Rising concerns over carbon emissions and favorable measures to promote adoption of sustainable energy will drive energy storage systems market forecast over the coming years. Carbon dioxide, the most prevalent and dangerous greenhouse gas that drives global climate change, continues to rise every year. In 2018, Hawaii’s Mauna Loa Atmospheric Baseline Observatory had reported carbon dioxide levels of nearly 411 parts per million (ppm), the highest monthly average ever registered.
Constant efforts are being made toward limiting carbon emission, which include growing investments toward deployment and expansion solar and wind energy plants to replace conventional fossil fuels. Deployment of large-scale clean energy systems will be bolstered by innovative advances in technology aimed to enhance efficiency and performance of batteries.
Enumerated below are the three major factors that will boost energy storage systems industry share over the projected timeline:
Large-scale deployment of renewable energy systems
International Renewable Energy Agency (IRENA) reports that increased utilization of renewable energy along with intensified electrification could help meet global climate goals by 2050. Renewable technologies, which are immediately deployable and cost-effective storage solutions, can enhance grid efficiency and help fulfil climate commitments.
The International Energy Agency (IEA) suggests that renewable generation met 45% of the global energy demand growth in 2018. Energy storage will certainly play a major role in realizing the next phase of energy transition. Along with the surge in wind and solar power generation, storage solutions will significantly help achieve decarbonization across key applications segments, propelling energy storage systems market size.
Growing power demand across Asia-Pacific (APAC)
Higher electricity consumption globally can be attributed to robust industrialization in Asia-Pacific and upsurge in purchasing power of consumers while resulting in increased utilization of electronic devices. In fact, China and the U.S. remain two of the world’s largest electricity markets that account for roughly 70% of global power demand.
IEA has estimated that:
• China witnessed an 8.5% upsurge in electricity demand during 2018 on account of steady industrial growth; and
• Electricity demand in India escalated by 5.4% in 2018 owing to massive electrification projects across rural areas.
Growing integration of renewable power sources into the grid combined with stringent government norms to ensure energy efficiency will bolster APAC energy storage systems’ industry outlook. Acceptance of more efficient storage methods, unpredictable changes in climate conditions that affect power generation, along with consistent increase in electricity demand are expected to foster business expansion of key battery suppliers in the region.
Increased adoption of lithium-ion batteries for energy storage
On account of tremendous benefits, such as high energy density, long service life, and low self-discharge rate, lithium-ion batteries are extensively used in several applications, including electric vehicles (EVs), hybrid electric vehicles (HEVs), and consumer electronics.
Introduction of the latest features into smartphones and advances in EV technology will considerably stimulate the demand for more reliable and efficient lithium-ion batteries, defining energy storage systems market outlook over the next few years. For more information, visit https://www.gminsights.com/industry-analysis/energy-storage-systems-market.