Distributed Energy Storage Market - Forecast (2021 - 2026)
The market for Distributed Energy Storage is forecast to reach $18 billion by 2025, growing at a CAGR of 9.3% from 2020 to 2025. Increase in awareness about renewables and growth in government initiatives for renewable power generation in various developed and developing countries are likely to boost the distributed energy storage system market across the globe in the coming years. Furthermore, rise in the use of renewable energy and the increase in demand for clean energy are expected to be the main drivers of the market for distributed energy storage systems.
The report: “Distributed Energy Storage Market– Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Distributed Energy Storage Market.
By Technology – Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology
By Application – Transportation, Grid Storage
By Geography - North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)
On the basis of technology, the market for distributed energy storage has been further segmented into Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology. In 2019, the mechanical category accounted for the highest storage capacity in the world. This is because such systems can produce high amounts of power and are able to make the best use of natural resources, thus leading to numerous economic benefits. Moreover, the electrochemical segment is anticipated to witness the highest growth rate of around 12.7% during the forecast period. Growth in this this segment is due to the emergence of advanced battery chemistries, including lithium ion (Li-ion), flow batteries, advanced lead-acid, and other next-generation chemistries which has enabled rapid advancement in the market.
Distributed Energy Storage Market Segment Analysis - By Application
Of all the major Distributed Energy Storage applications, the transportation segment held the largest share accounted to 65% in 2019 due to the introduction of electric mobility across the globe. Currently, global government organisations such as Environmental Government Agencies and so on are focused on the enforcement of carbon dioxide emission limits. China, for example, has the goal of increasing the output of electric cars. China's target is to launch about 11.9 million electric vehicles by 2020. There is also a global emphasis on lowering carbon dioxide emissions and developing electric vehicles that will serve the role of transport and be environmentally friendly. The growth in this segment is primarily driven by increasing deployment of lithium-ion batteries in the electric vehicles. Moreover, grid expansion and investment in modern infrastructure in developing countries also present opportunities for growth.
Distributed Energy Storage Market Segment Analysis - By Geography
Asia Pacific is expected to lead the global distributed energy storage system market during the forecast period with a CAGR of 12.3% followed by North America and Europe. Large portfolio & capacity of renewable energy sources and limited grid infrastructure presence are key factors driving the distributed energy storage system market in the region. Increase in investments & rise in capacity of renewable energy sources, and increase in incentives for renewables provided by governments and authorities in the region, especially in developing economies of China and India, are likely to drive the distributed energy storage system market during the forecast period. The growing need for energy reliability and efficiency are also expected to spur the growth of the market and represents a promising opportunity for major distributed energy storage systems providers.
Distributed Energy Storage Market Drivers
Increasing renewable energy investments
Both developed and developing countries are revising their energy policies to include a large portion of their generation from renewable energy sources, including wind and solar. The distributed energy storage system allows renewable energy sources to be incorporated seamlessly into the main grid by reducing their variability. In addition, the distributed energy storage system helps to store the excess energy provided by renewable sources for use during peak demand. Therefore, the growth in the usage of renewable energy and the increase in demand for clean energy are projected to be the key drivers of the market for distributed energy storage systems.
Emergence of Smart Grid to Offer Lucrative Opportunities
Smart grid architecture has changed the way that power is produced, distributed, and consumed. For consumers and power companies, it has resulted in better and improved grid utilisation, reliability, and security. Smart grids are also seen as an energy infrastructure option for the smart cities of the future. The distributed energy storage system helps to align power generation and demand around the grid, thereby fostering and playing a key role in the implementation and operation of smart grids. Furthermore, distributed energy storage system enables integration of distributed energy generation systems into main grid, thereby increasing the resilience and reliability of grid operations.
Distributed Energy Storage Market Challenges
High capital investments
In comparison to other technologies, energy storage technologies such as lithium-ion batteries, flow batteries and sodium sulphur (NaS) batteries need high manufacturing capital because of their advantages of high energy density and improved performance. Lithium, being an expensive metal, increases the cost of manufacturing batteries; thus, the cost of technology is anticipated to be high with its new and evolving applications in EV & grid storage for the initial two or three years. High capital investments associated with DESS installations restrain the usage of these technologies by customers such as captive power customers and residential customers among others.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Distributed Energy Storage Market. Distributed Energy Storage driver market is expected to be dominated by major companies such General Electric, NEC Energy Solutions, Siemens AG, Schneider Electric, Johnson Controls, MCV Energy and ABB Ltd. among others.
Distributed Energy Storage Market Report Coverage
The report: “Distributed Energy Storage Market– Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Distributed Energy Storage Market.
By Technology – Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology
By Application – Transportation, Grid Storage
By Geography - North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)
Key Takeaways
In 2019, the mechanical category accounted for the highest storage capacity in the world as these systems can produce high amounts of power and are able to make the best use of natural resources, thus leading to numerous economic benefits.
Asia Pacific is expected to lead the global distributed energy storage system market during the forecast period with a CAGR of 12.3% due to the large portfolio & capacity of renewable energy sources and limited grid infrastructure presence in this region.
