Middle East Rechargeable Battery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.91 Billion |
| Market Size (2029) | USD 7.80 Billion |
| CAGR (2024 - 2029) | 9.72 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle East Rechargeable Battery Market Analysis
The Middle East Rechargeable Battery Market size is estimated at USD 4.91 billion in 2024, and is expected to reach USD 7.80 billion by 2029, at a CAGR of 9.72% during the forecast period (2024-2029).
- Over the medium term, declining lithium-ion battery prices, increasing adoption of electric vehicles, and the growing renewable energy sector are expected to drive the Middle East rechargeable battery market during the forecast period.
- On the other hand, the demand-supply mismatch of raw materials is expected to hinder the market's growth during the forecast period.
- Nevertheless, the growing progress in developing new battery technologies and advanced battery chemistries and the need for battery recycling will likely create vast opportunities for the Middle East rechargeable battery market.
- The United Arab Emirates is projected to experience notable growth, potentially achieving significant growth during the forecast period, driven by its expanding consumer electronics sector and swift adoption of renewable energy installations.
Middle East Rechargeable Battery Market Trends
Lithium-ion Battery to be the Fastest Growing
- Among various battery technologies, lithium-ion batteries (LIBs) are poised to emerge as the fastest-growing segment in the Middle East's rechargeable battery market during the forecast period. LIBs are outpacing other battery types in popularity, primarily due to their superior capacity-to-weight ratio. Their adoption is further fueled by advantages such as extended performance with minimal maintenance, a longer shelf life, and a consistent decline in prices.
- Li-ion batteries boast several technical advantages over traditional technologies, notably lead-acid batteries. On average, rechargeable Li-ion batteries offer over 5,000 cycles, a stark contrast to the 400-500 cycles typical of lead-acid batteries. Moreover, Li-ion batteries demand less frequent maintenance and replacement. They also sustain their voltage throughout the discharge cycle, ensuring enhanced and prolonged efficiency of electrical components.
- In recent years, major industry players have ramped up investments, focusing on achieving economies of scale and enhancing R&D activities. This surge in competition has led to a notable drop in lithium-ion battery prices. Due to technological innovations, manufacturing advancements, and a decrease in raw material costs, the volume-weighted average price of lithium-ion batteries plummeted from USD 780/kWh in 2013 to USD 139/kWh in 2023. Projections suggest it will further dip to around USD 113/kWh in 2025 and reach USD 80/kWh by 2030. Such declining trends in battery costs are likely to make it a lucrative choice among all batteries.
- Historically, lithium-ion batteries found their primary application in consumer electronics like mobile phones and laptops. However, their role has expanded significantly. Today, they are the preferred power source for hybrids, the entire range of battery electric vehicles (BEVs), and battery energy storage systems (BESS) in the renewable energy sector.
- While the Middle East's lithium-ion battery manufacturing industry is still in its nascent stages, trailing behind global frontrunners like China, the United States, and Europe, there's a concerted effort to bolster this sector. Countries, especially the United Arab Emirates and Saudi Arabia, are making strides in battery manufacturing and related technologies. These moves aim to diversify their economies, support renewable energy goals, and address the surging demand for electric vehicles.
- For instance, in February 2024, Titan Lithium, in partnership with Khalifa Economic Zones Abu Dhabi (KEZAD) Group, unveiled plans for a state-of-the-art lithium processing facility. This AED 5 billion (~USD 1.35 billion) venture, spanning 290,000 square meters in KEZAD Al Mamourah, is set to produce battery-grade lithium carbonate and hydroxide, crucial for the lithium-ion battery and EV sectors.
- Similarly, Saudi Arabia is making significant strides in the global rechargeable battery arena. In June 2023, Obeikan Investment Group teamed up with Australian startup European Lithium to establish a lithium hydroxide refinery. The following month, Saudi state mining company Ma'aden and US-based Ivanhoe Electric secured rights to explore 48,500 sq km of the Arabian Shield for lithium and other rare metals.
- In September 2023, Saudi investment firm Energy Capital Group collaborated with US tech startup Pure Lithium to innovate batteries using lithium sourced from oilfield brines. With an initial investment of USD 50 million, this initiative aims to cater to the burgeoning demand for lithium-ion battery metals. Additionally, ERG's membership in the Global Battery Alliance underscores its commitment to a sustainable global supply chain for lithium-ion batteries. Such initiatives signal a promising trajectory for the region's lithium-ion battery industry.
- Given their lightweight nature, rapid charging capabilities, extended charging cycles, and decreasing costs, lithium-ion batteries are set to dominate the Middle East's rechargeable battery market during the forecast period.
