Portable Power Station Market
The global portable power station market size is expected to grow from an estimated USD 330 million in 2020 to USD 474 million by 2025, at a CAGR of 7.5%. This growth is attributed to the increase in the use of smart electronic devices and the requirement for uninterrupted power across applications such as emergency power, off-grid power, and automotive.
COVID-19 Impact on the Global Portable Power Station Market
COVID-19 continues to have an enormous impact on global tourism and air travel as people have been homebound. Closed destinations and hotels and restrictions on travel, camping, and outdoor recreational activities will impact travel and tourism. According to the World Tourism Organization (UNWTO), as of April 2020, all tourist destinations worldwide have introduced travel restrictions, 97 destinations (45%) have totally or partially closed their borders for tourists, 65 destinations (30%) have totally or partially suspended international flights, and 39 destinations (18%) are closing borders by banning the entry of passengers from specific countries of origin. COVID-19 has impacted regions such as Asia Pacific, Europe, Middle East, and North America. The above restrictions has directly impacted the portable power station market globally.
Portable Power Station Market Dynamics
Driver: Increasing use of smart electronic devices
The global electronics industry consists of organizations involved in the assembly, manufacturing, design, and development of electronic components and equipment. The electronics industry is one of the innovative and fast-evolving industries. The competition is fierce, and companies are always looking to bring the latest technology to the market first. The electronics manufacturing industry is divided primarily into four segments, namely, consumer products, industrial products, government products, and electronic components. However, the key focus in recent years has been on consumer products, which include alarm systems, home intercommunication systems, electronic ovens, personal computers, video game systems, radios, smartphones, DVD players, cell phones, and televisions. There is a high growth opportunity for consumer electronics products due to increasing investments in applications such as smart homes, smart cars, and smart cities. These applications require consumers to remain connected regardless of the platform, and they need the latest smart devices to help them stay connected. This is expected to drive the demand for portable power stations.
Restraints: Stringent emission regulations for battery-powered portable power stations
Gas- and fossil fuel-powered portable generators are the major sources of carbon monoxide and other toxic fumes. Gas-powered generators are not safe to be operated at home due to carbon emissions and noise pollution. The US Consumer Product Safety Commission has determined unreasonable risks of death and injuries associated with the continuous operations of portable generators. To address these concerns, the commission has rolled out rules to limit CO emission from power generators. The proposed rule requires that the generators powering hand-held Class I spark-ignition (SI) engines should not exceed a weighted CO emission rate of 75 grams per hour (g/hr), generators powering Class II SI engines with 2 cylinders should not exceed a weighted emission rate of 300 g/hr, and generators powering Class II SI engines should not exceed a weighted CO emission rate of 150 g/hr. This has resulted in stringent emission laws for portable gasoline-powered generators, which will drive the demand for battery-powered portable power stations. Battery-powered generators do not need gasoline for their operations, so they do not produce toxic fumes, e.g., CO produced by engines and the subsequent pollution. Battery-powered generators operate silently as there is no burning of fuel, unlike a conventional gas-powered generator.
Opportunities: Growing outdoor and camping activities
There is a rise in recreational and camping activities, such as fishing and hiking, mainly in North America. According to the North American Camping Report of 2019, there has been an addition of 7 million new camper households in the US, and the percentage of people camping has increased by 72% since 2014. In addition, to the increase in new campers, more Gen X campers (38%) and millennials (32%) have begun identifying themselves as campers and frequently go camping. According to Tourism Research Australia, in 2019, total tourism, which included domestic and international tours, accounted for USD 152 billion. In Australia, people visiting hotels, motels, and resorts accounted for 24%, and people going for caravanning and camping accounted for 14%. According to Eurostat, two-thirds of European campsites are located in 5 countries, namely the UK, France, Germany, Italy, and the Netherlands. In 2017, camping visitors spent a total of 397 million nights across EU campsites.
With the growing need to stay connected and millennials opting for camping, there is a demand for various electronic equipment such as laptops, smartphones, rechargeable trekking head torches, camping lamps, fridges, and cooler backpacks. All these devices need power to keep them working, which increases the opportunities to use portable power stations.
