Energy-efficient HVAC and Lighting Equipment Market in South Africa

Frost & Sullivan, April 2011, Pages: 99

The South African energy efficiency HVAC and lighting market is in its early growth stages and is currently driven by high energy prices and Eskom's demand side management (DSM) initiatives that are aimed at ensuring optimum energy use in South Africa. In 2009 this market generated revenues of approximately $272.0 million and achieved a growth rate of 8.6 percent. Between 2009 - 2016 this market is expected to achieved a compound annual growth rate (CAGR) of approximately 10.1 percent. Major challenges that characterise this market include highly price sensitive end users and a lack of skilled professionals.

Research Overview

This Frost & Sullivan research service titled Energy-efficient HVAC and Lighting Equipment Market in South Africa offers a comprehensive examination of key challenges, drivers and restraints. In this research, Frost & Sullivan's expert analysts thoroughly examine the current trends in energy-efficient HVAC and lighting technologies in the residential, commercial and industrial sectors and how service providers can take advantage of opportunities that are expected to arise within this industry.

Market Overview

Soaring Energy Costs Open Significant Growth Opportunity for Energy-efficient Technologies

Currently, high energy costs are the main drivers of energy-efficient heating, ventilation and air conditioning (HVAC) and lighting technologies in South Africa. The price of electricity has increased significantly since 2007 and this has created pressure on households and industries to save energy and minimise costs. The market is expected to experience high growth due to Eskom’s demand side management (DSM) and high energy costs.

“The high cost of electricity has been a major driver of energy-efficient technologies in South Africa,” notes the analyst of this research. “Between 2007 and 2010, the price of electricity increased by an average of 32.9 per cent.” This intensified pressure on households and businesses to reduce operating expenditure by reducing electricity consumption. Further, Eskom embarked on DSM initiatives in order to ensure the efficient use of energy in South Africa.

Increased Consumer Awareness to Boost Adoption Levels

Some energy-efficient equipment such as light emitting diodes (LEDs) involves high capital costs. Hence, most industries are reluctant to invest in such equipment. Moreover, information on energy-efficient technologies is generally scarce in South Africa and this limits the adoption of such technologies in the country. “Information on energy-efficient technologies is poorly disseminated and is often inaccessible to the general public,” emphasises the analyst. “Consumers will only purchase a lighting technology if the benefits compensate for the original cost of equipment; if they perceive the price to be too high without understanding the potential economic benefits, then this becomes a ‘high-cost’ psychological barrier.”

Despite a highly price sensitive market and the lack of understanding of the potential benefits of energy-efficient technologies, opportunities for growth still exist. Increasing consumer awareness concerning the potential benefits of energy-efficient technologies is a key element for the development of this market.

“Increasing market awareness through rigorous campaigns will help widen knowledge about the various energy-efficient technologies available in this market,” advises the analyst. “Eskom’s DSM is one of numerous initiatives that could be undertaken to enhance consumer awareness.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following application sectors in this research:

- Residential
- Commercial
- Industrial

1. Executive Summary
- 1.1 Introduction
- 1.2 Industry Overview
- 1.3 Summary of Key Findings

2. Research Aim and Objectives
- 2.1 Research Aim and Objectives
- 2.2 Research Scope
- 2.3 Research Methodology

3. Overview of the South African Energy Efficiency HVAC and Lighting Market
- 3.1 Market Overview
- 3.2 Stakeholder Overview
- 3.3 Industry Challenges and Market Forces
- 3.4 Life Cycle Analysis
- 3.5 Supply Chain Analysis
- 3.6 Market Sizes and Growth Rates

4. Energy Efficiency in the HVAC Market
- 4.1 Market Overview
- 4.2 Technology Application
- 4.3 Potential Energy Savings
- 4.4 Market Engineering Measurements
- 4.5 Market Sizes and Growth Rates
- 4.6 Market Share Analysis
- 4.7 Company Profiling

5. Energy Efficiency in the Lighting Market
- 5.1 Market Overview
- 5.2 Technology Application
- 5.3 Potential Energy Savings
- 5.4 Market Engineering Measurements
- 5.5 Market Sizes and Growth Rates
- 5.6 Market Share Analysis
- 5.7 Company Profiling

