UES is a multifaceted technology capable of providing a range of grid services and improving overall power system efficiency. The increasing use of solar and wind generation is driving global interest in energy storage to maintain grid stability and increase efficiency. According to a new report from Guidehouse Insights, Asia Pacific is expected to surpass North America and become the largest UES market overall with a cumulative 71.4 GW of new UES capacity, representing a compound annual growth rate (CAGR) of 22.6 percent by 2030.
“The UES market continues to develop at differing rates in regions and countries around the world” said Pritil Gunjan, principal research analyst with Guidehouse Insights. “The clear market leaders are pioneering new applications, business models, and technologies to drive the market forward.”
The dramatic reduction in prices for lithium-ion (Li-ion) batteries has been a key factor in the growth of the UES market. The technology is the leading choice for new projects globally and is expected to account for 86 percent of new capacity deployed in 2021. Publicly and privately funded R&D and the rapidly growing capacity of global battery manufacturing have been primary factors driving the continued price declines for Li-ion batteries. Continued improvements in manufacturing and supply chain efficiencies coupled with incremental improvements in energy density are expected to yield an additional 41 percent reduction in average Li-ion cell prices through 2030, according to the report.
The report, Market Data: Utility-Scale Energy Storage Market Update, provides global estimates for annual deployments of new UES projects in terms of power capacity (MW), energy capacity (MWh), and project deployment revenue. These projections are then segmented by region, technology, and the applications or services that the system provides. All estimates cover a 10-year period from 2021-2030.
For additional information:
Report - Market Data: Utility-Scale Energy Storage Market Update
