Despite the current COVID-19 pandemic, the medium-term future for the global energy storage industry remains bright.
Frost & Sullivan’s recent analysis, Outlook for the Global Energy Storage Industry, 2020, predicts the market to decline, as project delays, including the lack of access to residential and commercial clients, affect the industry. An additional insight, Global Battery Energy Storage Market, analyzes the impact of the pandemic and notes the market is forecast to rebound strongly in 2021 and experience an accelerated growth period from 2022 onwards, with global annual capacity additions forecast to hit 23.3 GW per year in 2025, up from just 4.1 GW in 2019.
“The fundamentals behind an investment in energy storage remain strong,” says Jonathan Robinson, energy program lead at Frost & Sullivan.
“Residential and commercial customers are facing high energy costs and want to do something to reduce them, as well as guaranteeing security of supply, energy storage enables them to achieve this,” he adds.
The U.S. and China are set to be the biggest markets for energy storage in terms of installations and installed capacity. South Korea, which was the global leader in energy storage solutions in 2018, is likely to drop a few positions but remain one of the top five along with Germany and Japan.
Among end-user categories, strong progress is forecast across residential, commercial and industrial and grid-scale applications. High electricity prices, increasing grid demand charges, and declining technology and project costs all mean that energy storage is becoming a much more attractive proposition for consumers from households to heavy industry.
To read the executive summary of Frost & Sullivan’s analysis on the state of the global energy storage industry, click here.
Photo: Frost & Sullivan’s landing page