Driven by the increasing pollution caused due to the use of fossil fuels for power generation, reducing prices of batteries, increasing energy supply costs, and growing popularity of renewable energy sources such as sunlight, and wind, the global energy storage market attained a capacity of 171,039.3 MW (Megawatts) in 2019. Furthermore, as per the predictions of P&S Intelligence, a market research company based in India, the market will exhibit a CAGR of 3.3% from 2020 to 2030 and demonstrate a capacity growth of 69,917.6 MW by 2030.
Based on type, the energy storage market is divided into electrochemical, mechanical, thermal, and chemical categories. Out of these, the mechanical category had a considerable share in the market during the last few years. This is credited to the fact that the usage of the mechanical utility storage devices has been traditionally very high all over the world, predominantly because of their very high storage capacities and the vast volumes of energy produced from the pump hydro mechanical systems.
Historically, the Asia-Pacific (APAC) energy storage market exhibited the highest growth in the world. This is attributed to the high number of engineering, procurement, and construction (EPC) projects in Japan, China, and India. Furthermore, the market is predicted to register major advancement in the region in the forthcoming years, on account of the increasing installation of energy storage systems in the region. Additionally, the storage capacity added by the APAC region in the market over the next several years is predicted to be the highest across the world.
Hence, it can be concluded that the market will demonstrate tremendous growth in the upcoming years, primarily because of the increasing requirement of energy storage, on account of the rising power prices, environmental damage caused from conventional energy generation, and growing adoption of renewable energy sources such as wind and sunlight for power production throughout the world.
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