ENERGY HARVESTING SYSTEMS MARKET ANALYSIS

Global Energy Harvesting System Report Overview:

The global energy harvesting systems market size was valued at US$ 530.6 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.7% from 2023 to 2030. The main drivers of the Energy Harvesting Systems market are technological advancements and a growing demand for energy-efficient devices. The growing adoption of smart homes and the Internet of Things (IoT) are also expected to support the growth of the market in the future. Increased awareness about energy conservation and favorable government initiatives for building a green environment are also driving the market.

Energy harvesting system market: Regional Insights

North America is anticipated to witness significant growth in the global energy harvesting systems market during the forecast period. This is owing to high adoption of advanced technologies in the region such as Industrial Internet of Things (IoT), compared to any other region. Moreover, technology companies and cloud service providers in the region continue to adopt strategic collaboration, which further generates various opportunities to connect more various equipment to Industrial IoT. Along with this, the region shows highest automation adoption in all the industries. These factors are thus expected to fuel growth of the global energy harvesting systems market during the forecast period.

Moreover, Asia Pacific is also projected to show strong growth in the global energy harvesting systems market during the forecast period due to presence of major developing countries such as Japan, China, and India, among others. The major applications of energy harvesting in the region are in different sectors such as industrial, consumer electronics, home automation, and transportation. Moreover, the adoption energy harvesting solutions is increasing in building and smart home devices in the region. This is further anticipated to augment growth of the market across Asia Pacific.

Figure 1: Energy Harvesting System Market Share (%), By Region, 2022

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Energy harvesting system market Drivers:

Rise in Deployment of IOT Devices

Internet of Things (IoT) has gained widespread momentum across all industrial sectors including automotive, energy, defense, consumer electronic, and healthcare, among others. The increasing preference towards offering data centric, personalized experiences to the customers is pushing companies to connected as much devices as possible in order to gather more consumer related data. Therefore, technology companies such as Renesas Electronics Corporation, ARM Holdings, Microchip Technology Inc., among others, are investing heavily to develop systems and devices for such IoT applications.

According to Coherent Market Insights, the connected IoT devices are anticipated to reach over 25 billion till 2027, owing to the rising IT industry growth. The growth in the connected devices has led to an increase in the amount of data generated across these devices. The high amount of data generation is therefore increasing the capabilities of devices and hence, driving the development of microcontrollers that offer high performance with low power consumption.

The growing applications of IoT including smart cities, smart homes, Industrial Internet of Things (IIoT), and machine to machine (M2M) communications, among various others is further expected to fuel the market growth for energy harvesting system in various applications such as consumer electronics, industrial, military and defense, home and building automation. Since energy harvesting systems are one of the prominent solutions which can power the low power wireless sensors.

Availability of R&D Funds through Organizations and Investors

R&D for energy harvesting devices has been on a rise owing to the requirement of innovative solutions to power wireless sensors and low power electronics. Further, the presence of funds through associations such as the U.S. Department of Energy and the European Commission results to enhance the development of innovative technologies.

For instance, European Commission under its Horizon 2020 is funding a project on “Metamaterial Enabled Vibration Energy Harvesting”. The project has commenced in January 2021 and is expected to end by December 2024. The aim of this project is to eliminate the requirement of batteries to power wireless sensors in the future.

In addition, new startups are also able to raise funds from investors to progress innovative product development.

In January 2021, Barbara IoT, a Spain-based startup company, closed a round of over USD 469.46 thousand (Euro 400k) to develop its operating system for industrial IoT

Availability of funds for innovative technologies through organizations and investors aids to fast track the process of new product development. Further, it also provides a better opportunity for new product developers to enter the market with their innovative products. These factors have resulted to drive the market for the development of innovative energy harvesting systems which will result to further boost the growth of energy harvesting systems in the forecast period.

Energy harvesting system market Opportunities:

Increasing data traffic and novel smart devices is expected to create growth opportunities in the global energy harvesting systems market during the forecast period. With increasing amount of data traffic and growing advent of novel devices, the demand for development of energy-efficient infrastructure and techniques is also growing all over the world. This further is likely to boost the demand for energy harvesting technologies in the future, which will offer multiple lucrative opportunities to market players in the global energy harvesting systems market. Growing need for energy efficiency will create ample opportunities in the global energy harvesting systems market in the near future. Energy efficiency has become an important aspect to successfully design and deploy the 5G and beyond wireless networks. As per the IEEE Communications society, the need for integrating energy harvesting technologies into cognitive radio networks will increase, to overcome the issues of scarcity in spectrum and growing energy consumption forecasted in 5G. Thus, this factor is likely to benefit the global energy harvesting systems market in the near future.

Energy harvesting system market Trends:

Technological advancements in developed regions is a major trend The technologically developed regions, such as North America have higher needs of energy consumption due to which, these regions are likely to be the most significant regions for the market. The countries across these regions have well-established research bases with laboratories that will aid in the development of cost-effective and practically useful energy harvesters. For instance, the U.S. has the National Renewable Energy Laboratory. Thus, such regions witness higher technological advancements, which in turn is likely to drive the demand for energy harvesting systems in the future. Consequently, the trend is expected to fuel the growth of the global energy harvesting systems market in the future.           

The consumer electronics segment is gaining traction in the market

Consumer electronics such as smartphones, wearable’s, wireless appliances, remote control units, and body implants are increasingly using energy harvesting systems. As using energy harvesting systems enables the operation of consumer electronics products without requiring conventional sources of power, the use of these systems is growing in this sector. For instance, remote control units use energy harvesting systems where the power is gathered from the force applied by the user when they press the button. Thus, the increasing growth of consumer electronics is trending in the global energy harvesting systems market.

