Saudi Arabia Battery Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Battery Market Size

Saudi Arabia Battery Market Trends & Market Drivers

Recycling of Batteries Is Foremost Trend

• The recycling of batteries is trending in the kingdom, as the availability of different cathode and anode materials is limited in Saudi Arabia. Most vehicles, such as motorcycles, scooters, buses, trucks, and cars, use batteries for engine starting, HVAC, lighting, and many other auxiliary purposes.
• This leads to a large volume of end-of-life batteries, which should be recycled to avoid a negative impact on the environment, especially from the incorrect disposal of SLA variants.
• Apart from reducing the harmful effect on the environment, recycling helps re-extract the minerals from the batteries, leading to their cost-effective and easy availability for battery companies.
• Moreover, Saudi Arabia’s government is investing in the recycling industry, especially vehicle batteries, as they also contain a significant amount of plastic. Recycling plastic aligns with the idea of a circular supply chain and promotes sustainability.

Increasing Electric Vehicle Sales Are Key Driver for Market

• The emergence of electric vehicles is driving this market, as they run on battery packs. The higher the speed and longer the driving distance, the heavier duty the battery needs to be.
• With the desire to reduce carbon emissions, people are shifting toward electric vehicles, which come in hybrid, battery, and plug-in hybrid models.
• With a focus on renewable transportation, to reduce its oil dependence, Saudi Arabia is focusing on the electric vehicle market. Ceer, an electric car manufacturer supported by the Public Investment Fund (PIF), plans to establish an EV manufacturing plant in the kingdom.
• Moreover, the PIF has aimed to produce 500,000 EVs by 2030, up from the 150,000-unit target for 2026.
• The partnership between South Korean automotive manufacturer Hyundai and the PIF will construct an automobile plant in Saudi Arabia, which will manufacture about 50,000 vehicles by 2025.
• With Vision 2030, the kingdom’s National Industrial Development Center (NIDC) has a goal to attract a few automobile equipment manufacturers for internal combustion engine and electric automobiles, who will produce 300,000 vehicles annually by 2030 with 40% local content.

Lack of Infrastructure Is a Key Challenge Observed

• The lack of infrastructure, high cost of labor, and limited number of local suppliers are restraining the automotive manufacturing market, which will also affect the battery market negatively.
• Despite intending to produce 500,000 EVs annually by 2030, the country’s only automotive factory, which opened in September 2023, has manufactured merely 800.
• If the production volume does not rise, the demand for mid- and high-capacity Li-ion batteries is unlikely to increase.

Saudi Arabia Battery Market Analysis

Battery Insights

• The secondary category holds the larger share, of 65%, in 2024, and it will grow with the highest compound annual growth rate in the forecast period. Due to their rechargeable properties, secondary batteries are widely popular in EVs, consumer electronics, energy storage systems, and medical devices.
• Another reason for their popularity is their high energy efficiency and renewable energy integration capability, which reduces the dependence on fossil fuels for high-power applications, such as grid storage and electric mobility. Lithium-ion secondary batteries are used in many applications due to their fast rechargeability and long-lasting ability.
• Moreover, Saudi Arabia has become the first Middle Eastern country to establish pipelining capacity in lithium processing, after signing an agreement with EV Metals Group to install a battery chemical complex in Yanbu Industrial City.
• For the development of the automobile industry, Saudi Arabia is committed to sourcing lithium from overseas for the production of EV batteries.

