The Middle East lead-acid battery market is expanding significantly, propelled by the factors such as the rise in renewable energy usage, the expansion of the automotive industry, and the rising demand for backup power solutions. With numerous companies, the market is quite competitive. The industry is anticipated to maintain its growth trajectory during the forecast period, offering attractive prospects for market players.
The Middle East has participated in and benefited from the last 25 years' telecommunications revolution. Most nations in the region have liberalized their telecom businesses and placed themselves on a sustainable, dynamic growth path since 2000. While some states retained large stakes in telecom, they also introduced competition though to varying degrees in the market, formed competent regulatory authorities, and moved investment to the private sector.
The region is characterized by some of the highest rates of penetration in mobile telephony in the world. According to the Gulf ICT Use Index and International Telecommunications Union (ITU) data, the prevalence of internet and telecommunications services in GCC countries is much higher than the global average. It is nearly the greatest in all regions, with the proportion of internet users in GCC countries compared to the population reaching 98.21%, while the global average is 63%. Total mobile customers in GCC countries account for around 137.66% of the population, while the global average is approximately 55%.
Telecom operators in the GCC Arab states are among the world's 5G leaders, with competition and government support driving the launch of some of the world's first and fastest next-generation mobile networks. The Gulf countries - the UAE, Saudi Arabia, and Qatar - have been the pioneers in rolling out 5G technology and offering it commercially.
Although 5G operates at high speeds, it does not reach as far as 4G. Furthermore, large buildings and trees may block the frequency of the 5G network, causing a variety of issues. As a result, more towers are required for coverage. As each network tower needs a backup power system such as a UPS, with the fast adoption of 5G, the demand for lead-acid batteries will also increase.
Data centers are integral to the digitalization efforts of enterprises and organizations across the Middle East. As the majority of middle east companies are digitizing their businesses, there is a massive requirement for keeping data in a safe and efficient environment.
Some of the major countries such as UAE, Israel, Qatar, and Bahrain are investing in data center development. For instance, the UAE is one of the Middle East's largest data center hubs, with more planned in the future. Additional investments of up to USD 1 billion are expected by 2026. In 2019, Microsoft deployed two cloud zones in Dubai and Abu Dhabi. In 2021, Amazon Web Services announced plans for a new data center region in the United Arab Emirates. The new region, which will have three availability zones, is scheduled to open in 2022.
The Kingdom of Bahrain has launched its Cloud-First policy, which intends to increase public sector adoption of cloud computing. Under this paradigm, public entities will be required to include cloud technology into their IT strategy. More than 40 public services have successfully shifted to the cloud to date.
With the emergence of more data centers, the demand for the required power backup systems (predominantly lead acid batteries) and the replacement of existing backup systems is expected to increase.
The lead acid battery market has been dominating the global battery market for many decades the competition from alternative energy storage systems is acting as a major threat to lead acid batteries in the market. The lithium-ion battery is one of the major competitors of lead-acid battery due to its high energy density, reduced recharge time, and highly efficient compared to lead-acid batteries.
The lead-acid battery is the oldest rechargeable battery technology. They are used in a wide range of applications, including small-scale power storage such as uninterrupted power supply (UPS) systems, starting, lighting, and ignition power sources for autos. While lead-acid cells are less expensive and have high recyclability percentage than rival battery technologies, they have a much lower power density, are heavier, and have a shorter cycle life.
There are two fundamental lead-acid battery designs, which are differentiated by the electrolyte type. The flooded lead acid battery is a traditional design in which the positive and negative plates are immersed in a huge amount of electrolyte. While simple to manufacture and the most common form utilized for applications such as automobile SLI batteries, the flooded battery design has a number of potential difficulties, including stratification of the electrolyte over time and evaporation of water from the electrolyte.
The sealed lead acid (SLA) battery, also called VRLA battery (Valve Regulated Lead Acid battery). SLA batteries are available in a variety of configurations. Their primary production method, which includes the number of plates and plate thickness, determines the end-user application. SLA batteries are considered the safest lead acid battery to use since they do not decay as quickly as wet cells.
Lead-acid batteries also find a great deal of use even amid the electrical transition of the automotive industry. An electric vehicle requires two interdependent batteries: a high-voltage lithium ion battery that drives the drivetrain and an upgraded 12-volt battery that handles important offloads. Drivers rely on the 12-volt battery to safely activate the high-voltage battery and to power vehicle applications when the high-voltage system is turned off. In turn, the high-voltage battery recharges the 12-volt battery and maintains loads during the drive cycle.
The Middle East is a major market for lead-acid batteries due to the region's large fleet of automobiles, expanding telecom network, booming construction and warehousing industry, and hospitality sector, all of which use lead-acid batteries.
The Middle East is one of the largest importers of automotives in the world as the region has a very limited production capacity, with Iran being the major manufacturer. Cars have to replace the battery every three years to avoid starting and performance issues. Considering the extreme temperatures in the middle east and the average lifetime of a vehicle, each vehicle in the region has to replace the SLI battery around 5-6 times. The existing fleet of vehicles in the region and the annual additions create a huge market for the aftersales battery market.
The region is also planning to indigenously manufacture electric vehicles. For instance, in Feb 2022, Oman launched its first electric vehicle produced by Mays Motors in cooperation with the Oman technology fund and is planning to begin production by the end of 2023.
Iran, one of the major manufacturers of automobiles in the Middle East, is also reforming its automotives industry to increase productivity and reach the target of producing 1.6 million vehicles in 2022, which will increase to 3 million units by 2025. With the increasing manufacturing in the region, the demand for lead-acid batteries is expected to be robust in the future.
The Middle East has a well-established telecom network with many network towers. The region has emerged as a pioneer in adopting 5G technology and is taking initiatives to expand the telecom network as well as the data centers. These developments are expected to fuel the lead-acid industrial batteries market.
The new report from Blackridge Research on the Middle East Lead Acid Battery Market comprehensively analyses the Lead Acid Battery Market and provides deep market insights into the current and future state of the industry in the region.
The study examines the drivers, restraints, and regional trends influencing Middle East Lead Acid Battery Market demand and growth.
The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the Lead Acid Battery Market, important commercial developments, trends, countries, and segments poised for the fastest growth, competitive landscape, and market dynamics.
Further, the report will also provide the Middle East Lead Acid Battery Market size, demand forecast, and growth rates.
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the market growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.
This report discusses the market overview, latest updates, important commercial developments and structural trends, and government policies and regulations in the region.
This section provides an assessment of COVID 19 impact on Lead Acid Battery Market demand in the region.
The report provides the Middle East Lead Acid Battery Market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.
The report examines the critical elements of the Lead Acid Battery industry supply chain, its structure, and its participants.
Using Porter's five forces framework, the report covers the assessment of the Lead Acid Battery industry's state of competition and profitability.
The report dissects the Middle East Lead Acid Battery Market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
The regional analysis part of the report covers detailed profiles of major countries in the middle east region. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecast, and growth rates will be provided for all major countries.
Following are the notable countries covered under the region:
Middle East - Iran, Saudi Arabia, United Arab Emirates, and the Rest of the Middle East
This report presents detailed profiles of Key companies in the Lead Acid Battery industry. In general, each company profile includes - an overview of the company, market share, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the regional market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
The Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.
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1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
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