U.S. Energy Storage Market Size By Deployment (Residential, Non-Residential, Utility), By Technology (Lithium Ion, Lead Acid, Sodium Chemistry, Flow Vanadium, Flow Zinc, Others), Application Potential, Price Trend, Competitive Market Share & Forecast, 2018– 2024
Published Date: Oct 2018 | Report ID: GMI2952 | Authors: Ankit Gupta, Aditya Singh Bais
U.S. Energy Storage Market size was valued over USD 400 million in 2017 and it is set to exceed an annual deployment of over 3,000 MW by 2024.
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Increasing electricity applications along with adoption of stringent energy efficiency mandates will drive the U.S. energy storage market size. Growing focus toward minimizing electricity costs along with widespread adoption of renewable technologies will further augment the industry growth. For instance, as per the Institute for Energy Economics & Financial Analysis (IEEFA), the investments across renewable power generation technologies, led by solar and wind energy in the U.S. has reached to USD 64.2 billion in 2018. Declining cost, long discharge cycle and high energy density are some of the other eminent features favoring the deployment of ESS.
Strong inclination towards decarbonized economy coupled with growing adoption of renewable solutions across the energy portfolio will stimulate the U.S. energy storage market growth. Increasing government funding toward research & development activities with an aim towards enhancing system efficiency will complement the business landscape. For instance, in 2018, the U.S. Department of Energy announced an investment of USD 7.5 million to accelerate R&D initiatives toward optimizing the design of large power transformers to enhance grid resiliency. Growing necessity for cost efficient and continuous electricity supply across off grid locations and during emergency shutdowns will further boost the product demand over the forecast period.
Increasing investments toward the development of new power system networks along with ongoing initiatives aimed at refurbishment of existing distribution infrastructure will boost the U.S. market growth. Growing integration of grid connected ESS coupled with rising implementation of federal subsidy & tax incentive schemes will positively influence the product demand. Renewed focus toward enhancing grid stability coupled with measures to minimize carbon emissions will further propel the business growth.
|Market Size in 2017:||400 Billion (USD)|
|Forecast Period:||2018 to 2024|
|Forecast Period 2018 to 2024 CAGR:||33%|
|2024 Value Projection:||4 Billion (USD)|
|Historical Data for:||2013 to 2017|
|No. of Pages:||140|
|Tables, Charts & Figures:||63|
|Segments covered:||Deployment, Technology, Application Potential, Price Trend, and Region|
|Pitfalls & Challenges:|
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U.S. Energy Storage Market, By Deployment
Deployment of energy storage systems across utilities is anticipated to witness growth over 29% by 2024. Growing investments toward development of efficient, reliable, safe and sustainable electric infrastructure along with the supportive government policies will augment the industry outlook. For instance, in 2018, Federal Energy Regulatory Commission announced the Order No. 841, to eliminate barriers against the participation of electric storage resources across the capacity and ancillary service markets operated by independent system operators and regional transmission organizations.
Energy storage system market from residential application will witness growth on account of shifting trends toward energy independency along with growing consumer focus toward climate change & carbon footprint. Rising development & installation of microgrids on account of the democratization of energy will accelerate the product deployment. Moreover, rise of the prosumer model across multiple communities will proliferate the business landscape. Local control, high monetary savings, and reliable power supply are some of the prominent features that will further foster the adoption of ESS over the forecast timeline.
U.S. Energy Storage Market, By Technology
Deployment of lead acid chemistry-based energy storage is set to witness growth over 25% by 2024. Ongoing efforts toward the optimization of power consumption across key energy intensive industries along with growing deployment of sustainable products will propel the product demand. High efficiency, easy lead availability, strong technical expertise, and low storage costs are some of the key features that will positively influence the business outlook.
Growing adoption of renewable energy sources for power generation coupled with sharply declining battery costs will stimulate the lithium ion battery-based energy storage market. For instance, as per International Renewable Energy Agency, the total installed capacity of RE across the U.S. increased from 127 GW to 245 GW in between 2008 and 2018, Furthermore, increasing regulatory focus toward the provision of financial incentives for ESS technologies will further boost product installation over the coming years. Ability to capture & store thermal & electrical energy that is to be utilized later are some of the eminent features favoring the deployment of ESS.
Sodium chemistry-based energy storage systems market will witness growth on account of ongoing R&D initiatives aimed at enhancing the power storage capacity. In addition, intensifying support toward the adoption of smart grid technologies will drive the industry size over the forecast period. Furthermore, efficient charge carriage and rapid response are some of the key features favoring the deployment of sodium-ion based energy storage systems.
Competitive Market Share
Eminent players across the industry comprises Duke Energy, LG Chem, Tesla, E.ON, Fluence Energy, GE Power, EDF Renewable Energy, East Penn Manufacturing, GE Power, Invenergy, ABB, Johnson Controls, EnerVault and SolarEdge amongst others. Key industry players are actively engaged in mergers & acquisitions, technological innovations and enhancing manufacturing capacities to gain competitive advantage across the U.S. energy storage market.
U.S. Energy Storage Industry Background
Energy storage systems capture the energy at one time which can be used later. Ability of ESS to modulate demand and act as flexible generation source when needed is one of the key features that has resulted in its widespread deployment. Furthermore, ESS are increasingly gaining importance across the transmission and distribution systems on account of growing focus toward enhancing grid stability and ensure uninterrupted power supply.
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