Saudi Arabia Automotive Battery Market to be Led by Passenger Car Segment

The Saudi Arabian automotive battery market is expected to grow due to increasing vehicle ownership, particularly in the passenger vehicle segment, along with rising disposable incomes. These factors, coupled with ongoing infrastructure development, are anticipated to drive demand for automotive batteries and support market growth from 2025 to 2029.

According to TechSci Research report, “Saudi Arabia Automotive Battery Market – Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Type (Starter Battery, EV Battery), By Vehicle Type (Passenger Car, Two-Wheeler, LCV), By Battery Type (Lead Acid, Lithium Ion, and Others), By Region, Competition, 2019-2029F”, The Saudi Arabia Automotive Battery market was valued at USD 2851.73 Million in 2023 and is expected to reach USD 3487.52 Million by 2029 with a CAGR of 15.82% during the forecast period. The Saudi Arabian automotive battery market is expected to continue its growth trajectory, driven by rising vehicle ownership, increased demand for durable and efficient batteries, and evolving consumer preferences. The shift towards electric vehicles, along with advancements in sustainable battery technology, is anticipated to create new growth opportunities, attracting investments from leading global battery manufacturers in the region.The automotive battery market in Saudi Arabia is witnessing steady growth, primarily fueled by the country’s shift toward electric vehicles (EVs). The government's Vision 2030 is accelerating the demand for EVs by promoting eco-friendly transportation options, reducing oil dependency, and encouraging sustainability. This drive has significantly increased the demand for advanced automotive batteries, particularly lithium-ion batteries, which are crucial for the operation of electric vehicles. This shift is part of a broader global trend towards cleaner, energy-efficient transportation.

Technological advancements in automotive batteries are another important driver of market growth. The development of high-density lithium-ion batteries that are more efficient and affordable is enhancing their adoption. Moreover, innovations in battery recycling technology are helping reduce costs and environmental impact, further propelling the demand for sustainable energy solutions. As renewable energy adoption increases, opportunities are emerging for battery manufacturers to cater to a growing market eager for sustainable transportation options.

Despite these favourable trends, the Saudi Arabian automotive battery market faces several obstacles. High upfront costs for EV batteries remain a significant barrier to mass adoption, limiting the reach of electric vehicles for the public. The need for improved recycling processes and infrastructure also presents challenges, as does the reliance on imported raw materials like lithium and cobalt, which are crucial for battery manufacturing. To meet growing demand, the local market will need to address these issues through innovations in supply chains and recycling technologies.

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The Saudi Arabia automotive battery market is segmented into two main types: starter batteries and electric vehicle (EV) batteries. Starter batteries are primarily used for traditional internal combustion engine (ICE) vehicles. These batteries are crucial for initiating the vehicle’s engine, powering accessories, and supporting electrical systems. Typically, lead-acid batteries are employed for this purpose due to their affordability, reliability, and established infrastructure in the automotive sector. Starter batteries are a well-established segment of the market, with steady demand driven by the large base of conventional vehicles in Saudi Arabia. Despite the growing interest in electric vehicles, the use of starter batteries remains robust in the region, particularly with the widespread presence of gasoline-powered cars and commercial vehicles.

The demand for EV batteries has been rising as Saudi Arabia pushes toward a greener automotive ecosystem. The shift toward electric mobility is being driven by government initiatives aimed at reducing carbon emissions and promoting sustainable transportation as part of the Vision 2030 goals. EV batteries, such as lithium-ion, are vital for electric vehicles, offering energy efficiency, higher energy density, and the capability for long-range travel. The market for EV batteries in Saudi Arabia is seeing increased interest from both consumers and automakers. This change is supported by efforts to develop the necessary infrastructure, including charging stations and government incentives for electric vehicles. EV batteries are also influenced by global advancements in battery technology, with ongoing innovations in energy density, charging speed, and battery lifespan.

