Energy - Industry - MEA Market, Share and Trends 2023-2028

Summary of Energy

The energy markets across the Middle East and Africa (MEA) region have undergone rapid changes in recent years due to economic growth, energy demand increases and the global transition to more sustainable sources. However— the COVID-19 pandemic introduced additional challenges as well as opportunities for innovation.

According to our analysis of industry data and proprietary consumer insights, some overarching trends include the continued importance of oil and gas resources for regional energy security and exports, investments in large-scale renewable projects, expanding natural gas utilization, focus on energy access and the role of new technologies. Younger consumers have also driven demand for greater transparency and sustainability commitments.

By thoughtfully navigating ongoing dynamics— players across the MEA energy sector can build resilience and pave the way for long-term sustainable growth and development across diverse national contexts. Strategic planning and targeted policies will be key.

Recent Trends and Insights

Continued reliance on oil and gas resources which account for majority of exports and budget revenues in the Gulf, although diversification is increasing. Rapid growth of utility-scale renewable energy projects mainly solar and wind as costs decline and countries address rising domestic demand and seek to diversify their energy mixes.

Expanding natural gas trade both via pipelines and LNG as a “bridge fuel” to support economic growth while enabling transition to cleaner sources. Focus on expanding energy access through electrification and off-grid solutions particularly in rural areas across Africa to support development.

Emphasis on digitalization and customer-centric solutions centered around efficiency, optimization and new business models. The MEA region has experienced significant growth in the use of sustainable energy technologies that is driven by the need to diversify energy sources, reduce greenhouse gas emissions and harness the region’s vast renewable resources.

Most countries in the region have set renewables targets ranging from 13 to 52% of installed capacity by 2030. The competition with traditional sources of energy, mainly— fossil fuels such as oil and natural gas; MEA countries have vast solar and wind resources, which are dominating the energy environment from a long time.

Product Insights

Thermal generation from natural gas, oil and coal currently dominates the power sector across much of the region. However, renewable energy capacity is growing rapidly, led by utility-scale solar and wind projects undertaken to diversify energy mixes and address rising domestic demand. Countries with high potential like Saudi Arabia, UAE and Morocco have ambitious solar targets. Egypt is also expanding wind and solar capacity. Some nations like— Algeria rely heavily on hydropower. Geothermal is an option for East African countries like Ethiopia and Kenya.

The MEA region holds over half of global oil and gas reserves crucial for energy security and exports. The Gulf remains the top producer and exporter bloc. However— output is diversifying as economies evolve – natural gas production and trade is expanding both via pipelines within the region and as LNG for export to Asia and elsewhere. Countries are also pursuing downstream growth and becoming global petrochemical hubs.

Investments are increasing across the energy technology space. Areas attracting focus include smart grid technologies, battery energy storage, carbon capture utilization and storage (CCUS) and hydrogen. Countries rich in renewable energy potential are exploring opportunities around green hydrogen production using solar and wind power. Energy efficiency solutions tailored for the region’s climate are also gaining ground.

Key Companies

Some major players within this vast domain of industry are

• Enel Green Power S.p.A.
• Iberdrola S.A.
• Aes gener sa
• Vestas Wind Systems A/S
• Electricite de France SA
• Chevron Corporation
• Petrobras
• Exxon Mobil Corporation

Regional Analysis

The MEA region’s oil and gas producers are especially vulnerable to the effects of climate change and the worldwide initiatives aimed at reducing it. This water-stressed area needs to cut back on greenhouse gas emissions because of the serious effects of climate change which range from prolonged droughts to rising temperatures. At the same time— many MENA countries are economically dependent on oil and gas exports, which could come under growing pressure from global efforts to decarbonise the energy sector. MENA countries must therefore find a way to accelerate development of clean energy while diversifying their economies away from reliance on oil and gas revenues.

Saudi Arabia, UAE and others are increasingly investing in renewable energy and natural gas infrastructure to diversify their oil-dependent economies and energy mixes over the long-term. The region has among the highest solar irradiation levels globally and is well-positioned for cost-competitive renewable development.

Countries like Morocco, Egypt and Jordan are utilizing their renewable energy potential through large-scale solar and wind projects. Regional cooperation on electricity trade also supports energy transitions and access goals. Geothermal represents untapped potential.

Israel has successfully integrated high levels of solar while addressing intermittency through battery storage. Nearby Jordan is also expanding its use of indigenous renewable resources. Conflicts pose challenges for infrastructure development.

Sanctions-hit Iran aims to expand its natural gas sector and renewable capacity to meet growing domestic demand and reduce oil dependency. However, economic pressures remain a barrier to transition investments.

Countries are working to expand energy access through off-grid and mini-grid solutions incorporating solar, wind and other renewables suited to decentralized applications and the region’s resource potential. Regional power pools also help.

Market Segmentation

By Type:

• Oil & Gas
• Coal
• Nuclear
• Hydroelectric
• Wind
• Solar
• Other Renewables

By End User:

• Residential
• Commercial
• Industrial
• Transportation

By Enterprise Size:

• Large Enterprises
• Small & Medium Enterprises

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of the Middle East and Africa’s regional energy market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.