North Africa Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

North Africa Battery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The North Africa battery market is expected to rise at a CAGR of more than 9% during the forecast period of 2020-2025. Factors such as increasing adoption of renewable energy such as solar and wind in the region and rapidly growing telecom and database sectors are likely going to drive the North Africa battery market. However, low domestic and foreign investment is expected to restrain the North Africa market during the forecast period.

• The lithium-ion battery segment, due to the significant reduction in the manufacturing and retail cost, has become more accessible to the people in use, such as in mobile phones and other electronic devices, and is likely going to be the fastest-growing segment in the North Africa battery market.
• The increasing involvement of the country, such as Tunisia towards its renewable and electric vehicle (EV) sector is likely going to create several opportunities for the North Africa battery market in the future.
• Because of its increasing solar and wind energy installation and upcoming projects to generate clean energy, Egypt is expected to be the largest market for the North Africa battery during the forecast period.

• Lithium-ion batteries are a rechargeable type of battery that is commonly used in electronic devices and energy vehicles. These batteries also being used for the storage of energy from renewable energy sources such as solar and wind.
• The energy densities of these batteries are quite high and have a round trip efficiency of 85% to 95%, which means the ratio of energy output/released to energy input/stored. The lithium-ion battery is a low maintenance battery, and the cells of the battery cause little harm to the environment when disposed of.
• Moreover, the governments of the countries in the region are promoting electric vehicles (EV) in their countries and are reaching out to attract any foreign investments. The different governments launch several initiatives and policies in the region regarding electric vehicles (EV).
• In March 2020, the President of Algeria called for the promotion of electric cars aiming to reduce the carbon footprints by the country. The government has therefore announced new specifications governing the activity of the automotive industry in Algeria. For promoting electric vehicles in the country, the government took several measures, such as restricting the importation of second-handed fossil fuels cars with the age of fewer than three years and prohibiting diesel-based cars for importation. These restrictions on second-handed fossil fuel-based cars are expected to drive the electric vehicles sector in the country, which uses lithium-ion batteries for generating power.
• In 2019, Eni S.p.A, an Italian oil major, inaugurated a new solar photovoltaic (PV) plant along with the national company, Entreprise Tunisienne d’Activités Pétrolières (ETAP) in Tunisia. The installation was built near the production plant and is expected to produce solar energy using an off operational grid configuration. The energy produced by the Adam photovoltaic (PV) plant is likely to be used directly by the industrial site, thus reducing gas consumption. The plant was built under the cooperation agreement with ETAP also includes a 2.2 MWp/1.5MWh lithium-ion battery storage system that is likely to facilitate integration with existing gas turbines, ensuring optimization of operating costs.
• Hence, owing to the above points, the lithium-ion segment is likely going to be the fastest-growing segment in the North Africa battery market during the forecast period.

• Egypt is the largest economy of North Africa and has been attracting investments from other countries across the globe for the development of the batteries manufacturing facilities.
• Moreover, the government has set targets for renewable to make up 42% of the country’s electricity mix by 2035, based on rapid solar and wind deployment. This is likely going to drive the battery market as batteries can be used to store extra power generated from renewable. In 2019, Egypt’s total installed solar capacity was 1668 megawatts (MW), compared to 771 megawatts (MW) in 2018.
• The automotive industry in Egypt is witnessing rapid growth in the electric vehicles market, thus driving the country's battery market. Previously the batteries used in electric vehicles used to cost approximately half the price of the car, which made it non-economical for the people, but with the reduction in battery prices, it is feasible for the common people in the country.
• In 2019, Foton Motor announced to be producing electric buses in Egypt. A joint venture of Foton Motor, Egyptian Ministry of Military Production, and International Marathon United Technologies (IMUT) are going to develop the electric bus production in Egypt. It is expected to produce 2000 electric buses in four years.
• In 2019, Scatec Solar completed six solar plants of 65 megawatts (MW) each totaling to 390 megawatts (MW) in Benban solar park located near Aswan in Upper Egypt. The project was the part of the 1.8 gigawatts (GW) Benban solar park in which Scatec Solar is the largest developer. Such projects in the country require a battery storage system, further expected to drive the battery market.
• Hence, owing to the above points, Egypt is expected to dominate the North Africa battery market during the forecast period.

The North Africa battery market is moderately fragmented. Some of the key players in this market Toshiba Corp, Murata Manufacturing Co., Ltd., Exide Industries Ltd, Panasonic Corporation, and Duracell Inc.

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