The energy storage market is expected to grow to $546bn in annual revenue by 2035, according to a report released by Lux Research.
The “Global Energy Storage Market 2019” report sees mobility applications, electronic devices and stationary storage driving growth to 3,046 GWh over the next 15 years, up from the current 164 GWh. Mobility applications such as electric cars makes up the majority of the growth as countries start to ban petrol and diesel cars. Five technologies are well-positioned to drive growth: battery recycling, electric aviation, flow batteries, thin-film batteries, and solid-state battery improvements.
“The energy storage industry is poised for a massive increase in annual revenue and deployment capacity as key innovative technologies, such as solid-state batteries and flow batteries, reach commercialization,” said analyst Chloe Holzinger, one of the report’s lead authors. “We continue to expect electric mobility applications, primarily light-duty passenger vehicles, to be the principal long-term driver of energy storage annual revenue and demand, with a total market share of 74 percent by annual revenue and 91% by annual deployed GWh by the year 2035.” After electric vehicles of all kinds, residential storage has a CAGR of 76 percent and $8bn revenue increase over the next three years, followed by personal mobility with a CAGR of 49 percent and $4.6bn revenue growth.
Stationary storage is expected to grow to $111.8bn in revenue by 2035, marking a significant increase from its $9.1bn revenue in 2019. Meanwhile, energy storage demand for electronic devices such as phones and tablets is expected to remain flat over the next 15 years with a CAGR of only 1.9%, as the markets are already saturated, leaving growth pegged primarily to population increase.