Americas 'to succeed Asia Pacific as global energy storage market leader' by 2025

by Michael Green
Lead battery industry majors Hammond and East Penn Manufacturing are taking part in a research programme to study the impact of advanced batteries being used by utilities to provide critical energy storage needs. Above, Enqin Gao, chief engineer of R&D;, observes the voltages of battery cells during the PSoC Cycling test in Hammond Group’s lead battery lab. Photo: Hammond
The Americas region will overtake Asia Pacific by 2025 to lead the global energy storage market – with a total capacity of 371 GWh in 2030, according to latest figures.

Research from industry analysts Wood Mackenzie said most of this growth will come from the US, "which tripled storage installations in 2020, accounting for 38% of new capacity”.

Meanwhile, in the energy storage ranking of nations, China is forecast to be second, with 150 GWh, while Japan will take third place (25 GWh), by the end of the decade.

In Europe, the Wood Mackenzie report noted that market development has been slower than its US and Chinese counterparts – but that "this will accelerate in the coming years as European member states are required to comply with the Renewable Energy Directive, current overcapacities in electricity markets are reduced with nuclear, and coal exits take place”.

European investment

Europe is forecast to deploy about 3 GWh of energy storage capacity in 2021 – a 55% increase on 2020 – and will see cumulative capacity hit 9 GWh by the end of the year.

Anna Darmani, Wood Mackenzie lead analyst, said: "Europe’s storage numbers appear relatively small on the global scale. However, they are remarkable if we consider that Europe did not have a trackable battery market until around four years ago.”

"In the past two years, Europe has invested more in its battery value chain than any other region worldwide and its residential segment is growing faster than any other region.”

The report said the slowdown in Asia Pacific is partly due to challenges from market incentives and business cases. Though Asia Pacific led the global storage market last year, with deployments reaching 13 GWh, the report suggests growth has "mainly relied on pilots, government subsidies and grid interconnection requirements over the past decade”.

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