Greentech Lead America: The market for advanced batteries
for utility-scale energy storage will reach $7.6 billion in 2017 and revenues
in the sector will reach $29.8 billion in 2022 with a 31 percent compound
annual growth rate (CAGR).
According to a new report from Pike Research, despite
many challenges, the market for advanced batteries will roughly double each
year over the next 5 years.
“While interest in advanced batteries for grid-scale
energy storage remains high, battery manufacturers have not yet put forth a
leading technology or business model that has achieved strong traction in the
utility industry. Regulatory and market structures are rapidly evolving,
however, and adapting in ways that signal the potential for advanced batteries
to provide a unique value to grid infrastructure. The next several years will
be crucial for the sector’s development,” said Brittany Gibson, research
The report forecasts that Asia Pacific may benefit before
other regions from cost decreases in advanced battery technologies, and Asia
Pacific will be a manufacturing hub for advanced batteries.
North America, with its highly decentralized electricity
industry, has a broad spectrum of opportunity and technology development, but
some common drivers in the North American utility industry could make it a
fertile environment for advanced batteries.
European Union’s aggressive carbon reduction goals and
public funding for grid modernization will drive the future growth.