An analysis suggests that the unilateral rise of Samsung Electronics and Hynix is coming to an end, and secondary batteries will emerge as a new market leader, driven by the long-term growth of the AI industry.
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An analysis suggests that the unilateral uptrend of Samsung Electronics and Hynix is somewhat coming to an end. With disappointment over Samsung Electronics' shareholder return policy reflected in its stock price, observations continue that the market, previously dominated by semiconductor giants, will see a change.
CEO Seol Jae-hwan asserted that the current market cycle is an AI industry cycle and stated that a second rally will begin. Emphasizing the long-term sustainability of the AI industry cycle, he predicted that after semiconductors, materials, parts, and equipment (MPE) companies such as secondary batteries and robots would garner attention.
As AI technology advancements spread to various industrial sectors, MPE companies are expected to benefit. Secondary batteries, in particular, are mentioned as a core technology supporting the AI era and are expected to provide new growth drivers.
Amidst the increasing importance of the AI industry in conjunction with global economic conditions, the secondary battery sector is likely to establish itself as a new market leader.
The general consensus is that the AI industrial revolution will be much larger and longer-lasting than the combined industrial revolutions of the 1760s steam engine, the second electrical, and the third internet revolutions. This reflects the broad opinion of experts that AI will be the greatest industrial revolution in human history.
The impact of AI technology development on the economy as a whole is expected to surpass previous industrial revolutions, and its cycle is also anticipated to last for a very long time. From this long-term perspective, the importance of continuous investment in AI-related industries is emphasized.
The energy storage system (ESS) market size is projected to grow explosively from approximately 16.7 billion USD (about 150 trillion KRW) in 2024 to about 2,100 trillion KRW in 2034. This is due to the global increase in demand for energy transition and efficiency.
The rapid growth of the ESS market is the result of a combination of factors, including the spread of renewable energy, the need for power grid stabilization, and the establishment of electric vehicle charging infrastructure. Additionally, ESS-related regulations and tariff policies from a U.S. national security perspective could act as major variables in market growth.
This expansion of the market size is expected to provide significant opportunities across the secondary battery industry. In particular, companies with battery technology and production capabilities necessary for large-scale ESS projects are likely to benefit.
Human psychology has a strong tendency to avoid losses, often hesitating to invest when there is negative news. However, CEO Seol Jae-hwan pointed out that thinking one will invest only after all these negative factors have passed means missing opportunities in the stock market. He emphasized that the stock market rewards the courageous and advised that periods with negative news can actually be opportunities for low-point buying.
When the market is unstable and there is a lot of negative news, investors often adopt a wait-and-see approach or consider selling. However, CEO Seol Jae-hwan explained that it is precisely at such times that long-term returns can be secured through contrarian investment.
Therefore, when stock prices fall or market instability factors arise, it is necessary to adopt a bold approach, viewing them not merely as risks but as potential buying opportunities.
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