As Saudi Arabia aims to diversify its economy and move away from oil dependency, the development of the EV sector becomes a key priority. EV battery demand is closely tied to the growth of electric vehicles and the country’s ambition to create a more sustainable transportation infrastructure. The government’s focus on renewable energy sources further enhances the market potential for EV batteries, as these vehicles align with the broader goals of reducing the country’s carbon footprint. However, the shift from traditional vehicles to EVs requires significant investment in infrastructure and technology, including battery production and recycling capabilities.

Both segments of the automotive battery market face unique challenges. The starter battery segment benefits from long-established manufacturing and distribution networks yet is relatively static as the global automotive industry increasingly focuses on electrification. In contrast, the EV battery market is still evolving, with challenges such as the high cost of batteries and the need for sustainable and efficient recycling technologies. However, as demand for EVs continues to rise, the EV battery segment is expected to play a larger role in shaping the future of the automotive battery market in Saudi Arabia. The transition will require investment in both infrastructure and technology to support the growing demand for electric mobility solutions.

In 2023, Jeddah emerged as the fastest-growing region in the Saudi Arabia automotive battery market, driven by its position as a key commercial and transportation hub. As a major gateway for imports and exports, Jeddah benefits from a large influx of vehicles, both locally and from international markets. The increasing vehicle ownership in the region, coupled with the rising demand for advanced automotive technologies, has significantly boosted the need for high-performance automotive batteries. Consumers in Jeddah are increasingly prioritizing battery quality and longevity to ensure reliable vehicle performance and minimize maintenance costs.

The expansion of automotive service centers in Jeddah has further contributed to the rising demand for automotive batteries. These service centers cater to a growing population of vehicle owners, offering a wide range of batteries suited to different vehicle types, including conventional cars, luxury vehicles, and electric or hybrid models. Jeddah's growing commercial activity, with its large fleet of vehicles, has created a consistent demand for durable and efficient automotive batteries, reinforcing the city’s position in the market.

The shift towards electric vehicles (EVs) has also played a significant role in the expansion of the automotive battery market in Jeddah. With increasing awareness of environmental sustainability, more consumers are exploring EV options, which require specialized high-capacity batteries. Jeddah’s interest in greener, energy-efficient alternatives is further driving battery innovation, particularly with the demand for lithium-ion and AGM (Absorbent Glass Mat) batteries, which offer improved performance, longer life cycles, and faster charging capabilities. As the city continues to embrace electric mobility and other advanced vehicle technologies, the demand for automotive batteries is expected to maintain strong growth, positioning Jeddah as a leading region in the Saudi Arabia automotive battery market.

Some of the major players operating in the Saudi Arabia Automotive Battery Market include:

•          Exide Technologies
•          Hankook & Company Co., Ltd.
•         CSB Energy Technology Co., Ltd
•         leoch International Technology Limited Inc
•         GS Yuasa Corporation
•         Robert Bosch GmbH
•         Amara Raja Energy & Mobility Limited
•         EnerSys
•         CLARIOS, LLC
•         Middle East Battery Company

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“The Saudi Arabian automotive battery market is expanding due to increasing vehicle ownership, rising demand for high-performance batteries, and ongoing infrastructure development. Consumers are prioritizing battery durability, efficiency, and reliability, which is driving the replacement battery segment. Despite challenges such as raw material price fluctuations, advancements in technology and growth in e-commerce are expected to sustain market growth" Said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

Saudi Arabia Automotive Battery Market – Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Type (Starter Battery, EV Battery), By Vehicle Type (Passenger Car, Two-Wheeler, LCV), By Battery Type (Lead Acid, Lithium Ion, and Others), By Region, Competition, 2019- 2029F”, The report evaluates the future growth potential of the Saudi Arabia automotive battery market, offering insights into market size, structure, and projected growth. It aims to provide comprehensive market intelligence to support decision-makers in making informed investment decisions. Additionally, the report identifies and analyzes emerging trends, key drivers, challenges, and opportunities in the Saudi Arabian automotive battery market.

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