Energy Harvesting System Market

Market Overview

The global energy harvesting system market size was valued at USD 1.0 billion in 2023 and is projected to reach USD 3.0 billion by 2032, registering a CAGR of 13.1% during the forecast period (2024-2032). Using energy harvesting systems is advantageous because the connected devices can be virtually operated unlimitedly without adverse environmental effects. These are the key market drivers boosting energy harvesting system market growth.

Energy harvesting systems are innovative technologies that capture and convert ambient energy from various sources into usable electrical power. These systems offer a sustainable and renewable way to generate electricity that does not rely on traditional power sources such as batteries or grid power. Energy harvesting systems are gaining popularity in many applications, including small electronic devices and large-scale industrial processes.

Population growth has increased the energy demand. Furthermore, technological advancements in sensor-based energy harvesting systems and energy-efficient harvesting components propel the global market forward. Moreover, energy from the environment is wasted, either directly or indirectly. Thus, the ability of these systems to capture this energy and convert it into electrical energy, which can then be used in autonomous electronic devices or circuits, is driving growth in the global energy harvesting system market. Harvested energy can also power low-energy electrical utilities such as sensors, watches, and other household appliances. All of these factors contribute to increased demand for energy harvesting systems, propelling the global energy harvesting system market growth.

Highlights

• Light energy harvesting generates the highest revenue share through Technology.
• Energy Harvesting Transducer dominates the market by component.
• Building and Automation led the market by application.

Market Dynamics

Global Energy Harvesting System Market Drivers:

Growing Demand for Energy-Efficient Solutions

An increasing demand for energy-efficient solutions drives the global energy harvesting system market. As businesses and consumers become more concerned with energy conservation and environmental sustainability, there is a greater demand for solutions that reduce energy consumption and reliance on traditional power sources. Concerns about climate change and the ecological impact of energy use have raised awareness of the value of sustainability. According to a Nielsen survey, 81% of global respondents believe businesses should improve the environment.

Additionally, using batteries in electronic devices, sensors, and remote monitoring systems has resulted in significant electronic trash. According to the WEEE Forum, approximately 16 billion phones are used worldwide, with more than 5 billion expected to become e-waste by 2022. Governments and regulatory agencies have implemented various industries' energy efficiency policies and standards. For example, the European Green Deal aims to make the EU climate-neutral by 2050 through significant investments in renewable energy technologies, such as energy harvesting systems.

According to the International Energy Agency's (IEA) Electricity 2024 report, global renewable power capacity is expected to reach 7,300 gigawatts (GW) between 2023 and 2028. This expansion is driven by supportive policies in more than 130 countries, with solar photovoltaic (PV) and wind accounting for 95% of the growth. The report also predicts that wind and solar PV will generate more electricity than hydropower in 2024 and that renewables will supplant coal as the world's primary source of electricity generation by 2025. As demand rises, the energy harvesting system market is poised for further growth and innovation.

Global Energy Harvesting System Market Restraints:

Efficiency and Scalability Challenges

One of the most significant challenges is ensuring the efficiency of energy harvesting technology. Indoor lighting or vibrations, for example, may not produce enough energy to power specific applications. Furthermore, scalability is an issue, as not all energy harvesting systems are easily adaptable to different use cases or locations. Energy harvesting technologies vary in efficiency. While current solar panels can achieve 20-25% efficiencies, their actual efficiency in practical applications may be lower due to environmental factors. The design and materials used affect the conversion efficiency of vibration energy harvesting.

Similarly, the power output of a solar panel is determined by its size and the amount of sunlight it receives. Under ideal conditions, a standard 1 square meter solar panel with 20% efficiency can produce approximately 200 watts (1,000 watts per square meter of sunlight). However, real-world factors such as shading, weather, and the angle of the sun reduce this output. Furthermore, the power output of TEGs is typically relatively low. For example, a small TEG module with a temperature difference of 100°C may produce only a few milliwatts to several watts of power, depending on its size and materials.

