The global demand for the energy storage systems market was accounted for 176,897.6 MW in the year 2017 and is anticipated to propel at the CAGR of 2.3% from 2018 to 2026. Growing awareness regarding energy-efficient solutions in the commercial and residential sector is primarily supporting the market growth. in addition, high demand for continuous and uninterrupted power supply is projected to bolster the demand for energy storage systems.
Increasing adoption of connected and smart homes along with the rising need for energy grid management is projected to spur the demand for storage systems in the coming few years. Furthermore, rising demand from the electricity sector with a focus on the distribution of the energy grid is also expected to positively impact market growth.
In addition, the increasing trend of renewable energy source management is proliferating the demand for energy storage solutions. thus, various countries across Europe, and North America have taken initiatives for attaining a sustainable environment and future by the end of 2050.
Government across various countries is investing huge money on developing energy from renewable energy sources. For example, companies like Tesla develop their automobiles such as Model S, Model X, and Roadster on the account of renewable energy solutions. these vehicles are operated by the electricity stored inside the batteries.
Supportive government initiatives are encouraging manufacturers to develop electric and hybrid vehicles (HEVs), which is expected to foster market growth. Currently, the gasoline or fuel-based automobile industry constitutes the largest share. However, continuous volatility of fuel prices is projected to boost the electric vehicles market.
Based on the technology, the market is split into electromechanical, electrochemical, PHS, and thermal systems. Pumped hydro storage systems in North America and the Asia Pacific are projected to grow at a significant rate owing to enhancement in energy grid capacity.
The electrochemical technology segment is projected to grow at a CAGR of around 12.0% during the forecasted period. Thus, growth is supported by electricity consumption across countries such as U.S., India, and the U.K. On the other hand, Latin America, and Middle East countries are projected to surge the demand for thermal energy solutions.
Increasing emphasis on lowering fuel is rising the need for battery systems, which is projected to boost the need for energy storage solutions. Benefits such as emergency power supply, time-shifting, and high power are anticipated to spur the demand for energy storage or battery systems.
The thermal energy storage system includes sensible, thermochemical, and latent type systems. In sensible systems, various heat storage mediums used include sand, rock beds, concrete, bricks, and water. Based on technology, molten salt type contributed to an energy capacity of more than 2.0 GW in the world.
In 2017, the Asia Pacific led the energy storage system market with the highest storage capacity of over 81 GW in the overall market. Growing infrastructural development in Japan, China, and India is supporting the growth of the market. Energy consumption is rising along with increasing demand for flywheel, CAES, and ESS systems.
In the European market, countries such as Germany, France, Spain, Austria, and Switzerland have attributed to energy capacity exceeding 6.6 GW in the year 2017. Moreover, the growing adoption of renewable and hybrid energy technologies is fostering market growth.
The North American market has a higher penetration of PHS-based solution facilities than ESS technologies. Moreover, increasing R&D spending along with a focus on eliminating hazardous gas emissions is anticipated to propel market growth.
In America, the government authorities invest in developing thermal-powered energy solutions. For instance, the Chilean government has allowed tax credits for building solar-based thermal systems. Furthermore, rising air pollution, and growing need for a green environment for a sustainable future. All these key factors are expected to contribute to market growth.
The COVID-19 pandemic has had a significant impact on the global energy storage systems market. COVID-19 crisis has resulted in a lockdown situation which has affected manufacturers with a reduced workforce, and disruption in the supply chain of components such as batteries, solar cells, among others.
According to U.S. Energy Storage Association (ESA), all major companies have suffered a decline in their revenue during the first and second quarter of 2020. Amid the pandemic, several energy storage system manufacturers are facing delays in their project deployment. These delays are projected to upend grid reliability measures and avoid power system disruption; thus, the market is anticipated to grow at a healthy rate over the forecast period.
Leading players in the market include General Electric; Active Power; Furukawa Battery; Electrovaya; EnSync; Fluence; Saft; The Furukawa Battery Co., Ltd.; AltairNano; and Maxwell Technologies, Inc.
The companies in the market focus on new product development based on advanced technologies to have a competitive edge and to increase their reach across the globe. Some of the players focus on developing reliable and cost-effective O & M services for the catering consumer base.
The base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2026
Capacity in MW & CAGR from 2018 to 2026
North America, Europe, Asia Pacific, Central & South America & Middle East & Africa
U.S., Canada, France, Germany, U.K., China, India, Japan, Argentina, and South Africa.
Capacity forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2026. For the purpose of this study, Million Insights has segmented the global energy storage systems market report on the basis of technology and region:
• Technology Outlook (Capacity, MW, 2014 - 2026)
• Regional Outlook (Capacity, MW, 2014 - 2026)
• North America
• the Asia Pacific
• Central & South America
• Middle East & Africa (MEA)
• South Africa
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