Li-Ion Batteries to Dominate the Global Battery Energy Storage Market for Smart Grid Through 2020, Says Technavio
According to the latest market study released by Technavio, the global battery energy storage market for smart grid is expected to grow at a tremendous CAGR of close to 73% during the forecast period.
This research report titled ‘Global Battery Energy Storage Market for Smart Grid 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
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The report categorizes the global battery energy storage market for smart grid into three major segments. They are:
Sodium sulfur batteries
Global Li-ion battery market 2015-2020
The Li-ion battery segment is projected to reach 3,130 MW by 2020, growing at a CAGR of close to 72%. The Li-ion battery segment is expected to witness substantial growth during the forecast period owing to the growing demand for electricity storage. Li-ion batteries are being extensively used in battery energy storage for the smart grid. These batteries are lightweight and compact, which makes them the strongest contender in the battery energy storage market.
As lithium is the third lightest element, it leads to the production of batteries with high capacity. Another advantage of Li-ion batteries is that they use non-aqueous electrolytes that offer high operating voltages as compared to lead-acid batteries and sodium-sulfur batteries, which have aqueous electrolytes.
According to Sayani Roy, an industry expert at Technavio for smart grid research, “The cost of Li-ion batteries, however, is a big challenge for the industry. Companies are focusing on developing cost-effective Li-ion batteries. The Li-ion battery cost has dropped at an average of 23% per year since 2010, while the energy storage system cost has also dropped at an average of 14% per year. This has led to a total installation cost reduction by 17%.” Tesla, a leading vendor in battery technology has announced its goal to reach the price of USD100/kWh by 2020, which is expected to boost the Li-ion battery market.
Global lead-acid battery market 2015-2020
The lead-acid battery segment is predicted to reach 990 MW by 2020, growing at a CAGR of more than 67%. This segment is expected to witness significant growth during the forecast period. After Li-ion batteries, lead-acid batteries are the most widely used. The technology used in the lead-acid battery is older than that of the Li-ion battery and has been in the market since 1960. There are two types of lead-acid batteries, namely, the two-way sealed valve regulated lead-acid (VRLA) and the flooded lead-acid battery.
Innovations in battery have helped the lead-acid battery to achieve increased efficiency and overcome challenges such as slow charging, short life cycle, and high maintenance. The abundance of availability of raw material for lead-acid battery has increased the number of installations of the battery.
However, these batteries have 3-4 years of operational life. High maintenance of lead-acid batteries may impede the growth of the lead-acid battery storage market. High energy density and fast recharging capacity of the Li-ion battery also restrict the growth of this segment.
Global sodium-sulfur battery market 2015-2020
The sodium-sulfur battery segment is projected to reach 1,450 MW by 2020, growing at a high CAGR of more than 84%. Sodium-sulfur batteries were developed in 1966 by Ford motors. The active materials in sodium-sulfur batteries are molten sulfur, which is used as a positive electrode and molten sodium, which is used as a negative electrode. The electrodes are separated by an electrolyte such as sodium alumina, and solid ceramic. This requires an operating temperature that ranges from 572°F to 752°F, and if this temperature is not maintained, then the battery will explode. These batteries can provide up to six hours of backup.