The battery market in the Middle East is set to rise, on the back of increasing demand from data centers as data centers are evolving digital infrastructures for cloud services, The battery market will be driven by declining lithium-ion battery prices, increasing adoption of electric vehicles, and growing renewable energy sector.
The market for battery is expected to grow in the Middle-East. Battery market is expected to grow at a CAGR of more than 2.9% during the forecast period 2022 – 2031.
Battery market includes declining lithium-ion battery prices, increasing adoption of electric vehicles, and growing renewable energy sector. 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 block chain network.
Batteries of lead acid are expected to dominate the market over the forecast period due to its low cost and usage in a wide range of applications.
Middle-East region country, is expected to provide a considerable opportunity for the battery manufacturers and suppliers owing to the increasing EV adoption through a mix of incentives, infrastructure, and state fleet usage by Jorden.
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.
MARKET DOMINATED BY LEAD ACID BATTERIES
The lead-acid batteries are expected to dominate the market in both developed and emerging economies of the Middle-East region during the forecast period. The reason behind the expected growth is mainly due to the low cost of lead-acid battery, 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 the low cost, lead-acid batteries are preferred when the price is more important than the energy-to-wait-ratio. For example, in backup storage.
Lead-acid batteries in automotive applications contribute to more than 60% 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.
On average, each automobile manufactured contains approximately 12 kilograms of lead. Around 96% lead is used in the common lead-acid battery, while the remaining 4% in other applications including wheel balance weights, protective coatings, and vibration dampers.
As of 2019, the import and export values of lead-acid accumulators of a kind used for starting piston engine across Middle-East countries like Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar are USD 587.269 billion and USD 28.42 billion, respectively.
Therefore, based on above-mentioned factors, lead-acid battery is expected to maintain its growth momentum alongside lithium-ion batteries for Middle-East region during the forecast period.
UAE TO Dominate the Market
The United Arab Emirates is likely to dominate the market over the forecast period due to the increasing demand for consumer electronic goods and increasing automotive sales, which in turn is expected to boost the overall battery demand i.e. both primary and secondary.
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, as of 2019.
September 2017,The United Arab Emirates government is targeting to have 42,000 electric cars on the roads soon.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.
Therefore, these factors are expected to drive the demand for EV batteries, which in turn, is expected to drive the battery market over the forecast period in the United Arab.