By 2025 the energy storage market will top $100 billion applications in transportation alone reaching $69 billion
BOSTON, MA – June 27, 2017 – Consumer electronics like smartphones and laptops have traditionally driven the most demand for energy storage devices such as lithium-ion batteries, but clean energy advances mean that transportation and stationary energy storage will soon become the largest energy storage markets, according to Lux Research, a leading provider of intelligence services, helping clients drive growth through technology innovation.
While consumer electronics make up the majority of revenue today, increased adoption of electric vehicles and hybrids drive transportation to dominate the energy storage industry with a $69 billion market in 2025. Transformations in the electricity grid mean that stationary storage has the highest growth rates and will reach $19 billion in 2025. This growth will have profound implications, ranging from how whole economies are powered to how populations and products move around.
“From electric cars to consumer electronics, we’ve already seen the importance of improved energy storage to enable better performance,” said Christopher Robinson Lux Research analyst and a lead author of the report, Quantifying Growth Opportunities in the $105 Billion Energy Storage Market. “The emergence of plug-in vehicles from Tesla and its competitors will reshape the energy storage market, while increasing renewable deployments will make stationary storage energy another source of growth.”
- Transportation is the clear long-term driver of energy storage demand. Transportation applications are now the largest source of energy storage demand – expected to reach 46 GWh in 2017 compared to just 27 GWh from consumer electronics. Although energy storage volume in consumer electronics will grow at six percent compound annual growth rate (CAGR) through 2025, falling battery prices mean the market size will remain relatively flat.
- Electric vehicles (EVs) are the largest opportunity for growth. Within the transportation market, the applications that will drive the highest revenues are those using the largest packs: electric buses and passenger EVs. Passenger EVs make up the biggest opportunity, worth $32 billion in 2025 - 46 percent of the market for energy storage in transportation. Electric buses will see a faster rate of adoption compared to EVs, but with fewer total vehicles sold, they remain the second largest opportunity, growing at 22 percent annually to a $9.7 billion opportunity in 2025.
- China and India lead stationary energy storage growth. Stationary energy storage will be a 34 GWh market worth $19 billion in 2025, largely driven by the emerging long-duration market. The need for long-duration storage in uses like peak power shifting or renewables integration will expand significantly, with the emerging markets of China and India driving the most growth.