One of the major factors responsible for the rise in the demand for energy storage is the burgeoning demand for unconventional sources of energy production across the globe. Due to the soaring urbanization and industrialization across the world and the surge in the pollution levels, the need for clean and renewable sources of energy such as solar energy, hydro power, and wind energy is witnessing exponential growth, which will in turn propel the rising demand for energy storage in order to smoothen out the variable power output produced from wind and solar energy, and thus, meet the electricity demand.
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The demand for energy storage is also increasing, on account of the ability of the energy storage systems to produce rapid response, that is, the ability to discharge power to the grid at a shorter amount of time, which helps in ensuring the stability of the grid at times when there is sudden rise in the demand for energy. Due to these factors, the global energy storage market is expected to increase its installed capacity from 6,275.4 megawatt (MW) in 2017 to 51,426.0 megawatt (MW) in 2023, advancing at a CAGR of 42.5% during the forecast period (2018–2023).
Energy storage systems are adopted for the storage of mechanical, thermal, chemical, and electrochemical energy, and also for the storage of energy generated from fossil fuels and biofuels. Amongst these, the highest utilization of energy storage was observed in the mechanical energy sector, in 2017. This is ascribed to the fact the mechanical energy sector consists of various systems such as compressed air energy storage (CAES), flywheels, and pumped hydro storage (PHS), that are widely used for numerous large-scale residential, commercial, and industrial purposes.
The energy storage market is currently witnessing huge surge in the demand for energy storage systems primarily due to the increasing pollution and poor power quality associated with the energy produced from conventional sources such as coal, natural gas, and oil. The energy storage systems, owing to their ability to generate higher quality of power and store them so that it can be used in those times when there is scarcity of power, are increasingly being adopted throughout the world.
Geographically, the highest adoption of energy storage was witnessed in North America in 2017. The energy storage systems are used for managing onsite solar systems and for taking advantage of the low utility rates at times when the demand for energy is low. Several states in the U.S. are making integrated resource planning an important requirement for utility companies. Across the world, the fastest growth in the adoption of energy storage is expected to be observed in Asia-Pacific (APAC), due to the rapid developments in grid technology and the rising need for smart grids in the region.
Hence, it can be concluded that the demand for energy storage is predicted to increase at a rapid rate throughout the world, primarily due to the soaring adoption of renewable sources of energy and the mushrooming demand for reliable energy, on account of the 24/7 usage of various electrical devices.