United States energy storage market: 18% CAGR between 2012-2016

Press release   •   May 01, 2013 14:50 BST

The Energy Storage market in the US is to grow at a CAGR of 18.17 percent over the period 2012-2016. One of the key factors contributing to this market growth is the benefits of using such storage in solar plants. The Energy Storage market in the US has also been witnessing an increase in Research and Development initiatives. However, the lack of awareness of energy storage technologies could pose a challenge to the growth of this market.

The increasing demand for energy is one of the major trends observed in the Energy Storage market in the US. For instance, the governments of various countries have forecast that their nationwide energy demand will double within the next decade. By 2035, the global energy demand is predicted to increase by up to 75 percent. The energy consumption pattern is likely to undergo variation in each country across the world. For instance, in 2009, China used energy that was equivalent to only half of what the US consumed. However, in 2010, China exceeded its previous consumption and stood in first place in terms of energy consumption in the world. Furthermore, the current global demand for energy is expected to more than double globally by 2020. With the existing power generation capacity, it will not be possible to meet the future energy demand. The storage of energy will help maintain a backup for catering to the high future energy demand. Large-scale and small-scale grid energy storage systems will meet this need, thus boosting the growth of the Energy Storage market in the US.

The benefits associated with the use of energy storage technologies in the Solar industry include increased solar plant efficiency, access to back-up power, peak load management, and power saving.

One of the major challenges is the lack of awareness of energy storage technologies. There is a lack of awareness of the benefits of the energy storage devices and a lack of awareness of the technology. In many power utilities, the employees handling the energy storage systems are unaware of the technical functioning of the technology as it is relatively new, hindering wide adoption of the technology.

The key vendors dominating this space are Abengoa Solar S.A., Areva Solar Inc., GE Energy LLC, and Pratt and Whitney Rocketdyne Inc.

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