Battery energy storage for smart grids: Key market research findings
- Increasing power consumption drives market growth
- The Americas dominate the market geographically
- Key vendors – Siemens, ABB, Samsung SDI, GE-Alstom, A123, Bosch, and BYD
Technavio’s market research analysts predict the global battery energy storage market for smart grid to reach 8,160 MW in terms of capacity by 2020. The growth of the market is augmented by the rise in power consumption. The use of smart grid storage technologies reduces the loss of electricity during its transmission and distribution from the power plants and improves the overall efficiency. During 2015, the Americas accounted for around 60% of the market to become the dominant shareholder in the global battery energy storage systems market for smart grids. The growth of the smart grid market coupled with favorable government policies is expected to drive growth in the battery energy storage market for smart grid in the Americas by 2020.
The new market research report from Technavio provides a breakdown and analysis of the battery energy storage for smart grid segments based on the battery.
“Recently, there has been a lot of technological advancements in the battery storage industry. Companies are investing largely in R&D departments in an attempt reduce the cost with new technologies. Technological advancements have resulted in a reduction in cost and increase in the performance and efficiency of the batteries,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
The Li-ion segment dominated the global battery energy storage market for smart grid in 2015 with a market share of more than 66%. Li-ion batteries are lightweight and compact and are extensively used in battery energy storage for the smart grid. These batteries use non-aqueous electrolytes that offer high operating voltages as opposed to lead-acid batteries and sodium-sulfur batteries, which have aqueous electrolytes. Vendors in the market are focusing on developing low-cost Li-ion batteries.
The key vendors in the market include Siemens, ABB, Samsung SDI, GE-Alstom, A123, Bosch, and BYD. The market is characterized by the presence of well diversified international vendors. They have a large portfolio of battery energy storage related equipment and services for smart grid which can be customized as per the needs of the consumers. Vendors in the market compete on the basis of price, quality and market presence. Also, the market is expected to witness an immense rise in mergers and acquisition by key players who are trying to expand their geographic presence worldwide.
A more detailed analysis is available in the Technavio report, Global Battery Energy Storage Market for Smart Grid 2016-2020.
We can customize reports by other regions and specific segments upon request.
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