Challenges: High operational capability of portable fossil fuel generators
A portable power station does not have a wide range of operational capabilities as those of portable diesel generators. Portable generators can be used to power campsite and recreational vehicles (RVs), be it a caravan, pop-up camper, motorhome, or campervan. Reliable power is necessary to power appliances such as water heaters, satellite TVs, the Internet, fridges, phones, and laptops. Portable generators also power microwave ovens, electric kettles, fans, and toasters, whereas a portable power station cannot be used in the same scenario. They also provide power for camping areas and tents. Portable power generation for RV can yield enough watts/amps to power all these appliances safely. Diesel-powered portable generators and gasoline generators can power heavy appliances such as heaters and air conditioners, whereas a portable power station can only power small electronic gadgets. Many generators use gasoline, which is easily available at fuel pumps, whereas a portable power station needs to be charged on a timely basis, either using wall charging (AC supply) or solar. During outdoor activities, electrical outlets might not be available for, and solar charging can consume a lot of time; hence, people might consider portable generators for their camping operations rather than portable power stations.
The lithium-ion segment is expected to be the faster-growing market, by technology type, during the forecast period
The technology type segment of the portable power station market is segmented into lithium-ion and sealed lead acid. The lithium-ion segment is expected to register a higher growth rate during the forecast period. The growth of this segment is attributed to the availability of lithium ions at affordable prices across regions such as North America, Europe, and Asia Pacific. In addition, the use of lithium-ion reduces the operational cost of portable power stations.
By power source, hybrid power is expected to dominate the portable power station market
The market is segmented by power source into hybrid power and direct power. Hybrid power accounted for the larger share of the portable power station market in 2019. The key advantage of using hybrid power is that it can be used at remote or off-grid locations, where direct power access is limited or non-existent. Solar power charging in hybrid power is predominantly used to charge portable power station equipment for campsites and recreational vehicle activities. Moreover, several major manufacturers are offering both solar charging-enabled portable power stations and portable power stations with direct power charging capability for powering electronic equipment during power outages and grid blackouts.
The off-grid segment is expected to be the fastest-growing market segment in the portable power station market, by application, during the forecast period
The portable power station market is segmented by application into emergency power, off-grid power, and automotive. The off-gird power segment is projected to grow at the highest rate during the forecast period. The demand to power modern electronic equipment such as laptops, smartphones, etc., is driving the portable power station market for off-grid segment. The growth of this segment is also driven by the increase of camping and outdoor recreational activities, and the growing use of smart electronic devices in regions such as North America, Europe, and Asia Pacific.
North America is expected to account for the largest market size during the forecast period
The market is segmented by region into North America, South America, Europe, Asia Pacific, and Middle East & Africa. Of these, North America is the largest portable power station market in the world, predominantly due to the US, and the trend is expected to be the same during the forecast period. The market in the region is driven by the growing emphasis on camping and outdoor recreational activities, and the increasing use of smart electronic devices and subsequent need for connectivity, which requires power
In March 2020, Goal Zero launched the all-new Yeti 500X portable power station. Yeti 500X has an added storage capacity of 428–505 Wh, making it fit for use for backyard parties, long camping trips, and emergencies.
In January 2020, Jackery introduced the Explorer 1000 and Explorer 300 portable power station. The Explorer series provides a range of rechargeable lithium portable power supplies.
In December 2018, EcoFlow collaborated with SunPower to provide the EcoFlow–SunPower Energy Bundle. This can be used to power small electronics and can be charged in 5 to 9 hours in direct sunlight.
In July 2018, Jackery expanded its product portfolio by releasing a family of lithium-based and solar-ready portable power solutions. Jackery’s Explorer series includes the Explorer 160 and Explorer 440 in addition to the 240 and 500.
Works Cited entry:
“Portable Power Station Market by Power Source (Direct, Hybrid), Technology (Lithium-ion, Sealed Lead Acid), Capacity (0–100, 100–200, 200–400, 400–1000, 1000–1500, ≥1500Wh), Sales Channel (Online, Offline), Application, Region - Global Forecast to 2025”, Markets and Markets, Jun 2020, https://www.marketsandmarkets.com/Market-Reports/portable-power-station-market-23592113.html