The growth in the usage of renewable energy and the increase in demand for clean energy are projected to be the key drivers of the market for distributed energy storage systems.
High capital investments associated with DESS installations restrain the usage of these technologies by customers such as captive power customers and residential customers among others.
Distributed Energy Storage Market Segment Analysis - By Technology
In 2019, the mechanical category accounted for the highest storage capacity in the world as these systems can produce high amounts of power and are able to make the best use of natural resources, thus leading to numerous economic benefits.
Asia Pacific is expected to lead the global distributed energy storage system market during the forecast period with a CAGR of 12.3% due to the large portfolio & capacity of renewable energy sources and limited grid infrastructure presence in this region.
The growth in the usage of renewable energy and the increase in demand for clean energy are projected to be the key drivers of the market for distributed energy storage systems.
High capital investments associated with DESS installations restrain the usage of these technologies by customers such as captive power customers and residential customers among others.
Distributed Energy Storage Market Segment Analysis - By Technology
On the basis of technology, the market for distributed energy storage has been further segmented into Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology. In 2019, the mechanical category accounted for the highest storage capacity in the world. This is because such systems can produce high amounts of power and are able to make the best use of natural resources, thus leading to numerous economic benefits. Moreover, the electrochemical segment is anticipated to witness the highest growth rate of around 12.7% during the forecast period. Growth in this this segment is due to the emergence of advanced battery chemistries, including lithium ion (Li-ion), flow batteries, advanced lead-acid, and other next-generation chemistries which has enabled rapid advancement in the market.
Distributed Energy Storage Market Segment Analysis - By Application
Of all the major Distributed Energy Storage applications, the transportation segment held the largest share accounted to 65% in 2019 due to the introduction of electric mobility across the globe. Currently, global government organisations such as Environmental Government Agencies and so on are focused on the enforcement of carbon dioxide emission limits. China, for example, has the goal of increasing the output of electric cars. China's target is to launch about 11.9 million electric vehicles by 2020. There is also a global emphasis on lowering carbon dioxide emissions and developing electric vehicles that will serve the role of transport and be environmentally friendly. The growth in this segment is primarily driven by increasing deployment of lithium-ion batteries in the electric vehicles. Moreover, grid expansion and investment in modern infrastructure in developing countries also present opportunities for growth.
Distributed Energy Storage Market Segment Analysis - By Geography
Asia Pacific is expected to lead the global distributed energy storage system market during the forecast period with a CAGR of 12.3% followed by North America and Europe. Large portfolio & capacity of renewable energy sources and limited grid infrastructure presence are key factors driving the distributed energy storage system market in the region. Increase in investments & rise in capacity of renewable energy sources, and increase in incentives for renewables provided by governments and authorities in the region, especially in developing economies of China and India, are likely to drive the distributed energy storage system market during the forecast period. The growing need for energy reliability and efficiency are also expected to spur the growth of the market and represents a promising opportunity for major distributed energy storage systems providers.
Distributed Energy Storage Market Drivers
Increasing renewable energy investments
Both developed and developing countries are revising their energy policies to include a large portion of their generation from renewable energy sources, including wind and solar. The distributed energy storage system allows renewable energy sources to be incorporated seamlessly into the main grid by reducing their variability. In addition, the distributed energy storage system helps to store the excess energy provided by renewable sources for use during peak demand. Therefore, the growth in the usage of renewable energy and the increase in demand for clean energy are projected to be the key drivers of the market for distributed energy storage systems.
Emergence of Smart Grid to Offer Lucrative Opportunities
Smart grid architecture has changed the way that power is produced, distributed, and consumed. For consumers and power companies, it has resulted in better and improved grid utilisation, reliability, and security. Smart grids are also seen as an energy infrastructure option for the smart cities of the future. The distributed energy storage system helps to align power generation and demand around the grid, thereby fostering and playing a key role in the implementation and operation of smart grids. Furthermore, distributed energy storage system enables integration of distributed energy generation systems into main grid, thereby increasing the resilience and reliability of grid operations.
Distributed Energy Storage Market Challenges
High capital investments
In comparison to other technologies, energy storage technologies such as lithium-ion batteries, flow batteries and sodium sulphur (NaS) batteries need high manufacturing capital because of their advantages of high energy density and improved performance. Lithium, being an expensive metal, increases the cost of manufacturing batteries; thus, the cost of technology is anticipated to be high with its new and evolving applications in EV & grid storage for the initial two or three years. High capital investments associated with DESS installations restrain the usage of these technologies by customers such as captive power customers and residential customers among others.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Distributed Energy Storage Market. Distributed Energy Storage driver market is expected to be dominated by major companies such General Electric, NEC Energy Solutions, Siemens AG, Schneider Electric, Johnson Controls, MCV Energy and ABB Ltd. among others.
We also publish more than 100 reports every month in "Energy and Power", Go through the Domain if there are any other areas for which you would like to get a market research study.
Comments
Post a Comment