Navigant Predicts Big Boom In Energy Storage-Enabling Tech Market
AUG 15 2015 BY STAFF
The energy storage market is set to soar, predicts Navigant Research.
How big will the market become? According to Navigant, we can expect market revenue of nearly $75 billion for energy storage enabling technologies from 2015 to 2024:
Energy Storage Enabling Technologies Revenue is Expected to Total Nearly $75 Billion from 2015 to 2024, According to Navigant Research
Systems integration services are projected to be highest in the energy storage enabling technologies value chain, report finds
BOULDER, Colo.–(BUSINESS WIRE)–A recent report from Navigant Research analyzes the global market for energy storage enabling technologies (ESETs) across four distinct market segments: utility-scale storage, community storage, residential storage, and commercial storage, including global market forecasts through 2024.
“ESSs consist of a core storage technology as well as power conversion systems, software, and controls, and in addition to the hardware and software in an ESS, systems integration expertise is required to deliver a fully intelligent, bankable system to the customer.”
Broadly speaking, the three main components of the ESET value chain are hardware, software, and services, which together ensure the intelligence, durability, and profitability of energy storage systems (ESSs). Now that battery prices have responded to cost pressures, the rest of the balance of plant—or the ESET portion of system cost—is under more pressure to deliver more consistent pricing, which is expected to bring more transparency in overall ESS pricing, allowing the industry to scale further. Click to tweet: According to Navigant Research, worldwide ESET revenue is expected to total nearly $75 billion from 2015 to 2024.
“The grid-tied energy storage market is poised to take off, however, pricing remains inconsistent and economies of scale have yet to translate into accessible system costs for the end user,” says Anissa Dehamna, principal research analyst with Navigant Research. “ESSs consist of a core storage technology as well as power conversion systems, software, and controls, and in addition to the hardware and software in an ESS, systems integration expertise is required to deliver a fully intelligent, bankable system to the customer.”
Systems integration services are expected to be the highest value piece of the ESET market, according to the report. Since this segment requires labor, labor prices are expected to buoy this portion of the market, and it is expected systems integration services will become more sophisticated as the market grows and customers become more perceptive, expecting more functionality from ESSs.
The report, Energy Storage Enabling Technologies, analyzes the global market for ESETs across four distinct market segments: utility-scale storage, community storage, residential storage, and commercial storage. The study provides an analysis of the market issues, opportunities, and challenges associated with ESETs. Global market forecasts for power conversion systems, energy storage software and controls, and systems integration services, segmented by technology, application, and region, extend through 2024. The report also examines the key technology trends related to ESETs, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.