Report Overview

Rising energy demand in emerging economies and governments’ supportive initiatives toward the clean energy sector are expected to boost the growth of the Middle East and Africa renewable energy market during the forecast period between 2023 and 2029.

Middle East and Africa Renewable Energy Market - Industry Trends & Forecast Report, 2029

Middle East and Africa renewable energy market size was estimated to be worth USD 48.13 billion in 2022. During the forecast period between 2023 and 2029, the Middle East and Africa renewable energy market size is projected to grow at a CAGR of 13.91%, reaching a value of USD 105.12 billion by 2029. Major growth factors for the Middle East and Africa renewable energy market include rising energy demand in emerging economies because of the flourishing commercial and industrial sectors. As a result, governments of the MEA region are significantly investing in the clean energy sector to meet the growing demands, which is anticipated to drive market growth during the forecast period.

Middle East and Africa Renewable Energy Market – Overview

Renewable energy is energy generated from renewable sources that will naturally be replenished over a human timescale. Sunlight, wind, rain, tides, and geothermal heat are some of the most common sources of renewable energy. They provide a very effective alternative to non-renewable energy sources such as fossil fuels. These energy sources are most prominently used for electricity generation, air and water heating/cooling, transportation, and rural (off-grid) energy services. Solar and wind energy are considered extremely economical, which makes them popular.

Middle East and Africa Renewable Energy Market

Growth Drivers

Favorable Public-Private Investments and Initiatives

Governments and private players are increasing their investments in the renewable energy industry as a result of the MEA region's rising energy demand and consumption due to economic growth. Additionally, the goal made by a number of Middle Eastern and African nations to achieve Net Zero Emissions by 2060 is encouraging the expansion of renewable energy in the area. This includes 12 African nations, which account for more than 40% of the total CO2 emissions on the continent, according to the International Energy Agency. The agency also revealed that the Middle East's renewable energy capacity increased by 12.8% in 2022 compared to the previous year, which was the highest percentage rise of any area.

Restraints

High Upfront Investment Costs

The development of infrastructure for renewable energy is expensive and requires significant investment, which is why it is mostly found in upper middle-income nations like Saudi Arabia and the UAE. According to ProEst, the overall building cost of a commercial solar power plant, for instance, is about USD 9.3 million for 386 generators. Even a single 250 watt solar panel for home usage costs between USD 175 to USD 375. The initial investment required for renewable energy serves as a significant barrier to the market's expansion.

Impact of COVID-19 on the Middle East and Africa Renewable Energy Market

The COVID-19 pandemic disrupted the growth of the Middle East and Africa renewable energy market. The MEA nations' development of renewable energy infrastructure was hampered by lockdown restrictions. The development of the industry was stalled by the temporary halt in the manufacturing operations and supply chain disruption of renewable energy components like solar panels, wind and water turbines, microinverters, racking systems, etc. The market is anticipated to grow, nonetheless, in the years following COVID-19 owing to the rise in sustainability consciousness and rising focus towards resource conservation.

Middle East and Africa Renewable Energy Market

Segmental Coverage

Middle East and Africa Renewable Energy Market – By Type

Based on type, the Middle East and Africa renewable energy market is segmented into hydro, solar, wind, and others. The solar energy type holds the highest share in the Middle East and Africa renewable energy market. It is cost-effective and lessens power outages. Solar energy is more effective at transmitting energy than grid electricity, which frequently experiences power outages. The wind energy sector is anticipated to gain a high growth rate during the forecast period.

Middle East and Africa Renewable Energy Market – By End Use

Based on end use, the Middle East and Africa renewable energy market is divided into residential, commercial, industrial, and other segments. The industrial segment accounts for the highest market share and is projected to register the highest growth rate during the forecast period as well. The growth of this segment is attributed to the flourishing industrial sector in the MEA region. The Middle Eastern countries are significantly investing in strengthening their manufacturing sector to reduce their dependence on the oil and natural gas sector. The commercial segment is also projected to gain significant traction during the forecast period.

Middle East and Africa Renewable Energy Market – By Country

The Middle East and Africa renewable energy market covers a number of major country-specific markets across the region: Saudi Arabia, UAE, Qatar, Kuwait, South Africa, Nigeria, Algeria, and the rest of MEA. Saudi Arabia dominates the Middle East and Africa renewable energy market owing to favorable government initiatives under its Vision 2030. The 2.6 GW Al Shuaibah solar facility, the largest renewable energy project in the Kingdom, has gained momentum after completing funding overseen by the National Development Fund. Furthermore, there are also 13 renewable energy projects in the nation that have a combined capacity of 11.3 GW.

Competitive Landscape

Major players operating in the Middle East and Africa renewable energy market include MASE, Enerwhere Sustainable Energy DMCC, Solarwind ME, Akuo Energy SAS, and Yellow Door Energy.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2023 - Desert Technologies, a solar energy company based in Saudi Arabia, formed a partnership with Essar Group, an India-based multinational conglomerate, for the development of renewable energy solutions for its green steel project in Saudi Arabia.

Scope of the Report

By Type

• Hydro

• Solar

• Wind

• Others

By End Use

• Residential

• Commercial

• Industrial

• Others

By Country

• Saudi Arabia

• UAE

• Qatar

• Kuwait

• South Africa

• Nigeria

• Algeria

• Rest of MEA