Africa Lead Acid Battery Market to Grow, Thanks to Rising Demand for UPS Systems

Published By : 25 Apr 2016 | Published By : QYRESEARCH

The market for lead acid batteries in Africa is poised to grow exponentially in the coming years. The lead acid battery market in Africa stood at US$708.6 mn in 2014 and is predicted to reach US$1,014 mn in 2021. The market will expand at a 5.30% CAGR from 2015 to 2021. This market in Africa is fuelled and inhibited by a number of factors. Some of these factors are as follows:

Drivers:

  • Increasing Demand for UPS Systems: The increasing demand for inverters and UPS systems within Africa is driving the lead acid battery market here. UPS systems are being employed in numerous applications within different sectors. UPS systems within Africa are being highly demanded particularly in small and medium enterprises (SMEs), who have been working hard in order to protect themselves from the influence of unreliable electricity supply.
  • Advent of Long-Term Contracts: Long-term contracts amongst the suppliers of raw materials and the manufacturers of lead acid batteries are predicted to largely stimulate the lead acid battery market in Africa. These contracts have largely benefitted both the suppliers and the manufacturers. Due to long-term contracts, planning for the future has become easier and the manufacturers receive a goof price for their long-term commitment. 

Inhibitors:

  • Introduction of Advanced Batteries: The advent of advanced batteries has also negatively impacted the development of the lead acid battery market in Africa. A number of independent and government-funded laboratories have introduced hybrid batteries as a replacement for lead acid batteries. These advanced batteries are expected to have longer lifer span and are capable of reducing the levels of toxicity, hence inhibiting the growth of the Africa lead acid battery market.
  • Increasing Environment Concerns: In addition to the strict government regulations within the Africa lead acid battery market impeding the growth of the market in Africa, another downside of lead acid batteries are that they are not eco-friendly in nature. Thus, the increasing environmental concerns of these batteries have been challenging the lead acid battery market in Africa. Lead, owing to it being an extremely toxic metal, if not properly disposed within a municipal solid waste collection systems may cause a lot of contamination and can even prevent the organic resource recovery from waste.
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