Middle-East & Africa Space-Based Solar Energy Market Outlook to 2030

Middle-East & Africa Space-Based Solar Energy Market Overview

• The Middle-East & Africa Space-Based Solar Energy market size was valued at USD 13.03 billion in 2023. This growth has been primarily driven by increasing energy demands, coupled with the need for sustainable energy solutions. The region's strategic geographical position and vast unutilized land are ideal for harnessing solar energy, making space-based solar power a viable and attractive option. Technological advancements and decreasing costs of photovoltaic cells have further propelled market expansion.

• Key players dominating the MEA space-based solar energy market include SpaceSolar, PowerSat Corporation, Solaren Corp, and Northrop Grumman. These companies are pioneers in the field of space-based solar power (SBSP) and are investing heavily in research and development to enhance efficiency and reduce costs. Their initiatives are crucial in shaping the market landscape, as they work towards commercializing SBSP on a large scale.
• In January 2024, Caltech successfully concluded its Space Solar Power Demonstrator mission, which demonstrated wireless power transmission in space and tested various solar technologies. The mission's achievements included the deployment of an ultralight structure and the operation of new photovoltaic cells, marking significant progress in space-based solar power technology and providing crucial insights for future developments.
• The UAE stands out as the dominant player in the MEA space-based solar energy market. The country's strategic investments in renewable energy infrastructure and its ambitious Green Energy Strategy 2030 have positioned it as a leader in the sector. The presence of major companies and government support further reinforces its leading position.

Middle-East & Africa Space-Based Solar Energy Market Segmentation

The market is segmented into various factors like technology, application, and region.

By Technology: The market is segmented by technology into microwave power transmission, laser power transmission, and photovoltaic conversion. In 2023, microwave power transmission dominated the market due to its higher efficiency in transmitting power over long distances compared to other technologies.

By Application: The market is segmented by application into utility-scale power generation, defense and military applications, and commercial power supply. In 2023, Utility-Scale Power Generation held the largest market with the demand for large-scale energy production, coupled with the need to transition to renewable energy sources, which has driven the adoption of space-based solar energy for utility-scale applications.

By Region: The market is segmented by region into Israel, United Arab Emirates, Jordan, Morocco, South Africa, and the Rest of MEA. In 2023, the United Arab Emirates held the dominant market share of its robust investment in renewable energy infrastructure and supportive government policies.

Middle-East & Africa Space-Based Solar Energy Market Competitive Landscape

• Solaren Corp.: Solaren Corporation has made significant strides in the space-based solar power sector, notably signing a power purchase agreement with PG&E to supply up to 200 MW of solar energy from space. The company raised USD 2.5 million in funding in June 2023 to advance its innovative solar power satellite technology.
• Mitsubishi Electric: Mitsubishi Electric is actively enhancing its sustainability efforts in the Middle East and Africa. In 2023, it joined the UN's 24/7 Carbon Free Energy Compact, focusing on renewable technologies, while securing a contract to upgrade Kuwait's Az-Zour South Power Station, reflecting its commitment to energy efficiency and carbon reduction strategies.

Middle-East & Africa Space-Based Solar Energy Market Analysis

Market Growth Drivers

• Technological Advancements in Space-Based Solar Power: In 2024, new photovoltaic cells have been developed that are capable of capturing more solar energy per square meter, increasing the overall efficiency of space-based solar panels by up to 30%. This leap in technology is reducing the cost per kilowatt-hour of energy produced, making space-based solar power more competitive with traditional energy sources.
• Increased Energy Demand: The Middle East and Africa regions has combined population of over 1.5 billion in 2024. This demographic surge has led to a sharp increase in energy consumption, particularly in urban centers. To meet this rising demand, governments are turning to innovative solutions like space-based solar energy, which offers a reliable and sustainable energy source capable of delivering continuous power regardless of terrestrial weather conditions.
• Government Policies and Incentives: In 2024, the UAE's commitment to advancing space technology, as outlined in its comprehensive space law framework, is a growth driver for the space-based solar energy market. The framework encourages private sector investment in space projects, facilitating the development of innovative technologies like space-based solar power and positioning the UAE as a regional leader in space energy initiatives.

Market Challenges

• Geopolitical Instability: The MEA region is marked by geopolitical tensions and conflicts, which can disrupt the development and deployment of space-based solar power projects. In 2024, political instability in certain areas has led to delays in project timelines and increased costs due to security concerns. This uncertainty poses a significant risk to investors and project developers, potentially hindering market growth.
• Technical Challenges in Energy Transmission: Transmitting energy from space to Earth remains a significant technical challenge. In 2024, energy loss during transmission is still a major concern, with current technology only capable of delivering 70% of the energy generated in space to terrestrial receivers. This inefficiency increases the cost of space-based solar power and limits its competitiveness with traditional energy sources.

Government Initiatives

• National Space Strategy: In 2023, the UAE launched the National Space Strategy 2031, which includes provisions for space-based solar energy projects. The strategy allocated USD 600 million towards developing space-based solar power infrastructure, aiming to enhance energy security and reduce carbon emissions. This initiative underscores the UAE's commitment to integrating space technology into its renewable energy mix.
• South Africa’s Renewable Energy Development Plan: South Africa's 2024 plan to support in space-based solar infrastructure. This initiative aims to integrate solar power into the national grid, positioning South Africa as a key market player.

Middle-East & Africa Space-Based Solar Energy Market Future Outlook

The future trends in the market include increased adoption of space-based solar power in the energy mix, advancements in energy transmission technology, expansion of infrastructure, and continued government support through subsidies and regulatory reforms.

Future Market Trends

• Advancements in Energy Transmission Technology: In the coming years, technological advancements are anticipated to boost energy transfer efficiency, making space-based solar power increasingly competitive with traditional energy sources.
• Expansion of Space-Based Solar Power Infrastructure: The MEA region is expected to see substantial infrastructure expansion by 2028, with new satellite launches and receiving stations supporting large-scale energy production, driving economic growth.