The energy storage market size is expected to advance at a CAGR of 35.2% during 2021–2030, to reach 410,543 MW by 2030.
The main drivers responsible for the market's expansion are the growing emphasis on alternative power generating methods, rising energy prices, and concerns with regard to the pollution caused by conventional energy sources.
The sheer volume of energy generated through pump hydro mechanical projects and relatively favorable economics over a long period are the key factors that have contributed to the mechanical category’s largest size in the market. Furthermore, the commissioning of hydro, liquid air energy storage (LAES), and compressed air energy storage (CAES) projects in the near future will also contribute to the category's continued dominance.
The European market is expected to grow at a significant CAGR during forecast period, which is mainly driven by the local subsidies. Western European countries are expected to witness a strong demand for commercial energy storage systems, along with the growing network of data centers in the region.
Additionally, significant investments are being made in the market for battery technologies. Further, the declining battery cost and significant additions of solar and wind capacity in Europe are playing a crucial role in energy transformation via electricity storage.
Moreover, across North America, the demand for stationary energy storage systems is also high. In the U.S., various states are formulating policies aimed at making integrated resource planning mandatory for utility companies. In addition, companies are including energy storage options in their proposals that are being submitted to regulatory authorities.
Additionally, energy storage systems help solve grid resilience issues. Energy storage also helps in taking old coal-fired plants offline and facilitating the elimination of a considerable amount of carbon, sulfur, and particulate emissions, thereby resulting in a low environmental impact due to electricity production. Moreover, the time taken to install these energy storage facilities is considerably less as compared to traditional power plants.
Furthermore, the decline in the costs of energy storage systems in the U.S. has created an opportunity for commercial customers to reduce their energy bills, using cost-effective battery storage. These factors are expected to boost the market growth in the coming years.
The LATAM and African regions will register a rapid surge in the industry revenue till 2030. This is attributed to the growing interest in the potential of pump hydroelectric systems (PHES) and battery storage systems in these regions. Additionally, the declining cost of raw materials has pushed regional governments to implement these systems and reduce the base power deficit.
While in LATAM and Middle Eastern countries, such as Qatar and Haiti, have integrated a number of battery-based systems into their energy mix, thermal energy storage systems have recently been built in Iran, Israel, Argentina, and South Africa. These nations are all set to increase the installation of such systems in the upcoming years, which will significantly expand the global market for energy storage technologies.
The most-significant energy storage market players are Greensmith Energy Management Inc., S&C Electric Company, LG CNS Co Ltd., NEC Energy Solutions Inc., Fluence Energy LLC, Contemporary Amperex Technology Co. Limited, Convergent Energy and Power LP, Duke Energy Corporation, Tesla Inc., and NextEra Energy Inc.