South Africa Wind Power LiDAR Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Installation (Onshore Wind Farms and Offshore Wind Farms)

South Africa Wind Power LiDAR Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Installation (Onshore Wind Farms and Offshore Wind Farms)

South Africa Wind Power LiDAR Market – Scenario 1: Using 100 % LiDAR

The South Africa Wind Power LiDAR market is expected to grow from US$ 4.45 million in 2021 to US$ 5.86 million by 2030; it is estimated to grow at a CAGR of 3.1% from 2021 to 2030.

South Africa Wind Power LiDAR Market – Scenario 2: Using 75 % LiDAR

The South Africa Wind Power LiDAR market is expected to grow from US$ 3.17 million in 2021 to US$ 3.76 million by 2030; it is estimated to grow at a CAGR of 1.9% from 2021 to 2030.

South Africa Wind Power LiDAR Market – Scenario 3: Using 50 % LiDAR

The South Africa Wind Power LiDAR market is expected to grow from US$ 2.23 million in 2021 to US$ 2.51 million by 2030; it is estimated to grow at a CAGR of 1.3% from 2021 to 2030.

The wind energy industry in South Africa is flourishing with the increasing focus on expanding renewable energy capacity. The LiDAR technology is employed in this industry to provide accurate wind speed and direction measurements to control rotor speed and other characteristics, including turbulence intensity, Weibull shape, scale factor, wind compass rose, and wind power density. These factors help wind farm developers make a reliable decision about the commencement of any project. Hence, LiDAR systems are widely adopted at onshore and offshore sites. Growing investments from independent power producers and public utilities for augmenting the power generation capacities of wind farms are further favoring the South Africa wind power LiDAR market growth. In March 2020, the South African government launched a 1.6 GW tender for wind capacity under the fifth round of a national campaign for renewables deployment. Moreover, as per the Integrated Resource Plan, 2019, the government has planned to install 14.4 GW of new renewable capacity; out of the planned total, ~4.8 GW will be set aside for wind power.

South Africa has opened bidding for 12 onshore wind farms with a combined capacity of over 1.6 GW in the November 2021 renewable energy tender. The bidders in the auction include Irish developer Mainstream Renewable Power, which secured a bid for 824MW of wind and 450MW of solar projects in the tender. Meanwhile, EDF Renewables has successfully achieved a bidder for 420 MW of wind capacity. Further, as per the South African Wind Energy Association (SAWEA), 25 projects were aligned to represent more than ~US$ 3.38 billion of investment in November 2021. Therefore, the growing investments in wind farm projects in South Africa underline a need to evaluate wind farms for efficient and optimum operations, which augments the demand for LiDAR systems for wind resource assessment.

Installation-Based South Africa Wind Power LiDAR Market Insights

South Africa Wind Power LiDAR Market – Scenario 1: Using 100% LiDAR

Based on installation, the South Africa wind power LiDAR market is segmented into onshore wind farms and offshore wind farms. In 2021, the onshore wind farms segment led the wind power LiDAR market, accounting for the largest share in the market.

South Africa Wind Power LiDAR Market – Scenario 2: Using 75% LiDAR

Based on installation, the South Africa wind power LiDAR market is segmented into onshore wind farms and offshore wind farms. In 2021, the onshore wind farms segment led the wind power LiDAR market, accounting for the largest share in the market.

South Africa Wind Power LiDAR Market – Scenario 3: Using 50% LiDAR

Based on installation, the South Africa wind power LiDAR market is bifurcated into onshore wind farms and offshore wind farms. In 2021, the onshore wind farms segment led the wind power LiDAR market, accounting for the largest share in the market.

Impact of COVID-19 Pandemic on South Africa Wind Power LiDAR Market

The COVID-19 pandemic dramatically impacted the global economy in 2020. The global crisis hampered business activities in the energy & power industry significantly. Growing investments in the renewable energy sector of South Africa make this country one of the key markets for the future growth of the wind power LiDAR market. Before the outbreak of COVID-19, the wind power LiDAR market in South Africa was experiencing substantial growth due to the rising demand for clean energy sources, with increasing favorable initiatives and supportive regulatory policies and regulations by governments. Before 2020, significant investment initiatives supported the development of onshore and offshore wind farm projects. Johannesburg, Pretoria, Western Cape, and Durban are the prominent cities in South Africa that held significant potential for wind farms. As per the data published by the South African Wind Energy Association, in 2020, the operational wind projects have resulted in a reduction in CO2 emissions by 53% of the total 12.1 metric tons of annual P50 projection by wind Independent Power Producers. However, the emergence of the COVID-19 pandemic led to decreased investments in wind farms, thereby limiting their installations, which hampered the South Africa wind power LiDAR market proliferation.

During the initial days of the COVID-19 pandemic, the crisis restricted all business deals, collaborations, and partnerships. However, with ease in restrictions and reopening of business units, discontinued projects were resumed. From the second half of 2020, original equipment manufacturers (OEMs) and Independent Power Producers began investing in the development of advanced LiDAR systems, leveraging the demand for a clean source of renewable energy. The pandemic has forced businesses to restructure their business models, focusing on strategies to strengthen their market shares. Therefore, although the South Africa wind power LiDAR market plummeted initially due to the adverse impact of the COVID-19 pandemic and the related social restrictions, it has made a strong recovery since 2021.

Government initiatives supporting the revival of businesses and rising investments by several governments are likely to drive the South Africa wind power LiDAR market's growth after the COVID-19 pandemic. Economic stimulus packages prepared by South Africa mention companies/institutions in the energy sector, especially the renewable energies sector. The South African government took several measures to bolster its economy through stimulus packages. For instance, in June 2020, a US$ 34.46 billion economic response package was granted by the South African government. Moreover, the construction projects of new energy facilities in the renewable energy sector were delayed or discontinued indefinitely in 2020. Implementing lockdowns in South Africa was challenging because a huge portion of the population is engaged in informal sector activities for their livelihoods, has inadequate water and electricity infrastructures, and has higher risks of economic recession. Thus, the COVID-19 pandemic hampered the country's economic stability, which led to the delay and suspension of ongoing wind farm projects. Thus, the recovery of various enterprises from the repercussions of the COVID-19 pandemic was challenging, which restricted the growth prospects of the wind power LiDAR market in South Africa.

As per the study conducted by the South African Wind Energy Association, the government of South Africa is estimated to invest in new wind farms, especially in offshore wind projects, which is expected to boost the demand for wind power LiDAR from 2022. Further, in November 2021, the South African government allocated 12 onshore wind farms to the preferred bidder with a combined capacity of just over ~1.6GW.

The overall South Africa wind power LiDAR market has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the South Africa wind power LiDAR market with respect to all the market segments. Also, primary interviews were conducted with industry participants to validate data and gain more analytical insights into the topic. Participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers—along with external consultants such as valuation experts, research analysts, and key opinion leaders—specializing in the South Africa wind power LiDAR market. A few of the major players operating in the market are Vaisala, NRG Systems, Fugro, John Wood Group PLC, HALO Photonics, Windar Photonics A/S, ZX Lidars, Everise Technology Ltd., Meatech Solutions LLP, and Velodyne.