But, according to Lux Research’s new report, Quantifying growth opportunities in the US$105 billion energy storage market, this will change by early next year.
Reshaping the energy storage market
The report predicts that the twin accelerating markets for renewable energy integration and plug-in electric vehicles (EVs) could surpass consumer electronics for energy storage demand as early as 2018.
Analyst Chris Robinson, lead author of the report, explains that increasing renewable deployments will make stationary storage energy another source of growth and that the emergence of plug-in vehicles from Tesla and its competitors will “reshape the energy storage market…”
Another driver of EV battery development is the escalating cost of regulatory compliance on current internal combustion engines which is pushing manufacturers to change their strategy towards EVs, as much as improvements in battery technology.
This is according to Morgan Stanley analyst Harald Hendrikse in a separate report. He adds, “As more (manufacturers) commit to launching more EVs, accessing more consumers, we think EV penetration forecasts could rise to potentially 10 to 15% by 2025, more than three times current forecasts.”
Robinson adds in his report that technology in energy storage has advanced significantly in recent years, benefitting consumer electronics and other applications for batteries alike.
Energy storage market
The total energy storage market will be worth US$100bn by 2025, states the report, with approximately US$69bn market value for the transportation sector.
While stationary energy storage will be a smaller market, with US$19bn revenues predicted for 2025, Robinson predicts that it will be the fastest growing sector to demand high volumes of energy storage.
By 2025, stationary energy storage will add up to 34GWh of demand, with highest demand growth in India and China. Long duration storage, in particular, will experience an increase in demand.
This year, consumer electronics’ demand for energy storage will constitute around 27GWh, dwarfed by the anticipated 46GWh of energy storage demand for transport.
While the consumer electronics market will continue to grow, at a rate of about 6% a year, rapidly declining battery prices mean that revenues will remain relatively flat, the report states.