The energy storage market has caught the eye of a number of stakeholders involved in the power industry, leading to its considerable growth and opening the way for next energy revolution, says GlobalData. GlobalData’s latest thematic report, ‘Thematic Research: Energy Storage’, highlights the present scenario and emerging market trends in the global energy storage industry, and the key companies behind the development of three energy storage technologies: electrochemical, mechanical and thermal energy storage.
The energy storage market is nascent but fast-growing. The demand for energy storage system (ESS) devices in the power sector is increasing rapidly, particularly after the increase in the renewable energy integration into the grids. Intermittent power supply led to demand for the storage of electrical energy and supply during peak load periods. ESS devices can help make renewable energy -whose power output cannot be controlled by grid operators- smooth and dispatchable.
With the global energy storage market becoming one of the rapidly growing segments within the renewable power mix, equipment manufacturers or technology providers of energy storage technologies are focused on innovating their energy storage solutions and offering advanced energy storage systems.
Battery energy storage system (BESS) is regarded as a crucial solution for overcoming the intermittency limitations of renewable energy sources (RES). The battery energy storage market reported cumulative deployment of 4.9 GW at the end of 2018 and is expected to reach 22.2 GW in 2023, with the US accounting for 24.7% of the global capacity. The deployment is expected to grow, due to a large number of countries opting for storage utilization to support their power sector transformation.
The expansion in battery manufacturing capacity and falling costs resulting from the electric vehicle (EV) industry are driving growth in energy storage services and new markets. This fall in battery prices has favored the battery energy storage market and has speeded the deployment of energy storage projects globally.
Currently, lithium-ion (Li-ion) batteries dominate the electrochemical energy storage market but other battery energy storage technologies such as sodium-sulfur (NaS), lead-acid and flow batteries are now getting deployed. While, thermal energy storage utilizing molten salt is among the most widely used technology in association with concentrated solar power (CSP) projects, among mechanical energy storage technologies, pumped hydroelectric storage systems is among the most mature energy storage technologies and offers a number of benefits such as energy-balancing, stability, storage capacity, along with ancillary grid services which include network frequency control and reserves.