Energy Storage Cleantech Report: 10 Important TrendsMarch 26, 2013 Posted by: Matt Maloney
Energy Storage Cleantech Report: 10 Important TrendsDownload the Report (PDF)
SVB's latest cleantech report on energy storage reviews the market drivers, challenges and opportunities for this integral piece of the cleantech ecosystem. The report provides detail on the technologies, the drivers of growth, the exit environment and investment activity. We outline the following ten important trends that influence the growth of energy storage, the key to the viability of renewable energy.
Incumbent Dominance: The large established battery manufacturers continue to dominate, making breakouts for new entrants challenging. Incumbents bring financial stability, manufacturing scalability and reliability which win favor over the technical advantages of new battery players. Batteries are often integrated into the end user product, and established OEMs are often reluctant to purchase from startups due to supply and quality concerns.
Long on Promise, Short on Results: Advanced energy storage is still in its early stages. Even companies that have been around for years are only in early commercialization. This is both good and bad: the sector has great potential but it will be awhile until we see any breakout companies. Some new breakout technologies,such as supercapacitors/ultracapacitors show promise, but they all seem far on the horizon in terms of leapfrog technical advances and market adoption is ever further out.
New Entrants Few and Far Between: Startup activity is muted due to the lack of strong exits and the long time to market for existing energy storage companies.
Contract Manufacturing and Service Models Attract Investor Interest: Achieving attractive economics in battery manufacturing requires significant scale and massive investment in plant assets. Following the broader cleantech trend, investors favor capital efficient models. Typically, these models are faster to commercialization, although gaining access to contract manufacturing resources may be challenging.
Long Sales Cycles: Some energy storage markets, such as the grid-storage sector, are characterized by long sales cycles...Read More