Energy Storage on the Grid Will Surpass $30 Billion in Annual Market Value by 2022, Forecasts Pike Research
Advances in next-generation pumped storage, compressed air energy storage, and advanced batteries have multiplied the technology options available for energy storage on the grid (ESG), while, at the same time, the applications for ESG are also increasing. Rapidly changing energy mixes and increasingly volatile load profiles will challenge grid operators to deliver reliable and secure electricity, encouraging demand for ESG over the next decade. According to a recent report from Pike Research, a part of Navigant's Energy Practice, the market for energy storage on the grid, starting from a very low base in 2012, will surpass $30 billion in annual value by 2022.
The total capacity of ESG systems worldwide will reach almost 56,000 megawatts by 2022, the study concludes.
“One of the key challenges for energy storage will be to deliver cost-effective solutions for these grid stability issues,” says research analyst Anissa Dehamna. “Market structures still must catch up with the market to acknowledge the value of energy storage to grid operators and power consumers. At the same time, the industry must solve issues around business models and the supply chain in order to successfully scale up and fully commercialize these emerging technologies.”
A key business model shift in the ESG market is increasing specialization, according to the report. Specifically, a significant number of recent strategic decisions and partnerships reflect a narrower market focus on the part of technology vendors. Instead of targeting many different markets and countries, more and more vendors are targeting their sales efforts on one or two markets or applications, and are repositioning themselves in the energy storage supply chain.
The report, “Energy Storage on the Grid”, analyzes the global market for long-duration energy storage and forecasts the amount and revenue associated with this rapidly changing market using an application-driven forecast. The report provides a comprehensive assessment of the demand drivers, business models, policies, and technology issues associated with the ESG market. Key industry players are profiled in depth, and worldwide revenue and capacity forecasts, segmented by technology and region, extend through 2022. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Energy Storage on the Grid,” is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.