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The Africa battery market size is forecast to increase by USD 1.47 billion at a CAGR of 13.9% between 2024 and 2028. The market is experiencing significant growth due to several key drivers. In the telecommunications sector, the expansion of 5G technology is increasing the demand for backup power solutions. Meanwhile, the shift towards electric vehicles (EVs) in the automotive industry is driving the need for advanced and cost-effective automotive batteries. Additionally, the military and defense, power tools, aerospace, and industrial sectors are increasingly relying on reliable and efficient battery solutions for various applications. Moreover, the integration of renewable energy sources into the power grid is creating a demand for stationary batteries to store excess energy and ensure grid stability. The proliferation of smart devices and the Internet of Things (IoT) is also fueling the demand for portable batteries with high energy density and long life. However, the high cost of lithium-ion batteries, the most commonly used battery technology, is a major challenge for market growth. To mitigate this challenge, researchers are exploring alternative battery technologies, such as solid-state batteries and flow batteries, which offer lower costs and improved performance. In summary, the market is witnessing strong growth due to the expanding applications in various sectors, including telecommunications, automotive, military and defense, aerospace, industrial, and renewable energy integration. The challenges, such as the high cost of lithium-ion batteries, are being addressed through research and development of alternative battery technologies.
The market is a significant sector in the global energy industry, encompassing various applications in consumer electronics, transportation, and renewable energy sources. Energy storage solutions have become increasingly crucial in today's world, as the demand for sustainable and efficient power sources continues to grow. Solar energy and wind energy are two prominent renewable energy sources that rely heavily on battery storage. These sources are intermittent, making it essential to store excess energy produced during peak generation hours for use during periods of low generation. Grid storage, which includes large-scale batteries, plays a vital role in stabilizing the power grid and ensuring a consistent power supply. Flow batteries and solid-state batteries are two types of batteries gaining popularity in the energy storage market. Flow batteries use liquid electrolytes, making them suitable for large-scale energy storage applications. Solid-state batteries, on the other hand, have no liquid or gel electrolytes, making them safer and more efficient.
Batteries are also essential components of various consumer electronics, such as mobile phones, laptop computers, wearable devices, and IoT-enabled gadgets. Lithium-ion batteries, a type of rechargeable secondary battery, dominate the consumer electronics market due to their high energy density, long cycle life, and low self-discharge rate. Hybrid vehicles, a sustainable transportation alternative, also rely on batteries for power. Lithium-ion batteries are the preferred choice for hybrid vehicles due to their high energy density and ability to deliver high power output. Lead-acid batteries, a type of primary battery, have been in use for over a century and continue to be popular in various applications, including automotive and industrial uses. Electrochemical cells, the fundamental building blocks of batteries, convert chemical energy into electrical energy through the process of electromotive force. Lithium iron phosphate (LiFePO4) batteries, a type of lithium-ion battery, have gained popularity due to their safety, long cycle life, and environmental friendliness. Nickel batteries, another type of rechargeable secondary battery, have been in use for decades and are known for their high energy density and long cycle life.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The stationary segment is estimated to witness significant growth during the forecast period. Batteries play a crucial role in various applications, including preventing power interruptions, minimizing maintenance costs, and prolonging equipment life. In the industrial and telecommunications sectors, stationary batteries have gained significance due to the increasing demand for power storage and uninterrupted electricity supply.
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The stationary segment was the largest segment and valued at USD 647.20 million in 2018. However, these batteries face challenges such as limited cycle counts and infrequent deep discharging. The telecom, uninterruptible power supply (UPS), and data communication industries have shown consistent growth, contributing significantly to the expansion of the market. A UPS system is an essential electrical apparatus that offers power backup to the load by switching to a battery supply during power failures. Hence, such factors are fuelling the growth of this segment during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Shift of automotive industry toward EV is notably driving market growth. The shift towards a more sustainable future in the automotive sector has resulted in a growing preference for Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) in the United States. Strict regulations are being imposed to adhere to climate change commitments, such as the Paris Agreement.
EVs are a popular choice for reducing carbon emissions, as they emit approximately half the Greenhouse Gas (GHG) emissions compared to conventional vehicles. HEVs offer the benefits of both gasoline engines and electric motors, allowing for objectives like enhanced fuel efficiency, increased power, or additional power for tools and electronic devices. Thus, such factors are driving the growth of the market during the forecast period.
Growing number of microgrid installations is the key trend in the market. Electricity grids in the United States encounter numerous challenges, including outdated infrastructure, shifting power generation dynamics due to the proliferation of renewable energy sources, and widening disparities between power demand and supply.
These issues pose threats to grid reliability and efficiency, putting pressure on the existing electricity grid infrastructure. To address these concerns, microgrids have emerged as a viable solution. Microgrids are autonomous power systems that consist of local power generation and energy storage components. Thus, such trends will shape the growth of the market during the forecast period.
High cost of EV lithium-ion battery is the major challenge that affects the growth of the market. Lithium-ion batteries, a key technology in electric vehicles (EVs) and various other applications, continue to hold a significant expense in their manufacturing. Compared to traditional lead-acid and Nickel-metal hydride (Ni-MH) batteries, lithium-ion batteries are more costly.
However, advancements in production methods and manufacturing efficiency have led to recent cost reductions. Nevertheless, the elevated price tag of lithium-ion batteries can act as a hindrance to the mass adoption of EVs, particularly in economically-sensitive markets. The high cost of lithium-ion batteries can limit the affordability of EVs, making them less accessible to a broader consumer base. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
EnerSys: The company offers Extreme series batteries, Extreme series Atex batteries, Cyclon batteries.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing adoption of renewable energy sources and the rise of energy storage solutions. Solar energy and wind energy are leading the charge in this transition, with grid storage becoming an essential component to ensure a stable power supply. Flow batteries and solid-state batteries are two promising technologies gaining attention for their high energy density and long cycle life. Consumer electronics, including smartphones, laptops, wearable devices, and IoT-enabled gadgets, are driving the demand for compact and efficient batteries. Lithium-ion technology, with its high energy density and low self-discharge properties, is the preferred choice for these applications. Industrial sectors such as automation, logistics, healthcare, and manufacturing are also embracing electrification and the use of battery-powered equipment, including forklifts, robotics, drones, medical devices, and power tools. The transportation sector is undergoing a major transformation with the rise of electric vehicles, hybrid vehicles, and sustainable transportation solutions. Battery technology is also advancing in the areas of grid-scale energy storage, telecom, data centers, and renewable energy integration, enabling the efficient use of intermittent renewable energy sources. The automotive and industrial battery markets are expected to grow significantly, with lithium-ion batteries, sodium-ion batteries, and other advanced battery technologies leading the way.
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Market Scope |
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Report Coverage |
Details |
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Page number |
139 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.9% |
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Market growth 2024-2028 |
USD 1.47 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.4 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amara Raja Batteries Ltd., EnerSys, Eveready Pty Ltd., Exide Industries Ltd., First National Battery, Forgo Battery Co Ltd., Franerix Solutions Ltd., GS Yuasa International Ltd., Johnson Controls International Plc, Lithium Werks, Panasonic Holdings Corp., Pelton Batteries, Power Technology Inc., Robert Bosch GmbH, Shenzhen A and S Power Technology Co. Ltd., The Ibeto Group, Toshiba Corp., Trojan Battery Co. LLC, and Willard Batteries |
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Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Application
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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