Known in part for its large weight to Tesla (NASDAQ: TSLA), the ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) has another benefit: leverage to the rapidly growing energy storage market.
ARKQ captures the converging industrial and technology sectors, capitalizing from autonomous vehicles, robotics, 3D printing, and energy storage technologies. That wide mandate helps lever the ARK fund to much more than just self-driving cars, an important trait at a time of rapid robotics advancements. Data confirm the rise of energy storage.
“The energy storage industry is poised for a massive increase in annual revenue and deployment capacity as key innovative technologies, such as solid-state batteries and flow batteries, reach commercialization,” according to Lux Research.
ARKG and Energy Disruption
A Bloomberg report showed that clean energy technologies saw $282.2 billion in funding in 2019, up 1% year-over-year, which suggested electric cars, offshore wind farms and energy storage devices will enjoy the biggest gains, Bloomberg reports.
The rising growth could drive further investment in clean energy capacity as governments bring down on greenhouse gas emissions, and investors look to opportunities in industries that benefit from going green.
“We continue to expect electric mobility applications, primarily light-duty passenger vehicles, to be the principal long-term driver of energy storage annual revenue and demand, with a total market share of 74% by annual revenue and 91% by annual deployed GWh by the year 2035,” notes Lux Research.
The renewable energy sector is growing more efficiently with falling costs fueling increased installations and supporting a growing energy-storage business. Furthermore, the going-green trend has also made seismic shifts in the automobile industry, with greater demand for electric vehicles.
Investors are always on the lookout for long-term growth opportunities, but now more than ever, it seems prescient to look beyond the immediate noise of the socioeconomic and political headlines and find investment opportunities for the long-haul. Emerging technologies may offer that growth, according to some experts.
“Growth in revenue and deployment for the energy storage market over the next three years will be markedly different from the overall 2035 projections, with plug-in light-duty vehicles remaining the largest market with a predicted $24 billion increase in revenue by the end of 2022,” according to Lux.
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.