The global energy storage market is expected to double in 2016, growing from 1.4 GWh to 2.9 GWh by the end of the year, before continuing to skyrocket, reaching 21 GWh by 2025.
These are the latest figures from a new report published by information and analysis company IHS Markit, released this week, which investigates the global energy storage market. The authors of the report also concluded that Lithium-ion batteries will become the mainstream energy storage technology, and will account for 80% of all global energy storage installations by 2025.
“Energy storage is set to grow as fast as solar photovoltaic energy has in recent years, sparking strong interest from a wide range of players and underscored by recent mergers and acquisitions among car manufacturers, major oil and gas companies, and conventional power suppliers,” said Marianne Boust, principal analyst, IHS Markit. “The United States and Japan are leading the way, but we’re also seeing activity in South Africa, Kenya, the Philippines and other countries, as the cost of batteries continues to decline.”
The report, Grid-Connected Energy Storage Forecast Database, concludes that the largest energy storage markets will be Japan and the United States, together set to generate a third of the market’s total revenues totaling $50 billion over the next decade.
Further, IHS Markit conclude that in Australia and Japan, energy storage penetration will exceed 5% of installed power capacity by 2025, “underscoring the growing role that energy storage will play in grid stability, renewable integration and overall energy management.”
Half of all energy storage installations by 2025 will take place behind the meter, driven by self-consumption and backup requirements, resulting in eight countries each with 1 GWh of behind the meter energy storage, including Japan, China, and the United States.
“Looking ahead to the future, half of all energy storage will come from households and businesses seeking to control their energy consumption, which will massively disrupt the traditional business models from established utilities and large equipment manufacturers,” Boust concluded.