The market size of ultracapacitors, or supercapacitors, is estimated to top $900 million dollars by 2016 by research companies. Furthermore, the market has seen sustained growth for the past few years. This is luring some turn key real estate investors into another type of opportunity. While some skeptics are unbelieving that the ultracapacitors will continue to grow at such high rates with over 30% market growth, entrepreneurs and investors are betting otherwise.
Getting Into A Growing Market
Most experienced venture capitalists, angel investors and entrepreneurs understand the importance of getting into a growing market. But, the market size has to be large enough too. In order to fund a successful start up, they end up having to pay for a few failed companies too. That means, when a company does succeed, it has to have the potential to earn profits that will pay a multiplier for all investments made into that company as well as others in the portfolio.
Ultracapacitors Are Hot
Why are ultracapacitors so hot? Currently, they can be described as super batteries. They hold more energy as well as charge and deliver it faster than traditional batteries. As an investor, why would you not invest into a better way of delivering energy? Well, there is a downside.
Ultracapacitors For Hybrid
Ultracapacitors are going to be the next big step for hybrid automotive technology, according to insiders. These power generators will allow the automotive industry to take the next step towards an entirely electric fleet of offerings. This, of course, will increase demand for ultracapacitor manufacturing. Clearly, that is a huge opportunity just waiting to be taken advantage of.
One of the biggest advantages that ultracapacitors provide is their durability and long-lasting ability. An ultracapacitor creates energy without needing chemical reactions to do so. That means less wear and tear, which leads to a much longer shelf-life for this form of energy. This is totally different from lithium-ion batteries, which utilize chemical reactions to produce energy and therefore suffer a lot more wear and tear, which causes those familiar problems with charging and batteries no longer holding a charge.
Ultracapacitors have one major drawback, their physical size. Right now, the energy storage technologies are used for cars, buses, trains, elevators and other large areas where energy is required and space can be sacrificed. But, for everyday use, we are not quite there yet. However, investors at Owl Creek and elsewhere do not seem bothered by these shortcomings.
Lots Of Potential
Clearly, there is a lot of potential for the technology. Everybody wants faster charging iPhones, Samsung Galaxy phones or any other device. And, companies are willing to pay for it. The applications of increasing the capacity of battery life and efficiency transcends almost every industry. The question remains, who will make it happen?
VC’s and angel investors are entering the space rapidly to compete, and Yacktman and others are taking notice. Whether they are joining for the current market conditions, potential to miniaturize the technology or both, entrepreneurs and start ups are being funded to capture the growing market. For individuals with experience in battery life or energy storage, it just might be the right time to get into the ultracapacitor market.
Image from https://gigaom.com/2011/07/12/how-ultracapacitors-work-and-why-they-fall-short/