Energy storage technologies are poised for rapid growth, driven primarily by increased demand for electric vehicles (EVs) and grid storage. The critical role of energy storage in the energy transition will drive dramatic growth in its demand. Usage in electric vehicles (EVs) will drive the most growth — 92% of demand in 2040 — due to large pack sizes and a large addressable market. Stationary applications will capture dramatically less energy storage demand, but significantly higher system-level costs will capture nearly one-third of revenue in 2040.
Electrification is one of the most critical strategies to reducing global emissions. The emergence of low-cost renewables like solar photovoltaics and wind turbines means any product or process using electricity can be decarbonized. Though neither a generator nor user of electricity, energy storage sits at the heart of this transition, as it is critical to enabling electrification in two major sources of emissions: power generation and transportation.
In our report “Energy Storage Market Forecast: 2022 Edition”, we update our market forecasts to predict demand for energy storage technologies through 2040 in both mobility and stationary storage applications. We find usage in EVs will drive the most growth — 92% of demand in 2040 — due to large pack sizes and a large addressable market. Stationary applications will capture dramatically less energy storage demand, but significantly higher system-level costs will capture nearly one-third of revenue in 2040. Though demand for energy storage is strong, the availability and costs of raw materials could limit the pace of this growth.
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