The Need to Bridge the Gap Between High Demand and Low Supply of Energy Will Drive the Global Energy Storage Market Through 2020, Reports Technavio
By Business Wire News
By Business Wire News
Technavio research analysts are forecasting positive growth for many segments of the global energy storage market over the next four years as several markets including advanced energy storage systems, grid-scale energy storage, and flywheel energy storage, will witness an increase in revenues.
Technavio’s extensive research led to the findings that with slow exhaustion of fossil fuels, the shortage between the demand and the availability of energy is increasing. However, this deficit is being addressed by grid-scale storage systems, thereby leading to the significant growth of the global grid-scale storage systems market. Government mandates and concerns over carbon emissions are also anticipated to increase the demand for grid-scale energy storage systems over the years. Technavio projects the global grid-scale energy storage systems to post a massive CAGR of about 34% during the period 2016-2020.
Sayani Roy, a lead analyst at Technavio for energy research, says, “In 2014, the California state government imposed a mandate that required the state’s investor-owned utilities to purchase about 1.3 GW of storage capacity by the year 2020. This gave a massive boost to the energy storage sector. Such mandates will boost the development of storage technologies.”
The global flywheel energy storage market is another segment of the energy storage market that is predicted by Technavio to record a significant growth until 2020. Flywheel technology responds to control signals promptly and can be 100 times quicker than traditional generation sources. Therefore, these systems are increasingly used in the utility sector to balance the grid-regulate voltage up or down, for spinning reserve, and for voltage support.
The Americas, APAC, and EMEA are the three leading regions of the global flywheel energy storage market. In 2015, EMEA accounted for about 41% of the overall market share with Europe being the highest contributor as flywheel is increasingly used in the transportation sector in Europe.
View Technavio’s entire energy storage market report library
Another segment listed by Technavio research analysts that is deemed to register a massive growth during the forecast period is the global advanced energy storage systems market. Energy storage technology is used to store surplus electricity that can be utilized during power shortages, blackouts, and peak hours of demand. The growing demand for electricity worldwide coupled with an imminent need to reduce the demand-supply gap has prompted power utilities to adopt advanced energy storage. The increasing installation of wind and solar PVs is another important factor spurring the demand for advanced energy storage systems.
Thermal energy storage, batteries, compressed air storage, molten salt, and flywheels are the major end-users of advanced storage energy systems. Thermal storage systems play a crucial role in electricity storage through concentrating solar power (CSP) plants wherein solar heat can be stored and used for electricity production in the absence of sunlight. Thus this end-user segment generated the highest revenue in 2015, accounting for almost 42% of the overall market share.
Some of the key vendors for energy storage market include ABB, LG Chem Johnson Controls, and Hydrostor for grid-scale energy storage, Active Power, Beacon Power, and Calnetix Technologies for flywheel energy storage, and AES Energy Storage, Alevo, and EnSync Energy for advanced energy storage systems.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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