Market Trends of Middle-East and Africa Battery Energy Storage System Industry
This section covers the major market trends shaping the MEA Battery Energy Storage System Market according to our research experts:
Lithium-ion Battery Segment to Dominate the Market
- In terms of technology, lithium-ion batteries are in huge demand in the Middle East and Africa Advance Energy Storage Market. These batteries are also being used for the storage of energy from renewable energy sources such as solar and wind in the region.
- 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.
- Lithium-ion battery storage is driven by the factors such as increased usage in the automotive industry and the declining costs of batteries.
- Lithium-ion systems have a number of 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.
- The demand has been growing at a negligible rate in the less developed nations of the Middle East & Africa. In the Middle Eastern region, most of the countries are dependent on crude oil production.
- In Africa, lithium-ion battery deployment is on the rise. The cost has dropped considerably in the past decade, primarily as the Li-ion market can provide longer ranges to electric cars, which is showing to be probably ten times more lucrative than the storage market.
- It's a commercially available technology with a decade of deployment that provides some certainty of performance.
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United Arab Emirates is Expected to Witness Significant Growth in the Market
- United Arab Emirates is an emerging market in the renewable energy sector. It is expected to undertake several renewable energy projects that are likely to foster the increase in demand for battery storage systems.
- One of the main drivers in the country is the steps taken in reliance on clean and renewable energy, which is leading the country to invest significantly in the development of renewable storage systems. Renewable energy projects will generate more than 70 GW of power by 2050, witnessing an investment of USD 700 billion.
- The country's renewable energy installed capacity reached 2706 MW in 2021, and the strong push for the adoption of renewable energy led by investments such as the USD 27.2 billion Dubai Green Fund to support the Shams Dubai initiative, a program aimed at promoting the installation of rooftop solar panels.
- Additionally, The 'UAE Energy Strategy 2050' aims to increase the contribution of clean energy to the country's overall national energy mix, to 50%, by 2050, thereby creating demand for energy storage systems in the forecast period.
- Among the Middle-Eastern countries, UAE has the most favorable environments for energy storage and is one of the Arab countries with ongoing energy storage projects with serious future adoption ambitions.
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