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.
Lux Research 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, with mobility applications making up the lion’s share of the growth.
“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 from Lux Research.
“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 per cent by annual revenue and 91 per cent by annual deployed GWh by the year 2035.”
Growth in revenue and deployment for the energy storage market over the next three years will be markedly different from the overall 2035 projections, with plug-in light-duty vehicles remaining the largest market with a predicted $24 billion increase in revenue by the end of 2022.
Medium and heavy-duty vehicles come in next, growing from $600 million a year in 2019 to a projected $3.6 billion per year in 2022, but have the highest combined annual growth rate (CAGR) of 80 per cent.
Residential storage has a CAGR of 76 per cent and $8 billion revenue increase over the next three years, followed by personal mobility with a CAGR of $49 per cent and $4.6 billion revenue increase.