Cambodia’s lead acid battery market is yet to develop and fully commercialize in the country. High dependence on energy imports, slow electrification rate, proposed investments in the power sector, developing transmission networks and initialization of solar energy projects, are driving the need for energy storage and back up devices, thus leading to firm growth in the lead acid battery market.
The quality and performance characteristics of lead acid batteries also make them preferable in utilization among all the sectors. Minor inhibitors of the market include environmental concerns and technological limitations of lead acid battery when compared with other energy storage devices but in case of Cambodia these restraints hold minor impact due to high availability of these batteries and their inexpensive features.
According to a report by Research and Markets, the world’s largest research store, Cambodia’s lead acid batteries market is projected to reach $239.4 million by 2019, at a compound annual growth rate of 10 percent. Power sector authorities in Cambodia have set an aggressive target of connecting 100 percent of villages by electrical lines and supply electricity to 70 percent of rural households by 2030.
Provinces with low electrification rates and renewable power project initiatives for street and residential lighting especially solar lighting projects, present wide opportunities for utilization of lead acid batteries in Cambodia. The transport sector in Cambodia has not yet developed and the country lacks the infrastructure for public transport facilities. The majority of individuals utilize two wheelers to support their transportation requirements, thus the utilization of low capacity lead acid batteries is on a large scale.
Most of the households in Cambodia use automotive batteries for lighting purposes leading to high replacement rates for automotive or mid capacity batteries in the region. Investments in automotive parts factories in Cambodia have opened the market for automotive batteries in the region. At present, there is no established domestic player in the market, thus presenting a wide opportunity for new entrants to capture the market.
By the end of this decade, 2,241 MW of the capacity addition is planned in hydro sector followed by 935 MW in thermal sector and 400 MW for natural gas fired power stations. With investments in the power and transmission sector and increasing preference over solar lighting and renewable energy projects; the market is expected to gain momentum for energy storage and back-up devices thus benefiting the lead acid battery market. Growing market potential and developing characteristics of the market invite new players to exploit first mover advantage and establish themselves as leaders in the market.