Africa Battery Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Africa Battery market is expected to rise at a CAGR of 4.5% during the forecast period of 2022 - 2027. Like many other industries, the Battery market has been dramatically hit by COVID 19 pandemic. Covid 19 has disrupted the supply chain industry due to travel bans and restrictions, and Consumer electronics, manufacturing, and electric vehicles saw sales decline. To avoid market saturation, battery producers had to limit output. Factors such as the declining cost of lithium batteries and increased adoption of renewable energy are likely to drive the Battery market during the forecast period. However, However, a mismatch in demand and supply of raw materials for battery manufacturing is expected to hinder the market growth during the forecast period.

• Lithium-ion Battery segment, because of major cost reductions in manufacturing and retail, has become more accessible to individuals, such as mobile phones and other electronic devices. It is the fastest-growing segment in the African battery market during the forecast period.

• Solar energy is an intermittent source that generates electricity only during the day, the Sub-Saharan African region is projected to be a key hotspot for off-grid solar projects. Combining off-grid solar power with energy storage increases the utilization of solar PV systems. As a result, energy storage with solar PV has been gaining popularity in developed countries, likely creating a massive opportunity for the battery market soon.

• South Africa is the fastest-growing country in the Battery market during the forecast period because of its increasing solar and wind energy installation and upcoming projects to generate clean energy.

Key Market Trends

Lithium-ion Batteries to Dominate the Market

• Lithium-ion batteries are a rechargeable batteries commonly used in electronic devices and energy vehicles. These batteries are also being used to store energy from renewable energy sources such as solar and wind.
• The price of lithium-ion batteries declined steeply over the past ten years. In 2021, the cost of a lithium-ion battery was valued at approximately USD 123 per kWh. The price fell continuously over the past few years, and it decreased by more than 85% in 2021 compared to 2010. ​The decline in average lithium-ion battery prices is expected to continue and reach around USD 74/kWh by 2026, making it much more cost-competitive with other battery types.​
• Lithium-ion battery systems propel the plug-in hybrid and electric vehicles. Due to its fast recharge, high energy density, and high discharge power, lithium-ion batteries are the only available technology capable of meeting OEM standards for car driving range and charging time. Because of their lower specific energy and heavier weight, lead-based traction batteries are not competitive in total hybrid electric vehicles or electric vehicles.​
• In March 2020, the President of Algeria called for the promotion of electric cars to reduce the country's carbon footprints. Therefore, the government has announced new specifications governing the activity of the automotive industry in Algeria. The government took several measures to promote electric vehicles in the country, such as restricting the importation of second-handed fossil fuel cars with fewer than three years and prohibiting diesel-based cars from importation. These restrictions on second-handed fossil fuel-based cars are expected to drive the electric vehicles sector in the country, which uses lithium-ion batteries for generating power.
• Hence, owing to the above points, the lithium-ion batteries segment is likely to see significant growth in the market during the forecast period.

South Africa Expected to Witness Significant Growth

• The South African government is committed to increasing the country's power generation capacity and energy security. As a result, many energy storage projects are being-planned in collaboration between public and private entities.
• Scatec, a Norwegian energy business, won a government tender in South Africa in June 2021 for 540MW of solar projects with 225MW/ 1,140MWh of battery storage. The company's involvement in the initiative was part of the Risk Mitigation Power Procurement Programme (RMPPP), which aims to expand the sources of energy dispatch in times of fluctuating demand.
• The government is keen to expand the country's power generation and energy security. Therefore many energy storage projects are in the works, with state-owned and private groups working together.
• Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), a government initiative in South Africa, is mainly responsible for the country's increase in energy storage projects. The Battery Energy Storage Systems (BESS) project, which will create a 360MW storage system across several renewable energy plants controlled by Eskom, South Africa's state-owned utility, was announced in November 2021.
• Hence, owing to the above points, South Africa is expected to see significant market growth in the Battery market during the forecast period.

Competitive Landscape

Africa Battery market is fragmented. Some of key players in this market include Toshiba Corp, Murata Manufacturing Co., Ltd., Exide Industries Ltd, Panasonic Corporation, and Duracell Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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