The total energy storage market is expected to grow to $546 billion in annual revenue by 2035, according to a report released by Lux Research.
The report, “Global Energy Storage Market 2019,” estimates that the three main drivers of energy storage – mobility applications, electronic devices, and stationary storage – will reach an annual combined deployment level of 3,046 GWh over the next 15 years, up from the current 164 GWh.
The report also indicates that the commercialization of five new technologies could also drive growth: battery recycling, electric aviation, flow batteries, thin-film batteries, and solid-state battery improvements.
Lux Research concludes that revenue and deployment growth for the energy storage market will vary drastically over the next three years. Plug-in light-duty vehicles will likely remain the largest market with a predicted $24B increase in revenue by the end of 2022. Next, Medium and heavy-duty vehicles are estimated to grow from $600M a year in 2019 to $3.6B per year in 2022.
Residential storage follows with a projected CAGR of 76% and $8B revenue increase over the next three years. Personal mobility will also be affected with a CAGR of 49% and $4.6B revenue increase.
Through 2035, the report identifies the major driver for growth and demand of energy storage is mobility applications, as personal mobility devices are expected to increase to $43.7B from their current $2B in revenue. Stationary storage is also expected to grow to $111.8B in revenue by 2035, marking a significant increase from its $9.1B revenue in 2019.
The report states that energy storage demand for electronic device applications will remain stagnant over the next 15 years with a CAGR of only 1.9%, as the markets for laptops, cell phones, and tablets are already saturated.
“The energy storage industry is poised for a massive increase in annual revenue and deployment capacity as key innovative technologies, such as solid-state batteries and flow batteries, reach commercialization,” said analyst Chloe Holzinger, one of the report’s lead authors. “We continue to expect electric mobility applications, primarily light-duty passenger vehicles, to be the principal long-term driver of energy storage annual revenue and demand, with a total market share of 74% by annual revenue and 91% by annual deployed GWh by the year 2035.”