Middle-East and Africa Battery Energy Storage System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle-East and Africa Battery Energy Storage System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Middle-East and Africa battery energy storage system market is expected to grow at a CAGR of over 5.2% during the forecast period 2020-2025. Middle-East and Africa battery energy storage market is growing rapidly primarily due to the expansion of renewable energy resources, The demand for batteries has increased in Middle-East as a preferred energy storage solution primarily due to technological innovation and reduction of battery costs. Major factors driving the market are the increasing levels of renewable energy penetration, demand for reliable and uninterrupted power supply, and aging grid infrastructure. However, the high initial investment required for the installation of the battery energy storage system is expected to hinder the growth of the market studied.

Key Highlights

• The lithium-ion battery segment is expected to be the fastest-growing segment in the Middle-East and Africa battery energy storage system market.
• Digital technologies such as the Internet of Things (IoT), and machine learning, have engendered the creation of innovative software platforms that advance the technical capabilities and economic viability and bankability of battery storage, which in turn, likely to provide an opportunity in the market.
• Jordan is to witness significant growth in the Middle-East and Africa battery energy storage system market across the region during the forecast period.

Key Market TrendsLithium-ion Battery Segment to Dominate the Market

• In terms of technology, lithium-ion batteries are in huge demand in the Middle East and Africa advance energy storage market. These batteries are also being used for the storage of energy from renewable energy sources such as solar and wind in the region.
• Due to strong synergies between power applications and both electric vehicles and consumer electronics, much of the recent focus of battery development has been on lithium-ion batteries.
• Lithium-ion battery storage is driven by the factors such as increased usage in the automotive industry and the declining costs of batteries.
• Lithium-ion systems have a number of advantages for grid applications, including high energy density, rapid response, very high efficiencies, and flexible operation. These features enable lithium-ion batteries to be used for most applications in principle.
• The demand has been growing at a negligible rate in the less developed nations of the Middle East & Africa. In the Middle Eastern region, most of the countries are dependent on crude oil production.
• In Africa, lithium-ion battery deployment is on rise. The cost has dropped considerably in the past decade, primarily as the Li-ion market can provide longer ranges to electric cars, which is showing to be probably ten times more lucrative than the storage market.
• It’s a commercially available technology with a decade of deployment that provides some certainty of performance.

Jordon is Expected to Witness Significant Growth in the Market

• Jordan is an emerging market and is expected to undertake several renewable energy projects that are likely to foster the increase in demand for battery storage systems.
• One of the main drivers in Jordan is the country’s reliance on imports of energy, which is leading the country to invest significantly in the development of renewable storage systems. Al Badiya is the first company to own a solar-power plant combined with energy storage systems in the Middle East and Africa region.
• The country’s renewable energy installed capacity has reached 1400.9 MW in 2019 and the strong push for the adoption of renewable energy led to two projects: one project coupling photovoltaic generation with Li-ion battery energy systems of a storage capacity of 12.6 MWh and a second project as standalone battery plant of the storage capacity of 60 MWh.
• At the beginning of 2020, Swedish thermal energy storage developer Azelio outlined its plans to deploy about 25 MW of energy storage installation in Jordan through 2023 under a newly agreed commercial collaboration.
• Among the Middle-Eastern countries, Jordan has the most favorable environments for energy storage and is the one of the Arab countries with ongoing energy storage projects with serious future adoption ambitions.

Competitive Landscape

The Middle-East and Africa battery energy storage system market is consolidated. Some of the key players in the market include Philadelphia Solar LTD, NGK INSULATORS, LTD., Eaton Corporation PLC, Tesla Inc, and Vanadiumcorp Resource Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
NGK INSULATORS, LTD.
Eaton Corporation PLC
Philadelphia Solar LTD
Tesla Inc
Vanadiumcorp Resource Inc
Eskom Holdings SOC Ltd
Sumitomo Corporation

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