Global energy storage market seen at USD 15.6bn in 2024

Sep 18, 2014 - Global revenue from energy storage for the grid and ancillary services is forecast to surge to USD 15.6 billion (EUR 12.1bn) in 2024 from just USD 675 million in 2014, Navigant Research said today.

The market research firm projects that worldwide installed energy storage for the grid and ancillary services (ESGAS) capacity will jump to 20.8 GW in the next ten years from 538.4 MW presently. Its latest report analyses the issues, opportunities and challenges related to utility-scale storage and takes into consideration several key markets including grid asset optimisation, wind and solar integration and arbitrage, amongst other.

According to senior research analyst Anissa Dehamna, the grid-scale energy storage market is poised for substantial growth in the coming years, even though it is currently developing in a “piecemeal fashion”. She added that after "faltering growth" for several years, lithium-ion batteries are emerging as the breakout technology in the segment.

Energy storage is becoming viable as intermittent renewables are now undermining traditional power assets in wholesale energy markets, the researcher said. The US, South Korea and Japan, among other countries, are preparing market reforms and policies that will prove beneficial for the specific field. Still, the industry needs more systems integrators and financing models for energy storage to be deployed widely on the grid. Further cost reductions are needed, while supply chain development and integration expertise are still underdeveloped, the market study shows.

Navigant also explained that there is more value in providing solutions at the end of the supply chain than in the core technologies. Already, technology vendors are moving down the supply chain.

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