Portable power station demand forecast

Portable power station has a wide range of applications

According to data estimates, the global portable power supply shipments will reach 8.408 million units in 2022, corresponding to a battery capacity demand of 5.66GWh, with a market size of 20.81 billion RMB.

It is estimated that by 2025, the global shipments of portable power station will reach 22.42 million units, corresponding to the battery capacity demand of 19.84GWh. The market size reaches 63.62 billion RMB, the compound growth rate is 39%/52%/45% respectively, and the demand is growing rapidly.

From the perspective of geographical distribution, China is the main producer of portable energy storage, and the United States and Japan are the main consumers. As a manufactured product, China has a relatively complete industrial chain and cluster of portable power station, complete upstream and downstream supporting facilities, and is globally competitive in terms of technology, cost, and quality.

Therefore, portable factories are mainly distributed in China, accounting for more than 90% of production and shipments. From the perspective of sales, the United States is the world’s largest application market for portable energy storage, mainly due to the high proportion of American users traveling outdoors.

The second is Japan, which has a relatively high proportion of the application side in the global emergency field, mainly due to the frequent occurrence of disasters and accidents such as earthquakes in Japan, and the demand for emergency power equipment is relatively high.

Portable power station penetration increases

The popularization of the exquisite camping concept will increase the penetration rate of portable power station. In the outdoor activity scene, the concept of exquisite camping is gradually popularizing in the outdoor camping circle. It advocates enjoying life while being close to nature. Therefore, when camping outdoors, you are willing to bring electrical products for lighting and cooking to improve the quality of camping life. Therefore, more and more people prefer portable power station for camping.

All these equipment products need off-grid power to maintain their normal operation, resulting in the demand for off-grid power in outdoor activities has gradually become a rigid demand. According to data, in 2021, the number of outdoor households in the world will be about 150 million, and the market penetration rate is only 2.3%.

It is estimated that by 2026, the total number will reach 193 million. According to the life cycle of portable power supply equipment is 3 years, the market penetration rate of outdoor activities can reach 15.9%, and the penetration rate is increasing rapidly.

The outdoor camping market is vast and mature. Developed countries in Europe and the United States have a long history of outdoor activities and strong per capita spending power. Outdoor tourism, camping, fishing and other outdoor activities have a high number of participants and participation frequencies. There is a large market demand for outdoor sports-related supplies and equipment.

According to data, as early as 2014, 32.03 million households in the United States participated in at least 1 camping, and in 2020, the number of such households reached 48.24 million, an increase of 6.27 million households and a growth rate of 15%.

Outdoor camping in China is still in its early stages but demand is growing rapidly. Compared with Europe and the United States, China’s outdoor market development is still in its infancy. According to statistics, about 130 million people in China participate in recreational outdoor activities every year, accounting for 9.5% of the total population, which is far from the proportion of about 50% in the United States participating in outdoor activities.

Since the epidemic in 2020, the popularity of outdoor camping in China has skyrocketed. According to data, the number of newly registered campsite-related companies in 2020 and 2021 will be 8,269 and 20,704 respectively, showing an explosive growth trend. However, due to the small industry base and the large population in China, the penetration rate still has a lot of room for improvement, and the future market prospects are broad.

The awareness of emergency disaster preparedness has been enhanced to increase the demand for emergency backup power at home. In emergency scenarios, portable energy storage can perfectly solve power shortage problems such as power shortage in disasters, power outages, and emergency rescue due to its advantages of small size, strong power, and stable performance.

At the same time, it can also be combined with solar panels to form a small solar power generation system, which can realize continuous off-grid power generation and ensure basic living needs when the grid is paralyzed or destroyed in an emergency state.

According to data, in 2021, the global demand for portable energy storage in the field of emergency power consumption will be 3.3 million units, with a penetration rate of only 3%. In the future, with the enhancement of residents’ awareness of emergency disaster preparedness and the gradual replacement of small fuel-fired generators by portable energy storage, it is expected that the penetration rate of portable energy storage in the field of emergency power consumption will reach 19.4% in 2026.

In terms of different scenarios, portable energy storage is mainly used in household emergency power consumption and disaster relief. According to the data, in 2021, the demand for portable energy storage in the global household emergency power consumption scenario will be 1.073 million units, and in the rescue and disaster relief scenario, it will be 866,000 units, accounting for 96.5% of the total.

With the increase in industry penetration and the accelerated replacement of small fuel-fired generators in emergency and disaster relief scenarios, it is estimated that in 2026, the demand for portable energy storage in household emergency power consumption and emergency rescue and disaster relief scenarios will be 5.278 million and 5.694 million units, respectively, with a CAGR of 37.5% and 45.7%, respectively.

Portable power station market business landscape

In the portable energy storage market structure, the top five are basically stable, and Jackery has the largest share. From the perspective of enterprise shipments, Jackery ranks first with a market share of 16.6%, followed by Ecoflow, etc.

In addition to Chinese companies, Goal Zero has the largest share among companies in other countries, which are mainly OEM by Highpower Technology and Boliwei. From the perspective of corporate operating income, Jackery accounts for 21%, and the top five rankings are consistent with the caliber of shipments.

Due to the small barriers to entry in the industry, there are many small and medium-sized enterprises. The prices of products with different capacities are quite different, and most of the bottom companies have small-capacity products, which mostly enter the market through low-price competition.

Therefore, the top five companies in the industry occupy about 50% of the market share, and as the volume and price of the leading portable power station companies increase, the industry concentration will further increase, and the leading advantage is obvious.

Portable energy storage outlets are gradually taking shape. Jackery has been successfully listed with a market value of over 20 billion yuan. Xiaomi, Tianneng, Pylontech and other big brands have entered this track one after another. There must be a lot of market space in the future.

At the same time, we have noticed that inflation in Europe and the United States should be mainly based on practical household energy storage and emergency backup power, and leisure energy storage may be affected to a certain extent.

In general, portable energy storage will increase, but the increase should not be too large in the short term. In addition, the industry chain is seriously involuted, and the profitability of manufacturers may decline rapidly.