Energy Storage System Market Trends

Growth Drivers

• Worldwide Growing Demand for Energy - Global energy demand is rising to meet the expanding needs of the world's population. Energy demand is rising as a result of increased economic activity and technological advancements in both developed and developing nations. Energy consumption is always increasing, generating price volatility in petroleum-based fuels as well as environmental issues linked with fossil fuels, such as greenhouse gas (GHGs) emissions, which contribute to global warming. This scenario motivates researchers to investigate and invent new approaches and sustainable technology for energy storage and biofuel production. Hence, this factor is estimated to significantly boost the growth of the global energy storage system market during the forecast period. According to the statistics of the International Energy Agency (IEA), the worldwide total final consumption of energy increased to 15.1 Etta Joule by 2019.

• An Upsurge in Investments in Renewable Energy – For instance, Over the past few decades, the United States has witnessed a considerable increase in investment in renewable energy sources. Investments exceeded nearly USD 60 billion in 2019, which increased from around USD 10 billion in 2005.

• Worldwide Increase in Carbon Emission – As per a report, in 2021, worldwide carbon dioxide emissions from fossil fuels and industries climbed by around 5.6%, setting a new high of nearly 39 billion metric tons (GtCO2). China and the United States were the two major contributors to total emissions that year, with approximately 12.28 and 6.05 GtCO2, respectively.

• Massive Surge in the Demand for Batteries – For instance, the demand for batteries is anticipated to be increased from 188 GWh in 2020 to more than 2,000 GWh by 2030.  This significant growth is mostly attributable to the rise in electric transportation, which, in terms of overall energy storage capacity is anticipated to account for the great majority of the demand for batteries by 2030.

• Worldwide Expanding Count of Data Centers – For instance, there are more than 8,000 data centers worldwide. As of January 2022, there were nearly 2,802 data centers in the United States, with 488 more in Germany. Whereas, with around 460, the United Kingdom placed third among countries in terms of the number of data centers, while China had approximately 446 data centers.

Challenges

• Extreme Expenditure Requirement for Installation of Battery Energy Storage Systems - Battery energy storage techniques, such as lithium-ion batteries, and so on, need high installation costs owing to their high energy density and enhanced efficiency. Furthermore, lithium-ion batteries are expensive owing to their high energy capacity. Hence, this factor is anticipated to hamper the growth of the market over the projected time frame.
• Need for High Initial Investments for the Production of Flow Batteries
• Surging Concerns for Environmental Pollution