Energy Storage Market By Technology (Compressed Air, Pumped Hydro Storage, Lithium Ion, Sodium Sulphur, Lead Acid, Redox flow, Nickel Cadmium, Flywheel), By Application, (Transportation, Grid Management), By End User (Residential, Non-Residential, Utilities) and Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) Global Forecast 2019 to 2029

The market size for energy storage is estimated to value at US$ 2,789.4 million by the end of 2016, at a CAGR of 8.9% over the forecast period. The energy storage market is growing owing to the increasing production of electricity. Artificial intelligence (AI) for energy storage is expected to boost growth of this market during the forecast period.

Lithium batteries are likely to witness the largest market growth over the forecast period. Lithium ion batteries are preferred over conventional batteries. As lithium ion do not have a memory consequence (loss of capacity by not complete loading / unloading) and also achieve high efficiency up to 95%.

The global Energy Storage market size is expected to reach close to US$ 435.32 billion by 2029 with an annualized growth rate of 8.4 f% through the projected period.

Lower cell voltage of a Lithium ion battery surges the safety factor. Lithium Titanate Oxide (LTO) based Lithium batteries belong to the low cell voltage sector, faster recharge periods, offers good operating efficiency due to their stable chemical composition that is appropriate across a widespread temperature array. Drawbacks comprise relatively high material cost and low energy density. Though, rising demand for Li-ion batteries in the automotive sector and large-scale mass production will drive expenses down. Both, manufacturing technology and material research will subsidize to drive down the costs. Extensive R&D activity and rising demand specify that costs are expected to drop significantly until 2025 with only small downside risk.

Electric Car Company Panasonic and Tesla have been working on decreasing costs of their lithium-ion batteries considerably and with Tesla’s “Gigafactory”. Tesla’s PR is difficult to beat, but several other Li-Ion manufacturers in Asia-Pacific and in the world are also in progress with construction of ‘giga-facilities’ – including Lishen, BYD and Samsung.

Vanadium redox flow batteries (VRFBs) are an emerging share of the energy storage market, which also comprises pumped hydro power, solar thermal power plants, and lithium-ion batteries. Unlike lithium-ion batteries, vanadium redox flow batteries are too huge to be used in electric vehicles; but, they have much extended lifespans, and are well suitable to utility and industrial applications.

In November 2017, StorEn Technology announced the progress of a new generation of VRFBs to fulfil the rising market demand for commercial viable energy storage. Unlike traditional batteries which store their reactive materials in their cells, VRFBs are a sort of rechargeable battery in that the energy is warehoused chemically in a liquefied electrolyte confined in two tanks.

Vanadium batteries are also considered as best technology followed by lithium ion batteries for stationary energy storage application. This is a recognized technology with advantages like long-scale duration with no or very less memory effect and self-discharge or ghost effect that continuously runs at 100% discharge.

Furthermore, based on application, utility solution segment is expected to dominate the global energy storage market at the end of forecast period. The most vital driver of utility-scale energy storage systems is the considerable growth in the amount of renewable energy installed across the world. Growing investments in renewable energy is anticipated to enhance the demand for energy storage systems in utility solutions. These variable methods of power generation presents challenge to electrical grids situated locally, that are typically not designed to handle different output generated and are often stretched-out in providing the existing electricity. Issues arrives from the need to safely incorporate variable resources and to align demand and supply to evade restraining energy. Energy storage systems are chiefly well suited to smoothing the fluctuating output of renewables and regulating the rapid ramping up and down of wind and solar generation. The curtailment or waste of renewable energy production presents a major opportunity for long-duration, utility-scale energy storage systems to permit greater utilization of these resources by shifting energy supply in ways to better line up with demand.

The key driver is the effort by governments across the world in order to reduce carbon emissions. During late 2015’s, the Paris Agreement was negotiated by 197 countries which agreed to set emissions reduction targets with the objective of limiting global warming, less than 2°C compared to pre-industrial levels. The agreement was attended by a set of targets for emissions moderation in various countries. In the aggregate, the IEA approximates that $13.5 trillion in additional investment will be mandatory just to attain these goals. These directives and the decreased costs of renewable generation are resulting in dropping competitiveness and departure of many coal-fired power plants. As new coal plant deployments are replaced by distributed resources and renewables, the grid will require new sources of inertia to conserve stability. Inertia on the grid has conventionally delivered by the rotary mass of thermal power generators, that permits the system to uphold stability if a portion of transmission or generation assets go offline. Energy storage is evolving as an ideal solution for providing synthetic and real inertia as ever-expanding clean power sources come online and cannot replicate the inertia provided by large-scale fossil-fuelled generators.

North America has portrayed a strong market growth over the recent years. Strong expansion of the battery energy storage sector in the region has been primarily driven by the enhanced requirement for energy efficient storage organizations to support electrical grids, particularly under highly stressed circumstances and to evade power blackouts.

Energy Storage Market Scope

Key segments of the  Energy Storage market

By Technology (USD Billion)            
        o    Pumped Hydro
        o    Electro-Chemical
            •    Lithium Ion Battery
            •    Sodium Sulfur Battery
            •    Lead Acid Battery
            •    Flow Battery
            •    Others
        o    Electro-Mechanical
            •    Flywheel
            •    Compressed Air Energy Storage
        o    Thermal
            •    Water
            •    Molten Salt
            •    Phase Change Material
            •    Others
6.   By Application, (USD Billion)
        •    Transportation
        •    Grid Management
7.   By End User, (USD Billion)
        •    Residential
        •    Non-Residential
        •    Utilities
8.   Regional Overview (USD Million)
        North America
          •    US
          •    Canada
        Europe
          •    Germany
          •    France
          •    UK
          •    Rest of Europe
        Asia Pacific
          •    China
          •    India
          •    Japan
          •    Rest of Asia Pacific
        South America
          •    Mexico
          •    Brazil
          •    Rest of South America
        Middle East and South Africa