Impact of the COVID-19 Outbreak on the Advanced Energy Storage Systems Market
Advanced energy storage systems are used for storing electricity in the form of energy that can be converted back to electricity whenever required. These systems provide sustainable and reliable power. The increasing need for an uninterrupted supply of power with a considerable rise in the global demand for power is responsible for the growth of the market. Energy storage systems are mainly used in power grids for offering better power quality through frequency regulation, time-shifting to handle the peak loads, supplying power consistently in distributed power systems, and modifying power congestion in transmission grids. However, the COVID-19 pandemic has changed the entire scenario. The spread of the virus across the globe has forced governments to take precautionary measures. The lockdowns imposed by the governments of various countries have lowered the consumption of electricity from the commercial sector owing to the shutting down of companies, stores, manufacturing plants, and other industrial and commercial establishments. The demand for electricity is being generated from the residential sector due to the employees working from home, and not from the commercial sector. This has drastically impacted the growth of the market.
WORLDWIDE BATTERY ELECTRIC VEHICLES IN USE, 2014-2019 (Million Units)Besides, the increasing demand for electric vehicles, plug-in hybrid vehicles, and hybrid vehicles are also driving the growth of the advanced energy storage systems market. However, the halt in the manufacturing of new electric vehicles is hindering the growth of the market. Also, the restrictions on travel have lowered the use of electric vehicles during the lockdown, which has reduced the consumption of electricity, thus hindering the growth of the market. The energy storage companies are facing tremendous losses, and the manufacturers of these systems are expected to be the most impacted during the epidemic.
Source: U.S. Energy Information Administration
Source: Primary Experts, Secondary Sources and MRFR Analysis