According to a research conducted by P&S Intelligence, the global energy storage market is predicted to increase by 69,917.6 megawatts (MW) of capacity in 2030, from the capacity of 171,039.3 MW in 2019. The market is further expected to progress at a 3.3% CAGR during the forecast period (2020–2030). The market is being driven by the higher costs for securing energy supply, growing focus on unconventional sources of energy, international outcry over the surging pollutions levels from traditional energy sources, and falling prices of batteries across the globe.
On the basis of type, the energy storage market is divided into chemical, mechanical, thermal, and electrochemical, among which, the mechanical division held the largest share of the market in 2019. This is due to the fact that mechanical energy storage systems have been the mainstream choice for a long time. These storage systems have various advantages such as favorable economics over a period, sheer storage capacity, and ability to maximize natural resources. Mechanical energy storage systems are of different types, namely compressed air energy storage, pumped hydro storage, and liquid air energy storage.
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A key driving factor of the energy storage market is the growing focus on unconventional sources of power generation across the globe. The need to lessening the dependence on traditional energy sources, including coal, oil, and has been increasing rapidly across the globe. Moreover, renewable energy sources, including solar and wind have variable outputs, a problem for which storage technologies can provide an effective solution, as these systems smoothen the electricity supply from such sources, thereby ensuring that it matched the requirement.
During the historical period (2015–2019), APAC held the largest energy storage market share, due to the high-volume project equipment, procurement, and construction (EPC) activities across countries such as India, China, and Japan. Additionally, the APAC region is projected to add the highest amount of storage capacity and witness the second-fastest growth in the energy storage industry during 2020–2030. Currently, such power storage systems are considered the next level of upgradation in smart grid technologies by Asian power utilities. With the increasing demand for stable grids and the growing government focus toward smart grids, APAC is expected to invest heavily in the energy storage industry, with the regional market having a bullish outlook in foreseeable future.