Revenue from energy storage technology is expected to exceed $21 billion annually by 2024, according to a new report from Navigant Research, which analyzed the market out over the next decade.
The report is one in a line published by Navigant looking forward across the next decade to determine a clean energy market’s revenue potential. This latest report, Energy Storage Enabling Technologies, analyzes four distinct market segments across the global market for energy storage enabling technologies (ESET) — including utility-scale storage, community storage, residential storage, and commercial storage.
According to the authors of the report, worldwide revenue from energy storage enabling technologies is predicted to grow from $605 million in 2015, to more than $21 billion by the time 2024 comes to a close.
Installed ESET Revenue by Technology, World Markets: 2015-2024
Now that battery prices have responded to cost pressures, the associated technologies—i.e., the ESET portion of system cost—are starting to follow suit,” says Anissa Dehamna, principal research analyst with Navigant Research. “Still, the ESET portion of the value chain will average more than [sic] of total system cost across all applications over the next 10 years.”
Dehamna refers to figures from within the report, which suggest that battery prices have fallen from anywhere between 40% to 60% over the last 18 months, “thanks to manufacturing innovations and volumes.” Nevertheless, “energy storage systems overall still vary wildly in terms of price.”
The report also analyzes three ESET segments — power conversion, system-level software and controls, and system integration services. The authors of the report believe that the distribution of the market across these three segments will be heavily skewed towards systems integration, due to its needing labor. According to Navigant, systems integration services revenue is expected to grow from $25.4 billion in 2015 to $92.5 billion in 2024 at a CAGR of 49.1% for a total market of $320.7 billion over the 10-year period. Similarly, power conversion and software and control applications will both grow as well, but not to the same degree as system integration services.