The South African market for energy-efficient heating, ventilation and air conditioning, as well as efficient lighting technologies is expected to expand to $64.9-million in 2016 from $38.3-million in 2009, a new study shows.
The analysis by Frost & Sullivan indicates that rising energy costs will be the main driver of the expansion, with the price of electricity having increased by an average of 32.9% between 2007 and 2010, and with further increases already approved for between 2010 and 2013.
The expansion will also be underpinned by State-owned power utility Eskom’s demand side management initiatives, which have been instituted in a bid to relieve South Africa’s tight power market conditions.
However, the report also warns that there is still some market reluctance, either owing to the high capital costs involved, or due to a lack of information on energy-efficient technologies.
Nevertheless, there were still opportunities for growth, which could expand even further as consumer awareness grows.