The market for energy storage is expected to grow at a CAGR of approximately 24. 38% during the forecast period of 2020 – 2025. In an attempt to make the power industry more effective, a new trend in electric power production has witnessed intense development during the recent past, which is energy storage.
New York, Oct. 12, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Energy Storage Market - Growth, Trends, and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05881449/?utm_source=GNW
Factors such as growing renewable energy sector, supportive government policies and schemes for energy storage systems (ESS), and improving energy storage economics are expected to be the major drivers for the energy storage market in the coming years. However, ambiguity in the EU legislation related to energy storage systems is forcing the network operators to refrain from using the ESS, which, in turn, is restraining the market growth in such major regions.
- The residential sector is expected to account for the largest share in the energy storage market by application with majority of the demand coming from Germany, Australia, and the United States.
- The commercial and industrial (C&I) sector is increasingly adopting renewable power generation sources, such as solar and wind energy, for self-consumption. But renewable energy is an intermittent power source and the C&I sector is failing to utilize these resources to its fullest potential. Therefore, to increase the utilization rate of renewable power sources, the C&I sector is expected to increasingly adopt the energy storage systems which in, turn, creates significant opportunities to the ESS providers in the future.
- Asia-Pacific dominated the market across the globe in 2018 driven by the increasing demand for energy storage systems from the countries such as China, South Korea, and India.
Key Market Trends
Increasing Demand from Residential Sector
- The residential sector is expected to dominate the energy storage market over the forecast period. The residential usage of energy storage systems is gaining importance on account of growing need to offset the power blackouts, which result from growth in power demand from the existing power infrastructure.
- This segment is mainly dominated by Germany, Australia, and the United States. Several other countries, such as Brazil, Saudi Arabia, Thailand, and Bangladesh, have introduced the net metering program, or have made certain amendments in the program to encourage solar PV in the residential sector, thereby, creating ample opportunity for the residential energy storage market.
- Residential energy storage system (RESS) business models are still at the early development stages in most markets. However, residential customers are expected to become actively involved in modifying their energy spending patterns by monitoring their actual consumption in real time.
- India is one of the most promising countries for growth in the housing sector. During 2008-2020, the market size for the housing sector is expected to register a double-digit growth rate and account for around 10% of the country’s total GDP. The growing housing sector in the country is expected to drive the demand for residential energy storage systems for uninterrupted and reliable power supply.
- Adding to this, North America is likely to witness a significant growth rate during the forecast period, which is attributable to the country’s favorable government policies toward residential energy storage and increased spending by the residential sector on solar rooftop installations.
- Factors such as increasing solar rooftop systems and rapid cost decline of energy storage systems in the past few years are expected to drive the residential energy storage market over the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to continue its dominance in the energy storage market over the forecast period. The region consists of two main types of power grids each with different characteristics and opportunities for energy storage systems. On one side are highly developed nations, such as Japan, South Korea, New Zealand, and Australia, and other major cities with advanced grids that operate reliably and utilize the advanced technologies.
- On the other side, there are nations, which are still developing fundamental infrastructure systems and have unreliable or limited power grids. The developing regions are also witnessing rapid population growth and urbanization, which is increasing the demand for electricity.
- By 2027, India aims to have 275 GW of total wind and solar capacity, plus 72 GW of hydro and 15 GW of nuclear. Renewable energy’s share of installed capacity is forecast to rise to 43% by 2027. With the growing renewable sector, the demand for the energy storage system, to address the challenges related to intermittency in renewable power generation, is expected to grow.
- Moreover, according to the 8th Basic Plan for Electricity Supply and Demand, published in 2017, the South Korean government lowered its anticipated electricity demand growth to 1% annually through 2030. The government intends to cut its greenhouse gas emissions and reduce fine dust particle pollution through energy conservation measures and through the use of cleaner energy renewable energy sources coupled with ESS.
- The country has an ESS supportive regulatory framework and policies. For instance, Korea has introduced policies for expanding incentives and applied a renewable energy certificate (REC) weight (multiplier) of 5.0 for ESS for renewable energy integration. Consequently, the country’s ESS additions increased from 763MWh in 2017 to 1.8GWh in the first half of 2018 and is set to grow further over the next few years.
The energy storage market is consolidated. The key players in this market include GS Yuasa Corporation, Contemporary Amperex Technology Co. Limited, UNIENERGY TECHNOLOGIES LLC, BYD Co. Ltd, and Johnson Controls International PLC.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05881449/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: firstname.lastname@example.org US: (339)-368-6001 Intl: +1 339-368-6001