The global advanced energy storage systems market size was worth USD 1.91 billion in 2014. The steady growth in electricity consumption along with expansion of the energy demand-supply gap is expected to propel the utilization of the product over the coming year. Constant electricity production coupled with high variation in the demand is the primary reason for the deficit worldwide.
The rising focus on energy management in order to meet the electricity demand at peak times is likely to facilitate utilization of the product over the coming years. Furthermore, extensive R&D for development of sustainable energy sources is anticipated to fuel the growth.
Energy storage systems are expected to become an imperative element in the electricity management system owing to frequently changing demand peaks by time of the day as well as season. Furthermore, rising concerns regarding energy conservation and transition from fossil fuels to alternative sources is expected to surge demand for advanced storage systems over the forecast period.
The market is anticipated to witness increase in the utilization over the coming years due to rising concerns associated with CO2 and GHG emissions. Furthermore, the ability of the product to provide standby power for utility transmission & critical loads coupled with growing scope for the product in electric vehicle charging stations are expected to drive the market over the forecast period.
Biological, chemical, electrochemical, thermal, mechanical, and electrical systems are the major technologies prevailing in the market. Chemical systems comprise of power to gas, vanadium pentoxide, biofuels, hydrated salts hydrogen, and liquid nitrogen. Electrical systems include SMES (Superconducting Magnetic Energy Storage) and super capacitors. Biological systems include glycogen while electrochemical systems comprise of rechargeable as well as flow battery.
Mechanical systems include hydraulic accumulator, flywheel, hydroelectric, fireless, CAES (Compressed Air Energy Storage), and locomotive. The thermal technology involves solar pond, eutectic system, molten salt, steam accumulator, and ice storage.
The thermal segment accounted for the largest maximum share of 70.8%, in terms of capacity, in 2014 on account of high efficiency and temporary energy storage for later use. No requirement of inputs such as lithium for battery technology or molten salt & no geographical constraints are likely to fuel the growth further.
Molten salt technology can be employed to retain thermal energy collected by a concentrated solar plant which can be further used to generate electricity at night and in bad weather. Halotechnics, a niche player in the market, has developed a system that employs molten salt chemistry to store power from any source of electricity.
Increasing demand of flywheel technology in industrial applications is expected to augment the growth over the forecast period. Flywheel is a mechanical energy storage system. This technology has vast market opportunities on account of more reliability, longer life, enhanced efficiency and less maintenance.
The technology is estimated to experience a high growth as a result of uninterrupted & continuous power supply to the grid with immediate response, quality improvement, and frequency regulation. However, high capital investment is expected to be a major constraint for this technology over forecast period.
The renewable energy technologies such as wind & solar PV are estimated to witness high growth in various developed & emerging economies including Japan, India, China, Germany, U.S, and Italy. This is likely to increase the utilization of the product over the coming years.
Asia-Pacific is expected to witness fastest growth with a CAGR of 15.7% from 2017 to 2025. Significant capacity additions owing to increased energy demand is likely to have a positive impact on the market.
Europe and North America accounted for a substantial share in the market as a result of large installed capacities. Increasing government funding is expected to provide growth prospects for the market in North America. In addition, rising grid scale projects owing to enhanced peak demand management is expected to propel the growth further.
The U.S. accounted for a share of over 80.0% of the North America market in 2014. Presence of numerous players coupled with high adoption rate of new technologies is expected to fuel the growth over the coming years.
The global market is fragmented with presence of a large number of participants that offer multiple technologies for storage. The companies including Storage, Alevo, AES, GE, Altair, and LG Chem are involved in extensive R&D in order to maintain their global position.
In March 2015, Alevo entered into an agreement with Systems Control to design and manufacture Alevo’s GridBank Energy Storage Enclosures. In February 2015, Alevo signed an agreement with Customized Energy Solutions to provide 200 MW of GridBank powered frequency regulation services to wholesale market.
Attribute |
Details |
Base year for estimation |
2015 |
Actual estimates/Historical data |
2012 - 2015 |
Forecast period |
2016 - 2022 |
Market representation |
Revenue in USD Million, Volume in Mega Watt, and CAGR from 2015 to 2022 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa |
Country scope |
U.S., Germany, UK, China, India, Japan, Brazil, Saudi Arabia |
Report coverage |
Revenue forecast, competitive landscape, growth factors and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2012 to 2022. For the purpose of this study, Grand View Research has segmented the global advanced energy storage systems market report on the basis of technology, and region:
Technology Outlook (Volume, Mega Watt; Revenue, USD Million, 2012 - 2022)
Batteries
Flywheel
Thermal
Molten Salt
Compressed Air
Regional Outlook (Volume, Mega Watt; Revenue, USD Million, 2012 - 2022)
North America
U.S.
Europe
Germany
UK
Asia Pacific
China
India
Japan
Latin America
Brazil
MEA
Saudi Arabia
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