The Energy Storage Systems Market was worth nearly $173 million in 2015. By 2022, the value is expected to reach an estimated $264,943 million, or a compound annual growth rate of 6.4 percent.
Energy Storage Systems refer to equipment that can store various types of energy safely, efficiently and conveniently. Lithium ion batteries are an example of an Energy Storage System.
Thanks to the constant technological advancement to ensure a continuous supply of energy is available, these storage systems are expected to see a surge in growth between 2016 and 2022. Furthermore, the continuous promotion of renewable energy sources is aiding to the growth of the Energy Storage Systems market. The greater focus on the production of renewable energy is largely due to increased energy consumption on a global scale.
At present time, greater focus on renewable energy production is attaining momentum as a result of extensive public and private investment.
Segments Contributing to the Growth of Energy Storage Systems
In the automotive market, electric mobility is expected to contribute the largest to the growth of this market. This segment generates a demand for energy systems on a global scale. The Environmental Government Agencies and other government agencies are currently focuses on introducing ways to control the emission of carbon dioxide. For example, Chinas is focusing on increasing the production of electric vehicles, as the country is expected to introduce an estimated 11.9 million vehicles into the market by the year 2020. Globally, there is a focus on reducing carbon dioxide emissions and introducing electric vehicles, as well.
The pumped hydro storage market is another segment that is expected to occupy major shares on a global scale and contribute to the growth of this market. Compressed air storage is another energy storage technology that is expected to contribute to the growth of this market.
Compressed Air Energy Storage is yet another energy storage sector that is expected to see growth. Storage of compressed air allows for a flexible supply of this form of energy, allowing it to be provided continuously.
Concentrated solar power is yet another segment that is expected to boost the growth of the energy storage market. This segment allows for the storage of energy collected by the sun’s heat. The energy collected can be used in a variety of applications, most notably powering electrical turbines.
Opportunities in the Global Energy Storage Systems Market
There has been an increased focus on energy storage systems globally as a result of the intense interest by major companies to deliver renewable energy. Additionally, the increased consumption of energy is creating a need for energy storage that can be used later on.
The key trends that are driving the energy storage systems market include:
- The increased adoption of energy storage systems in the transportation sector
- Integration of software allowing for the management of energy storage systems
- Increased adoption of renewable energy
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Regions and Companies Contributing to Growth of the Energy Storage Systems Market
Currently, China is the leading country contributing to the growth of the energy storage systems market, making the Asia Pacific region the largest contributor to the projected compound annual growth rate. This country is home to some of the largest manufacturers of energy storage systems in the world. BYD Battery Co. Ltd, Amita Technologies, AU Optronics Corp, Exide Industries Ltd and LG Chem are all key players in the growth of this market.
Additionally, China is aiming to step up their production of electric vehicles, which is expected to enhance the battery storage segment of the energy storage system market.
North America also contributes largely to the growth of the global energy storage systems market. The participation of the government and the growing amount of investments in grid storage projects are leading to the growth of the market. The initiation of the EV Everywhere Grand Challenge Blueprint by the US Government promises to increase the number of EVs and reduce the emissions of carbon dioxide. The adoption of EVs leads to increased use of lithium ion batteries as a highly efficient means of energy storage. California leads the way for the growth of the energy storage systems market, as the state offers policy and regulation, as well as a wholesale market structure that encourages the increase of energy storage systems.
The EU, Japan, Australia and India are also expected to contribute to the growth of the energy storage systems market. These regions have been developing several initiatives that are leading to the advancement of more effective systems to store energy.
Applications of Energy Storage Systems
Energy storage systems are applied in a variety of ways. The following applications have added to the growth of this market, and are expected to continue fueling the growth of this market.
- Fuel savings for transportation and grid applications
- Arbitrage, which involves collecting energy when its inexpensive and widely available and selling it when the price rises and it is scarcely available
- Network management, or managing load balance and the power quality of networks
- Upgrade deferral, which involves the delay or elimination of costly upgrades to electricity infrastructure.
- Time shifting, which avoids high tariffs on electricity by utilizing stored energy at times of the day when electricity use it at its highest.
- Management of customer billing reduces peak demand or the overall capacity of energy in order to lower the cost of energy for customers.
- Back up supply, which offers back up power as a UPS for targeted equipment or loads
A range of applications that are specific to each region also exists. For instance, in India, energy storage focuses on powering telecommunication towers, and in Australia, storage focuses on solar power.
Outlook for the Energy Storage Systems Market
The continuous need for energy coupled with the desire to lower costs and reduce the impact of energy use on the environment are all factors that are driving the growth of the energy storage systems market. Thanks to research and development, government initiatives and the investments made by large companies, this market will experience significant growth over the forecasted period and beyond.
