The global energy storage market will rise to $50 billion by the year 2020, according to Lux Research — with a predicted compound annual growth rate of 8% until then.
Much of the predicted rise will be in “transportation applications,” which will rise to $21 billion by 2020, according to Lux Research. Narrowing the gap between that portion of the market and the portion represented by electronics — which is predicted to rise to $27 billion by 2020. The remainder will be filled out by “stationary applications” — which are expected to rise to $2.8 billion.
Needless to say, the predicted rise in “transportation applications” is largely down to the fact that EV sales are expected to rise rather significantly in the coming years.
“The automotive market is well on its way to displacing consumer electronics as the biggest user of energy storage. As that happens, it will lead to further scale and a new round of cost reductions, which will impact stationary applications as well,” stated Cosmin Laslau, Lux Research Analyst and the lead author of the new report.
Lux Research provides more:
Electric vehicles are the largest opportunity in transportation. With modest sales of 440,000 units, electric vehicles still will use $6.3 billion worth of energy storage – more than the micro-hybrids, which will have sales two orders of magnitude higher at 59 million units. The United States will lead EV sales for most of the decade, peaking at 167,000 units in 2019 before expiring subsidies dampen sales. That will help China nearly catch up with the US in 2020 – attaining sales of 145,000, versus 148,000 in the US.
Residential leads stationary applications. Driven by solar integration, residential represents the biggest opportunity in stationary energy storage applications – leaping from less than $0.1 billion to $1.2 billion in 2020. A robust downstream industry, innovative financing and strong policies in countries such as Germany and the US are favorable factors. UPS and backup applications provide the next largest opportunity, with $0.7 billion in 2020 revenues, while renewables shifting at the utility level with $0.3 billion, rounds out the top three.
The new report — dubbed Finding Growth Opportunities in the $50 Billion Energy Storage Market — is part of the Lux Research Energy Storage Intelligence service.
The $50 billion projection fits the type of “strong but not that strong” growth projections typically put out by such market research firms. For example, Tesla Motors itself plans to be selling 500,000 electric vehicles a year by 2020. Then there’s also the top-selling Nissan LEAF and over a dozen electric cars already on the market today, and several times more planned for market release in the coming few years. 440,000 electric vehicle sales seems like a gross underestimate, imho.