The Global Energy Storage Market is expected to grow at a CAGR of around 5.5% during 2021-26, says MarkNtel Advisors in their research report. The market growth attributes primarily to the rising efforts toward grid modernization that include the transition to smart grids, coupled with various initiatives by governments of different countries worldwide toward encouraging the use of renewable energy sources to curb carbon emissions & achieve de-carbonization targets.
Moreover, the increasing usage of lithium-ion batteries, the rapidly expanding electric vehicle industry, and the declining cost of energy storage systems also augment the market growth. Besides, substantial investments in constructing renewable power capacities & infrastructural developments, along with supportive government policies for the adoption of energy storage systems, are other crucial factors projected to drive the global market during 2021-26, further states the research report, “Global Energy Storage Market Analysis, 2021.”
Lithium Batteries Dominate the Global Energy Storage Market owing to their High Energy Density & Voltage Capacity
The burgeoning demand for lithium batteries attributes primarily to their excellent properties like high efficiency, energy density, & voltage capacity, along with a low self-discharge rate, which is why they are used widely in portable electronics. In addition, governments of different countries worldwide are significantly promoting the use of electric & hybrid vehicles to curb carbon emissions, which, in turn, is accelerating the demand for lithium batteries. On the other hand, lead-acid batteries are also being used increasingly in many applications like backup power supply in UPS and heavy machinery, owing to their long-standing installation acceptability.
With Increasing Concerns over Energy Security in China, Asia-Pacific to Acquire the Largest Market Share through 2026
Geographically, among all regions, Asia-Pacific dominates the Energy Storage Market, and the same trend is likely to be followed in the coming years. In Asia-Pacific, China leads the market in terms of production & utilization of energy storage systems owing to the mounting concerns regarding energy security & fulfilling the peak energy demands. Moreover, various government initiatives for enhancing the reliability & quality of power distribution facilities across the residential sector in Asia-Pacific are also projected to contribute to the overall market growth in the coming years.
On the other front, North America holds a significant share in the Energy Storage Market, primarily due to the rapidly growing demand for renewable energy storage systems across residential, commercial, industrial, & utility sectors in the region. Besides, the increasing use of electric vehicles, especially in the US & Canada, is another crucial aspect expected to promulgate the production of energy storage systems and drive the regional market, further states the research report, “Global Energy Storage Market Analysis, 2021.”
According to MarkNtel Advisors, the leading players in the Global Energy Storage Market are Greensmith Energy (Wartsila), NEC Energy Solutions Inc., Fluence Energy LLC, Contemporary Amperex Technology Co. Limited, Convergent Energy and Power LP (Energy Capital Partners), Tesla Inc., LG CNS, Duke Energy Corporation, & NextEra Energy Inc.
Key Questions Answered in the Study