Report

South Africa Battery market is anticipated to grow at a robust 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.
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.
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.