The market for lithium-ion batteries for use in energy storage systems (ESSs) is set to grow globally by over a quarter in the five-year period between 2014 and 2019.
The compound annual growth rate (CAGR) of the worldwide market, according to a new report, is set to be 26% over the time frame because of growing demand for lithium-ion batteries in ESSs in conjunction with renewable energy technology.
The market research company responsible for the report, Technavio, have covered the EMEA, APAC and the Americas in their analysis and have covered the world’s major proponents of lithium-ion technology, including LG Chem, Samsung SDI and Panasonic.
Consultation with experts in the sector has led to a comprehensive study of the potential for growth in the world’s market for lithium-ion battery usage in ESSs.
The headline fact that the new paradigm for world energy storage is hugely reliant on the use of large amounts of lithium-ion cells should make for exciting reading for any battery pack manufacturer who is hoping to increase their involvement in this area.
Storing surplus electrical energy has become a massive growth market in recent years. ESS can be used, often in conjunction with a renewable energy source, to store energy for use at times when power can not be easily generated.
Various battery pack innovators, including Elon Musk’s Tesla, have explored the possibility of mass-producing such systems for use in homes and businesses around the globe. Musk’s Powerwall, as with most new applications of its kind, utilise lithium-ion battery technology because it is at present the most reliable and highest-capacity chemistry for use in ESSs.
Despite their drawbacks, such as their high cost and volatility with regard to both temperature and hydration, lithium-ion cells are set to be the answer to large-scale energy storage solutions for the foreseeable future.
According to Technavio the trend in global energy systems is moving away from remote centralised power plants and large transmission networks towards systems in which energy is stored near the homes or businesses in which it is used.
Such systems require ESSs linked not to large fossil-fuel power stations but to small clusters of renewable energy generators and storage units. The report is clear that for a battery pack manufacturer who is serious about using lithium-ion technology in ESSs, 2014 to 2019 could be a very lucrative period.