Energy storage market poised to reach $44 billion in 2015

luxresearchlogoBoston, Mass. — The market for batteries, supercapacitors and fuel cells targeting transportation and smart-grid applications will more than double from $21.4 billion in 2010, reaching $44.4 billion in 2015, according to a new report from Lux Research. The market researcher attributes the projected growth to electric-vehicle launches by most major automakers and investments in smart-grid technologies by governments worldwide.

The report, “Emerging Technologies Power a $44 Billion Opportunity for Transportation and Grid,” indicates that the energy storage market will grow at a 15.7 percent compound annual growth rate (CAGR) through 2015. The report covers several technologies including batteries, supercapacitors, fuel cells in transportation and storage, distributed generation, and transmission and distribution technologies on the power grid.

“Policy-makers, auto manufacturers and the media have locked their attention on battery technologies for plug-in and electric vehicles,” said Jacob E. Grose, an analyst for Lux Research, and the report’s lead author, in a statement. “But in fact e-bikes and scooters will drive the biggest growth for these batteries in the next five years.”

A key finding shows that electric-vehicle-storage technology markets will nearly double from $7.7 billion in 2010 to $14.5 billion in 2015, at a CAGR of 13.5 percent. However, Grose said markets for electronic bike (e-bike) and scooter batteries will drive the sector’s growth, increasing from $6.4 billion this year to $10.9 billion in 2015, at a CAGR of 11 percent.

While lead-acid batteries dominate the transportation markets, lithium-ion batteries are making some inroads, said Lux. With a CAGR of 22 percent through 2015, li-ion battery markets are growing almost three times faster than those for lead-acid, said the market researcher. However, lead-acid batteries will drive 93 percent of China’s e-bikes in 2010, and dominate the micro-hybrid automotive market, according to the report.

Another key finding indicates that markets for emerging technologies in the power grid will climb from $13.7 billion in 2010 to $30 billion in 2015, at a CAGR of 17 percent. The smart-grid segment is expected to grow the fastest from $5.4 billion in 2010 to $15.8 billion in 2015, at a CAGR of 23 percent.