Global Energy Storage Market is poised to expand at a 20.18% CAGR during the review period (2018 – 2023).
Energy storage remains one of the key components in delivering clean energy transition. Energy storage systems refer to a series of modular blocks that can store energy produced from renewable sources with greater efficiency and releases it when needed. Renewable power has become an integral part of the world’s energy mix, and the rapid construction of new renewable power capacities worldwide is a significant driving force behind the energy storage market growth.
The COVID-19 outbreak impacted the energy storage industry severely. Energy storage market players faced various problems ranging from obtaining raw material components and delivering end products to attracting workers from quarantines. The coronavirus-driven lockdown put a brake on energy storage production, which spiked product prices, lowering the market demand.
However, the good news is that the energy storage industry is rapidly returning to normal, witnessing the steadily increasing energy demand, especially from the industrial sectors. The product demand in end-use sectors is projected to pick up following the uplift of the lockdown in many countries.
Rapid Industrialization Worldwide to Bolster the Market Growth
The ever-expanding population and escalating urbanization rate across emerging regions drive the energy storage market growth, escalating energy demand globally. The global energy demand is soaring high with the rise in population. Simultaneously, rapid industrialization worldwide creates a substantial energy demand. Especially, metro cities with the increase in industrial infrastructures are witnessing huge demand for energy storages.
Growing ecological concerns promote the need for renewable/clean energy generation to reduce pollution levels. Moreover, the rising nuclear and renewable energy generation boosts the energy storage market size.
Conventional energy generation sources, such as coal, fossil fuels, and natural gas, contribute substantially to carbon emissions. Therefore, power generation industries worldwide seek to reduce carbon footprint, focusing on raising renewable energy output. Increasing renewable energy generation capacities led by environmental safety awareness fosters the energy storage market share.
Increasing Renewable Energy Share to Present Robust Opportunities
Renewable energy generation has been growing rapidly over recent years, mainly due to the continually rising energy demand. Moreover, the rising awareness for clean energy/ green energy generation using renewable sources, such as solar, biomass, and wind & tide energy, is projected to offer significant energy storage market opportunities. Energy storage demand is huge in the residential solar market.
Q2 of 2020 witnessed residential battery installations grow 38% compared to Q1, indicating that the energy storage market demand remained resilient in spite of the pandemic. While solar + storage is expected to continue to grow in popularity, the overall energy storage market is projected to demonstrate significant growth opportunities. Subsequently, energy storage market players would witness more opportunities to advance solar energy and increase homeowners’ control over their home energy systems.
Additionally, emerging markets worldwide present untapped opportunities for energy storage uses, heading with the significantly rising pollution levels led by the rapid industrialization and urbanization. Due to the growing government mandates & updated policies and increasing renewable power generation, emerging countries offer international players lucrative opportunities.
Restraints & Challenges
Initial Installment and Maintenance Cost are Major Headwinds
Initial investment requirements and prohibitive costs associated with the installment and maintenance of energy storage could affect the ongoing market growth, impacting the sales negatively. As a result, manufacturers are more focused on reducing the overall manufacturing cost of the energy storage systems. Also, the indistinct supervisory framework for energy storage systems poses challenges for market growth.
Cumulative Growth Analysis
Energy Storage to Garner Significant Market Prominence
Currently, there is phenomenal growth in the global energy storage industry. The wide application of energy storage across the end user verticals is creating substantial energy storage market demand. Besides, advancement in storage capacities and technologies would provide prudent substitute options to the end-users.
Moreover, government initiatives and funding support would certainly boost the economic viability of energy storage. Spurring rise in the overall energy consumption and volatility in global fuel prices are projected to drive the global energy storage market share.
The Energy Storage Market is segmented into Type, End-User and Region.
Mechanical Energy Storage Is The Largest Type Segment
The type segment is further sub-segmented into mechanical, thermal, chemical, electro-chemical, and others. Among these, the mechanical energy storage segment is expected to dominate the market during the forecast period.
Mechanical energy storage converts electricity to mechanical or potential energy and then stores it for later use. The rising demand for mechanical energy storage from emerging economies, such as Germany, Spain, China, and India, drives the segment growth.