United Arab Emirates to Witness Significant Growth
- During the forecast period, the rechargeable battery market in the United Arab Emirates (UAE) is poised for substantial growth, positioning the nation as a regional leader. This momentum is fueled by rapid industrialization, government backing for renewable energy, a burgeoning electric vehicle (EV) sector, technological strides, and the UAE's strategic economic stance in the region. Collectively, these elements foster an environment ripe for the adoption and innovation of rechargeable batteries.
- The UAE's swift industrial expansion is driving a heightened demand for dependable energy storage solutions, leading to a broader acceptance of rechargeable batteries across multiple sectors. Moreover, the nation's dedication to sustainability and renewable energy is set to play a pivotal role. With ambitions to curtail its carbon footprint and amplify the role of renewables in its energy portfolio, the UAE is bolstered by governmental initiatives championing clean energy technologies. This includes a pronounced emphasis on solar power, which subsequently elevates the demand for efficient battery energy storage systems (BESS). Illustratively, the UAE has set ambitious energy targets, aiming to escalate its renewable energy capacity from approximately 6.05 GW in 2023 to a projected 14.2 GW by 2030, more than tripling its current capacity. Such a leap is anticipated to generate a substantial demand for BESS.
- In recent years, the UAE has witnessed a swift embrace of electric vehicles (EVs). Data from the International Energy Agency (IEA) highlights this trend, noting that battery electric vehicle (BEV) sales surged to about 23,000 units in 2023, marking a notable 53% increase from the previous year's 15,000 units. This rising tide of EV adoption is poised to bolster the rechargeable battery market.
- Moreover, the UAE envisions electric and hybrid vehicles constituting 50% of its road traffic by 2050. With significant investments in EV infrastructure and a push for EV adoption as a strategy to combat climate change and lessen fossil fuel dependence, the demand for high-capacity, durable rechargeable batteries is escalating.
- In tandem with this surging battery demand, the UAE is making strides in battery recycling. A testament to this is the December 2023 announcement by India-based LOHUM Cleantech, marking its foray into the UAE market. Through a collaboration with the UAE's Ministry of Energy & Infrastructure and BEEAH, a leader in sustainability and digitalization in the Middle East, LOHUM is set to establish the UAE's inaugural EV Battery Recycling plant. This initiative aligns with the UAE's COP28 agenda, its Net Zero by 2050 Strategic Initiative, and its Circular Economy Policy, all while championing emissions-free mobility.
- The ambitious project will feature an expansive 80,000 sq ft facility dedicated to refurbishing and recycling Lithium batteries. With an annual capacity to recycle 3,000 tons of Lithium-ion batteries and repurpose 15MWh into Energy Storage Systems (ESS), the facility is projected to meet over 80% of the anticipated EV battery management needs.
- Advancements in battery technology, notably the emergence of solid-state batteries, are amplifying the efficiency, safety, and overall appeal of rechargeable batteries to both consumers and businesses. Highlighting this trend, US-based Statevolt, a prominent battery manufacturer, unveiled plans in April 2024 to produce solid-state battery cells in the UAE by 2026. The company is laying the groundwork for a monumental USD 3.2 billion gigafactory in Ras Al Khaimah, targeting an impressive annual output of 40 gigawatt-hours (GWh). This strategic move aims to penetrate the burgeoning export markets for battery storage and electric mobility, eyeing regions like the Middle East, Africa, and India.
- Given these dynamics, the United Arab Emirates (UAE) is set to experience a pronounced surge in its rechargeable battery market during the forecast period.
Middle East Rechargeable Battery Industry Overview
The Middle East rechargeable battery market is semi-fragmented. Some of the key players in the market (not in any particular order) include Tesla Inc., Exide Industries Ltd., Middle East Battery Company (MEBCO), EnerSys and Panasonic Corporation.
Middle East Rechargeable Battery Market Leaders
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Panasonic Corporation.
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Exide Industries Ltd.
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Middle East Battery Company (MEBCO)
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Tesla Inc.
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EnerSys
*Disclaimer: Major Players sorted in no particular order
Middle East Rechargeable Battery Market News
- April 2024: Statevolt is set to invest a hefty USD 3.2 billion in a state-of-the-art battery Gigafactory in Ras Al Khaimah, UAE. Dubbed Statevolt Emirates, the project will adopt a modular design, allowing for rapid market entry and the flexibility to diversify production based on technological advancements. Initially, the Gigafactory will focus on producing semi-solid state battery cells, utilizing cutting-edge technology to boost safety and longevity. Eventually, it will shift to producing solid-state battery cells at full capacity. Spanning 60 hectares in the Al Ghail Industrial Zone of RAKEZ, the facility aims to kick off operations by the close of 2026.
