The global battery storage market will grow by 7% to become worth more than $13 billion (£10bn) by 2023.
That’s according to data and analytics firm GlobalData, which suggests the Asia-Pacific area, as well as Europe, the Middle East and Africa, will be the dominant markets over the period.
It expects falling technology prices and the increasing pace of development in the power market to be the primary driving factors of this growth and notes lithium-ion batteries will continue to be the preferred technology type.
GlobalData analysts predict the Asia-Pacific region will continue to be the largest market, reaching a total value of $6 billion (£4.6bn) in 2023, as nations seek to improve grid infrastructure and secure foreign investment – it was the largest market in 2018 and accounted for 45% of the global market installed capacity.
The EMEA battery energy storage sector accounted for 26% of the global market in 2018, a figure that is expected to grow as a result of strong demand for flexibility, while the US market is predicted to hit nearly $3 billion (£2.8bn) in 2023, making up nearly a quarter of global activity.
Bhavana Sri, Power Analyst for GlobalData, said: “Market conditions are improving and more companies are moving into a decentralised generation, leading to an increase in the onsite deployment of renewables and batteries; as in with micro or mini girds.
“As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a central role in the transition and transformation of the power sector.”