Enjoy complimentary customisation on priority with our Enterprise License!
Technavio’s market research analyst predicts the global battery energy storage market for the smart grid to grow at a tremendous CAGR of around 73% by 2020. Owing to the growing consumption of power across the globe, there is a greater need for energy storage as distributed generation. Distributed generation produces power close to the areas where it is consumed so that the distance is reduced, resulting in less transmission and distribution losses. Distributed Energy Resources (DER) will be increasingly used to meet the future electricity demands for residential and industrial customers, utilities and commercial customers. The growing requirement to mitigate the power transmission and distribution losses will propel the demand for distributed generation during the forecast period.
Several factors such as the aging power infrastructure, need for mitigation of cybersecurity risks and accumulation of new resources to the grid has propelled the grid manufacturing companies to opt for ways to make the grid reliable, protect it against cybersecurity, and increase flexibility to make rapid changes according to supply and demand conditions. Many utilities are implementing smart grids that use digital and IT systems to manage the power flow efficiently and effectively. Also, there are expected to be massive investments in the refurbishment and replacement of the transmission and distribution infrastructure during the forecast period.
The Li-ion batteries will dominate the battery energy storage market for smart grid during the forecast period and are expected to occupy more than 67% of the total market share by 2020. Li-ion batteries are being extensively used in battery energy storage for the smart grid as they can be produced within high capacities. These batteries use non-aqueous electrolytes, which offer high operating voltages in comparison to other batteries such as lead-acid batteries and sodium-sulfur batteries with aqueous electrolytes. Other benefits of these batteries include light weight and compact size, which will augment their adoption in the energy storage system.
During 2015, the Americas dominated the battery energy storage market for smart grid and accounted for around 60% of the total market share. Much of the region’s growth can be attributed to the increasing use of smart grids and the increasing need for energy storage for distributed systems. The governmental support across different countries in the region and the growing investments in the development and deployment of integrated smart grid systems is expected to drive the demand for smart energy in the region in the coming years.
The market is characterized by the presence of well diversified international vendors. They have a large portfolio of battery energy storage related equipment and services for smart grid which can be customized as per the needs of the consumers. Vendors in the market compete on the basis of price, quality and market presence. Also, the market is expected to witness an immense rise in mergers and acquisition by key players who are trying to expand their geographic presence worldwide.
Key vendors in the market are -
Other prominent vendors in the battery energy storage market for smart grid include AES Energy Storage, LG Chem, Saft, Axion Power International, and Solar Grid Storage LLC.
Technavio also offers customization on reports based on specific client requirement.
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by batteries
PART 07: Market segmentation by geography
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Key leading countries
PART 14: Vendor landscape
PART 15: Key vendor analysis
PART 16: Appendix
PART 17: Explore Technavio
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.