The global energy storage market has been witnessing growth on account of imbalances in power supply and demand owing to power outages from storms, equipment failures, and fire accidents. Energy storage helps eradicate energy poverty which is one of the key factors that is anticipated to dive the market over the next seven years. Traditional energy sources including coal and natural gas power plants switch on and off according to demand fluctuations. Energy storage has been substituting traditional energy sources over the past few years owing to cost benefits associated with these systems. Poor power quality and pollution associated with traditional energy sources have been augmenting demand for energy storage devices over the past few years and trends are expected to continue over the forecast period. Rising demand for hydropower, solar energy, and wind energy is one of the key drivers that are expected to drive the energy storage market over the forecast period. Power generation sector has been witnessing strong growth on account of rapid industrialization in emerging countries including India, China and Brazil. High growth in power generation sector is expected to drive energy storage market over the next five years. Scarcity of fossil fuels including coal, oil, and uranium is anticipated to boost energy storage systems demand over the foreseeable period. Energy storage system helps to harness green energy by reducing harmful air emissions, which is expected to fuel demand for energy storage. Production of excessive power when demand is less may lead to huge loss for the companies if they cannot store it. Energy storage helps in achieving demand and supply equilibrium and maintaining profitability of various companies. However, high installation cost of energy storage systems is anticipated to challenge market growth over the next seven years. In addition, high capital cost for the development of energy storage technologies is expected to restraint its market.
Pumped hydro storage was the leading technology in energy storage market in 2013 followed by thermal. Pumped hydro storage is a material-based energy storage technology in which water is stored in a reservoir. It is non expensive and has been commercial for decades. Li-ion battery has been gaining popularity over the past few years on account of large scale manufacturing facilities and healthy competitive environment. However, other technologies such as compressed air energy storage (CAES), lead-acid, and flywheels battery are expected to witness significant growth over the next seven years. Major applications of energy storage market include ancillary services, community energy storage (CES), renewable, transmission, and other distributed. Distributed storage system emerged as a leading application segment for energy storage market in 2013 followed by renewable storage.
In terms of capacity, Asia Pacific emerged as the leading regional market for energy storage in 2013. Asian countries have been focusing on development of advanced battery systems and export them to other countries. In terms of installed capacity, North America dominates the energy storage market. The North America market is characterized by innovation and diversified technology.
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