Energy Storage Market Expected to Peak in Next 20 Years
Wednesday, May 22, 2024 – The energy storage market, particularly in the form of delayed electricity, is following the familiar S curve and is expected to peak within the next twenty years. However, experts predict that it will then decline due to several factors that will impact its success.
The primary reason for this predicted peak is the oversupply and commoditization of electric cars, which currently dominate the energy storage market. With electric cars becoming increasingly banned from cities and facing competition from other modes of transportation, their demand is expected to decrease. Additionally, advancements in technology have made electric cars more durable, with their batteries lasting as long as the car itself. This means that the replacement market for electric car batteries is also expected to decrease in the future. Moreover, economists predict a potential collapse of the Chinese economy, which would further reduce the price of Chinese-made electric cars and their batteries.
Within the next 20 years, there will also be a significant impact on the energy storage market from advancements in mobile electronics. With the development of multi-mode energy harvesting and Simultaneous Wireless Information and Power Transfer (SWIPT), some mobile devices may become partially or entirely energy independent, reducing the need for energy storage. This trend could significantly outweigh any growth sectors in the energy storage market.
As a result of these factors, the largest value market for energy storage will shift from electric cars to stationary storage, particularly for Long Duration Energy Storage (LDES) for grids and beyond-grid applications. This shift is driven by global goals set by the G7 and COP28 to increase energy storage in the power sector. This will trigger similar efforts in the G20 and COP29.
The primary technology used for LDES will be pumped hydro, with other gravity storage options such as compressed air in underground caverns also gaining traction. These technologies are expected to have a lifespan of 100 years, significantly reducing the replacement market for energy storage.
Furthermore, advancements in technology are also expected to make stationary storage more feasible for off-grid and fringe-of-grid applications, leading to a potential market saturation for LDES in the future. This saturation will be accelerated by the decreasing dominance of wind and solar power as alternative, less-intermittent energy sources become viable and interconnects link grids across different time zones.
In conclusion, while the energy storage market is expected to experience significant growth in the next 20 years, it is also expected to peak and eventually decline due to various factors. It is crucial for industry players to consider these factors and adapt their strategies accordingly. For a more in-depth analysis of the energy storage market and its future prospects, refer to Zhar Research reports at www.zharresearch.com.
