PUBLISHER: Roots Analysis | PRODUCT CODE: 1771413
PUBLISHER: Roots Analysis | PRODUCT CODE: 1771413
As per Roots Analysis, the global offshore energy storage market size is estimated to grow from USD 354 million in the current year to USD 1,597 million by 2035, at a CAGR of 14.6% during the forecast period, till 2035.
The opportunity for offshore energy storage market has been distributed across the following segments:
Type of Source
Type of Application
Type of Storage System
Type of End-User
Type of Enterprise
Geographical Regions
Offshore energy storage generally operates through the use of advanced technologies, including lithium-ion battery systems designed for offshore use and hydrogen storage, each bringing distinctive benefits suited for maritime settings. Some significant benefits of offshore energy storage systems, include improved grid reliability, lower carbon emissions, and the capability to store excess energy produced during high-demand periods, particularly from solar energy generation.
Notably, the adoption of offshore energy storage in key sectors is rising due to the swift growth of renewable technologies and increasing public awareness, particularly around solar and wind energy. The offshore energy storage market is becoming an essential element in the global transition toward sustainable energy, incorporating market innovations and digital advancements to enhance renewable energy storage solutions. Innovations like lithium-ion batteries, known for their high energy density and rapid response rates, are gaining greater presence.
Moreover, compressed air energy storage (CAES) and hydrogen storage are facilitating effective offshore energy management by retaining excess energy for future utilization. Owing to the continuous advancements in offshore energy storage technology, such as the integration of hybrid storage systems, the offshore energy storage market is expected to increase during the forecast period.
Based on type of source, the global offshore energy storage market is segmented into vanadium, lead acid, lithium ion and sodium chemistry. According to our estimates, currently, lithium-ion segment captures the majority share of the market. This can be attributed to technological advancements that improve efficiency and lower costs.
Based on type of application, the offshore energy storage market is segmented into drilling platform, vessels and wind power. According to our estimates, currently, vessels segment captures the majority of the market. This dominance is largely due to hybrid energy systems tailored for marine environments, which combine various propulsion methods, such as diesel engines and electric batteries, resulting in improved operational efficiency and reduced emissions.
However, wind power segment is expected to grow at a relatively higher CAGR during the forecast period, due to the high demand in the automotive sector. This can be attributed to more robust and consistent wind speeds that boost energy generation efficiency and decrease costs.
Based on type of storage system, the offshore energy storage market is segmented into battery energy storage solutions, flywheel energy storage, hydro-pneumatic energy storage and misc. According to our estimates, currently, battery energy storage solution segment captures the majority share of the market.
Additionally, this segment is anticipated to experience a relatively higher growth rate during the forecast period. This growth can be attributed to their capability to efficiently handle the fluctuating nature of renewable energy sources such as wind and solar, ensuring a dependable power supply.
Based on end-user, the offshore energy storage market is segmented into oil & gas, renewable energy providers, utilities and others. According to our estimates, currently, the utilities segment captures the majority share of the market. Additionally, this segment is anticipated to experience a relatively higher growth rate during the forecast period. This growth can be attributed to their requirements for integrating renewable energy sources and ensuring grid stability.
However, oil and gas segment is expected to grow at a relatively higher CAGR during the forecast period, due to the high demand in the automotive sector. This can be attributed to the increasing demand for dependable energy management solutions in remote operations, along with substantial investments in hybrid systems that incorporate renewable technologies.
Based on type of enterprise, the offshore energy storage market is segmented into large and small and medium enterprise. According to our estimates, currently, the large enterprises capture the majority share of the market. Additionally, this segment is anticipated to experience a relatively higher growth rate during the forecast period. This can be attributed to their ability to invest in cutting-edge offshore energy storage technologies and equipment, advantage of government initiatives, and stimulate business growth.
Based on geographical regions, the offshore energy storage market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently, North America captures the majority share of the market. This dominance can be linked to its vast coastline, which offers ideal conditions for tapping into wind and tidal energy, along with significant investments in research, technology, and infrastructure that improve both capacity and efficiency. However, market in Asia Pacific is expected to grow at a higher CAGR during the forecast period.
The report on the offshore energy storage market features insights on various sections, including: