The US, Japan, and China Lead the $113.5 Billion Grid Storage Market in 2017

Market driven demand in several favorable regions set to explode, says Lux Research.

BOSTON--Despite regulatory uncertainty, a highly-fragmented global market, and a risk-averse client base, the demand for energy storage on the grid will zoom to $113.5 billion in 2017, from a $2.8 billion market in 2012, reaching 185.4 gigawatt-hours (GWh) of capacity from 3.2 GWh, according to a Lux Research report.


Lux Research analysts developed a dynamic Grid Storage Demand Forecaster to evaluate the internal rate of return (IRR) and levelized cost of electricity (LCOE) of eight grid storage technologies in six applications throughout 44 countries and all 50 US states, identifying unappreciated opportunities. The Demand Forecaster also compares the impact of renewable portfolio standards (RPS), the pay-for-performance ruling, and government subsidies on global demand to identify the technologies, applications, regions, and US states with the most promise for grid storage.

"Utilities need to manage an increasingly variable load of intermittent renewable energy sources and commercial customers require more reliable electricity supplies to mitigate outages that cost the United States alone between $80 billion and $188 billion annually," said Brian Warshay, Lux Research Associate and lead author of the report titled, "Grid Storage under the Microscope: Using Local Knowledge to Forecast Global Demand." Conclusions gleaned from the report include:

Renewable energy shifting shows greatest potential. The largest application for grid storage will be renewable energy shifting, snatching up to $61 billion, or 54% of the demand, in 2017.
The Americas are poised to double its market share. Though Asia-Pacific and Europe, the Middle East and Africa (EMEA) hold 88% of the market in 2012, the Americas' share will more than double from 12% to 25% by 2017, bringing the three global markets closer to parity.
Technology diversification is underway. Over the last three years the grid storage market has shifted from one dominated by molten salt batteries to one more diversified, including Li-ion batteries, flywheels, and advanced lead batteries.

The report, titled "Grid Storage under the Microscope: Using Local Knowledge to Forecast Global Demand," is part of the Lux Research Smart Grid and Grid Storage Intelligence service.

About Lux Research

Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.

Featured Product

OMCO Origin® Factory-Direct Trackers

OMCO Origin® Factory-Direct Trackers

A One-In-Portrait (1P) solution for a wide range of solar projects within utility scale, distributed generation (DG), and community solar markets manufactured and factory preassembled in the USA at OMCO Solar with full-scale support, and design for quick, easy and safe installation, and fewer trackers per MW. OMCO makes all structural components with domestic steel and this balanced design allows for more accurate targeting and reduced energy consumption. OMCO Origin® Factory-Direct Trackers include universal module mounts with options for all commercially available modules, labor-saving bearings with 6 adjustable ways to compensate for posts and terrain issues, and foundation solutions for every terrain including OMCO C Piles.