|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 1.6 Billion
|
|
Fastest Growing Segment
|
SLI Batteries
|
|
CAGR (2023-2028)
|
7.58%
|
|
Largest Market
|
Gauteng
|
South Africa Battery market is anticipated
to grow at a 7.58% CAGR during the forecast period,
owing to high demand for portable gadgets such as fitness bands, tablets, LCDs,
smartphones, and wearables. In terms of cost-effectiveness, increased
efficiency, and product innovation, the industry is predicted to experience
considerable rise in technical advancements. Moreover, demand for batteries is
probably being driven by strict pollution standards set by the governments of
wealthy nations and growing concern over fuel efficiency.
An electrochemical device (composed of one or more electrochemical
cells) that can be charged with an electric current and discharged as needed is
often referred to as a battery. The majority of the time, batteries are
constructed from a number of electrochemical cells that are coupled to external
inputs and outputs. Small electric devices like remote controls, torches, and
mobile phones, are often powered by batteries. Primary batteries and secondary
batteries are the two basic categories into which batteries are divided.
Primary batteries are only capable of a single charge. These batteries must be
disposed of once they have been totally depleted because they are no longer
useful. Secondary batteries, on the other hand, are the ones that can be
recharged and used repeatedly for charging and discharging. As a result,
rechargeable batteries are another name for secondary batteries.
Increasing Domestic Demand Thriving the South Africa Battery Market
Growth
With a possible domestic demand for battery energy storage of 10-15
GWh by 2030, South Africa has a significant impact on the global battery value
chain. By 2030, the country's battery storage industry might have a demand of
between 9,700MWh and 10,400MWh. For South Africa, the demand can be as high as
15,000 MWh. Compared to just a few hundred MWh in 2020, this is a significant
rise. The behind-the-meter energy storage system (ESS) industry, which includes
commercial and industrial (C&I), residential, and mobile applications,
accounted for almost 99% of the demand for battery storage in South Africa in
2020. The nation has some early-stage operations in the lithium-ion battery
value chain as well as a "diversified automotive industry" that will
need to switch to EVs to maintain its dominant position in the African market.
EVs are also predicted to be the key driver of the expansion in the nation's
battery ecosystem. By 2030, South Africa might localize the manufacturing of
5GWh of lithium-ion battery cells. Increase in domestic production is expected
to drive the South Africa battery market.
Growth of Electric Vehicles in Propelling the South Africa Battery
Market
In May 2023, South Africa ranked 21st in the world for automobile
manufacture, with a 0.62% market share according to International Trade
Administration (IEA). With rising foreign direct investment and trade, the
South African automotive industry's growth strategy has been centered on
becoming strongly integrated into the global automotive environment. Moreover,
the South African Automotive Masterplan (SAAM) 2021-2035 aims to generate 1% of
worldwide vehicle manufacturing, or 1.4 million vehicles per year, in South
Africa by 2035, significantly improving the country's standing and global
vehicle production ranking. For instance, in early 2022, German automotive
manufacturer, Audi, introduced six, highly anticipated e-tron models to the
South African market which included a series of all-electric vehicles that
produce zero direct CO2 emissions while driving. Audi’s e-tron 55 Sport Utility
Vehicle (SUV) is the lowest-cost model in the line-up, offering a range of
between 369 km and 440 km. The expansion of electric vehicle in the country is
expected to drive the South Africa battery market.
Rising Demand from Telecommunication Sector is Driving the Growth of
the South Africa Battery Market
The telecom industry is one of the few that continues to see
tremendous technical advancement and development even during the pandemic COVID-19
times. When power is required continuously or in an emergency, stationary
batteries are employed in a variety of applications. Lead acid batteries thus
offer a workable answer for the telecom industry. The need for lead acid
batteries for backup purposes has significantly increased as a result of
telecom operators installing more telecom towers due to an increase in
subscribers. A central power backup facility will eventually be needed by data
centers; Thus, it is anticipated that the utilization of this battery would
increase significantly as the number of data centers increase. Based on the
aforementioned variables, the battery market in South Africa is anticipated to
grow over the course of the projected period, due to rising demand for
telecommunication and data center applications.
