The increasing focus on renewable energy sources, dipping cost of batteries, and rising international outcry over pollution caused by conventional energy sources will drive the market for energy storage at a CAGR of 3.3% during the forecast period (2020–2030). The market had a capacity of 171,039.3 megawatts (MW) in 2019 and it is expected to expand its capacity to 69,917.6 MW by 2030. Additionally, high costs for securing energy will facilitate the market growth in the coming years.
Countries across the world are reducing their dependency on conventional energy sources like coal, gas, and oil and growing their focus on non-conventional sources. Renewable energy sources, like solar and wind, have variable outputs, which need storage technologies to smoothen the electricity supply from multiple sources. Unlike non-renewable energy sources, which take more time to ramp up and deliver full power, the storage technologies can quickly discharge power to grids. The rapid response is vital for ensuring the stability of the grids in situations of sudden demand.
According to P&S Intelligence, the Asia-Pacific (APAC) region led the market in 2019, due to the rise in engineering, procurement, and construction (EPC) activities in Japan, India, and China. Governments of these nations are rapidly installing smart grid community systems for electricity delivery. On the other hand, in the coming years, the Latin American and African energy storage market will register significant growth, due to the growing inclination toward battery storage systems and pump hydro electrical systems (PHESs).
Thus, the reducing dependency on traditional energy sources and the increasing reliance on renewable energy sources to meet the sheer power demand will amplify the installation of energy storage systems, globally.
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