Middle East and Africa Electric Drives Market

MEA Electric Drives Market Analysis

The Middle East and Africa Electric Drives Market is expected to register a CAGR of 5.2% during the forecast period.

• Electric drives deliver a highly-efficient production process at a low cost. As electricity consumption is the major cost component across end-user industries, the demand for electric drives is expected to increase considerably to gain an advantage over electricity consumption in the region.
• The increasing automation of various industrial processes and using electric AC motors in multiple applications such as healthcare, construction, automotive, and consumer goods are expected to drive market growth. The increasing use of alternating electric current (AC) motors in infrastructure development and rising construction activity, particularly in developing economies in the region, accelerates market growth.
• For instance, in June 2022, ABB, a technology company with a presence in the Middle East, established a test center to develop a 3D vision for automation. This facility will create pick-and-place, 3D vision-enabled Random Bin Picking solutions to automate the selection of randomly placed parts, improving machine tending and parts feeding speed and productivity.
• Moreover, urbanization and industrialization are causing a rapid increase in energy demand in developing regions such as the Middle East and Africa. In industries, there has been a growing emphasis on adopting and implementing energy-efficient solutions. Furthermore, motor systems consume a large portion of the power supplied to sectors, significantly reducing the operating cost. DC drives are pieces of electrical equipment that help minimize motor power consumption by regulating the motor speed at variable loads. The growing demand for energy-efficient systems is expected to fuel the DC drive market.
• Furthermore, according to Trade Arabia, in May 2021, the demand for energy in the MEMA region is expected to grow by 3.35 % per year for the next 15 years, as the MEMA region's population is expected to grow by 20% to 581 million in 2030 and another 24% by 2050 to 724 million.

MEA Electric Drives Market Trends

Oil & Gas is Expected a Significant Growth

• Growing opportunities for oil & gas industries, as well as the stabilization of global economic growth and manufacturers' increasing focus on cost-competitiveness, will continue to drive product demand. In addition, According to BP, a British oil and gas company, the United Arab Emirates produced approximately 3.7 million barrels of oil per day in 2021.
• Electric drive adoption has increased due to increased awareness of energy efficiency and stringent environmental regulations. Electric drives are likely to reduce energy consumption and improve efficiency in oil and gas installations.
• For instance, in April 2022, GE Digital announced that Petroleum Development Oman (PDO), the Sultanate of Oman's leading exploration and oil and gas production company, had purchased the Advanced Energy Management System (AEMS). PDO will use the GE Digital software to plan, control, and optimize renewable energy generation to keep its oil production plants running reliably and efficiently.
• The contribution of the oil and gas enterprise to the Middle Eastern economies is relatively high compared with the contribution of other sectors. Further investment by government-owned and private entities will develop upstream exploration and downstream crude oil processing. As a result, the addressable market for drive manufacturers will likely increase, both in terms of new projects and retrofit demands.
• Furthermore, in December 2021, The Abu Dhabi National Oil Company reported a USD 127 billion capital spending plan for 2022-2026, increasing the UAE's oil and natural gas reserves. The state-owned company reported an increase in national reserves of 4 billion stock tank barrels of oil and 16 trillion traditional cubic feet of natural gas, bringing the totals to 111 billion stb and 289 trillion scf, respectively. Furthermore, ADNOC ranks the UAE sixth in the world in terms of oil and seventh in terms of gas reserves.

United Arab Emirates is Expected For a Significant Market Share

• Electricity consumption in the UAE region for commercial and residential building automation is extremely high. Adoption of VFDs in this region may increase the efficiency of motor-driven equipment while requiring minimal maintenance.
• Moreover, in April 2022, The Dubai Electricity and Water Authority (DEWA) launched the 'Dubai EV Community Hub' website to increase EV adoption by centralizing information about EV developments in Dubai. This is part of DEWA's efforts to promote the use of sustainable transportation while also securing Dubai's position as a global capital for a green economy and sustainable development.
• Also, the Green Charger initiative launched by the Dubai Electricity and Water Authority to provide charging stations for electric vehicles in various parts of Dubai supports the emirate's efforts to provide innovative and environmentally friendly solutions through its contribution to reducing carbon emissions from the transportation sector and supporting the Dubai Green Mobility Strategy 2030. These developments and initiatives further boost the studied market.
• HVAC companies have begun to automate their sales and service processes, allowing them to reduce customer acquisition costs while maintaining competitive pricing. The use of smart technologies, such as smartphone apps will enable users to control lighting, ventilation, and other systems from a single point of control. These factors contribute to the increased use of brushless DC motors and drives in HVAC applications.
• Further, in June 2022, UAE collaborated with '4IR champions' to increase tech adoption in the industrial sector. Due to this, the sector will benefit from new partnerships and collaborations that support the UAE's Fourth Industrial Revolution (4IR) Programme, Industry 4.0. As a result, the Champions Network Assembly is a critical mechanism for achieving the objectives of the national industrial strategy.

MEA Electric Drives Industry Overview

The market is highly competitive due to the presence of numerous global and regional players. Siemens AG, Wintech Engineering, Emerson Electric, and Schneider Electric SE are the major vendors in the Middle East and Africa Electric Drives Market. These vendors offer high-quality, dependable, and technologically advanced devices.

• October 2021 - Xylem, a global water technology company committed to expanding its regional footprint and accelerating growth by developing innovative solutions to the world's water challenges, has acquired Turkey's top pumping and water treatment systems company Anadolu Flygt. The acquisition will enable the company to serve a broader range of countries in the region and accelerate Xylem's growth in the Middle East market with an expanded suite of digital water solutions and proven systems for sustainable water use.
• October 2021 - Hitachi Energy announced that it is the lead in a consortium that has been awarded a major contract worth several hundreds of millions of USD from the Saudi Electricity Company and the Egyptian Electricity Transmission Company. The award is for the first-ever large-scale HVDC interconnection in the Middle East and North Africa, enabling the Kingdom of Saudi Arabia (KSA) and the Arab Republic of Egypt to exchange up to 3,000 MW of electricity - much of which is expected to be generated from renewable energy sources in the future. These developments and initiatives further boost the studied market.

MEA Electric Drives Market Leaders

MEA Electric Drives Market News

• July 2022- ABB, a global technology company, actively participated in the Dubai Expo 2020 as an official partner of the Swedish pavilion, showcasing its technology digitally and interactively in collaboration with over 100 companies and institutions. Under the pavilion's theme of "Co-creation for Innovation," ABB joined the country's actions to highlight the most creative solutions to help produce a smart society. The exhibition is the first to be held in the Middle East. Expo 2020 was a meeting place for businesses and governments from October 1 to March 31, 2022.
• July 2021- ABB announced a comprehensive range of dependable and high-efficiency motors and drives for all applications in the UAE. These are suitable for OEMs to incorporate into pumps and fans, gearboxes, conveyors, general machinery, and other applications.