Advanced energy storage encompasses technologies that enable the storage of electrical energy for use at a later time. Some of the key advanced energy storage technologies include lithium-ion batteries, lead-acid batteries, sodium sulfur (NaS) batteries, flow batteries, and others. Advanced energy storage technologies find applications across multiple industries such as grid reliability, transportation, industrial, and residential, owing to their higher energy density and longer life cycles compared to lead-acid batteries. The growing focus on integration of renewable energy sources like solar and wind into the grid is propelling the demand for advanced energy storage technologies that help store energy generated from the intermittent sources for later use.
The global Advanced Energy Storage Market is estimated to be valued at US$ 19.9 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Reducing battery costs: One of the major trends witnessed in the advanced energy storage market is falling battery prices. With continuous technological advancements and increasing economies of scale in battery production, the costs of lithium-ion and other battery technologies are declining substantially. This is making energy storage more affordable and boosting their adoption across various end-use industries.
Focus on renewable energy integration: There is a growing policy push for higher integration of renewable energy sources like solar and wind into the power grids across the world to reduce dependence on fossil fuels. This, along with investment tax credits and other incentives, is driving demand for advanced energy storage that helps address the intermittency issues of renewable energy sources.
Threat of new entrants: The advanced energy storage market requires significant capital investments and R&D which acts as a deterrent for new companies. Patents held by existing players also poses challenges for new entrants.
Bargaining power of buyers: Individual buyers have moderate bargaining power due to the availability of alternatives. However, large buyers like utilities and grid operators have significant bargaining power due to bulk purchase.
Bargaining power of suppliers: Suppliers of raw materials like lithium, nickel, and cobalt have some bargaining power due to global supply constraints of these materials. Suppliers can influence prices.
Threat of new substitutes: Technologies like pumped hydro storage and smart grid infrastructure are potential substitutes. However, their applications are limited due to geographical and implementation challenges.
Competitive rivalry: The market is moderately competitive with companies differentiating based on technology, efficiency, lifetime, and costs. Strategic collaborations and partnerships are common to gain access to new applications and markets.
The Global Advanced Energy Storage Market Size is expected to witness high growth over the forecast period supported by rising demand for reliable power supply and integration of renewable sources. North America dominates the market currently owing to supportive government policies and investments in grid modernization programs in the US and Canada.
Regional analysis: Asia Pacific is expected to grow at the fastest pace during the forecast period driven by the demand from China, India, and Japan. These countries are investing heavily in electrical infrastructure and renewable energy integration which is spurring the advanced energy storage deployments.
Key players: Key players operating in the advanced energy storage market are Himalaya Herbal Healthcare, Gaia Herbs, Nature’s Bounty, NOW Foods, NutriGold, Garden of Life, MegaFood, New Chapter, Sambucol, BioSchwartz, Solgar, Source Naturals, Nature’s Way, Jarrow Formulas, Pure Encapsulations. Companies are investing in collaborations, acquisitions and new product developments to gain market share.