Moreover, the scalability of energy harvesting devices can be difficult and costly. For example, expanding a solar-powered IoT network for a smart city necessitates a significant investment in additional solar panels and infrastructure. Each additional gadget complicates management and maintenance.

Global Energy Harvesting System Market Opportunity:

Expansion in IoT and Smart Device Applications

The Internet of Things (IoT) expansion creates a significant opportunity for the energy harvesting systems market. IoT devices are becoming more common in various industries, resulting in a demand for self-powered, autonomous solutions that do not require frequent battery replacement. The Internet of Things market is rapidly expanding. As of 2023, there were approximately 15.14 billion connected Internet of Things (IoT) devices worldwide, nearly doubling the global population. This figure is expected to rise to more than 25 billion over the next seven years, thanks to technologies such as 5G. The development of IoT devices in many industries, including industrial, healthcare, agriculture, and smart cities, has increased demand for energy-efficient and self-powered solutions.

In addition, the Internet of Things encompasses various devices, from environmental sensors and smart meters to wearable health trackers and industrial equipment monitors. Energy harvesting systems are critical To the IoT ecosystem because these devices require power sources to operate continuously.

Furthermore, smart home systems use a variety of wireless sensors and devices to manage lighting, heating, security, and appliances. For example, a smart thermostat can use a solar-powered sensor to monitor indoor and outdoor temperatures and adjust heating and cooling systems accordingly, eliminating the need for battery replacements. For instance, Google's Nest smart-home division recently released a new smart thermostat. The new Nest Thermostat is a simpler model than the Nest Learning Thermostat or Nest Thermostat E, and it costs USD 129.99, which is USD 40 less than the Nest E and USD 120 less than the top-of-the-line third-generation Nest Learning Thermostat. It was made available for pre-order immediately.

As a result, the growth of the Internet of Things has created a large and expanding market for energy harvesting systems. As more industries and applications reap the benefits of the Internet of Things, the demand for self-powered, autonomous devices grows. Energy harvesting solutions are critical for meeting this demand while ensuring IoT networks' long-term viability and efficiency.

Regional Analysis

North America Dominates the Global Market

The global energy harvesting system market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global energy harvesting system market shareholder and is estimated to grow at a CAGR of 12.6% over the forecast period. This is due to the region's strong adoption of modern technologies such as the Industrial Internet of Things (IoT) compared to any other region. Furthermore, technology businesses and cloud service providers in the region continue to collaborate strategically, creating new opportunities to link increasingly diverse equipment to Industrial IoT.

In addition, Government measures to minimize energy emissions from aging and public buildings have also aided this expansion. For example, the U.S. General Services Administration agreed with IBM to install sophisticated and smart building technologies in 50 of the Federal Government's most energy-intensive buildings. The region has the highest automation adoption across all industries. As a result, these factors are projected to drive the worldwide energy harvesting systems market during the forecast period.

Asia-Pacific is anticipated to exhibit a CAGR of 13.0% over the forecast period. Due to key emerging countries such as Japan, China, and India, among others, Asia-Pacific is expected to show high growth in the worldwide energy harvesting systems market during the forecast period. Energy harvesting has various uses in the region, including industrial, consumer electronics, home automation, and transportation. Furthermore, the area is seeing increased energy harvesting technologies in building and smart home systems. This is expected to boost market expansion in Asia-Pacific further.

Additionally, due to Asia-Pacific's low operational and labor expenses, many industry companies are considering shifting their manufacturing facilities there. Such aspects would contribute to the growth of IoT systems, hence boosting market growth. The "100 Smart Cities Mission" in India was launched in June 2015. The Government has allocated a USD 14 billion fund for the implementation of 100 smart cities as well as the revitalization of 500 smaller localities. In January 2016, 20 cities were chosen for the first round of the "All India City Challenge" tournament.

