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

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

The Middle-East and Africa battery market is expected to grow at a CAGR of more than 4.93% during the forecast period of 2020 – 2025. Major factors driving the Middle-East and Africa battery market include declining lithium-ion battery prices, increasing adoption of electric vehicles, and growing renewable sector. The electric and hybrid modes of transport are gaining momentum in the Gulf region and particularly in Israel, Jordan, Oman, Saudi Arabia, and the United Arab Emirates. Also, increasing demand from data centers is likely to drive the market as data centers are evolving digital infrastructures for cloud services, and the next generation of cloud service may be adapted to incorporate a blockchain network. However, the demand-supply mismatch of raw materials is likely to hinder the market growth.

Key Highlights

• The automotive batteries segment is likely to witness significant demand for the battery market in Middle-East and Africa region, and is expected to be the leading end-user for lithium-ion batteries in the coming years.
• The number of people without access to electricity in the African region is expected to increase from 588 million in 2016 to about 602 million in 2030, despite efforts to boost electrification through grid connectivity. The Sub-Saharan region is expected to be one of the central hotspots for off-grid solar initiatives. As solar energy is an intermittent source and generates power only during the daytime, use of the off-grid solar power in conjunction with energy storage substantially enhances the utilization of solar PV units. As a result, the use of energy storage with solar PV has been gaining popularity in developed countries, which is likely to create huge opportunity for battery market.
• The United Arab Emirates is expected to dominate the market, owing to its purchase of consumer electronics, including smart phones and automobiles, by the young and diverse population of the country.

Key Market TrendsAutomotive Batteries Segment to Witness Significant Growth

• The automotive sector is expected to be one of the major end-user segments for battery, primarily lithium-ion batteries soon as they are used in EV’s. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry growth.
• A range of different vehicle types are available globally, featuring increasing degrees of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles, plug-in hybrid electric vehicles, and electric vehicles.
• The demand has been growing at a negligible rate in the less developed nations of Middle East & Africa. In the Middle Eastern region, most of the countries are dependent on crude oil production. However, aligning to the emission norms, the demand for EVs is expected to increase over the forecast period, in turn, leading to the increase in the consumption of battery. ​
• In the African region, South Africa is one of the major automotive markets, where the electric car was launched in 2014 by Nissan Leaf. In 2015, BMW entered the market and launched i3 & i8 models. Both of BMW’s i-series models have been delivered in relatively significant volumes, with the total figure approximately 600 units in 2018.
• Overall, share wise, EV adoption in South Africa was minimal (0.03%). It was enough, however, to encourage Mercedes and Porsche to start delivering a limited number of their PHEVs in the country in 2018. Also, in first quarter of 2019, Jaguar launched the I-PACE in the market, and Jaguar has also invested USD 2 million in the electric Powerway, a future public charging network of 82 charging stations that will also cover South Africa’s major highways, such as the busy Johannesburg–Durban, and Johannesburg–Cape town routes.
• Saudi Arabia has signed a memorandum of understanding (“MoU”) with the United Kingdom in a move to reduce carbon emissions and support Saudi Vision 2030. The MoU commits both countries to cooperate and share expertise to develop technologies including smart grids and EVs.
• In December 2019, Metair completed the construction of first EV battery plant, i.e. the South African auto parts maker has reportedly invested USD 15.1 million since 2017 to set up the lithium-ion battery site.
• Therefore, falling battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for battery technologies.

The United Arab Emirates to Witness Significant Demand

• The United Arab Emirates is likely to witness significant demand over the forecast period due to the increasing adoption of consumer electronic goods and increasing automotive sales, which in turn is expected to boost the overall battery demand i.e. both primary and secondary, in the United Arab Emirates.
• Furthermore, the construction and building industry remains one of the fastest growing sectors, owing to increasing population. Infrastructure development projects in line with Expo 2020 (such as Abu Dhabi Metro and Etihad Rail Network), booming industrialization, and construction activities are expected to be on the higher side in the country, which in turn, is expected to supplement the demand for batteries for activities, such as backup, lighting, and power tools.​
• The United Arab Emirates has better charging infrastructure, with Dubai having around 200 charging stations and Abu Dhabi around 20.
• The United Arab Emirates government is targeting to have 42,000 electric cars on the roads soon. For that, in September 2017, the Dubai Electricity and Water Authority (DEWA) and the Road Transport Authority (RTA) announced incentives for electric car drivers, ranging from free public parking and charging to toll/fee exemptions and discounts on electric car registrations.
• Major EV manufacturers are launching their new models of EV in the United Arab Emirates. Some of these are BMW i8, Mercedes GLC350e, Renault Zoe, and Chevrolet Bolt. Tesla has been driving the EVs market in the United Arab Emirates, with the American brand being responsible for roughly half of the PEV fleet. These factors are expected to drive the demand for EV batteries over the forecast period in the United Arab Emirates.
• Exide Al Dobowi Ltd and Energizer Middle East & Africa Ltd are some of the top players in the United Arab Emirates' battery market. Therefore, from the above factors it is evident that the United Arab Emirates is anticipated to dominate the battery market in Middle-East and Africa region.

Competitive Landscape

The Middle-East and Africa battery market is fragmented. Some of the key players include C&D Technologies Inc., East Penn Manufacturing Co. Inc., Exide Industries Ltd, First National Battery Pty Ltd, and Middle East Battery Company (MEBCO).

Additional Benefits:

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

Companies Mentioned

Panasonic Corporation
SAFT GROUPE S.A
Middle East Battery Company (MEBCO)
Amara Raja Batteries Ltd
First National Battery Pty Ltd
EnerSys
C&D Technologies Inc.
East Penn Manufacturing Co. Inc.
Exide Industries Ltd

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