like DEWA are playing a crucial role.
User experiences are being further improved by interoperability among providers and standardisation across payment systems, which is resulting in a smooth and integrated charging network. The UAE's dedication to a strong and expandable EV infrastructure is demonstrated by these developments.Innovation in batteries
The performance and sustainability of EVs will be redefined by developments in battery technology. With their higher energy density, quicker charging times, and increased safety, solid-state batteries are setting the standard. These innovations are anticipated to drastically cut down on charging times and increase EV range by up to 50%.
Cobalt-free batteries, on the other hand, are tackling moral dilemmas related to mining by providing environmentally friendly substitutes that may reduce manufacturing costs and improve accessibility. Lithium-ion batteries' status as the mainstay of EV technology is further cemented by their ongoing optimisation.
Increase in circular economy practices
Sustainable battery recycling programmes are becoming more and more important as EV adoption increases. Recycling discarded batteries lessens the impact on the environment, eases resource restrictions, and decreases the requirement for raw resources. Recycling is expected to provide up to 25% of the essential components for new EV batteries by 2025, making it a key component of the sector's sustainability objectives.
Connecting EVs to smart grids and renewable energy
EVs, renewable energy, and smart grid technology are coming together to create new sustainable options. EVs may now function as mobile energy storage devices thanks to innovations like vehicle-to-grid (V2G) technology, which stabilises power systems and adds value for owners.
Furthermore, solar and wind-powered charging stations are proliferating, which is consistent with the UAE's larger clean energy goals. By 2025, the industry may reduce CO2 emissions from EV charging by 40% through the integration of renewable energy sources.
"The convergence of these trends highlights the UAE’s forward-thinking approach to electrification and sustainability. As the CEO of PlusX Electric, I’m proud to see the UAE at the forefront of this transformation, setting benchmarks in innovation, infrastructure, and green mobility. At PlusX Electric, we’ve pioneered such innovations with our Portable Charging Pod and Valet Charging Services, offering flexible and efficient solutions tailored to modern lifestyles. PlusX will power more than 45,000 charges in 2025. The future of transportation is electric, and as we accelerate toward 2025, the opportunities for growth, efficiency, and sustainability are boundless. The road ahead promises a cleaner, smarter, and more connected journey for everyone," said Chintan Sareen, CEO and founder of PlusX Electric.
PlusX Electric highlights EV trends for 2025
By 2030, EVs are predicted to account for 20% of all vehicles on UAE roadways. (Image source: PlusX Electric)
