According to foreign media on Feb. 18, IHS Markit analyzed the global home energy storage market in 2020 in a newly released article, mentioning that in 2020, despite the new crown epidemic hitting most economies around the world, some countries with more relaxed restrictions on energy storage installers had stronger than expected performance in the second quarter.
Germany.
Germany has achieved eight consecutive quarters of quarter-over-quarter growth in home energy storage system installations since the fourth quarter of 2018 through the third quarter of 2020. more than 90,000 units with nearly 850 MWh of capacity were shipped in the first three quarters of 2020, compared to 85,000 units with 741 MWh of capacity for all of 2019. in addition, many of the systems released earlier in 2020 are not due not be installed until the fourth quarter or later.
IHS Markit expects Germany's strong fourth quarter performance will allow it to surpass Japan as the world's largest home energy storage market for the first time. In part, this continued growth is being driven by homeowners choosing to invest in their homes rather than travel or vacation (as travel options are severely limited), as well as subsidy programs that support rooftop solar and energy storage.
The German market also saw a shift in key suppliers during this period, with domestic suppliers E3/DC, Senec and Sonnen performing strongly. These two companies have a combined market share of more than 52% in the first three quarters of 2020. Meanwhile, lithium iron phosphate batteries have become the darling of the segment as the technology has evolved.
United States
The U.S. is off to a strong start in 2020, with shipments exceeding 15,000 units in the first quarter, up 66% year-over-year. This was helped by concerns about wildfires that would cause power outages before the summer. Shipments continued to rise in the second quarter as California continued to allow the installation of solar and/or home energy storage systems during the outbreak. As summer approached, PG&E took a cautious approach to managing its network and implemented a rotating outage schedule to mitigate the potential risk of wildfires following the disaster that led to its bankruptcy in 2019. These outages have made solar and storage popular with many homeowners, leading to a record 25,000 units shipped in the third quarter with 317 MWh of capacity.
In addition, IHS Markit has tracked a new trend in the U.S. home energy storage sector. Systems that provide complete home backup are selling faster than those that provide only partial backup. This is one factor that will help Tesla gain a dominant share of the market in 2020. Another factor is Sunrun's acquisition of Vivint Solar, which has historically been a strong sales channel for LG Energy Solutions, but is now merging with Sunrun, which favors home energy storage solutions for Tesla.
Other Markets
Embargo restrictions across Europe have caused many home energy storage markets to stall dramatically - particularly in Italy and the UK. However, shipments did not decrease significantly as international suppliers continued to ship.
Italy's Lombardy region has a home energy storage subsidy program, but as the country went into full lockdown, it resulted in almost no installations in the second quarter. With the easing of restrictions, shipments began to increase, driven by the new subsidy program in Lombardy and the new EcoBonus (110% tax credit) that began in July, with shipments in the first three quarters of 2020 just 7% below the full year of 2019.
The UK has responded similarly to the new crown outbreak, with many installers taking advantage of the government's furlough program to reduce their workforce after the embargo went into effect. However, shipments continued despite the varying degrees of restrictions that remained in place. They took a major hit in 2020 due to the lack of direct incentives for home energy storage. iHS Markit expects shipments in 2020 to be 37% lower than in 2019.
Key Trends
After a challenging year, the global home energy storage market is set to accelerate in 2021, with IHS Markit forecasting a 27% increase in installed capacity of home energy storage systems worldwide compared to 2020. This will be driven by the continued recovery of the global economy, special incentives for energy storage, and the continued desire of rooftop solar owners for self-consumption. Several other key market developments are expected to occur in 2021.
Germany will overtake Japan and the U.S. in 2020, cementing its position as the world's largest home energy storage market. New European markets, such as Spain and Belgium, will accelerate in the wake of the EU's Clean Energy Initiative and stimulus package.
On the technology side, lithium iron phosphate will continue to grow strongly with continued growth in market penetration as long as demand growth in the automotive industry does not exceed expectations and affect availability. The integration of home management systems and smart charging for electric vehicles will also be a new driver for home installation of home energy storage systems.
If you have interests in energy storage batteries, please feel free to contact info@manlybattery.com, thank you.
