Offshore Energy Storage Market share is expected to reach USD 1550 Million by 2028, expanding at a compound annual growth rate (CAGR) of 9.5% during the forecast period.
Offshore energy storage market is expected to grow at ~ 9.50% CAGR during the forecast period 2022-2030.
Because of rising offshore investments in the oil and gas and renewable energy sectors, the global market is predicted to increase significantly over the forecast period. The term offshore energy storage refers to the process of storing energy generated by wind turbines or offshore oil and gas storage systems. Energy storage technology allows excess energy to be stored and used at a later time. Offshore energy storage attempts to build a dependable electricity network by supplying clean, dispatchable energy. The market for offshore energy storage is being driven by supportive regulations and energy storage subsidies, as well as increased investment in the renewable energy sector internationally.
During the projection period, rising urbanization and industrialization will result in greater energy demand. Energy storage systems using renewable energy sources such as offshore wind farms are being prioritized by the countries. Wind power deployment and opportunities in Asia-Pacific emerging markets will be boosted by technological advancements and clean energy consumption, particularly in countries like China, Japan, and South Korea, which are looking for an alternative source of energy to diversify their energy mix and reduce CO2 emissions. The offshore energy storage business would be propelled by these advances.
Global Offshore energy storage market is expected to witness substantial growth during the forecast period owing to growing offshore investments in oil & gas and renewable sector. For instance, in 2018, Shell announced to invest up to USD 2 billion in New Energies division in power, solar, wind, and gas generation by 2020. Similarly, Dong Energy (Denmark) plans to invest USD 30.26 billion in renewable energy between 2019 to 2025 to build largest offshore wind farm. This would positively impact the growth of market in the coming years. Asia Pacific holds the largest share in the offshore energy storage market due to increased investment in renewable sector in countries such as Taiwan, China, and others.
The key players of global market are ABB (Switzerland), General Electric (US), Siemens (Germany), Deepwater Wind (US), Duke Energy (US), E.ON (Germany), LG Chem (South Korea), Johnson Controls (US), SolarEdge (Israel), and Tesla (US).
The global market is projected to grow at a high rate during the forecast period, mainly due to the growing energy demand and increasing investment in renewable energy sources such as solar and wind. In August 2018, Statoil (Norway) invested USD 12 billion in renewable energy projects which would help to drive strong growth in offshore energy storage market. Moreover, the South Asian companies are mainly focusing on batteries as a technology which is expected to cost up to USD 1.5 billion. This would in turn accelerate the growth of battery energy storage market in offshore sector.
Global offshore energy storage market has been segmented based on sources, end-user, and region. Based on sources, the market is classified into lithium ion, lead acid, sodium chemistry, flow vanadium, flow zinc, and vessel. The lithium-ion segment dominates the market as technological advancements are getting implemented in lithium-ion batteries. This would further lower down the cost of this technology, driving the lithium-ion segment. In May 2018, Siemens unveiled a lithium-ion battery-based energy storage system for offshore operations including offshore wind. This would help to develop energy storage technologies for marine and offshore oil & gas applications. The global offshore energy storage market is further segmented based on end-user including oil & gas and offshore wind. Offshore wind segment is estimated to grow at a faster pace during the forecast period due to increasing investment in renewable energy across the globe.
Offshore energy storage refers to storing the energy produced either by wind turbines or offshore oil & gas storage system. Energy storage technology helps to store excess energy which can be used at a later period. Offshore energy storage aims to provide reliable electrical network by providing clean and dispatchable power. Introduction of supportive policies and energy storage subsidies is driving the market for offshore energy storage market along with increasing investment in renewable sector globally.
Increasing urbanization and industrialization is leading to higher energy demand during the forecast period. The countries are focusing on energy storage system through renewable energy sources such as offshore wind farms. Technological advancement and clean energy consumption would further propel wind power deployment and open opportunities in the emerging markets of Asia-Pacific, especially in countries like China, Japan, and South Korea as they are looking for an alternative source of energy to diversify their energy mix to reduce CO2 emissions. these developments would drive the offshore energy storage market.
|Market Size||2030: Significant Value|
|CAGR||9.50% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Sources, End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ABB (Switzerland), General Electric (US), Siemens (Germany), Deepwater Wind (US), Duke Energy (US), E.ON (Germany), LG Chem (South Korea), Johnson Controls (US), SolarEdge (Israel), and Tesla (US)|
|Key Market Opportunities||
|Key Market Drivers||
The offshore energy storage market is supposed to expand at 9.5% CAGR.
The segments identified on the basis of sources are flow zinc, lithium ion, sodium chemistry, lead acid, flow vanadium, and vessel.
The lithium ion segment is anticipated to dominate the offshore energy storage market.
The end-user segments profiled are offshore and oil & gas.
The key players operating in the offshore energy storage market are ABB (Switzerland), Siemens (Germany), General Electric (US), Deepwater Wind (US), E.ON (Germany), Duke Energy (US), LG Chem (South Korea), SolarEdge (Israel), Johnson Controls (US), and Tesla (US).