Grid-scale energy storage: Key market research findings
- The Americas dominate the market geographically
- PHS segment accounts for a majority of the market’s revenue
- Key vendors – ABB, Beacon Power, Hydrostor, and LG Chem
Technavio’s market research analysts predict the global market for grid-scale energy storage to surpass $42 billion by 2020. The extensive usage of energy storage technologies in the utility sector is one of the key factors augmenting the growth of this market. Energy storage systems play a crucial role in storing power generated from renewable sources as the power generated from the wind and solar energy are intermittent. Energy storage systems such as flywheel technology respond instantaneously to the control signals and can be a hundred times quicker than traditional energy generation sources. During 2015, the global grid-scale energy storage market was dominated by the Americas with a market share of around 45%. Government regulations to minimize emissions and demand for energy management will contribute to the growth of the grid-scale energy storage market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the grid scale energy storage segments based on the technology.
“The development of next-generation batteries is a trend that will revolutionize the market. Growing demand for batteries has encouraged manufacturers to adopt next-generation technology batteries for energy storage systems. The Li-ion battery market is experiencing major changes due to the replacement of its conventional graphite electrodes with high-energy silicon electrodes,” says Vishu Rai, Lead Analyst, Energy, Technavio Research.
The pumped hydroelectric system segment accounted for around 93% of the overall market revenue to become the key revenue generating segment in the global grid-scale energy storage market. The growth of this segment can be attributed to its technological feasibility and cost competitiveness. PHS feature high power and energy density. Countries like China, Japan, Switzerland, and the US have focused on installing PHS owing to the non-flexibility in nuclear power plants, financial incentives, and carbon-free generation.
The key players in the market include ABB, Beacon Power, Hydrostor, and LG Chem. The market is characterized by the presence of well-diversified international, regional, and local vendors. These vendors provide cost-effective energy storage systems with limited features and functionalities. However, as international players are increasing their footprints, local vendors are finding it difficult to compete with them, especially in terms of quality and features of the energy storage systems. The competitive environment in this market is expected to intensify with the increase in product extensions and technological innovations and the subsequent increase in mergers and acquisitions.
A more detailed analysis is available in the Technavio report, Global Grid-Scale Energy Storage Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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