Advanced energy storage market worth US$15.96 bn by 2020
A new report published by MarketsandMarkets says that the advanced energy storage market is expected to grow from an estimated USD 12.89 Billion in 2015 to USD 15.96 Billion by 2020, at a CAGR of 4.4% during the forecast period.
Advanced Energy Storage Systems Market is expected to grow from an estimated USD 12.89 Billion in 2015 to USD 15.96 Billion by 2020, at a CAGR of 4.4% during the forecast period. Energy arbitrage opportunities, renewable energy installations, and growing electric vehicles market are driving the energy storage systems market globally.
Energy storage system in transportation application emerging as the major segment in the AESS market
The transportation segment accounted for the major share in the energy storage systems market. Lithium-ion and nickel-metal hydride batteries held the major share in the transportation sector in 2014. Battery-powered vehicles available today include hybrid vehicles, plug-in hybrid vehicles, and electric vehicles. With ongoing research and development activities by companies such as Honda Motor Company Ltd. (Japan), Chrysler Group LLC (U.S), and Toyota Motor Corporation (Japan), the usage of lithium-ion batteries is expected to be the most in electric vehicles by 2020.
Increasing preference of lithium ion battery in advance energy storage systems
The report also segments the Advance Energy Storage Systems Market on the basis of technology into lithium ion battery, pumped hydro storage, NaS battery, CAES, flow battery, supercapacitors, and others. The lithium ion batteries segment is estimated to account for the largest market share in 2015. Varied application of this technology including its usage in large transportation application is contributing to its growth and a larger market share. However, the CAES market is expected to grow at the highest CAGR of 6.9% during the forecast period. This growth can be attributed to the drastic change in energy mix and the new trend of renewable energy as a power source. Use of renewable energy will result in frequent incidents of volatility of load profiles, which further requires the interference of energy storage systems.
Asia-Pacific is the dominant market for energy storage systems market
In this report, the energy storage systems market has been analyzed with respect to four regions, namely, Asia-Pacific, Europe, North America, and the Rest of the World (RoW). The energy storage systems market is expanding in developing countries owing to the progress in renewable energy installations and growth in electric vehicles market. The Asia-Pacific energy storage systems market is expected to dominate with a share of 47.0% in 2015. The region is expected to maintain its dominance in the energy storage systems market during the forecast period.