Renewable Energy Market Analysis Middle East and Africa - Size and Forecast 2024-2028

Middle East and Africa Renewable Energy Market Size 2024-2028

The Middle East and Africa renewable energy market size is forecast to increase by USD 17.28 billion at a CAGR of 8.88% between 2023 and 2028.

• The renewable energy market in the Middle East and Africa is experiencing significant growth due to increasing energy demand and the rising popularity of clean energy technologies. Solar energy, harnessed from the abundant sunlight in these regions, is a major focus. However, off-grid power solutions are also gaining traction to address power outages, particularly in remote areas. Wind energy, though dependent on weather conditions, is another promising source. Rain, tides, waves, and geothermal heat are also being explored for their potential. The environmental impact of these technologies is a crucial consideration, with efforts underway to minimize disruptions to ecosystems. Competition from alternative energy sources, such as fossil fuels, remains a challenge. One of the primary reasons for the growth of the renewable energy market in the Middle East and Africa is the need to reduce greenhouse gas (GHG) emissions. Overall, the renewable energy market in the Middle East and Africa presents significant opportunities for growth, driven by the region's unique energy resources and the global shift towards sustainable energy solutions.

What will be the size of the market during the forecast period?

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• The renewable energy market in the Middle East and Africa is witnessing significant growth due to various factors. The region's abundant natural resources, including sunlight, wind, rain, tides, waves, and geothermal heat, make it an ideal location for renewable energy generation. This shift towards clean energy is driven by several key trends and challenges. The region is home to some of the world's largest fossil fuel reserves, making it a significant contributor to global GHG emissions. Renewable energy sources, such as solar, wind, hydro, and biomass, offer a viable alternative to traditional gas-based power generation. Another factor driving the renewable energy market in the Middle East and Africa is energy security. The region is heavily reliant on imported fossil fuels, making it vulnerable to price volatility and supply disruptions. Renewable energy sources offer a more stable and secure energy supply, reducing the region's dependence on imported fuels. Despite the numerous benefits of renewable energy, there are also challenges that need to be addressed. One of the main challenges is the environmental impact of renewable energy generation.

  For instance, the production of solar panels and wind turbines requires the use of raw materials and energy-intensive manufacturing processes. Additionally, the construction of hydroelectric power plants can have significant environmental impacts, including the displacement of communities and the destruction of habitats. Another challenge is the high upfront costs of renewable energy projects. Solar and wind energy, in particular, require significant capital investment for the installation of solar panels and wind turbines. However, the long-term cost savings and the environmental benefits make renewable energy a worthwhile investment. The renewable energy market in the Middle East and Africa is expected to continue growing in the coming years. In conclusion, the renewable energy market in the Middle East and Africa offers significant opportunities for growth. The region's abundant natural resources, the need to reduce GHG emissions, and the desire for energy security are driving the shift towards renewable energy. While there are challenges, such as the environmental impact and high upfront costs, these can be addressed through sustainable practices and innovative technologies. The renewable energy market in the Middle East and Africa is poised for growth, and it is an exciting time for investors, developers, and policymakers to be a part of this transformation.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • Residential
  • Industrial
  • Commercial
• Type
  • Hydropower
  • Wind
  • Solar
  • Others
• Geography
  • Middle East and Africa

By End-user Insights

• The residential segment is estimated to witness significant growth during the forecast period.

The residential sector is a significant consumer of energy worldwide, leading to energy inefficiency and negative environmental impacts. These impacts include air pollution, greenhouse gas emissions, and the urban heat island effect, which can negatively influence human health and social and economic development. To mitigate these issues, transitioning to renewable energy sources is crucial. Renewable energy, such as solar and wind, offers a sustainable solution to meet the increasing energy demands of the residential sector. By utilizing clean energy, we can reduce our reliance on fossil fuels, decrease greenhouse gas emissions, and minimize pollution. Moreover, the integration of smart grids and distributed energy resources (DERs), including electric vehicles (EVs,) can further optimize energy usage and promote energy security. In summary, adopting renewable energy in the residential sector is essential for sustainable development, energy security, and environmental preservation.

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The Residential segment was valued at USD 16.57 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the Middle East and Africa Renewable Energy Market?

The rise in energy demand is the key driver of the market.

• In the Middle East and Africa (MEA) region, the energy sector is experiencing significant growth due to population expansion, urbanization, and industrialization. This increasing energy demand has led to a heightened focus on renewable energy sources to meet sustainability objectives and ensure energy security. Notable examples of this trend include the UAE's commitment to diversifying its energy mix through projects like the Noor Abu Dhabi solar facility, the world's largest single-site solar project. Egypt, too, is pursuing ambitious wind and solar initiatives, such as the Benban Solar Park, to decrease reliance on fossil fuels. Renewable energy adoption not only addresses environmental concerns but also enhances energy resilience amidst volatile oil prices.
• Hydropower systems, solar power generation, and other alternative energy sources are becoming increasingly essential for energy self-sufficiency in the MEA region. Moreover, these renewable energy projects offer additional benefits, including flood control, clean drinking water, and irrigation support. Energy efficiency and emission reduction are also critical factors driving the adoption of renewables. Governments and businesses in the MEA are implementing feed-in tariffs to incentivize renewable energy investments and foster a sustainable energy future.

