Energy Storage Market: Current Analysis and Forecast (2022-2030)

Over the years focuses to reduce carbon emissions has been increasing, globally. Production of energy from renewable power sources have attained huge advancements in techniques although storage is still a major concern. Further, adoption of electric vehicles have been linearly increasing due to supporting government policies and very less carbon emission. For instance, in 2022 an increase of nearly 55% was observed in stock of plug-in electric vehicle (PHEV) in Europe. This shift will accelerate dramatically in the years to come and electrified vehicles are likely to witness double digit growth in the sales of light vehicles sold globally. Increasing demand for EV's would increase the electricity demand from grid during peak hours. Thus, to fulfil the need of electricity for fast EV charging station during the peak hours, installation of energy storage system near EV charging station would lessen the burden of electricity from grid. Therefore, with increasing demand for EV's demand for energy storage devices would also propel to fulfil the electricity demand for EV charging station.

The Energy Storage Market is expected to grow at a steady rate of around ~7% during the forecast period. The transition from producing energy with fossil fuels to producing energy with renewable energy sources is largely dependent on energy storage. Around the world, a number of affluent countries are moving away from centralized fossil fuel generation that can always be dispatched to match energy needs to one that relies more on renewable energy.

Based on type, the energy storage market is segmented into mechanical, electrochemical, thermal, and chemical. Among all mechanical category hold highest market share in which it s sub divided into pumped hydro storage and compressed storage. Moreover, compressed air storage also holds a prominent market share after pumped hydro storage due to previously installed and ongoing wind energy projects globally. Since wind energy is a clean way to produce energy therefore countries are investing heavily to achieve their targets for carbon neutral country and fulfil the treaty for Paris Agreement which was adopted by 196 parties at COP 21 in 2015.

Based on Application, the global market for energy storage market divided into transpotation and grid management, where the systems was dominated by the grid storage segment, depending on the application. Energy storage on a big scale is frequently done via grid storage systems. The industrial sector has a significant demand for energy, which is what fuels the segment's expansion. Additionally, extensive energy storage makes for a reliable and effective power source.

For a better understanding of the market adoption of the energy storage industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific is likely to witness high growth due to stringent government regulations leading to surge in demand for renewable source of energy which need energy storage system to store energy in low consumption hours and use it later in peak consumption hours. Inaddition, The need for a reliable and efficient energy source is being exponentially fueled by the region's rapidly expanding economic activities. The primary drivers of the growth of the energy storage systems market in the Asia Pacific region are the rising investments in rural electrification, rising government investments in the adoption of sustainable energy sources, and rising government initiatives to incentivize the corporate sector to adopt renewable energy sources.

Some of the major players operating in the market include: Contemporary Amperex Technology Co. Limited, Convergent Energy and Power, Duke Energy, Fluence, General Electric, Hitachi Ltd, NextEra Energy Inc., NEC Corporation, S&C Electric Company, Tesla Inc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.