Top 5 Forces Shaping Africa Lead Acid Battery Market

The Africa lead acid battery market is projected to register substantial growth in the coming few years. In 2014, the Africa lead acid battery market was estimated at US$708.6 mn and by 2021, the market is projected to be worth US$1,014 mn. According to Transparency Market Research (TMR), the Africa lead acid battery market will progress at a 5.30% CAGR during the forecast period from 2015 to 2021.


Africa Lead Acid Battery Market: Key Drivers and Restraints
  •     Long-term Contracts: The trend of long-term contract between raw material suppliers and lead acid battery manufacturers is projected to drive the Africa lead acid battery market significantly in the coming few years. This is one of the top supply-side drivers of the Africa lead acid battery market. The trend of long-term contracts is benefitting both the parties. With long-term contracts, planning ahead is easier and the manufacturer can get a better price in return for the long commitment. Moreover, such contracts also help reduce the need to negotiate purchase orders over and over and facilitate a pre-agreed pricing formula.
  •   Rising UPS Systems Demand: On the demand side, the Africa lead acid battery market is driven by the rising demand for lead acid batteries in UPS systems and inverters. These UPS systems find application in several sectors. The demand for UPS systems in Africa is particularly high in small and medium enterprises (SMEs), trying to protect themselves from the impact of unreliable electricity supply.
  • Expanding Automotive Sector: The key economic driver of the Africa lead acid battery market is the growing automotive sector in the region. For instance, the automotive sector in South Africa represents a significant part of the nation’s manufacturing base.
  • Rising Environmental Concerns: Lead acid batteries are not environment-friendly. Hence, the rising environmental concerns related to these batteries are challenging the Africa lead acid battery market. Lead is a highly toxic metal and if not disposed properly in a municipal solid waste collection system, it is capable of causing significant contamination and preventing the recovery of organic resources within the waste. Moreover, the tightening government regulations in the Africa lead acid battery market will also suppress the market.
  • Advanced Batteries: The emergence of advanced batteries is challenging the growth of the Africa lead acid battery market. Several government-funded and independent laboratories are developing alternatives to lead acid batteries or hybrid batteries. These batteries are projected to have a longer life and reduce the toxicity levels associated with conventional lead acid batteries. This growing threat from advanced products will suppress the Africa lead acid battery market.
Players in the market are focused on R&D in order to innovate low-cost, efficient batteries. The Africa lead acid battery market is dominated by a handful of companies. Some of the leading companies operating in the Africa lead acid battery market are Exide Technologies, EnerSys, DIXON Batteries, and Johnson Controls Inc.

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