The total energy storage market is expected to grow to US$546 billion by 2035, according to a report released by Lux Research.
The report, Global Energy Storage Market 2019, estimates that the three main drivers of energy storage – mobility applications, expected to be the long-term driver of energy storage demand; electronic devices, and stationary storage, will reach an annual combined deployment level of 3,046 GWh over the next 15 years, up from the current 164 GWh, with mobility applications making up the lion’s share of the growth.
The report furthered that growth in revenue and deployment for the energy storage market over the next three years will be markedly different from the overall 2035 projections, with plug-in light-duty vehicles remaining the largest market with a predicted US$24 billion increase by the end of 2022, followed by medium – and heavy-duty vehicles, growing from US$600 million/year in 2019 to a US$3.6 billion/year in 2022, but have the highest CAGR of 80%. Residential storage has a CAGR of 76% and US$8 billion revenue increase over the next three years, followed by personal mobility with a CAGR of 49% and US$4.6 billion revenue increase.
Mobility applications remain the long-term growth and demand driver for energy storage through 2035 and stationary storage is expected to grow to US$111.8 billion by the same period. Meanwhile, energy storage demand for electronic device applications is expected to remain flat over the next 15 years with a CAGR of only 1.9%, as the markets for laptops, cell phones, and tablets are already saturated, leaving growth pegged primarily to population increase.
The report identifies five major technologies that are well-positioned to drive growth in energy storage markets: battery recycling, electric aviation, flow batteries, thin-film batteries, and solid-state battery improvements.