1. Panasonic Corporation
2. BYD Company Limited
3. C&D Technologies Inc.
4. Hitachi Chemical Corporation Limited
5. LG Chem Limited
The Middle East and Africa have many developing regions where construction is at its peak and cities are developing at a faster rate. This leads to a high demand for industrial and construction tools that use lithium ion batteries as a source of energy, acting as a major factor for the growth of the market. Growing adoption of cordless power tools is increasing the demand for lithium ion batteries across the region. Growing demand for smart devices and wearable is boosting the growth of the lithium ion battery market. Safety issues related to storage, usage, and transportation of lithium ion batteries are acting as a major restraining factor for the lithium ion battery market. According to the report, "Middle East & Africa Battery Market Research Report, 2027," published by Actual Market Research, the market is projected to grow at more than 10.9% CAGR for 2022–2027. The market was dominated by the portable segment in the year 2021. The automotive battery segment is likely to witness significant demand for the battery market in the Middle East and Africa region and is expected to be the leading end-user for lithium-ion batteries in the coming years. Moreover, expanding the 5th Generation based telecommunication network and implementation of Vision Documents in Saudi Arabia, UAE, Qatar, and Kuwait are likely to further aid the Middle East & South Africa battery market in the forecasted years. There is a significant opportunity for the development of the battery market backed by increasing renewable generation and energy storage investment, partly to counter the increased risk of an Eskom failure. In the past decade, the rechargeable lithium-ion battery market increased on average every three years due to the increased usage of mobile phones, computer tablets, and laptops. The Middle East & Africa region held the second least share in the total market followed by Latin America. However, the high initial investment required for the installation of the battery energy storage system is expected to hinder the growth of the market. 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. Jordan is expected to provide a considerable opportunity for battery manufacturers and suppliers owing to the increasing EV adoption through a mix of incentives, infrastructure, and state fleet usage. Growing consumer inclination towards electric vehicles, amid increasing concerns regarding alarming pollution levels and the negative impact of climate change, has boosted the market growth in South Africa. The country is expected to dominate the region, which is expected to hold more than a quarter of the total market share. 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. In line with booming industrialization and construction activities, the demand for batteries for activities such as backup, lighting, and power tools is expected to be on the higher side in the region. This, in turn, is expected to supplement the demand for batteries for activities such as backup, lighting, and power tools. The lead-acid segment held the highest share historically and is likely to lose its dominance to the lithium-ion battery over the forecasted period. Lithium-ion systems have several 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. On the other hand, the nickel-based battery segments (nickel-cadmium & nickel-metal hydride) are expected to attain prominent market growth during the forecast period. Saudi Arabia is focusing on the complete transition to renewable energy systems by 2040, and the government of the country has been making heavy investments for this purpose. Thus, the expansion of the renewable energy sector opens up growth avenues for the lead-acid battery market in the country. GS Yuasa Corporation is a leading company manufacturing lead-acid batteries in the region. It is planning to expand its base in the Middle East by establishing a new plant in Turkey for the production of lead-acid batteries. In the Middle East and Africa, strategic actions taken by market participants in the region, product launches, product developments, research and development activities, the region's expanding automotive industry, etc., are some of the key factors anticipated to support the growth of the battery market. As part of its plans to secure $32 billion in investment into the mining industry, the Saudi Arabian Ministry of Industry and Mineral Resources secured $6 billion for a steel plate mill complex and an electric vehicle battery metals factory in 2022. Also, Avass Group and Saudi Arabia agreed to collaborate on producing lithium batteries and electric vehicles. Therefore, such factors are anticipated to further fuel battery industry innovations, which are anticipated to positively impact market growth throughout the forecast period. In South Africa, an increase in research and development efforts, along with other technological advancements, is anticipated to substantially impact the country's battery market. For instance, a request for proposals for battery storage in Skaapvlei in the Western Cape was issued by Eskom in 2020. The world's first thermal battery was also introduced in South Africa in 2019. The battery, often referred to as a Thermal Energy Device (TED), accepts electrical input in any form and converts and stores energy as latent heat, making it inexpensive, adaptable, and durable. Therefore, during the forecast period, all of these factors are anticipated to further encourage market expansion in the country. For instance, In September 2020, Saft joined hands with Groupe PSA to develop and produce lithium-ion batteries for automotive vehicles. A research and development centre has been opened in Bordeaux and a pilot site has been opened in Nersac (France) for the development of new high-performance lithium-ion technologies. The completion of R&D will result in the opening of two mass production gigafactories in Douvrin (France) and Kaiserslautern (Germany). The project is funded by French