Energy Storage Market To Hit $50 Billion By 2020
With a modern world running on electricity, the need for battery storage has never been greater. The ability to store energy, take it on the go, and use it later, has opened up a new world of "Killer Apps" such as long range electric vehicles, iPhones, and storage of renewable wind and solar energy for later use. The key to enabling these Killer Apps is better and lower cost batteries.
According to a 2014 report from Lux Research, the global energy storage market will rise to $50 billion by the year 2020, with a compound annual growth rate of 8%. Much of the growth will be in electric vehicles, which will rise to $21 billion, followed by the incumbent consumer electronics segment such as iPhones, which will rise to $27 billion, with a reminder of $2.8 billion in stationary applications such as solar, back up power, and grid storage.
GTM Research and the Energy Storage Association predict that the energy storage market in the United States will triple in 2015, and will grow from $128 million in 2014 to $1.5 billion by 2019. Over 70% of installed energy storage capacity uses lithium-ion batteries, as the technology is proven and bankable.
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Solar Energy Storage
One hour of solar energy can power the entire world for a day. While cost-effective and efficient solar panels have allowed us to convert solar energy into useful electricity, the problem remains that the Sun does not shine at night. Cost effective battery solutions can fundamentally change the face of solar energy from a daytime-only power source to a full-time power source. As of 2014, nearly 90% of U.S. energy storage is deployed by the power companies. But, GTM Research and the Energy Storage Association predict that the fastest market will be deployments by end-users such as residential, commercial and industrial users, and is expected to be 45% of the overall market by 2019. Solar integration and demand charge management will primarily drive this growth.
Consumer electronics include everything from mobile phones, laptops, power tools, to flashlights, will continue to be a huge segment of the market. Lux Research estimates this to be a $27 billion market by 2020. Higher energy capacity and rapid charge will enable mobile lifestyles where we don't have to worry about running out of battery, or be attached to wall outlets of airport terminals waiting for that extra charge.