Market Trends of Middle-East and Africa Consumer Battery Industry
This section covers the major market trends shaping the MEA Consumer Battery Market according to our research experts:
Lithium-ion Battery Expected to Witness Significant Growth
- The unique properties have made lithium-ion batteries the power sources for many consumer electronics manufacturers, with a production of the order of billions of units per year. Historically, the lithium market has been driven by battery demand - particularly from consumer electronics.
- The price of LIB is usually high, as compared to other batteries. However, leading players in the market have been investing, in order to gain economies of scale and in R&D activities, to improve LIB's performance and price.
- Lithium-ion batteries find application in a wide range of consumer goods, like smartphones, wearables, laptops, digital cameras, remote controls, and gaming devices.
- Lithium-ion batteries are safer and have higher capacity power packs and are more economical than other alternatives for long-term use.
- Also, Li-ion batteries have a low self-discharge rate when not in use, which ensures a long battery life. Therefore, li-ion batteries are widely preferred for portable consumer electronic devices.
- In addition, most market participants in the region have shifted their focus to rechargeable batteries, such as lithium-ion. As a result, primary lithium batteries and rechargeable batteries are being adopted for various consumer electronics applications in the coming years.
- Further, the growing economies in the region are likely to foster the sales of devices and are expected to drive the market being studied. The increasing number of portable consumer electronic devices that rely on batteries, such as digital cameras, music players, and remote controls, is expected to drive the demand for consumer batteries. Countries such as United Arab Emirates and Saudi Arabia are the major hotspot for consumer batteries in the market studied. The primary factor attributing to this is the high population and consumer spending in the country.
- Therefore, owing to the above points, lithium-ion batteries are expected to witness a significant growth in Middle-East and Africa region during the forecast period.
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Saudi Arabia Expected to Dominate the Market
- Saudi Arabia is one of the strongest and largest economies in the Middle-Eastern region. The country is a huge attraction for travel and tourism because of which it has a huge hospitality sector, which includes lavish hotels and restaurants. These hotels and other recreational places mostly provide their customer with all the luxuries including electrical equipment, such as TVs, air conditioners, music systems, video games, and several other appliances that use consumer batteries in every rooms. Before the pandemic, the country's hospitality sector was on the rise for several years and generated a significant market for the consumer batteries.
- Furthermore, the commercial sector has been growing over the recent past with major upcoming projects, and the scenario is expected to continue over the forecast period. For instance, in 2021, the country is developing Qiddiya City, which is being represented to be a capital of entertainment, sports and the arts in Saudi Arabia. The project is expected to completed by 2023, and includes the construction of several hotels, inns, and has 5000 residency capacities. The formation of the city is expected to increase the demand for batteries.
- The country's residential sector is a significant end-user for consumer battery that are used in watches, video games, flashlights, etc. The country has its plants to expanding its residential area fro which in launched several projects related to developing new area.
- For instance, in 2017, the country launched its NEOM city project. NEOM is likely to provide home and workplace to more than a million residents from around the world. It includes towns and cities, ports and enterprise zones, research centers, sports and entertainment venues, and tourist destinations. The city after its development in 2025, is expected to increase the demand for consumer battery in the new residential areas.
- Therefore, owing to the above points, Saudi Arabia is anticipated to dominate the consumer battery market in the Middle-East and Africa region.
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