What are the market trends shaping the Middle East and Africa Renewable Energy Market?

The rising popularity of clean energy technologies is the upcoming trend in the market.

• The Middle East and Africa (MEA) region is experiencing notable growth in the adoption of renewable energy technologies. This trend is fueled by the imperative to diversify energy sources, decrease greenhouse gas emissions, and capitalize on the region's abundant renewable resources. Solar energy has seen substantial growth, with projects like Morocco's Noor Complex and Egypt's Benban Solar Park showcasing substantial investments. Wind energy is also gaining traction, with initiatives such as Oman's 850 MW Wind Power Project. Moreover, countries like Saudi Arabia are making substantial investments in green hydrogen production. MEA acknowledges that sustainable energy is not only beneficial for the environment but also for economic growth.
• The region's renewable energy industries, including solar, wind, hydro, geothermal, and biomass, are expected to continue expanding in the coming years. These industries will contribute significantly to the region's energy mix and reduce dependence on traditional fossil fuel sources. Additionally, off-grid power solutions will play a crucial role in providing electricity to remote areas, reducing power outages, and improving energy accessibility. The MEA region's renewable energy market is poised for substantial growth, driven by both environmental and economic considerations.

What challenges does the Middle East and Africa Renewable Energy Market face during the growth?

Competition from alternative energy sources is a key challenge affecting the market growth.

• In the Middle East and Africa (MEA), the shift towards renewable energy sources is gaining momentum as countries seek to reduce their reliance on traditional fossil fuels and meet increasing electricity demand. Biogas plants, Solar Photovoltaic (PV) systems, Hydropower, Wind power, Bioenergy, and Geothermal energy are among the alternative energy sources being explored in the region. However, the expansion of renewable energy faces challenges, as MEA countries possess abundant solar and wind resources but compete with historically dominant fossil fuels like oil and natural gas. Nuclear power and large-scale hydropower projects, such as the UAE's Barakah Nuclear Power Plant and Ethiopia's Grand Ethiopian Renaissance Dam (GERD), also compete for attention. To foster sustainable renewable energy development, MEA governments must prioritize energy source diversification and implement supportive regulatory frameworks. This will help create a level playing field for renewable energy and encourage investment in this sector.

Exclusive Middle East and Africa Renewable Energy Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Acciona SA
• ACWA Power International
• AKER HORIZONS
• AKUO ENERGY SAS
• AMEA Power
• Electricite de France SA
• Enel Spa
• Enerwhere Sustainable Energy
• ENGIE SA
• IBC SOLAR AG
• Masdar
• MVV Energie AG
• PV Technology Inc.
• Saudi Arabian Oil Co.
• Scatec ASA
• Siraj Power Contracting LLC
• SolarAfrica Energy Pty Ltd.
• Solarwind M.E.
• SunPower Corp.
• Yellow Door Energy

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The renewable energy market in the Middle East and Africa is witnessing significant growth due to the increasing focus on low-carbon fuels and the need to reduce greenhouse gas (GhG) emissions. Solar energy and wind energy are leading the charge in this transition, with solar power generation and solar photovoltaic (PV) systems becoming increasingly popular. Biomass feedstock is also being explored as an alternative energy source, with biogas plants and hydropower systems playing a crucial role in the region's energy landscape. Renewable energy is not only contributing to electricity demand in the commercial and residential sectors but is also being used for off-grid power in remote areas, providing solutions for power outages. The region's abundant sunlight, wind, rain, tides, and waves make it an ideal location for renewable energy generation. Hydroelectric power, geothermal energy, and bioenergy are also gaining traction in the region.

Moreover, the renewable energy is not just about energy self-sufficiency but also provides benefits such as flood control, clean drinking water, and irrigation support. The transition to renewable energy is also driven by the need for energy efficiency and emission reduction. Smart grids and distributed energy resources (DERs) are being adopted to ensure the efficient use of renewable energy and improve energy security. The electrification of transportation through electric vehicles (EVs) and vehicle-to-grid (V2G) technology is another area of focus. The renewable energy capacity in the Middle East and Africa is expected to grow significantly in the coming years, with utility projects and infrastructure investment playing a crucial role in the market's expansion. The renewable energy generation market is poised to make a significant contribution to carbon reduction and environmental commitments while reducing air quality concerns and mitigating the environmental impact of fossil fuels.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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