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Energy Storage Market To Acquire Size of 240,956.9 MW by 2030

  • Published: June 2020

The increasing focus on unconventional modes of power generation, increasing energy cost, and growing outcry on the pollution associated with traditional energy sources are the key factors that are positively impacting the growth of the energy storage niche. Due to these factors, the global energy storage market is expected to add 69,917.6 MW of capacity by 2030, advancing at a CAGR of 3.3% during the forecast period.

Mechanical Energy Systems To Hold Largest Share in Market throughout Forecast Period

The sheer volume of energy generated through pump hydro mechanical projects and relatively favorable economics over a long period have been identified as the key factors which have contributed to the mechanical category’s largest size in the energy storage market. Furthermore, the category is expected to continue its dominance, driven by the commissioning of hydro, liquid air energy storage (LAES), and compressed air energy storage (CAES) projects in the foreseeable future.

The falling battery costs, favorable battery chemistries, and augmentation in lithium-ion (Li-ion) battery supply chains are expected to assist the category in witnessing widespread gains among utility projects throughout the forecast period.

Owing to Covid-19, supply chain uncertainties and the temporary suspension of shipments and travel have hindered project development across several countries in Europe and North America. Industry respondents have raised logistic, monetary, and human-resource-based issues, and their outlook, with respect to the industry recovery, is grim for the short run. The supply of batteries, cells, and other components from China has been hit, thus affecting projects across the world. The revival of the industry is expected to take significant time, with Q2 of 2021 being the closest time period to bear any positive outlook.

Geographically, the energy storage market in the APAC region held a commanding size, as a result of the commissioning of a number of projects and high energy demand driven by a significant number of residential, commercial, and industrial end users in the region. Furthermore, government policies and initiatives aimed at reducing dependency on fossil fuels and diversifying their energy mix are likely to act as the key catalyst for the growth of the energy storage market in the coming period.

Browse report overview with detailed TOC on "Energy Storage Market Research Report: By Type (Mechanical {Pumped hydro storage, Liquid air energy storage, Compressed air energy storage}, Electrochemical {Lithium battery, Lead-acid battery, Sodium-sulfur battery}, Thermal, Chemical) - Global Industry Analysis and Demand Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/energy-storage-market

Partnership Is Strongest Strategic Measure Taken by Players in Market

Owing to the sheer enormity of these projects and ability to share costs and limit liabilities, companies in the market are actively engaging in partnerships with other incumbents, to implement projects. In recent years, with the increasing government focus toward power storage, the contracting and tendering of these projects have become common and are impacting the workflow regime in the energy storage market. Some of such recent events are:

  • In February 2018, Greensmith Energy, in partnership with E.ON Climate & Renewables in Texas, successfully completed the construction of two grid-scale energy storage systems, in order to provide energy solutions to the Electric Reliability Council of Texas (ERCOT).
  • In January 2018, NEC Energy Solutions signed a contract with VLC Energy, a joint venture between Low Carbon and VPI Immingham, to build and operate 50 MW Li-ion-battery-based energy storage facilities. The project is aimed at providing an enhanced frequency response to the U.K. electricity grid.

Some of the major players operating in the global energy storage market are Greensmith Energy, S&C Electric Company, LG CNS, NEC Energy Solutions, Fluence Energy LLC, Contemporary Amerex Technology Co. Limited, Convergent Energy and Power LP, Duke Energy Corporation, Tesla Inc., and NextEra Energy Inc.

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