The battery types covered in the report include:

• Secondary (Larger & Faster-Growing Category)
  • Li-Ion
  • NiMh
  • Ni–Cd
  • Lead–acid
  • Ag–Ca
  • Enhanced flooded
• Electronic
  • Button/coin
  • Alkaline
  • Lithium
  • Zn–C

End Use Insights

• The energy storage system (ESS) category holds the largest Saudi Arabian battery market share, of 40%. Every industry depends on a range of equipment, computer hardware, and machines, which are often susceptible to overcurrent and voltage spikes. The ESS plays a crucial role here by supplying a consistent amount of electricity, via an inverter, in the event of a grid outage.
• Energy storage systems are being used as a consistent renewable energy supply system in many industries for flexibility, enhanced grid reliability, and improved power quality.
• ESSs are available in many types, including those that connect to the electricity grid and those that source energy from an on-site renewable energy plant, such as windmill or solar array. They are being rapidly adopted in the residential sector of Saudi Arabia due to the common nature of grid power loss and voltage fluctuation.
• The automobile sector is the fastest-growing end user in the market, with a CAGR of 15.7%. After becoming the biggest oil producer, Saudi Arabia now wants to be a hub for EVs and their batteries. The government aims to have 30% of the cars on the roads of Riyadh be electric by 2030.
• The government is spending billions of dollars become competitive in the EV industry, with the major focus being the production of 500,000 EVs annually by 2030.
• Batteries and motors are the most-important components of EVs; therefore, as the production and sale of EVs grow, so will the demand for automotive batteries.

The following end uses are included in the report:

• Energy Storage Systems (Largest Category)
  • Commercial UPS
  • Industrial UPS
  • Others
• Automotive (Fastest-Growing Category)
• Electronic Devices
  • Watches
  • Remote controllers
  • Mobile phones
  • Others
• Others

Lifespan Insights

• The 5–15 years category is the largest in this market, with a 2024 share of 45%. Batteries that last up to 15 years are widely used for power backup purposes in residential, commercial, and industrial areas.
• The lifespan of a battery depends on many factors, such as the depth of discharge, frequency of discharge, average temperature, typical discharge output, charge routine, and storage conditions.
• When dealing with the unreliable grid infrastructure in Saudi Arabia, these batteries lower the long-term operating costs and provide emergency backup.
• The 15–20 years category is the fastest-growing in this market, with a CAGR of 16.0%. These alternatives are popular in the EV sector as they provide lower operational costs to electric vehicles. High-end electric vehicle batteries boast a driving range of 100,000 to 200,000 miles over their lifetime, which is mostly provided by those that last up to 20 years.
• Lucid Group, an American company, inaugurated its EV manufacturing plant in Jeddah in 2023. Starting with 5,000 units in first phase, the output is expected to reach 155,000 units per annum in the coming years.

The lifespans covered in the report are:

• 1–5 years
• 5–15 years (Largest Category)
• 15–20 years (Fastest-Growing Category)
• More than 20 Years

Al-Riyadh Is Largest Province

• Riyadh holds the largest share, of 35%, in the forecast period. The upcoming housing and commercial projects are projected to increase the demand for high-capacity battery energy storage systems.
• Al Fursan, a new residential suburb being developed in Riyadh with an investment of SAR 24 billion, aims to become the largest residential area in Saudi Arabia. This 35-million-square-meter project will provide 50,000 residential units and 190 facilities, which will boost the demand for batteries for ESSs.

The provinces analyzed in this report include:

• Al-Riyadh (Largest Provincial Market)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region (Fastest-Growing Provincial Market)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Battery Market Share

The battery market in Saudi Arabia is quite diverse and competitive, which makes it fragmented. Batteries are needed in many applications, and for each, many companies offer these products. Many companies supply both types of batteries with varying voltage, current, and lifespan ratings. With Vision 2030, there is a good opportunity for new companies to enter the battery industry in Saudi Arabia.

Saudi Arabia Battery Industry News

• In April 2024, C&D Technologies Co. introduced its high-tech telecom battery, which delivers cost-savings and long-lasting backup power.
• In May 2023, Panasonic Marketing Middle East & Africa FZE announced a partnership with Ahmed Abdulwahed Trading Co., a battery distributor for domestic applications in Saudi Arabia.
• In February 2021, Arabian Power Electronic Company (APEC) inaugurated a new production facility in Dammam, which will produce an extensive range of industrial and commercial UPS systems, industrial battery chargers/rectifiers, and frequency converters; integrate variable-frequency drives, execute solar projects, and develop customized products as per clients’ specific requirements.