A big shift toward optimal use of energy in nearly every possible sector has resulted in a commercialization of advanced energy storage systems market. The growing concerns over depletion of conventional energy sources have given rise to surging preferences toward renewable energy alternatives, in turn stimulating advanced energy storage systems market growth. Basically, the energy storage systems are used for energy conversion, energy storage, and electricity conversion to consumable power.
The growing interest in energy efficiency has particularly gained traction in the automotive industry with the inception of the plug-in electric cars. Of late, the worldwide carmakers are switching to electric models from their diesel-powered vehicles on account of the growing concerns toward depleting fossil fuels and GHG emissions. Volkswagen, for instance, has recently made it to the headlines for offering electric options for all its existing models by 2023.
The rising demand for improved battery backup and energy storage systems in plug-in vehicles will generate greater demand for AES systems in the near future. In fact, industry analyst pens this factor as one of the important drivers for the growth of advanced energy storage systems market, thanks to the increasing popularity and demand for electric vehicles.
As the appetite for electric vehicles rises, the battery technology is estimated to hold a significant share in energy storage systems industry, owing to its liquid electrolyte reenergizing factor. The low rate of energy wastage, low costs, and easy charging are the key factors that are driving the battery based advanced energy storage systems market to witness highest gains at an annual growth rate of 18% over 2015-2022.
Reportedly, in 2014, the battery technology accounted for 10% of the overall advanced energy storage systems industry. Compressed air, thermal, molten salt, and flywheel are some of the other technologies generating substantial momentum, owing to rising activities to reduce pollution across the globe. Speaking of the regional landscape, with the country’s defined regulatory policies & stringent governmental norms over GHG emissions and pollution, U.S. has established itself as a chief contributor toward regional market growth.
Led by U.S., North America advanced energy storage systems industry held more than 80% of the global revenue share in 2014, and is further projected to garner lucrative growth in the ensuing years. EnSync Energy Systems, Active Power, Inc., LG Chem, Samsung SDI Corp. Ltd., GE, and Alevo are some of the prominent companies partaking in advanced energy storage systems industry share, which is estimated to surpass USD 7 billion by 2022, expanding at a CAGR of 15% over 2015-2022.
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