South Africa Battery Market to Grow at a 7.58% CAGR
South Africa Battery Market is expected to
grow due to increasing demand for electronic equipment and electric vehicles
throughout the forecast period.
According to
TechSci Research report, “South
Africa Battery Market - By Region, Competition Forecast & Opportunities, 2018-2028F”,
the South Africa battery market is expected to register 7.58% CAGR during the forecast period, 2024-2028,
owing to the recent regulatory amendments in South Africa towards
renewable energy sources, along with current energy crisis.
Numerous
energy storage projects are planned with the collaboration of both state-owned
and private organisations since the South African government is keen to
increase the nation's sources of power generation and energy security. In June
2021, a government tender in South Africa awarded 540 MW of solar projects with
225 MW/ 1,140 MWh of battery storage to Scatec, an energy business with its
headquarters in Norway. The company's involvement in the initiative was a
component of the Risk Mitigation Power Procurement Programme (RMPPP), which
aims to expand the sources of energy dispatch in times of unpredictable demand.
The government’s programme "Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP)" in South Africa is largely to contribute for
the country's increase in energy storage projects. The installation of a 360 MW
storage system at these locations is part of the Battery Energy Storage Systems
(BESS) project, which was planned for several renewable energy plants
controlled by Eskom, the state-owned utility of South Africa, in November 2021.
Given these changes, the South African battery market is predicted to make
significant advancements soon.
Browse over XX market data Figures spread
through XX Pages and an in-depth TOC on the "South Africa Battery Market."
South Africa Battery Market is segmented into
technology, product type, end user, and region. Based on technology, the market
is bifurcated into lithium-ion battery, lead-acid battery, and others. Based on
product type, the market is further divided into SLI batteries, industrial
batteries, and others. Based on end user, the market is further divided into
telecom, energy storage systems, consumer electronics, automotive, and others.
Based on region, the market is fragmented into Gauteng, KwaZulu-Natal, Western
Cape, Eastern Cape, Mpumalanga, Limpopo, North West, Free State, and Northern
Cape.
Based on technology, the Lithium-Ion Battery segment
is expected to dominate the market. Rechargeable lithium-ion batteries are used
most frequently in energy vehicles and electronic devices. Additionally, the
power from renewable energy sources like solar and wind is stored in these
batteries. Lithium-ion batteries are lightweight, maintenance-free, have a
capacity that is 25–50% more than traditional batteries, and have many uses in
the automotive & energy storage industries. This results in lighter, more
energy-efficient vehicles. It is anticipated that the average cost of
lithium-ion batteries would continue to drop, making them significantly more
cost-competitive with other battery types. Electric and plug-in hybrid vehicles
are propelled by lithium-ion battery systems. Lithium-ion batteries are the
only available technology capable of matching OEM specifications for automotive
driving range and charging time due to its quick recharge, high energy density,
and high discharge power. Lead-based traction batteries have less competition
in electric or hybrid vehicles due to their higher weight and lower specific
energy. The South African government made suggestions about setting up a
domestic value chain to produce lithium batteries, specifically for the EV
industry. During the forecast period, these innovations are anticipated to
propel the lithium-ion battery market.
Based on end user, automotive sector is
expected to dominate the market. According to The National Association of
Automobile Manufacturers of South Africa (NAAMSA), in 2020, the automotive
industry’s contribution to the gross domestic product (GDP) was 4.9%. Moreover,
the report also stated that the nation's sales of electric vehicles in the
first quarter of 2023 had already surpassed more than half of all sales for the
previous year. 232 electric car units have been sold since the year's
beginning, as opposed to 502 sold throughout the entire year of 2022. Sales of
new energy vehicles (NEVs), which include plug-in hybrids, conventional
hybrids, and fully electric automobiles, increased overall in Q1 2023 compared
to the corresponding quarter in 2022, by 18.8%. Moreover, the International
Energy Agency reported that South Africa's BEV (Battery Electric Vehicles)
stock has progressively grown from just 34 units in 2013 to 896 units in 2021. Thus,
the automotive sector is expected to dominate the market during the forecast
period.
Key market players in the South Africa Battery Market: -
- Duracell Inc.
- Eveready (Pty) Ltd.
- Probe Corporation
- First National Battery
- Exide Industries ltd
- Potensa (Pty) Ltd.
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"South Africa Battery Market is
expected to grow at an impressive CAGR during the forecast period, owing to demand
from telecommunications sectors such as rise in number of data centers, increase
in electric vehicles, and domestic production. Lithium-Ion Battery is expected
to dominate the market as they are lightweight, maintenance-free, and have a
capacity that is 25–50% more than traditional batteries and are known to have
uses in the automotive and energy storage industries.” said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based global management
consulting firm.
“South Africa Battery Market Segmented By
Technology (Lithium-ion Battery, Lead-Acid Battery, and Others), By Product
Type (SLI Batteries, Industrial Batteries, and Others), By End User (Telecom,
Energy Storage Systems, Consumer Electronics, Automotive, and Others), By Region,
Competition Forecast & Opportunities, 2028F” has
evaluated the future growth potential of South Africa battery market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the South Africa battery market.
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