Lawn Mower Battery Industry Special Report: Lithium Battery Acceleration

“Evolutionary History” of Mowing Tools | Lithium Lawn Mower Battery emerge

The End of the 1.0 Era of Mowing Tools –

1.0 Era: Manual – Internal Combustion Engine – Fuel Power – AC Electric Power (plug-in, limited range of movement) – DC Electric Power (battery, removable); “Evolutionary History” of mowing tools: based on Environmental Protection, Low Noise , Convenience requirements, Lithium Lawn Mower Battery may become the end of the 1.0 era; garden tool mowing “five-piece set”: lawn mower, lawn trimmer, blower, pruning machine, chain saw.

The demand for lawn mowers continues to grow, lithium-ion Lawn Mower Battery are developing rapidly, and the penetration rate of intelligence is low.

Industry demand: According to Global Market Insights, garden equipment in 2018 was US$28.3 billion, with a CAGR of 6.85% in 2019-2025; the market size of lawn mowers accounted for about 1/3 (according to the prospectus of Daye shares). Lithium electrification: According to TraQline, in 2019, the share of fuel oil in North America was about 50%, and the share of lithium electric power was about 34%. With the breakthrough of lithium battery technology, the penetration rate of lithium electrification of Lawn Mower Battery is expected to rise to a higher level. Intelligence: According to the Research and markets report, it is estimated that the CAGR of the global lawn mowing robot market will exceed 12% from 2019 to 2025, and the growth rate is significantly faster than that of the industry. In addition, the sales volume in 2021 is about 1.2 million units, and the unit price is about 10,000 RMB. We believe that the market size basically matches this data.

Market: Small courtyards in Europe, easy penetration of lithium Lawn Mower Battery, fast growth in North America, high demand for high power

Mainly based on overseas demand, limited by geographical factors, obvious regional: Europe: small lawn area (300-500㎡), clear boundaries, higher overall electrification rate, among which AC (wired) is dominant. North America: The lawn area is large (600-1000 ÿ), and the grass grows fast in the peak season (the grass needs to be mowed 2-3 times a month), and there is a lot of demand for high-power, high-priced products, such as fuel-powered lawn mowers, or riding lawn mower. We believe that with the evolution of power sources and the innovation of intelligent products, the pain points that current lithium Lawn Mower Battery or intelligent products cannot meet in North America are expected to be gradually resolved.

Splitting of the industrial chain: Midstream OEMs are mainly concentrated in China

Industry chain: there is no significant difference between upstream (engine or Lawn Mower Battery is different), midstream & downstream channels. Fuel lawn mower industry chain: The engine is the core, and it basically relies on external mining. Europe and the United States may have “double-reverse” investigations(anti-dumping, countervailing) and environmental certification requirements for engines. Such as the European V certification of the new European emission standards; the United States requires EPA&CARB certification, ETL certification and ANSI standards. Lithium lawn mower battery industry chain: Most lawn mowers of the upstream in many countries are self-developed except for battery cells. The supply of battery cells is still dominated by Japanese and Korean suppliers. Chinese manufacturers are accelerating their replacement. International first-tier brands have long selected Samsung SDI and LG Chem as their battery cell suppliers. However, domestic manufacturers such as Tenpower, EVE, and Highstar have successively entered the supply chain of first-tier brands. Intelligent lawn mowing robot industry chain: The launch of intelligent products is expected to change through online channels and break through the competition pattern of overseas giants in brands or channels.

According to the environmental policy,  we may gradually bid farewell to the era of fuel engines

California can ban the sale of some gas-powered equipments, including lawn equipment, generators and pressure washers. The Gov., Gavin Newsom signed a law over the weekend ordering regulators to ban the sale of small off-road engines. The Air Resources Board of California is already working on rules in this regard, and the governor has given the agency a deadline to adopt and apply the rules — which must be passed by July 1, for those engines manufactured on or after January 1, 2024, or at any time the state board deems practicable( The latest time prevails). The law also stipulates that regulators are required to offer rebates to reduce the cost of switchgear. The latest state budget allocated $30 million to cover the cost.

The purpose of the law is to reduce emissions. The Associated Press notes that California instituted emissions standards for these engines in 1990. While emissions from cars have generally declined over the past few decades, the same has not been the case with small off-road engines. An hour of use of a gas-powered leaf blower emits the same level of pollution as a 2017 Toyota Camry driven about 1,100 miles, state officials said. There are currently more than 16.7 million units equipped with small off-road engines in California — about 3 million more than the state has passenger cars.

California is addressing gas engine emissions in other ways. In 2020, the California Air Resources Board said all truck and van manufacturers must switch to electric versions by 2045. The state will also ban the sale of new internal combustion engine cars and trucks by 2035. Many automakers aim to switch entirely to electric vehicles by then. Another zero-emissions rule for light-duty autonomous vehicles will come into effect from 2030.

Summarize:

The lawn mowing robot industry, with large space, fast growth rate and low penetration rate, is currently in its infancy; the introduction of intelligent lawn mowing robots with Lithium Lawn Mower Battery is expected to greatly increase the penetration rate of the industry.