A new report by Transparency Market Research has found that the global energy storage systems market is likely to expand at a steady CAGR (compound annual growth rate) of 5.6% from 2020 to 2031 to reach $73.8 billion in 2031 from $40.53 billion in 2020.
According to the report, Energy Storage Systems Market Outlook 2031, the global energy storage systems market is fragmented due to the extensive number of regional and international players. To tap into the market, which has ample room for growth, new players are rushing in. As a result, competition in the market is predicted to heat up in the near future.
Market players are banking on product development and carefully-considered mergers and acquisitions. They are also focusing on improving their distribution network and managing working capital effectively to thrive in the market.
Depending on the application, the global energy storage systems market can be split into transportation and grid storage. Of the two, transportation is expected to register higher growth owing to soaring sales of battery-operated electric vehicles, which help to keep vehicular pollution in check, and expanding railway networks.
Vehicle pollution as a market driver
The findings illustrate the need to address vehicular pollution – which is serving to rapidly deteriorate the air quality in cities – as a major market driver.
This has resulted in policy changes, forcing commuters to opt for less polluting vehicles such as electric cars, two-wheelers, buses and trucks. This, in turn, has boosted the sales of energy storage systems. The growing railway network is also providing a boost to the market.
Non-residential high energy requirements
Besides the automotive segment, commercial and industrial establishments – together known as the non-residential segment – are boosting the global energy storage systems market as their need to store energy is high.
The research report further states how the residential sector is expected to expand at a healthy rate over the next few years, due to the increasing adoption of solar panels to reduce electricity cost and tide over power cuts.
Focus of players to introduce high-tech and highly customised batteries for battery energy storage is also positively influencing the market. or instance, the emergence of Lithium-ion, sodium-sulfur and advanced LAB products from the stables of well-entrenched companies has boosted sales.