Rising Adoption of Renewable Energy Driving Sales of Energy Storage Systems

With rising environmental deterioration, melting polar ice caps, and increasing global average temperature, the earth is facing an unprecedented environmental and climate crisis. The generation of power from fossil fuels such as oil and gas is one of the major causes of air pollution and one of the biggest contributors to carbon emissions. As a result, many countries and organizations are rethinking their power generation strategies and opting for renewable sources such as solar and wind for energy production.

The adoption of such clean and renewable energy sources is the first step toward mitigating the pollution levels. As these energy sources have variable power outputs, they require energy storage systems and technologies for providing continuous power supply. These technologies smoothen out the power supply from these energy sources and ensure that the supply matches the energy demand. Besides the growing popularity of renewable energies, the surging power prices are also positively impacting the sales of energy storage systems.


Get the market insights of Energy storage industry at: https://www.psmarketresearch.com/market-analysis/energy-storage-market/report-sample


The rising requirement for energy is making the power plants operate and run at full capacities. In addition to this, the increasing logistics costs and the lack of availability of regular supply of fuel are causing volatility in power prices all over the globe. This is making the governments of many countries as well as power producing companies focus more on energy conservation, which is, in turn, pushing up the sales of energy storage systems.

These devices store energy when the costs are low or during the times when energy generation is very high. The stored energy is subsequently used when the power prices shoot-up. Because of these reasons, the sales of energy storage systems are climbing across the world, which is, in turn, causing the boom of the global energy storage market. As a result, the market is predicted to rise from 171,039.3 Megawatts (MW) to 69,917.6 MW from 2019 to 2030.

The energy storage market will advance at a CAGR of 3.3% between 2020 and 2030. Based on type, the market is categorized into mechanical, electrochemical, thermal, and chemical. Out of these, the mechanical category accounted for a huge share in the market in the past, on account of the large-scale adoption of mechanical utility storage systems because of their high storage capacities and the ability to maximize various natural resources and offer favorable economics over a significant period of time.

Globally, the Asia-Pacific energy storage market was very prosperous in the years gone by, as per P&S Intelligence, a market research firm based in India. The growth of the market was caused by the large-scale (EPC) equipment, procurement, and construction of energy storage systems in the regional countries in the past years. Furthermore, the market will surge in APAC in the upcoming years as well, on account of the rising adoption of energy storage systems in the region.

Thus, it can be said with conviction that the due to the ballooning requirement for continuous power supply, the rising power requirements, and the growing adoption of renewable energy sources such as wind and solar for energy generation, the sales of energy storage systems will rise steeply all around the world in the upcoming years.

How is Rising Requirement for Unconventional Energy Sources Driving Energy Storage Market?

Various factors are contributing to the increasing demand for unconventional sources of energy, including the rapid urbanization, degradation of environment due to the increased usage of fossil fuels, and ready availability of these sources. Unconventional sources of energy, such as wind energy, hydro power, and solar energy, can produce clean energy and also have the potential to match the surging energy demand across the globe. Moreover, these renewable energy technologies have variable outputs, due to which storage technologies have great potential of smoothing out the power supply from these sources. This is further driving the requirement for energy storage systems. These systems have the capability to discharge power to the grid quickly, whereas fossil fuel sources take longer time to ramp up.

Energy storage system enables the integration of renewable energy and provides resilient and clean supply of energy. As per a study conducted by P&S Intelligence, in the global energy storage market, the installed capacity was 6,275.4 MW in 2017 and is expected to go up to 51,426.0 MW in 2023, growing with a 42.5% CAGR in the coming years. The several types of energy storage systems are chemical, electrochemical, thermal, mechanical, and others (which include biological and fossil fuel storage). Out of these, the mechanical energy storage systems were the most in demand during 2013–2017. This was because these systems can be implemented in the utility systems on a large scale and utilized in a high demand scenario for dealing with the irregularities of the demand or supply. Mechanical energy storage systems are further of different types: compressed air energy storage, pumped hydro storage, liquid air energy storage, and others (including flywheel and torsion or plate spring).

Get the market analysis report at: http://bit.ly/377Y7t4


The energy storage market is categorized into backup supply, arbitrage, ancillary services, fuel saving, and others (which include running mills and air conditioning). Among these, the largest application area for energy storage systems was ancillary services during 2013–2017 and is further predicted to retain its position in the near future. These services are mandatory for supporting the transmission of electric supply from the generation site to the customers because of transmitting utilities and control areas within those control areas for maintaining reliable operations of the interconnected transmission system. The application area of arbitrage is projected to witness the fastest growth rate in the coming years.
The growing adoption of energy storage systems in the transportation sector is expected to increase their demand in the near future. The transportation sector is growing rapidly because of the rise in the economic status of consumers, which is resulting in increased demand for advanced vehicles. Conventionally, the manufacturers did not have the technology for making a car efficient, in terms of energy conservation. But now, with the changing research and development scenario, manufacturers are increasingly focusing on improving their technology in order to make vehicles more efficient, which, in turn, has led to the growing adoption of storage technologies in different components.