BOULDER, Colo.--(BUSINESS WIRE)-- The market for advanced batteries for utility-scale energy storage faces an array of challenges. Costs are high compared to traditional power generation resources; the regulatory environment remains ambiguous; no single optimal technology has emerged; and advances in grid infrastructure equipment, such as smart inverters, could accomplish many of the same objectives as advanced batteries. Amid rising demand for electricity and increasing penetration of renewable energy resources, however, advanced batteries represent a unique asset, offering the promise of grid flexibility and generation asset enhancement at rapid speeds and varying levels of scalability. According to a new report from Pike Research, a part of Navigant’s Energy Practice, the market for advanced batteries will roughly double each year over the next 5 years, reaching $7.6 billion in 2017. Over the ensuing half-decade, growth will level off to a still-robust compound annual growth rate (CAGR) of 31 percent, and revenues in the sector will reach $29.8 billion in 2022.
“While interest in advanced batteries for grid-scale energy storage remains high, battery manufacturers have not yet put forth a leading technology or business model that has achieved strong traction in the utility industry,” says research analyst Brittany Gibson. “Regulatory and market structures are rapidly evolving, however, and adapting in ways that signal the potential for advanced batteries to provide a unique value to grid infrastructure. The next several years will be crucial for the sector’s development.”
As a globally advanced battery manufacturing epicenter, Asia Pacific may benefit before other regions from cost decreases in advanced battery technologies, according to the new report. Though Western Europe lags behind Asia Pacific and North America, the European Union’s aggressive carbon reduction goals and public funding for grid modernization hold abundant future promise. North America, with its highly decentralized electricity industry, has a broad spectrum of opportunity and technology development, but some common drivers in the North American utility industry could make it a fertile environment for advanced batteries.
The report, “Advanced Batteries for Utility-Scale Energy Storage Applications”, explores the market opportunity and business models for advanced batteries for utility-scale energy storage applications including grid asset optimization, transmission and distribution deferral, renewables integration, ancillary services, and arbitrage. The study includes an assessment of the technical characteristics of advanced battery technologies such as lithium ion, sodium sulfur, advanced lead-acid, sodium metal halide, and advanced flow batteries. Key industry players are profiled and global market forecasts for installed capacity and revenue are provided through 2022, segmented by application, technology, and region. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Advanced Batteries for Utility-Scale Energy Storage Applications,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.