China's bike-sharing sector faced multiple headwinds over the last years as startups like Ofo slipped away. However, industry analysts are watching the new, power bank sharing segment that could lead the way for the country's overall sharing industry to bounce back.
According to Quartz, for an entire year since June 2018, users within the power bank sharing segment have expanded from 110 million to an estimated 130 million as of June 2019, as revealed by survey firm Trust data.
However, Chinese consultancy iiMedia Research contested the results, stating that the figures are bigger than what Trustdata revealed. iiMedia said shared power bank users are close to reaching the 200-million mark as data indicated there are already around 196 million users as of last year.
In China's charge on the go segment, consumers who use electronic devices are offered a recharging service in some of the busiest places in Chinese cities. These locations include karaoke bars, restaurants, and even hotels.
Industry experts suggested that if estimates from the two consultancies are correct, China's now-booming shared power bank segment could expand its user-base by up to 300 million before the year ends.
"This is the result of widespread adoption of smartphones and mobile payments. Go to any restaurant in China and you will see people charging their phones while eating," business professor at Peking University, Jeffrey Townson, said of the sudden spike in user numbers.
iiMedia's report on the country's shared powerbank sector further indicated that there is a lot of potentials for the segment to extend its reach. Aside from the mentioned locations, other commercial areas could adopt the idea of sharing power banks with people who are eager to get back to their smartphone activities.
Analysts pointed out that while several shared segments in China have crashed before they became big in the massive Chinese consumer market, charging-on-the-go could be a different thing altogether.
Experts believe the elimination of the need to cash out for a deposit on power bank rental is one of the key factors that will help keep the segment afloat. This is because most firms or providers allow for no deposits as long as a renting party has over 600 in Sesame Credit score.
All of these positive signs are outside the forecast that the global power bank market could be well worth $25.16 billion within the next three years. The Power Bank Market forecast by MarketsandMarkets stated that among there are three Chinese power bank companies that will become key players in the product's growth.
The three firms are Lenovo Group Ltd., OnePlus Technology Co., Ltd., and Beijing Xiaomi Technology Co., Ltd. As previously noted, among the key drivers for growth in the power bank market is the increased use of tablets, smartphones and other similar devices.