The end-user segment is sub-segmented into utility, commercial & industrial, and residential. By region, the market is bifurcated into Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), Europe (Germany, UK, France, Italy, and Rest-of-Europe), Americas (US, Canada, Mexico, Rest-of-North America), and Rest-of-the-World.
Europe to Maintain its Winning Streak in the Global Market
Europe leads the global energy storage market, witnessing rapid growth in the utility-scale energy storage industry. Utility-scale technology has just begun to impact the matured early adopter markets and new markets, driven by innovative vendors and project developers in the region. Besides, factors such as increasing purchasing capacity of consumers and regulatory change represent the most important drivers scaling the energy storage market growth.
APAC Seizes Second Highest Share in Global Market
The Asia Pacific region captures the second biggest share in the global market. Factors such as the growing production capacities and energy storage manufacturers in the region positively impact the regional market growth. Additionally, the rapid urbanization and industrialization create substantial market demand in the region, prompting the demand for higher operational efficiency, reduced production cost, and process control industries.
The increase in renewable energy shares and government initiatives promote energy storage installation. Moreover, the increase in the overall renewable energy generation capacity across the region is expected to increase the energy storage market demand in the years to come.
North American Energy Storage Market is Growing Rapidly
North America is a rapidly growing market for energy storage globally. The market growth is led by the growing investments in renewable energy sectors and increasing renewable energy generation in the region. Also, the rise in grid development projects, comprising energy storage and microgrids technologies, positively impacts the regional market growth. Furthermore, the significant industrial sector expansion and the presence of leading global players influence the energy storage market growth.
Players Focus on Product Development & Expansion
The market appears extremely competitive due to the strong presence of well-established energy storage market players. They seek opportunities to integrate across the extensive value chain while focusing on R&D investments, production facility expansion, and M&A activities to gain impetus. New players enter the market with aggressive pricing to undercut the established providers and gain footholds in international markets.
Jan 09, 2020 ---- MIT researchers at Oak Ridge National Laboratory announced the development of a metal-organic framework material that has excellent electrical conductivity and energy storage capacity. Scientists used neutrons in drive to improve energy storage in supercapacitors. The MOF stores and releases a large amount of electrical energy rapidly that it can perhaps turn into a rugged supercapacitor material.
Jan 07, 2020 ---- An Israeli storage technology company, Augwind Energy Tech, announced winning a sizeable governmental tender by the electricity authority in Israel for a scale of 2.5 GWh storage. Augwind Energy specializes in developing and integrating storage technologies for the electricity market, including renewable sources such as PV or wind power. Its advanced energy storage system AirBattery revolutionizes energy storage by storing compressed air underground.
Jan 04, 2020 ---- Fluence, a leading global energy storage solutions provider, announced its partnership with the Qatar Investment Authority (QI) in which QI would invest USD 125 million in the storage company through a private placement transaction to further accelerate the development of Fluence’s product offerings, particularly digital products, and deployment of existing products in more markets globally.
The energy storage market analysis features unique and relevant factors expected to significantly impact the market growth during the forecast period. The detailed energy storage market forecast would help industry players understanding the market better. The MRFR report elaborates on the historical and current trends boosting the growth of the energy storage industry.
Additionally, the analysis of COVID-19 impact on the energy storage market is also included in the report. Regional assessment in this report unlocks several untapped opportunities in regional and international markets. Detailed company profiling enables users to evaluate company shares, emerging product lines, the scope of the product in new markets, pricing strategies, innovation possibilities and much more.
Frequently Asked Questions (FAQ) :
The global Energy storage is expected to record a substantial market valuation due to the increasing global consumption of energy.
The global Energy storage is projected to register a moderate 20.18% CAGR in the forecast period.
The electro-chemical eergy storage segment is slated to expand as the fastest-growing segment.
The commerical and industrial segment is slated to expand as the fastest-growing segment.
A few major market players operating in the global Energy storage are Linde AG (Germany), Highview Power Storage (U.K), Hydrogenics Corporation (Canada), and SolarReserve, LLC. (U.S), among others.