According to a new report from Zion Market Research, the global energy storage systems market was valued at approximately $194.3 billion U.S. in 2017 and is expected to generate revenue of around $296.0 billion by the end of 2024 — growing at a CAGR of around 6.2% between 2018 and 2024.
Zion found that a growing energy demand and focus on energy management are expected to increase the use of storage systems over the forecast period. Moreover, a wide range of R&D activities for the development of sustainable energy sources will further drive the industry growth.
Energy storage systems are an imperative element for the management of electricity system due to fluctuation in changing demand with respect to season. Rising concern regarding energy conservation and transition from fossil fuels to the alternate sources is predicted to upsurge demand for advanced storage systems over the forecast timeframe.
In addition, storage systems are essential for electrical, chemical, and thermal energies, which are used for transport and industrial applications. These systems consist of high efficiency and capacity, low self-discharge, a growing number of charging and discharging cycles, high performance, low costs, as well as growing adoption rates.
North America energy storage systems contributed a significant revenue share in 2017. The U.S. is the major country for the installed solar-plus-storage projects. As per California’s Self Generation Incentive Program (SGIP), in 2014, there were about 1118 energy storage projects in the development stage. Renewable energy technologies, which include solar PV and wind, are expected to witness high growth in the developed as well as developing countries such as China, U.S., Japan, India, Germany, and Italy. Such factors are expected to drive energy storage systems market growth over the forecast period.
Europe energy storage systems market accounted for substantial revenue share in 2017. The growth is due to the increased proportion of renewable energy, which results in more flexible options to compensate for the fluctuations regarding electricity generation through wind turbines or photovoltaics power plants. The European Power Exchange Spot Market (EPEX SPOT) is the marketplace for countries of Germany, France, Austria, and Switzerland.
The Asia Pacific is predicted to witness the highest growth rate over the forecast period. The growth is attributed to the rising capacity additions due to increased demand for energy is expected to positively impact the market in the future years. In China, reforms and innovations in the energy sector are expected to drive energy storage systems market growth. In China, the emergence of groups such as China Renewable Energy Industries Association’s internal grid integration expert committee, the China Industrial Association of Power Sources energy storage application branch, and others is predicted to upsurge industry growth over the forecast period.
Based on technology, the global energy storage systems market report is segmented as compressed air, pumped hydro storage, lithium ion, sodium sulfur, nickel cadmium, lead acid, redox-flow, and flywheel. Pumped hydro energy storage and lead-acid batteries are modern technologies and can be clearly specified. Furthermore, flexible operation of large-scale industrial plants with rising energy demand is expected to drive the segment growth in future years.
The end-user segment includes non-residential, utility, and residential. Residential segment held significant revenue share in 2017. Increasing demand for integration of renewable energies and the growing use of battery energy storage systems (BESS) in residential buildings is predicted to increase demand for the technology and drive segment growth over the forecast period.