Energy harvesting system market Restraints:

Low Power Capacity Coupled With High Cost

Energy harvesting system are costly, since they perform tasks such as analysis of real-time information, setting up energy scavenging devices, and other integrating equipment. Thus, to gather real-time information, the deployment and servicing of associated infrastructure such as advanced metering systems, smart devices, sensors, transducers, and communication infrastructure are necessary. This is leading to the increasing need for transformation of the infrastructure of utilities, which is expected to drive subsequent investment while hampering market growth over the projection period.

The technology and infrastructure necessary for energy harvesting is still expensive as its R&D involves high costs. Capital spending is highly correlated with the financial health of a company. In addition, the return on investment is gradual and may take a period of nearly three to four years on case to case basis. The need for large investments and longer payback periods prove to be a major challenge for the market.

Application of energy harvesting remains limited due to its small conversion efficiency (around 5%) and its low power storage capacities. Therefore, the utilization of energy harvesting remains limited to low- power-consuming devices. Hence energy harvesting devices cannot act as a power backup solutions or continuous power supply for medium and large scale devices. Hence, energy harvesting devices can be self-powered in case of only ultra-low power capacity devices which is anticipated to hinder the growth of the market.

Disruption in spare parts supply chain to hamper the market growth

The supply chain of spare parts for energy harvesting system equipment is majorly affected due to the shutdown of production facilities. Manufacturing of most components in energy & power sector is slowing down considerably. This can be attributed to factors such as local and international travel restrictions, quarantine requirements, and lockdown, which together have caused a delay in shipment of already manufactured parts to be supplied to distributors and end users.

Energy harvesting system equipment manufacturers have access to an adequate supply of critical parts, devices, components, and materials for emergencies. But these companies are facing bottlenecks due to the limited production of supplies in countries that are severely affected by COVID-19. Manufacturers and end users are facing difficulty in procuring critical components from suppliers in affected countries.

 Figure 2: Energy harvesting system market Share (%), By Technology, 2022 

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Energy harvesting system market Segmentation:

The global energy harvesting systems market report is segmented into Technology and Application.

Based on Technology, the market is segmented into Light Energy Harvesting, Vibration Energy Harvesting, Thermal Energy Harvesting, and RF Energy Harvesting. Out of which, Light Energy Harvesting is expected to dominate the global market over the forecast period and this is attributed to the growing investment in light energy harvesting technologies by several companies. For instance, the Tissot SA developed the Tissot Smart-Touch watch model that can pool power generation with the use of ambient light with Bluetooth connectivity, harvesting the energy required to power the quartz movement, the large LCD screen and large number of sensors. This in turn is likely to drive the demand for light energy harvesting systems, which in turn will drive growth of this segment.

Vibration Energy Harvesting segment is also expected to witness significant growth in the near future and this is owing to the growing technological advancement of vibration-based energy harvesting systems. The novel advanced technology allows the use of alternative vibration sources for supplying small devices, and to eliminate the need for recurrent replacement of battery or power cables, specifically for applications including oil production and aerospace structures. The demand for this advanced technology of vibration-based energy harvesting systems is growing globally, which in turn is likely to drive growth of the market.

Based on Application, the market is segmented into Consumer Electronics, Building and Home Automation, Industrial, Transportation, and Other Applications. Out of which, Consumer Electronics is expected to dominate the global market over the forecast period and this is attributed to the growing use of consumer electronics, like smartphones, wearables, wireless appliances, remote control units, and body implants. The use of energy harvesting systems enables operating of consumer electronic products where regular power sources are not available. Due to such features, the use of these technologies is extended and it also reduced geographical restrains for devices having to be near a power sources. These features of energy harvesting systems in consumer electronics is driving the growth of the segment in the market.

Building and Home Automation segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of energy harvesting systems in building and home automation due to various benefits of this technology, such as up to 40% energy savings. The use of energy harvesting systems eliminated the need for monitoring, replacing, and disposing batteries, which further helps save maintenance costs. Thus, growing use of this technology in building and home automation is likely to drive the market growth.

Energy harvesting system market: Key Developments

In September 2022, E-Peas SA along with Energous Corporation launched a novel Wireless Energy Harvesting Evaluation Kit, created for applications of energy harvesting in smart homes/smart buildings, asset trackers for warehouses and retails, and industrial IoT medical.

In January 2022, E-Pease SA introduced an Ultra-Compact Custom Power Management Solution for Cartier’s Tank watch, which is the first ever solar energy harvesting watch. The new ultra-compact PMIC developed particularly for the Tank watch consists dimensions of only 2mm x 2mm, which makes it the smallest energy harvesting product.

In February 2021, STMicroelectronics, revealed its STM32U5 series, a new-generation of extreme power-saving microcontrollers (MCUs), aimed at catering the demand for performance/power requirements for small applications including personal medical devices, wearables, industrial sensors, and home automation.

In May 2021, EnOcean, exhibited its PTM 535BZ module, which is the newest addition to the transmitter modules range of the company for battery-free switch applications.

Energy harvesting system market: Key Companies Insights

The global energy harvesting systems market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global energy harvesting systems market are Piezo.com, Microchip Technology Inc., Cypress Semiconductor Corporation, E-Peas SA, Texas Instruments Incorporated, EnoCean GmbH, STMicroelectronics NV, ABB Limited, Analog Devices Inc., Powercast Corporation, and Advanced Linear Devices Inc.

*Definition:

Energy Harvesting Systems is the process of converting ambient energy into a form that can be used to power electronics. This includes solar and thermal energy, as well as kinetic energy from movement or vibrations in nature.