Europe is predicted to be a key expanding market, with a 25% share, owing to the European Commission's booming support and investments in research and development of energy harvesting and energy storage devices. For example, the European Commission supports a "Metamaterial Enabled Vibration Energy Harvesting" project through its Horizon 2020 program. The project began in January 2021 and is projected to be completed by December 2024. This project aims to eliminate the need for batteries to power wireless sensors in the future.

Furthermore, emerging businesses might raise funding from investors to advance the creation of novel products. Barbara IoT, a Spain-based business, closed a round of around USD 469.46 thousand (Euro 400k) in January 2021 to build its industrial IoT operating system.

In Latin America and the Middle East, the market for energy harvesting systems will grow moderately due to the adoption of renewable energy sources. Major countries in the Middle East and Africa, including Saudi Arabia, the United Arab Emirates, South Africa, and Egypt, have announced intentions to build smart cities in the following years. These governments are taking substantial initiatives to support smart cities and are inviting private sector companies to deploy their smart solutions in under-construction smart cities.

Segmental Analysis

The global energy harvesting system market is segmented based on Technology, components,

By Technology, the market is further segmented into Light Energy Harvesting, Vibration Energy Harvesting, Radio Frequency Energy Harvesting, and Thermal Energy Harvesting.

Light Energy Harvesting holds a significant market share. Light energy harvesting, often known as solar energy harvesting, is gathering energy from natural or artificial light sources such as sunshine or interior lights. Light energy is typically converted into electricity using photovoltaic cells (solar panels). There is a surge in the number of significant firms engaged in developing solar energy-based products classified as light energy harvesting. This gathered energy is then efficiently used in industries such as building automation and consumer electronics.

Mechanical vibrations, oscillations, or motions in the environment generate electrical energy in vibration energy harvesting. Piezoelectric materials, which create a voltage when mechanical stress is applied, are frequently employed in vibration energy harvesting devices.

Based on components, the market is sub-segmented into Energy Harvesting Transducers, Power Management Integrated Circuits (PMIC), and Storage Systems.

Energy harvesting Transformers mainly influence market growth. Energy harvesting transducers are the devices or components that capture energy from their surroundings. Transducers can be photovoltaic cells (solar panels), piezoelectric materials, antennas, or thermoelectric materials, depending on the energy harvesting method utilized (e.g., solar, piezoelectric, RF, thermal). They transform numerous energy sources into electrical energy, such as light, mechanical vibrations, radio frequency signals, or temperature differentials. Furthermore, the increased use of electromechanical transducers for harvesting vibration energy is a crucial driver boosting global market demand.

Energy storage is critical to energy harvesting systems because it saves surplus energy for later use. Examples of storage system components are supercapacitors, rechargeable batteries, and energy storage capacitors. They act as a buffer, storing excess energy created by transducers and releasing it as needed to power devices when the external energy source is absent or insufficient.

The market can be bifurcated by application into Building and Home Automation, Consumer Electronics, Industrial, and Transportation.

Building and home Automation generates the most income. Building and home automation applications include various energy-efficient systems and devices in residential and commercial structures. Energy-harvesting Technology is powered by wireless sensors, HVAC (heating, ventilation, and air conditioning) controls, lighting systems, and security devices. These technologies lessen dependency on traditional power sources while also encouraging energy conservation and sustainability in buildings.

Consumer electronics, such as wearable devices, remote controllers, and low-power gadgets, use energy-harvesting technologies. These methods allow for the creation of self-powered consumer gadgets, decreasing the need for frequent battery replacements and increasing user convenience. Solar-powered wristwatches and RF energy-harvesting remote controllers are common examples.

Recent Developments

• May 2024- PI Ceramic launched a new product category called "Piezoceramic Composites" based on developing a new manufacturing technology.
• April 2024- Powercast's energy-saving, sustainable building automation technology received the Smart Buildings Innovation Award.