Due to the improvement in the economy of Africa, there has been a rise in the purchasing power of individuals. In addition, there has been immense growth in the automobile sector
Albany, NY -- (SBWIRE) -- 07/24/2017 -- The Africa lead acid battery market has been prognosticated in a report authored by Transparency Market Research (TMR) to hold a competitive landscape that could be ruled over by a few players, viz. Johnson Controls Inc., DIXON Batteries, EnerSys, Exide Technologies, and First National Battery Ltd. Innovation of efficient and low-cost batteries could be a leading strategy adopted by companies to gain an unwavering foothold in the market. Keeping such profitable schemes in view, companies have been foretold to take to concentrating on all-embracing research and development activities.
As per the findings of the TMR publication, the Africa lead acid battery market could reach a revenue estimate of US$1.0 bn by 2021. The market has been envisioned by the authors to expand at a CAGR of 5.3% during the forecast period 2015 - 2021. In the recent past, the market had witnessed the lead secured by engine starting batteries and could be largely benefited by the urbanization in emerging economies such as Egypt and South Africa that have started to tellingly influence the global economy. On the flipside, Africa has still remained as a largely underdeveloped region.
Swelling Penetration of UPS Systems, Inverters across Diverse Sectors Fuels Demand
Automotive electronics widely using lead acid batteries has been envisioned to drive the demand in the market while riding on the flourishing growth of the automotive industry. Applications such as inverters and uninterruptible power source (UPS) systems used in several industries have been envisaged to set the tone for a reliable growth in demand in the Africa lead acid battery market. Small and medium enterprises (SMEs), in particular, could exhibit a high demand for UPS systems in Africa. Industrial sectors facing power supply interruption at a frequent scale in the region have also been expected to raise the expectations of players operating in the market.
Long-term agreements between manufacturers and raw material suppliers have been projected to give a strong impetus to the demand in the Africa lead acid battery market. Manufacturers could enjoy rewards in the form of better price returns for their long commitment. Such contracts have also been forecasted to assist with a pre-agreed pricing formula.
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Environmental Concerns, Stricter Government Regulations Raise Eyebrows
The growth of the Africa lead acid battery market has been prophesied to be suppressed on account of tightening government regulations. Furthermore, environmental challenges such as the significantly toxic property of lead and unfriendliness of lead acid batteries to surroundings could pose a threat to the market. Lead is required to be disposed appropriately lest it thwarts the salvage of organic resources within the waste and causes contamination. Besides this, the advent of technologically sophisticated batteries with reduced toxicity levels and longer lifespan could discourage the demand in the market.
However, the high efficiency, strength, and economical cost of lead acid batteries have been predicted to compensate for the loss in demand in the Africa lead acid battery market. Increasing disposable income on the population in Africa and rise of urban centers in some economies could lay a solid foundation of demand in the automotive sector, which has been foreseen to eventually raise the demand in the market. More opportunities could take shape in the market with the advancement of other end-use sectors such as power, residential, commercial, and industrial.