Global Grid Scale Energy Storage Market 2016-2020

Market outlook of the grid scale energy storage market

Technavio’s research analyst predicts the global grid scale energy storage market to grow steadily at a CAGR of around 34% during the forecast period. Fossil fuels, the most extensively consumed power source, are exhaustible. The deficit between the demand and the availability of energy is increasingly getting addressed by these storage systems. Given these factors, the market is expected to grow significantly during the forecast period.

Government mandates and concerns over carbon emissions are anticipated to increase the demand for grid-scale energy storage systems. For instance, 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 are likely to accelerate the development of storage technologies. Globally, the development of next generation batteries drives the demand for grid-scale energy storage.

Segmentation by technology and analysis of the grid scale energy storage market

• Pumped hydroelectric storage system
• Thermal storage
• Battery storage
• Compressed air energy storage
• Flywheel storage
• Molten salt storage

The pumped hydroelectric storage segment dominated the market during 2015 with a market share of around 94%. Technological feasibility, cost competitiveness, and government support have increased the global demand for grid-scale energy storage systems. For instance, in the US, the number of PHS plants is expected to rise during the forecast period with 50 active preliminary permits.

Geographical segmentation and analysis of the grid scale energy storage market

• Americas
• APAC
• EMEA

The Americas accounted for 45% of the market share during 2015, and it is expected to grow rapidly during the forecast period. The increase in government regulations and support is the primary driver for its growth in this region. In the US, ARRA provided $100 million for battery storage projects. This in turn drives the demand for the grid scale energy storage market.

Competitive landscape and key vendors

The global grid scale energy storage market is fragmented with the presence of numerous small, medium, and large vendors including international and regional players. The market in the Americas and EMEA is dominated by large and established players. The Americas is expected to witness high investments in grid scale energy storage technologies to reduce carbon emissions and to cope with the integration of renewable energy sources.

The leading vendors in the market are: -

• ABB
• Beacon Power
• Hydrostor
• LG Chem Johnson Controls

Other prominent vendors in the market include EnerVault, GE, Samsung SDI, S&C Electric, and SustainX.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global grid-scale energy storage market?
• What are the key market trends impacting the growth of the grid-scale energy storage market?
• What are the challenges to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities and threats faced by the vendors in the global grid-scale energy storage market?
• What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
• What are the key outcomes of the five forces analysis of the grid-scale energy storage market?

Technavio also offers customization on reports based on specific client requirement.

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