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Key technologies driving growth over the next 15 years
Global Energy Storage Outlook
Yuan-Sheng Yu Senior Analyst
Asian Utility Week September 2019
The energy storage market targets three main markets
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Global Energy Storage Outlook Key technologies driving growth over - - PowerPoint PPT Presentation
Global Energy Storage Outlook Key technologies driving growth over - - PowerPoint PPT Presentation
Global Energy Storage Outlook Key technologies driving growth over the next 15 years Your Yuan-Sheng Yu photo here Senior Analyst Asian Utility Week September 2019 The energy storage market targets three main markets 2 Electronic
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Electronic Devices
There are few growth
- pportunities for battery
companies targeting these markets
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Electronic Devices
There are few growth
- pportunities for battery
companies targeting these markets
Mobility
Automakers are aggressively expanding their BEV offerings to capture greater shares
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Stationary Storage
It still remains challenging to make money in this market due to uncertainties in regulations
Electronic Devices
There are few growth
- pportunities for battery
companies targeting these markets
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Mobility
Automakers are aggressively expanding their BEV offerings to capture greater shares
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Accurate market forecasts require considering the effect of new technologies implemented within the value chains
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Even in today’s mature battery value chains, technological innovations stand to concurrently disrupt and expand the energy storage market.
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Accurate market forecasts require considering the effect of new technologies implemented within the value chains
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Even in today’s mature battery value chains, technological innovations stand to concurrently disrupt and expand the energy storage market.
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Innovation occurs at every step of the Li-ion battery value chain
Many startups, small companies, and midsized firms are developing innovations for Li-ion batteries.
Lithium feedstocks Lithium chemicals Anodes, cathodes, & electrolytes Li-ion cells and packs Battery management systems End products
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MARKET FORECAST
Global energy storage market reaches 3,082 GWh and amounting to $554 billion with a 20% CAGR through 2035
8 $0 $100 $200 $300 $400 $500 $600
Total market projections Energy storage annual revenue ($ billions)
Electronic devices Stationary storage Mobility
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MARKET FORECAST
Global energy storage market reaches 3,082 GWh and amounting to $554 billion with a 20% CAGR through 2035
9 $0 $100 $200 $300 $400 $500 $600
Total market projections Energy storage annual revenue ($ billions)
Electronic devices Stationary storage Mobility
MOBILITY
Makes up 74% of revenue and 90% of demand
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Client confidential. Not for redistribution. Client confidential. Not for redistribution.
MARKET FORECAST
Global energy storage market reaches 3,082 GWh and amounting to $554 billion with a 20% CAGR through 2035
10 $0 $100 $200 $300 $400 $500 $600
Total market projections Energy storage annual revenue ($ billions)
Electronic devices Stationary storage Mobility
MOBILITY
Makes up 74% of revenue and 90% of demand
CONSUMER
Growth remains flat with less than 5% CAGR
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MARKET FORECAST
Global energy storage market reaches 3,082 GWh and amounting to $554 billion with a 20% CAGR through 2035
11 $0 $100 $200 $300 $400 $500 $600
Total market projections Energy storage annual revenue ($ billions)
Electronic devices Stationary storage Mobility
MOBILITY
Makes up 74% of revenue and 90% of demand
CONSUMER
Growth remains flat with less than 5% CAGR
STATIONARY
Surpasses consumer electronics in 2023
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The potential for stationary storage
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STATIONARY STORAGE
Global stationary storage will reach $112 billion in 2035
13 $0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
South America Africa Australia Southeast Asia India Japan and Korea North America Europe China
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STATIONARY STORAGE
Global stationary storage will reach $112 billion in 2035
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MARKET SIZE
$112 billion in revenue and 223 GWh in demand in 2035
$0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
South America Africa Australia Southeast Asia India Japan and Korea North America Europe China
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STATIONARY STORAGE
Global stationary storage will reach $112 billion in 2035
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MARKET SIZE
$112 billion in revenue and 223 GWh in demand in 2035
COST REDUCTION
2% to 4% annual reduction in costs
$0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
South America Africa Australia Southeast Asia India Japan and Korea North America Europe China
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STATIONARY STORAGE
Global stationary storage will reach $112 billion in 2035
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MARKET SIZE
$112 billion in revenue and 223 GWh in demand in 2035
COST REDUCTION
2% to 4% annual reduction in costs
GEOGRAPHY
40% of deployments will take place in evolving grids
$0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
South America Africa Australia Southeast Asia India Japan and Korea North America Europe China
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STATIONARY STORAGE
Residential solar-plus-storage systems will comprise 45% of the global $112 billion stationary storage market
17 $0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
Commercial & Industrial Residential Utility
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STATIONARY STORAGE
Residential solar-plus-storage systems will comprise 45% of the global $112 billion stationary storage market
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UTILITY
Leads the market in both deployment (GWh) and revenue
$0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
Commercial & Industrial Residential Utility
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STATIONARY STORAGE
Residential solar-plus-storage systems will comprise 45% of the global $112 billion stationary storage market
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UTILITY
Leads the market in both deployment (GWh) and revenue
RESIDENTIAL
New VPP business models will make residential storage more tenable
$0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
Commercial & Industrial Residential Utility
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Client confidential. Not for redistribution. Client confidential. Not for redistribution.
STATIONARY STORAGE
Residential solar-plus-storage systems will comprise 45% of the global $112 billion stationary storage market
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UTILITY
Leads the market in both deployment (GWh) and revenue
RESIDENTIAL
New VPP business models will make residential storage more tenable
C&I
Remains stagnant
- utside of Asia
$0 $20 $40 $60 $80 $100 $120
Global stationary storage market forecasts Energy storage annual revenue ($ billions)
Commercial & Industrial Residential Utility
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Looking ahead to new technologies and market
- pportunities
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Over the next 15 years, the commercialization of key technologies will grow the global energy storage market
22 These technologies are well-positioned to impact markets both inside and outside the energy industry:
- Battery recycling will alleviate the strain on
securing key feedstocks like lithium and cobalt.
- Electric aviation will reduce the carbon cost of
flying, and regional operators are already transitioning to electric powertrains.
- Flow batteries will play a critical role in a future
grid with a high wind and solar penetrations by providing carbon-free bulk capacity.
- Solid-state batteries offer both improved energy
density and safety, making them the most likely candidate to displace today’s Li-ion batteries.
- Thin-film batteries could enable innovations in
wearables, medical applications, and IoT devices.
20 40 60 80 100 Y-axis: Summary of trends in patents, papers, funding, & more.
Battery recycling Electric aviation Flow batteries Solid-state batteries Thin-film batteries
71 43 57 55 55
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Key Takeaways
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Vast majority of stationary storage will be deployed in the next 10 years
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Key Takeaways
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Vast majority of stationary storage will be deployed in the next 10 years
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Software that optimizes dispatch and aggregates will set energy storage projects apart
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Key Takeaways
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Vast majority of stationary storage will be deployed in the next 10 years
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Software that optimizes dispatch and aggregates will set energy storage projects apart
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Long-duration storage versus sector coupling will be the next great debate in the power sector
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Yuan-Sheng Yu Senior Analyst yuansheng.yu@luxresearchinc.com
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