Middle East & Africa Electric Vehicle Battery Market Outlook, 2027

Electric vehicle has more benefits over conventional fuel based vehicles which are low operational cost, zero carbon emission and they use electricity as their fuel. Concerns about environmental pollution are leading consumers to change their attitude towards electric vehicle and growth of the electric vehicle market. Increase in consumers demand and investments into battery technology in this region are the key factor for the growth of the electric vehicle battery market. Since 2018, General motors’ have registered sale of 100 of Bolt electric vehicle and will be introducing new product line in UAE. The high per capita income opens a huge opportunity for luxurious EV segment. Government is providing favorable policies in order to increase adoption of EV under 2020 carbon emission reduction target. This segment will create new effective opportunities that will impact this EV battery market growth in the forecast period to 2027. Countries including in this region have oil as their main resources of national revenue. With that factor, new renewable energy and clean transportation technologies are supporting the economic growth of the country. With the vision of 2030 plan, the government sets target to reduce the reliance on oil and diversify the economy. As increasing demands of electric vehicle, need for efficient charging system is also increasing. This attribute is positively influencing the growth of the electric vehicle battery market. According to the research report “Middle East and Africa Electric Vehicle Battery Market Outlook, 2027" published by Bonafide Research, the electric vehicle battery market is growing rapidly. MEA Electric vehicle battery market is expected to grow with the CAGR of more than 27% by 2027. On the basis of countries, MEA region is segmented into three major sections which are UAE, Saudi Arabia and South Africa. Saudi Arabia is accounted to have highest market share in forecast years. Tesla entered the electric vehicle market and changed the scenario of the whole situation. This factor gave government a motive to focus on producing and manufacturing electric vehicles and the batteries required for that. Government initiated the processes to make fully electric vehicle in UAE especially in Dubai. Dubai is working efficiently with the long term goal of entire electrification of the conventional vehicles. It has launched several aspects over the past few years to encourage sustainable choices among the residents. Dubai sets the aim to build 200 charging stations to support the region for green mobility solutions.

The market is expected to witness substantial growth in adoption rate of electric vehicles across the region. Driving force for this battery market is the growing focus of the governments to promote the use of electric vehicles. Government is also focusing on increasing awareness about energy solutions in the renewable-based power sector. This will be the key factor for increasing demands of electric vehicle in forecast years. MEA region is expanding the fifth generation telecommunication network and implementation of Vision documents in Saudi Arabia, UAE, Qatar and Kuwait which will be the driving factor of MEA EV battery growth in the coming years. Based on the propulsion type, MEA region battery market is segmented into three major sections which are BEV (battery electric vehicle), PHEV (plug-in electric vehicle) and HEV (hybrid electric vehicle). Due to high supportive nature of government, the demand of battery electric vehicle is increasing in Middle East countries. BEV is the dominating electric vehicle segment because of various advantages over conventional vehicles such as zero carbon emissions, no noise, light weight, attractive models etc. Major portion of Gulf nations are attracted towards the battery electric vehicle segment. Based on the battery type, Lithium Ion battery leads the market with highest market share. Battery is the important component of an electric vehicle as it is the main source for the fuel. Battery type defines the performance of electric vehicles. Major need for batteries directed manufacturers such as Panasonic and LG Chem have decided to expand their manufacturing plants to accelerate the production of electric vehicle battery and to help in growth of the EV battery market with sharing the high share value. The impact of COVID-19 pandemic is inevitable in the case of Middle-East and African electric vehicle market. This situation affected each and every industry present in the region. Due to continuous lockdowns, manufacturing units were closed. With social distancing norms to follow and limited staff available to run productions lines with all safety measures. This factor directed into slowdown of the electric vehicle battery market. To overcome this situation government initiated incentives for the electric vehicle battery market and focused on spreading awareness about electric vehicle to normalize the situation as well as to conserve the environment.

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Manmayi Raval

Research Consultant

Major Companies present in the market Volkswagen AG, Toyota Motor Corporation, Tesla Motors Inc., Zhejiang Geely Holding Group Co. Ltd, Nissan Motor Co. Ltd Considered in this report • Geography: Global • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Middle East and Africa electric vehicle battery market with its value and forecast along with its segments • Country-wise electric vehicle battery market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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Countries covered in the report • United Arab Emirates • Saudi Arabia • South Africa Types of batteries in the report • Lithium-Ion battery • Lead Acid battery • Others (Nickel Metal Hybrid battery, Sodium Ion battery and Solid state) By Propulsion Type in the report: • Battery Electric Vehicle • Plug-In Hybrid Electric Vehicle • Hybrid Electric Vehicle Type of Vehicle in the report: • Passenger Vehicle • Commercial Vehicle The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to EV battery industry, 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.