This report mainly focuses on the market scale, business model and the core competitiveness of the leader, and discusses the energy storage fire fighting & traditional fire fighting track.
1. Definition, barriers and market driving factors of energy storage and fire protection
Energy storage fire protection is an important defense line for the safety of energy storage power station to reduce the loss of life and property caused by fire. In the process of fire in the energy storage power station, chemical reactions are still taking place inside the battery, which may lead to the domino effect, which is difficult to put out by traditional fire fighting; Energy storage fire fighting can effectively warn of lithium battery thermal runaway and put out the fire to prevent re ignition.
The technical barrier of early warning end is higher than that of fire extinguishing end. Thermal runaway warning needs the help of sensors to transform the detected physical and chemical signals into electrical signals for transmission. It integrates physical sensing technology, computer technology, data transmission and other technologies, with high technical and process manufacturing barriers. The technology of fire extinguishing end is relatively mature, and high-pressure water mist, heptafluoropropane and perfluorohexanone mixed gas fire extinguishing agents are widely used.
Policy is the core driving factor for the continuous expansion of the fire market. China pays more and more attention to fire safety, and policy standards are becoming more and more strict, such as expanding the scope of use of fire products, stipulating the maximum service life of fire products, requiring energy storage power stations to realize pack level early warning and fire extinguishing, etc.
2. What is the market space and growth rate of energy storage fire fighting and traditional fire fighting?
The total scale of China’s fire products (Civil + industrial + energy storage) is growing steadily, and is expected to reach 179.6 billion yuan in 2023, with 21-23 cagr4.5 billion yuan 6%, of which the scale of China’s energy storage and fire protection products is expected to become a new growth curve, and the 21-25cagr is expected to reach 156%. The global proportion of new installed capacity of electrochemical energy storage in China is expected to increase from 24.7% in 21 years to 30% in 25 years, and the proportion of fire-fighting investment is also expected to increase from about 2% to more than 7%. The market scale of energy storage and fire-fighting products will increase from 175 million yuan now to 7.5 billion yuan in 2025.
The global installed demand for energy storage and fire fighting is expected to increase from 1.223 billion yuan to 26.105 billion yuan in 21-25 years, with cagr114.4 billion yuan 9%。 Energy storage and fire fighting enterprises are expected to fully benefit from the high industrial dividends brought by the policy. At the same time, through deepening cooperation with Chinese energy storage system integration manufacturers, they are expected to enter the overseas energy storage and fire fighting market.
3. Investment suggestion: the market concentration of traditional fire products is expected to continue to improve, and the energy storage fire products market is expected to become a new growth pole. It is suggested to focus on the fire alarm faucet [ Jade Bird Fire Co.Ltd(002960) ].
Increase in the market share of traditional main businesses: as a fire alarm leader, the market share has increased from 6.68% in 2019 to 7.46% in 2021; In the future, it will benefit from the growth premium brought by the increase of market share.
Breakthrough from 0 to 1 in the industrial field: the company has invested 27.5% in R & D in 16-20 years, continuously optimized the product performance around the self-developed “Crested Ibis” chip, and achieved a breakthrough from 0 to 1 in many industrial fire protection fields such as steel and electric power in 21 years.
Active layout of energy storage fire protection: the company has only three “UL recognized witness testing laboratories” certification in China, which provides a basis for fire protection products to enter the European and American markets. In 21 years, the company won the bid for an energy storage substation project in Texas, USA, and entered the world’s largest energy storage and fire protection product market.
4. Risk warning: the macro economy continues to decline, the installed capacity of energy storage is less than expected, and the price of raw materials is at risk of upward.
