High power consumption and rising demand for plug-in electric vehicles will result in a definite upswing in Advanced Energy Storage Systems Market. Energy storage systems are essentially used for electricity conversion, energy storage, and energy conversion to consumable power. Increasing requirement for electricity across various sectors and high energy costs will boost advanced energy storage systems industry. Furthermore, depleting fossil fuel sources and the subsequently growing preference for renewable energy will surge market growth. According to Global Market Insights, Inc., “Advanced Energy Storage Systems Industry size will hit USD 7.17 billion by 2022, growing at a CAGR of 15% over 2015-2022.”
U.S. Advanced Energy Storage Systems Market size, by technology, 2015-2022 (MW)
Top companies are constantly engaging in collaborations to develop innovative products and increase profitability. For instance, as of 2017, AES Corporation (India) and Mitsubishi Corporation have partnered to work on India’s first grid-scale project. Both the firms plan to jointly develop the 10 MW energy storage array endowed with superior features such as improved system flexibility, high reliability, and crucial load management, which will be delivered to the electric grid owned by Tata Power Delhi Distribution Ltd.
Local manufacturers and other middlemen across the supply chain also hold a substantial contribution in global advanced energy storage systems market, which is highly fragmented. Notable industry players include Samsung SDI Corp. Ltd., EnSync Energy Systems, LG Chem, Active Power, Inc., GE, Electrovaya Inc., and Alevo.
Battery technology accounted for 10% of advanced energy storage systems market share in 2014. Low costs, charging convenience, low rate of energy wastage, and novel technological breakthroughs will further propel battery based advanced energy storage systems industry, which is set to depict a y-o-y growth of 18% over 2015-2022.
Flywheel technology boasts of high reliability, low maintenance, improved efficiency, and a considerably long shelf life, which can be implemented for upcoming grid storage systems. Powered by these excellent features, flywheel based advanced energy storage systems market is forecast to depict a CAGR of 18% over 2015-2022.
Power generation companies are heavily investing in R&D, driven by the outstanding features offered by this technology, owing to which the U.S. flywheel technology industry will witness a demand of more than 110 MW by 2022. With U.S. being the chief contributor, North America advanced energy storage systems market held more than 80% of the global revenue share in 2014. It will grow significantly in the next few years, fueled by the country’s defined regulatory policies to curb carbon emissions and pollution levels.
Thermal advanced energy storage systems industry size was worth USD 1 billion in 2014. It is expected that this industry will surpass USD 4 billion by 2022, driven by the increasing preference of thermal technology over the other technologies. This inclination can be attributed to the fact that this technology does not require any input prerequisites. In addition, high electricity consumption efficiency and reduced carbon footprints will also substantially drive thermal based advanced energy storage systems market.
Germany thermal based advanced energy storage systems industry was worth USD 122.8 million in 2014 and is projected to grow steadily driven by the growing inclination toward electric vehicles. In fact, plug-in electric vehicles have observed lucrative sales owing to their low premium costs and improving battery costs. Stringent government regulations regarding environment protection coupled with rising adoption of electric vehicles as opposed to their counterparts such as gas IC engine vehicles and diesel powered vehicles will positively influence Europe advanced energy storage systems market. With a registered size of more than 640 MW, this regional industry will grow tremendously over the years to come.
Growing infrastructural development in countries such as India, China, and Indonesia will propel APAC advanced energy storage systems market, which is slated to observe a CAGR of 15% over 2015-2022.
Global advanced energy storage systems industry size was over 3.5 GW in 2014, and is expected to register installations exceeding 11 GW by 2022. Energy management systems deliver efficient management of energy sources using the load shifting technique, which helps meet the demands of advanced grid systems, subsequently driving industry growth. High energy prices have resulted in the rising adoption of energy management systems worldwide, which will also fuel this industry in the coming years.