The global energy storage market size is expected to expand at a significant CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the factors such as growth of the renewable energy sector, energy storage system policies, government support plans, and the improvement of the energy storage economy.
Energy storage is the storage of energy generated at a time so that it can be used later to reduce the imbalance between energy demand and energy production. Energy storage devices are often referred to as rechargeable batteries. Energy takes many forms, including electric potential, radiation, electricity, latent heat, high temperature, gravitational potential, and kinetic heat. Energy storage is the conversion of energy that is difficult to store into a more convenient or economical form of storage. Some technologies provide short-term energy storage, while others can last long.
The Covid-19 pandemic affected the demand and supply of global energy storage market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing adoption of renewable power generation technologies and rising demand for electrical energy is expected to boost the market during the forecast period.
- Rapid growth of the automotive industry owing to demand of electric vehicles is major factors fueling the market.
- Growing demand for uninterrupted power supply by residential sector and rising adoption of rooftops solar systems is anticipated to drive the market during forecast period.
- High installation cost and maintenance cost of energy storage is projected to restrict the market growth.
- Lack of awareness about the benefits of energy storage systems and ongoing disruption in energy generation industry act as major challenges that can hamper the market growth during the forecast period.
- R&D investment and development of energy storage systems for continuous power supply to data centers is projected to offer significant opportunities for the market players.
Market Segment Insights
The pumped storage hydroelectricity segment is projected to hold a major market share
Based on types, the energy storage market is divided into batteries, pumped storage hydroelectricity, flywheel energy storage, thermal energy storage, and others. The pumped storage hydroelectricity segment is expected to represent a key share of the market during the forecast period. This process uses the excess energy available during off-peak hours to pump water from the mountain to the upper reservoir, where it can be added to the regular flow during off-peak hour’s maximum demand.
The residential segment is expected to expand at a significant pace
In terms of applications, the energy storage market is bifurcated into residential and commercial & industrial. The residential segment is expected to represent a key share of the market during the forecast period owing to the use of energy storage systems in residential buildings is becoming important to compensate for the ever-increasing demand for power failures due to the increasing energy demands of the existing power infrastructure.
Asia Pacific is anticipated to dominate the market
On the basis of regions, the energy storage market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period. There are highly developed countries such as Japan, South Korea, New Zealand, and Australia, but there are also other large cities with extensive networks, reliable operation, and advanced technology. In addition some countries are still under the process of developing critical infrastructure systems, with restricted or unpredictable power grids, and developing regions are also experiencing rapid population growth and urbanization, which is expected to upsurge the demand for electricity.
Key players competing in the energy storage market include Johnson Controls International PLC; UNIENERGY Technologies; GS Yuasa Corp.; BYD Co. Ltd.; and Contemporary Amperex Technology Co. Ltd.
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