6. Comparative Analysis and Strategic Recommendations

7. About Frost & Sullivan

List of Figures-
- Energy Efficiency Market: Key Market Drivers (South Africa), 2009
- Energy Efficiency Market: Impact of Top Three Industry Challenges (South Africa), 2010–2016
- Energy Efficiency Market: Market Drivers Ranked in Order of Impact (South Africa), 2010–2016
- Energy Efficiency Market: Market Restraints Ranked in Order of Impact (South Africa), 2010–2016
- Energy Efficiency Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Potential Energy Savings (South Africa), 2009
- Energy Efficiency in the HVAC Market: HVAC Controls (South Africa), 2009
- Energy Efficiency in the HVAC Market: Overview of HVAC Technologies (South Africa), 2009
- Energy Efficiency in the HVAC Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Revenue Forecasts in the Products Market (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Revenue Forecasts in the Controls Market (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Revenue Forecasts (South Africa), 2009
- Energy Efficiency in the HVAC Market: Profile of HVAC Technology Suppliers (South Africa), 2009
- Energy Efficiency in the Lighting Market: Overview of Lighting Technologies (South Africa), 2009
- Energy Efficiency in the Lighting Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for the Fluorescent Lamps Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for HID Lamps Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for LEDs Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for the Fibre Optic Lighting Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Market Revenues by Lighting Type (South Africa), 2009
- Energy Efficiency in the Lighting Market: Profile of Lighting Technology Suppliers (South Africa), 2009
- Energy Efficiency in the HVAC and Lighting Markets: Comparative Analysis (South Africa), 2009

List Of Charts:
- Energy Efficiency Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency Market: Market Drives and Restraints (South Africa), 2010–2016
- Energy Efficiency Market: Life Cycle Analysis (South Africa), 2009
- Energy Efficiency Market: Supply Chain Management (South Africa), 2009
- Energy Efficiency Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency Market: Percent Breakdown of Revenue (South Africa), 2009
- Energy Efficiency in the HVAC Market: Potential Energy Savings (South Africa), 2009
- Energy Efficiency in the HVAC Market: Potential Energy Savings in the Commercial Sector (South Africa), 2009
- Energy Efficiency in the HVAC Market: Technology Attractiveness in the Commercial Sector (South Africa), 2009
- Energy Efficiency in the HVAC Market: Potential Energy Savings in the Industrial Sector (South Africa), 2009
- Energy Efficiency in the HVAC Market: Technology Attractiveness in the Industrial Sector (South Africa), 2009
- Energy Efficiency in the HVAC Market: Market Engineering Measurements (South Africa), 2009
- Energy Efficiency in the HVAC Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Revenue Forecasts in the Products Market (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Revenue Forecasts in the Controls Market (South Africa), 2006-2016
- Energy Efficiency in the HVAC Market: Percent Breakdown of Revenue (South Africa), 2009
- Energy Efficiency in the HVAC Market: Market Share Analysis for Products (South Africa), 2009
- Energy Efficiency in the HVAC Market: Market Share Analysis for Controls (South Africa), 2009
- Energy Efficiency in the Lighting Market: Percentage Breakdown of Lighting in the Residential Sector (South Africa), 2009
- Energy Efficiency in the Lighting Market: Percentage Breakdown of Lighting in the Industrial and Commercial Sector (South Africa), 2009
- Energy Efficiency in the Lighting Market: Overview of Lighting Technologies (South Africa), 2009
- Energy Efficiency in the Lighting Market: Potential Energy Savings in the Residential Sector (South Africa), 2009
- Energy Efficiency in the Lighting Market: Residential Sector Energy Efficient Lighting Technology Attractiveness (South Africa), 2009
- Energy Efficiency in the Lighting Market: Potential Energy Savings in the Commercial Sector (South Africa), 2009
- Energy Efficiency in the Lighting Market: Commercial Sector Energy Efficient Lighting Technology Attractiveness (South Africa), 2009
- Energy Efficiency in the Lighting Market: Potential Energy Savings in the Industrial Sector (South Africa), 2009
- Energy Efficiency in the Lighting Market: Industrial Sector Energy Efficient Lighting Technology Attractiveness (South Africa), 2009
- Energy Efficiency in the Lighting Market: Market Engineering Measurements (South Africa), 2009
- Energy Efficiency in the Lighting Market: Revenue Forecasts (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for the Fluorescent Lamps Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for HID Lamps Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for LEDs Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Revenue Forecasts for the Fibre Optic Lighting Market (South Africa), 2006-2016
- Energy Efficiency in the Lighting Market: Percentage Breakdown of Market Revenues by Lighting Type (South Africa), 2009
- Energy Efficiency in the Lighting Market: Market Share Analysis (South Africa), 2009
- Energy Efficiency in the HVAC and Lighting Markets: Comparison Analysis (South Africa), 2009
- Energy Efficiency in the HVAC and Lighting Markets: Comparison Analysis (South Africa), 2009

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