Middle East Battery Industry

Middle East Battery Market Analysis

The Middle-East Battery Market is expected to register a CAGR of greater than 3% during the forecast period.

The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns, leading to a decrease in demand for batteries. Currently, the market has rebounded from pre-pandemic levels.

• During the forecast period, the Middle-East battery market will be driven by things like falling prices for lithium-ion batteries, more people buying electric cars, and the growth of the renewable energy sector.
• On the other hand, the difference between raw material demand and supply is likely to slow market growth.
• Nevertheless, the rising focus on technologically advanced batteries and the use of artificial intelligence in the R&D phase of battery manufacturing is likely to create a massive opportunity for the battery companies to invest and redirect their resources to make a breakthrough in battery technology.
• The growth of the market is expected to be led by the United Arab Emirates. This is because the country's young and diverse population buys a lot of consumer electronics, like smartphones and cars.

Middle East Battery Market Trends

Lead-acid Batteries to Dominate the Market

• The lead-acid batteries segment is expected to dominate the market in both developed and emerging economies in the Middle East region during the forecast period. The growth is expected to be mainly due to the low cost of lead-acid batteries, renewable targets, and the adoption of automated guided vehicles in industrial spaces.
• The energy-to-weight ratio of the lead-acid battery is low, but it can supply large surge currents, indicating a high power-to-weight ratio primarily useful for SLI (Starting Lighting Ignition) applications. Also, due to their low cost, lead-acid batteries are preferred when the price is more important than the energy-to-weight ratio. Some areas where lead-acid batteries can be used are backup supplies for mobile phone towers, hospitals, off-grid remote storage, etc.
• Lead-acid batteries in automotive applications contribute to more than half of the market. Automotive (excluding electric vehicles) batteries are mostly SLI batteries, and the lead-acid battery can also be used for applications like in-vehicle entertainment systems, power steering, power locking, power window systems, etc.
• As of 2022, the import value of lead-acid accumulators of the kind used for starting piston engines across the Middle East was about USD 538 million.
• Therefore, based on the abovementioned factors, the lead-acid battery segment is expected to maintain its growth momentum and dominate the Middle East region during the forecast period.

The United Arab Emirates to Dominate the Market Growth

• The United Arab Emirates is likely to lead the growth of the market over the next few years. This is because there is more demand for consumer electronics and more sales of cars, which are expected to increase the demand for both primary and secondary batteries.
• People in the United Arab Emirates, who are mostly young and from different backgrounds, are likely to buy a lot of consumer electronics, like smartphones and cars. For instance, the total shipments of mobile phones to the United Arab Emirates in the first quarter of 2022 were around 1.5 million units, worth about USD 494.6 million. In terms of share, smartphones accounted for 90.7% of the total number of shipments, compared to 9.3% for traditional phones. In the United Arab Emirates, the demand for prismatic and cylindrical battery cells is likely to rise as more and more people buy consumer electronics.
• Due to the growing population, the construction and building industry is also one of the fastest-growing industries. Infrastructure development projects in line with Expo 2020 (such as the 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, which is likely to propel demand for pouch batteries (used in cordless power tools such as drilling tools) and the cylindrical battery cell market in the near future.
• In March 2022, M Glory Holding Group put money into making the United Arab Emirates a better place to make EVs. The total investment in the plant is around USD 410 million. The plant's capacity would be around 55,000 EVs a year, expected to be the highest in the Middle East region. Furthermore, the company also introduced its first electric car, the Al Damani DMV300, to the market. resulting in more demand for the prismatic as well as cylindrical battery cell in the automobile sector.
• The United Arab Emirates has a better charging infrastructure, with Dubai having around 530 charging stations and around 120 spread across the country as of 2021. Major EV manufacturers are launching their new models of EV in the United Arab Emirates. Some of these are the BMW i8, Mercedes-Benz GLC 350e, Renault Zoe, and Chevrolet Bolt.
• Therefore, based on the abovementioned factors, the United Arab Emirates is expected to dominate Middle-East battery market growth during the forecast period.

Middle East Battery Industry Overview

The Middle East battery market is fragmented. Some of the major players (in no particular order) include Tesla Inc., C&D Technologies Inc., Exide Industries Ltd., the Middle East Battery Company (MEBCO), and Panasonic Corporation.

Middle East Battery Market Leaders

Middle East Battery Market News

• May 2022: Saudi Arabia's Ministry of Industry and Mineral Resources announced that it had secured USD 6 billion for a steel plate mill complex and an electric vehicle battery metals plant. Out of the total amount of USD 6 billion, USD 2 billion will be allocated for the electric vehicle battery metals plant.
• January 2023: EV Metals Group (EVM) signed agreements for the allocation of 127 hectares of land from the Royal Commission for Jubail and Yanbu (RCJY) and a gas and power allocation from the Saudi Ministry of Energy. The agreements support EVM's planned USD 899 million integrated Battery Chemicals Complex at Yanbu Industrial City.