Why portable power station receives so much attention

There is a financing boom in the energy storage industry In 2022

In the context of global carbon neutrality, and driven by the dual carbon policy, the importance of energy storage industry has become increasingly prominent, and the increasing attention of capital has led to a financing boom in the energy storage industry in 2022.

According to data, there have been 37 financing in the energy storage industry since 2022, with the total financing scale exceeding 3.65 billion RMB.

In the subdivided field of energy storage industry, there is no doubt that portable power station is more concerned by capital. This year, there have been 15 financing cases, with a total financing scale of more than 900 million RMB. Investors also include some well-known institutions.

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Moreover, portable power station is a field that started relatively late. Although it is hot, it is also very new. Therefore, the industry financing events are basically concentrated in the initial stage. Among the 15 events, there are 11 angel round and A round events, accounting for 73.3%.

In addition to the hot financing in the primary market, there are also companies in the secondary market to take the lead. In September this year, Hello Tech was listed on the GEM of Shenzhen Stock Exchange, becoming the “first stock” of portable power station.

From the third quarter financial report, the performance was very good. In the first three quarters, Hello Tech’s revenue was 2.23 billion RMB, up 44.34% year on year, and its net profit was 255 million RMB, up 19.7% year on year; It can be said that it has set a benchmark for the industry.

In addition, EcoFlow is also on its way to IPO. It is reported that the company has signed a listing guidance agreement with CICC and plans to be listed on the China Stock Exchange.

Why is portable power station so popular

Portable power station is a large shared charger. The capacity of small and medium power batteries is generally 300-1000wh, while that of high-power batteries may be 1000-3000wh. Portable power station products can be equipped with solar panels for use, and can be charged outdoors when the power is exhausted.

Therefore, they have the characteristics of large capacity, high power, long life, good stability, etc. In addition to the maturity of lithium battery energy storage technology, portable power station has attracted such attention for two main reasons: high gross profit and large market potential.

Hello Tech’s gross profit margin in 2019-2021 was 48.7%, 56.1% and 47.5% respectively. Even if the price of upstream materials rises in recent two years, its gross profit margin remains high. In 2022, the Q3 gross profit margin was still 45.8%.

In terms of market, the application scenarios of portable power station can be summarized into two types, one is outdoor power consumption, and the other is household emergency power consumption. Here are the top 10 outdoor portable power station companies in China.

The demand for outdoor electricity mainly comes from the rise of outdoor sports and outdoor camping. In recent years, outdoor sports have become an emerging way of life in the world, especially in the western developed countries, which has always been the culture.

During the epidemic, indoor gathering activities and the subsequent epidemic situation are not allowed to be fully opened, which is to stimulate people’s interest in camping. The data shows that the number of North American families participating in camping reached 53.5 million in 2021, accounting for almost half of the global total, and still showing a significant growth trend.

China’s outdoor energy storage market is still in its infancy, but the camping boom has continued to heat up. According to statistics, there will be nearly 20000 newly registered camping related companies in 2021, with a year-on-year growth of 144%; In 2021, the core market size of China’s camping economy will reach 74.75 billion RMB, with a year-on-year growth of 62.5%.

The demand for emergency response is mainly the energy crisis caused by power failure and regional conflict caused by natural disasters. Countries with more natural disasters are mainly Japan, India and some island countries or coastal countries; Europe is mainly affected by the conflict between Russia and Ukraine. In addition, some countries and regions with incomplete power infrastructure may also have corresponding demands.

The above demand factors are also directly reflected in the market size and market distribution. According to the data, in 2021, the global shipment of portable power station equipment reached 4.838 million units, with a market size of 11.13 billion RMB, with an annual growth rate of 150% – 300% in recent years; It is estimated that by 2026, the shipment volume will reach 31.1 million units, and the market scale will exceed 88 billion RMB.

In terms of market distribution, the largest market share in the United States is 47.3%, followed by Japan’s 29.6% market share. In addition, Europe, Canada and China each share about 5%, and other African, Southeast Asian and other countries share the remaining 8%.

What are the challenges of portable power station

With more and more energy storage companies, the competition is more and more fierce. Ninety percent of the global portable power station products are produced in China, and the current market concentration is also high. However, the industry is still in its early stage of development, with high gross profit and large market space to be tapped.

More and more companies have entered this field, including some large consumer electronics and new energy companies, such as Millet, Huawei, CATL, BYD, etc. Many listed companies have also launched corresponding portable power station products. In the future, the competition for portable power station will be further intensified, and the market pattern will certainly change greatly.

In addition to the above reasons, the most important thing is the low technical content of portable power station products. Most companies are solution integrators, and the raw materials are basically purchased from outside; The supply system of core components, such as electric core, inverter, electronic components, is mature.

Therefore, the product appearance design may also be much the same, product homogeneity competition is inevitable, price performance ratio and price war are highly likely to occur, and the profit space will also be greatly squeezed. Finally, it is about the shaping of brand influence. In this regard, the old large-scale companies naturally have more advantages.