May 2 (Renewables Now) - The world’s battery storage market will grow by 7% year-on-year and reach USD 13.13 billion (EUR 11.7bn) by 2023, with APAC and EMEA taking the lead, according to GlobalData.
In its latest forecast for the 2019-2023 period, released on Wednesday, the research and consulting firm said the Asia-Pacific (APAC) region will remain the top battery storage market, reaching a market value of USD 6.05 billion in 2023. Countries such as China, India, Japan, South Korea, and the Philippines are expected to focus on frequency regulation in the electric grid as renewables capacities grow.
Last year, APAC accounted for 45% of the world’s cumulative installed storage capacity.
At USD 1.97 billion, the Americas market’s value in 2018 accounted for 28% of the world’s total, with the US, Chile, Canada and Brazil installing the bulk of the region’s capacity. The US market, in particular, is forecast to reach USD 2.96 billion in 2023 and be responsible for 23% of the global market.
“The US has been the largest market for Battery Energy Storage System (BESS) both in terms of cumulative installed capacity and by market value for projects installed up to 2018 and is likely to continue to lead the market at the country level,” said power analyst Bhavana Sri.
The value of the Europe, Middle East and Africa (EMEA) market in 2018 was USD 1.73 billion, or 26% of the global total. The Middle East and Africa region is still small in terms of BESS but is expected to expand as more renewables capacity comes online.
“As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a central role in the transition and transformation of the power sector,” Bhavana Sri said. The analyst pointed out that more companies are now moving to decentralised generation, which in turn spurs renewables and battery deployment, a trend that is also backed by supportive policies extending to the end-consumer level.
Technology-wise, GlobalData expects lithium-ion to remain the most preferred technology for market deployment.
(USD 1.0 = EUR 0.893)