and German public authorities, representing USD 1.51 billion. The new venture will create new growth for the company. The United Arab Emirates is expected to dominate the market, owing to the purchase of consumer electronics, including smart phones and automobiles, by the young and diverse population of the country. The automotive sector is expected to be one of the major end-user segments for batteries, primarily lithium-ion batteries, as soon as they are used in EVs. The penetration of electric vehicles is anticipated to provide a massive impetus for the lithium-ion battery industry's 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 the Middle East and Africa. Most countries in the Middle Eastern region are dependent on crude oil production. However, conforming to the emission norms, the demand for EVs is expected to increase over the forecast period, in turn, leading to an increase in the consumption of batteries. In the African region, South Africa is one of the major automotive markets, where the electric car was launched in 2014 by the Nissan Leaf. In 2015, BMW entered the market and launched the i3 and i8 models. Both of BMW’s i-series models have been delivered in relatively significant volumes, with the total figure of approximately 600 units in 2018. 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. Metair completed the construction of the first EV battery plant in December 2019. 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 has better charging infrastructure, with Dubai having around 200 charging stations and Abu Dhabi having around 20. The United Arab Emirates government is targeting having 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 the BMW i8, Mercedes GLC350e, Renault Zoe, and Chevrolet Bolt. Tesla has been driving the EV 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. Some of the top players in the United Arab Emirates' battery market are Exide Al Dobowi Ltd and Energizer Middle East & Africa Ltd. With the growth of the EV industry, the adoption of lithium-ion batteries is growing exponentially. The rising use of lithium-ion batteries in EVs creates an opportunity for their recycling. A large number of these batteries contain significant amounts of valuable metals, as well as other materials that can be processed and reused. However, in the current scenario, a very insignificant number of these batteries are recycled. Previously, the majority of the efforts to enhance lithium-ion battery recycling were carried out by a limited number of academic groups, usually functioning independently. However, the scenario has started to change with several research institutions, governments, and EV manufacturers focusing on the recycling of these batteries. Several start-ups are now commercializing innovative battery recycling technologies. Also, several EV battery manufacturers and recycling companies have started collaborating to handle the forthcoming issue. For instance, in September 2020, Solvay and Veolia partnered to deliver innovative solutions that offer improved resource efficacy for critical metals used in lithium-ion batteries in EVs. In December 2020, MG Motor partnered with TES-AMM to safeguard the eco-friendly and secure recycling of MG ZS' lithium-ion batteries. The growing focus of EV manufacturers on lithium-ion battery recycling would further result in increased partnerships among the manufacturers and recycling companies, thereby offering lucrative opportunities to the players operating in the lithium-ion battery recycling market. With the new advancements in technology, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the Middle East and African battery recycling markets. Policymakers have framed several regulations regarding the effective utilization and disposal of waste battery materials, which are significantly contributing to the expansion of the battery market. COVID-19 Impacts: In the Middle East and Africa, the ongoing pandemic has drastically altered the status of the electronics sector and negatively impacted the growth of the battery market. The operations of several industries, such as electronics, automotive, and power, have been impacted by the pandemic, which has impacted the delivery cycle and increased import-export tariffs of batteries. The market has been impacted by the disruption in operational efficiencies and disruptions in the value chains attributable to the sudden closure of national and international borders. Disruptions in terms of sourcing of raw materials from suppliers and temporary closure of manufacturing bases due to lockdowns and quarantines have impacted the growth of the market during the pandemic. However, as economies are planning to revive their operations, the demand for batteries is expected to rise in the Middle East and Africa. The expanding demand for batteries across automotive, industrial, household, consumer electronics, and other industries, along with significant investment by prominent manufacturers, is expected to drive the growth of the battery market. Major Companies Present In the Market BYD Company Limited, C&D Technologies Inc., Hitachi Chemical Corporation Limited, LG Chem Limited, Panasonic Corporation, Saft Group SA, Samsung Corporation Limited, Sony Corporation, Toshiba Corporation Considered In the Report • Geography: Middle East & Africa • Historical year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecasted year: 2027 Countries covered: • Saudi Arabia • UAE • South Africa • Qatar Aspects Covered In the Report • Market Size By Value for the historic time period (2016-2021) • Market Size By Value for the forecast time period (2022-2027) • Market Share by Type (Primary & Secondary) • Market Share by Technology (Lead acid Battery, Lithium ion Battery, Nickel metal hydride Battery, Nickel cadmium Battery & Other Batteries) • Market Share by Application (Automotive Batteries, Industrial Batteries & Portable Batteries) • Market Share by Country The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the battery manufacturers, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.