- February 2024: StarSun Sohar, based in India, has inked a land lease agreement to establish a lead battery recycling facility in Oman’s Sohar Freezone. With an investment of USD 3 million, StarSun aims to recycle approximately 1,000 tonnes of batteries monthly from the domestic market, utilizing a 7,000 m2 site. Furthermore, the company plans to export lead ingots, lead oxide, and red lead oxide to markets such as India, China, South Korea, various European nations, and intends to trade its products on the London Metal Exchange.
Middle East Rechargeable Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast, in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Increasing Adoption of Electric Vehicles
4.5.1.2 Declining Lithium-ion Battery Cost
4.5.2 Restraints
4.5.2.1 Demand-Supply Mismatch of Raw Materials
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Lead-Acid
5.1.2 Lithium-Ion
5.1.3 Other Technologies (NiMh, Nicd, etc.)
5.2 Application
5.2.1 Automotive Batteries
5.2.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)
5.2.3 Portable Batteries (Consumer Electronics, etc.)
5.2.4 Other Applications
5.3 Geography
5.3.1 United Arab Emirates
5.3.2 Saudi Arabia
5.3.3 Qatar
5.3.4 Rest of Middle East
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Panasonic Corporation
6.3.2 Tesla Inc.
6.3.3 Saft Groupe SA
6.3.4 Middle East Battery Company (MEBCO)
6.3.5 EnerSys
6.3.6 Exide Industries Ltd
6.3.7 FIAMM Energy Technology SpA
6.3.8 Statevolt
6.3.9 Statron Ltd
6.3.10 Amara Raja Energy & Mobility Limited.
6.3.11 C&D Technologies Inc.
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Progress in Developing New Battery Technologies and Advanced Battery Chemistries
Middle East Rechargeable Battery Industry Segmentation
- Rechargeable batteries are energy storage devices designed to be refill with electrical power after use, enabling multiple cycles of discharge and recharge. Unlike disposable batteries, which are single-use and must be replaced once depleted, rechargeable batteries can be reused numerous times, making them more cost-effective and environmentally friendly. These batteries come in various chemistries, such as lithium-ion, nickel-metal hydride, and lead-acid, each offering different performance characteristics suited for various applications ranging from small electronic devices to electric vehicles.
- The Middle East rechargeable battery charging equipment market is segmented into Technology, Application, and Geography. By technology, the market is segmented into lead-acid, lithium-ion, and other technologies (NiMh, NiCd, Etc.). By application, the market is segmented into automotive batteries, industrial batteries (motive, stationary (telecom, UPS, energy storage systems (ESS), etc.), portable batteries (consumer electronics, etc.), and other applications. The report also covers the market size and forecasts for the Middle East rechargeable battery market across major countries. The report offers the market size and forecasts for the market in revenue (USD) for all the above segments.
| Technology | |
| Lead-Acid | |
| Lithium-Ion | |
| Other Technologies (NiMh, Nicd, etc.) |
| Application | |
| Automotive Batteries | |
| Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.) | |
| Portable Batteries (Consumer Electronics, etc.) | |
| Other Applications |
| Geography | |
| United Arab Emirates | |
| Saudi Arabia | |
| Qatar | |
| Rest of Middle East |
Middle East Rechargeable Battery Market Research FAQs
How big is the Middle East Rechargeable Battery Market?
The Middle East Rechargeable Battery Market size is expected to reach USD 4.91 billion in 2024 and grow at a CAGR of 9.72% to reach USD 7.80 billion by 2029.
What is the current Middle East Rechargeable Battery Market size?
In 2024, the Middle East Rechargeable Battery Market size is expected to reach USD 4.91 billion.
Who are the key players in Middle East Rechargeable Battery Market?
Panasonic Corporation., Exide Industries Ltd., Middle East Battery Company (MEBCO), Tesla Inc. and EnerSys are the major companies operating in the Middle East Rechargeable Battery Market.
What years does this Middle East Rechargeable Battery Market cover, and what was the market size in 2023?
In 2023, the Middle East Rechargeable Battery Market size was estimated at USD 4.43 billion. The report covers the Middle East Rechargeable Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East Rechargeable Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East Rechargeable Battery Industry Report
Statistics for the 2024 Middle East Rechargeable Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Rechargeable Battery analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
