Portable Energy Storage System Market Trends

Growth Drivers

• Acceleration in renewable electricity deployment: Renewable energy is now necessary to replace exhausting conventional power sources, implying an efficient energy storage system requirement. According to a report published by the International Energy Agency, in July 2023, around 3700 GW of new renewable capacity is anticipated to come online over the 2023‑2028 period. It is predicted to be driven by supporting policies from as many as 130 countries worldwide. It is further stated that renewable energy sources will account for 42% of the global electricity generation share, by 2028. This data indicates the massive increment in power generation, which will demand various options of storage for future consumption, boosting the portable energy storage system market size.
• Supportive governmental regulations for energy storage: The increased global population is draining conventional power fuels, which needs to be compensated through energy storage. According to an ISGF report on ESS Roadmap of India 2019-2032, the cumulative demand of ESS by 2032 is estimated to be over 2700 GWh, demanding the set-up of giga-scale battery manufacturing plants in the country. Government bodies are now showing concern by setting regulations on consumption for reserving residual energy to secure an un-cut power supply in the future.
  
  According to FERC Order 841, in February 2018, RTOs and ISOs were directed to develop tariffs to integrate electric storage into all-electric markets, resulting in the wider use of electric storage. Additionally, the Ministry of Power in India also commenced the Electricity (Amendment) Rules, 2022, stating that the energy storage systems shall be considered as a part of the power system, as defined under clause (50) of section 2 of the Act.
• Swelling demand for power backup: The energy storage systems are majorly used to operate household or industrial electronic goods in the absence of a traditional power grid. Additionally, portable electricity sources are a perfect option for traveling in remote areas, where rural electrification is rarely available. Its sustainable off-grid application has made a remarkable rise in the portable energy storage system market. Furthermore, the urge has also reached off-beat construction sites to retain a consistent power flow through the tools and machinery, creating a wider range of market spread.

Challenges

• Lack of established standardization: Uncertainty in usage safety and the absence of accurate monitoring are some of the major setbacks in the market. The operational limitations of these devices do not fall under any industrial standard, restraining the development process. Furthermore, the device’s compatibility is compromised without uniform standards. As technologies may not align with the new specifications, companies may refrain from investing in innovation. Additionally, the absence of standard protocols is also causing restrictions on portable energy storage system market growth.
• Expensive maintenance: The deficient lifespan of the batteries causes expensive maintenance due to costly and time-consuming replacement. The manufacturing technology needs to be upgraded to compete with other alternative storage systems. Specific parts such as lithium for the batteries are raising the cost of the overall device. Additionally, the complexity of the device may require trained professionals to repair it, further driving up the expense.