High Price and Lack of Government Regulations are Hindering the Growth
of the South Africa Battery Market
The demand for batteries and the minerals required for battery
manufacturing or production have increased significantly as a result of the
falling price of lithium-ion batteries. This kind of circumstance is pushing up
mineral prices and, in some situations, causing a shortage of material supply. The
current market exhibits a lack of standardization in fast charging
infrastructure, which has restricted the usage of available infrastructure and
the availability of automobiles. The underdeveloped EV support infrastructure
is limiting the market’s expansion. Moreover, the availability of a charging
infrastructure is crucial to the acceptance of electric and plug-in hybrid
automobiles. Due to this, end users now face a greater danger of being stuck
without access to a charging station—both real and perceived. These factors are
expected to cause hindrance to the growth of South Africa battery market.
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Latest Investments Driving the South Africa Battery Market Growth
- The City of Cape Town declared its intent to move through with the Paardevlei Ground-mounted Solar Photovoltaic and Battery Energy Storage System project in April 2023. The city would be protected by the USD65 million project from a complete stage of load shedding. The project would create 60 megawatts of renewable energy and be developed with technical support from the C40 Cities Finance Facility. The city set aside USD22.61 million from its USD65 million budget, or half of the USD65 million needed for the project, to halt load shedding over a three-year period.
- Eskom, the energy provider in South Africa, released information in 2022 about its impending large-scale battery storage deployments, including project locations and volumes. By December 2024, the utility and electrical grid operator hopes to have the first 343 MW of a 500 MW nationwide rollout online. In a competitive request procedure, Eskom chose two battery energy storage system (BESS) suppliers: Hyosung Heavy Industries of South Korea and Pinggao Group of China. The BESS's 343MW is expected to have a four-hour runtime, for a total capacity of 1,440MWh. The systems would be constructed during two stages. Phase 1 would involve the construction of 199MW/833MWh of battery storage coupled with 2MW of solar PV, and Phase 2 would involve the installation of 144MW/616MWh of BESS combined with 58MW of solar PV. The battery storage devices would help manage peak load on the power network in addition to providing other applications including ancillary services. The Eskom letter of acceptance for a different 48MW/192MWh project close to the city of Durban was made public by Hyosung.
Market Segmentation
South Africa Battery Market is
segmented into technology, product type, end user, and region. Based on technology, the market is divided into lithium-ion
battery, lead-acid battery, and others. Based on product type, the
market is further fragmented 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 divided into
Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, North
West, Free State, and Northern Cape.
Market player
Major market players in the South Africa battery
market are Duracell Inc., Eveready (Pty) Ltd., Probe
Corporation, First National Battery, Exide Industries ltd, Potensa (Pty) Ltd,
among others.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018–
2022
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
|
|
Quantitative Units
|
Revenue in USD Million and CAGR for 2018-2022 and 2023-2028
|
|
Report coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments covered
|
Technology
Product Type
End User
Region
|
|
Regional scope
|
Gauteng, KwaZulu-Natal, Western Cape, Eastern
Cape, Mpumalanga, Limpopo, North West, Free State and Northern Cape
|
|
Key companies profiled
|
Duracell Inc.,
Eveready (Pty) Ltd., Probe Corporation, First National Battery, Exide
Industries ltd, Potensa (Pty) Ltd.
|
|
Customization scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
|
Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
Report Scope:
In this report, South Africa Battery
Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
·
South Africa Battery Market, By Technology:
o
Lithium-ion Battery
o
Lead-acid Battery
o
Others
·
South Africa Battery Market, By Product
Type:
o
SLI Batteries
o
Industrial Batteries
o
Others
·
South Africa Battery Market, By End User:
o
Telecom
o
Energy Storage Systems
o
Consumer Electronics
o
Automotive and Others
·
South Africa Battery Market, By Region:
o
Gauteng
o
KwaZulu-Natal
o
Western Cape
o
Eastern Cape
o
Mpumalanga
o
Limpopo
o
North West
o
Free State
o
Northern Cape
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the South
Africa Battery Market.
Available Customizations:
South Africa Battery Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
·
Detailed analysis and profiling of
additional market players.
The South Africa
Battery Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]