Global advanced energy storage system market was valued at about USD 12.3 million in 2017 and is expected to generate revenue of around USD 22.4 million by the end of 2024, growing at a CAGR of around 9.03% between 2018 and 2024. This is according to a new report from Zion Market Research.
In recent years, the demand for electricity has increased rapidly. Therefore, energy storage systems are used to enable utilities to match the present capacity with variable demand and offer secure, consistent, and affordable services. Energy storage systems can also boost the usability of solar and other substitute renewable resources which, in turn, help to modernize the grid by improving the power capacity.
The rising demand for a large number of renewable resources can be met with the help of energy storage. An energy storage system allows the operators to manage the energy flow by supplying the required amount of energy and avoiding the waste of energy. Various approaches such as batteries, flywheels, electrochemical capacitors superconducting mechanical energy storage, and others can be used for the advanced energy storage purpose.
Increased renewable energy investments are expected to drive the advanced energy storage system market growth over the forecast period. Moreover, increasing demand for energy efficiency is anticipated to offer the market growth. Such factors are expected to boost the demand for advanced energy storage system market growth over the forecast period.
The advanced energy storage system market is segmented on basis of technology which is further divided into electrochemical storage, mechanical storage, and thermal storage. Lithium-ion batteries within the electrochemical storage held the major revenue share in 2016. The growth is attributed to the technological advancements and increase in the use of lithium-ion batteries to reduce the cost of energy.
The rising demand for the lithium-ion batteries used in the electric powered vehicles is the major factor that is expected to drive the market growth. Lithium-ion batteries are the most demanding storage option which improves the grid reliability and increases the use of clean and efficient power sources. Moreover, these batteries offer environmental benefits as they have no green gas emissions which in turn boost the market growth.
In North America, the advanced energy storage system market accounted for strong growth rate during the forecast timeframe. The U.S. accounted for one of the largest market shares. In the U.S., around 30% increase in MW deployment of energy storage was witnessed in 2017, from 2016.
Moreover, the country deployed more than 45 MW of ESS across the region in 2017, representing approximately 46% year-on-year growth. The Energy storage systems (ESS) in the U.S have increased approximately by 105% from 2014 to 2016.