Advanced energy storage refers to the technologies that are designed for capturing electrical energy and storing it for subsequent use. Batteries, supercapacitors, and flywheels are some of the common advanced energy storage technologies. These technologies help provide reliable, secure and efficient energy supplies by storing energy from renewable sources like solar and wind for later use. They enable integration of renewable energy sources into the electric grid and help reduce carbon emissions from the power sector.
The global Advanced Energy Storage Market is estimated to be valued at US$ 19.9 Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Reducing carbon emissions presents a major market opportunity for advanced energy storage. Battery energy storage helps reduce carbon emissions from the power sector by enabling large-scale integration of renewable energy sources into the electric grid. When there is excess generation from renewable sources like solar during certain periods, battery energy storage can capture and store this energy for later use. This makes renewable energy generation more flexible and dispatchable. By reducing intermittency issues related to renewable energy, battery energy storage paves way for greater penetration of clean energy sources. This assists nations and regions around the world in meeting their climate targets to curb carbon emissions from the power sector and transition to cleaner energy. The ability of advanced energy storage technologies to support decarbonization of electricity grids worldwide presents lucrative growth opportunities for players in this market.
Porter’s Analysis
Threat of new entrants: The advanced energy storage market has high capital requirements for research and technology which poses barriers for new entrants. Bargaining power of buyers: Individual buyers have low bargaining power in this market due to the specialized and technical nature of products. However, large commercial and utility customers wield significant buyer power. Bargaining power of suppliers: Key raw material suppliers for battery technology and components have some bargaining power given the increasing global demand for energy storage solutions. Threat of new substitutes: Continuous technological innovation could lead to newer energy storage methods posing threats. However, lack of widespread substitutes currently maintains competitive edge of existing products. Competitive rivalry: The market has few large players with rest being regional or local vendors leading to high competition based on performance, features and pricing.
SWOT Analysis
Strengths: Rising investments in renewable energy boost demand. Technologies offer cleaner alternatives to fossil fuels. Weaknesses: High initial installation costs limit widespread adoption. Specific design needs and maintenance requirements. Opportunities: Growing focus on decentralized off-grid solutions especially in emerging markets. Scope for integrating with EV industry. Threats: Slow pace of policy reforms and regulatory issues in some regions. Potential supply chain disruptions or trade barriers.
Key Takeaways
The global Advanced Energy Storage Market Demand is expected to witness high growth over the forecast period led by supportive government policies and initiatives promoting cleaner sources.
Regional Analysis: North America currently dominates the market owing to significant investments and presence of global industry leaders in the US and Canada. However, the Asia Pacific region is expected to witness the fastest growth on account of rising renewable energy integration mainly in China, Japan and India.
Key players operating in the advanced energy storage market are Himalaya Herbal Healthcare, Gaia Herbs, Nature's Bounty, NOW Foods, NutriGold, Garden of Life, MegaFood, New Chapter, Sambucol, BioSchwartz, Solgar, Source Naturals, Nature's Way, Jarrow Formulas, Pure Encapsulations. Technological innovations and collaborations allow key players to strengthen product portfolios and gain market share. Strategic expansions into high growth markets also aid in expanding global footprints.
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