Demand will Increase Worldwide for Solar Batteries
The global solar batteries market is expected to grow at a CAGR of more than 16% from 2016-2020.
The global solar batteries market is expected to grow at a compound annual growth rate (CAGR) of more than 16% from 2016-2020, according to a recent report from Technavio. As of 2015, lithium-ion (Li-ion) batteries occupied 37% of the total market. These batteries have high energy density, leading to increased charge and discharge capabilities. Because of these features, they are increasingly being adopted into electronic devices like laptops, smartphones, notebooks, and tablets. The application base of these batteries is broadening and is expected to dominate solar power systems in the coming years.
“The solar batteries market in the Americas is predicted to grow steadily during the forecast period, registering a CAGR of over 14%,” said Thanikachalam Chandrasekaran, analyst for energy storage research. “Most of this growth will be due to increased investments in smart solar solutions and growth in solar capacity and installations. Owing to the growing number of smart solar projects and increases in the U.S. government’s support for grants and solar subsidies, the market is expected to continue its dominance.”
Increased investment in the solar batteries market is leading to the development and deployment of integrated smart grid systems. The cost of Li-ion batteries is set to decline, owing to developments in battery technology, increasing consumer dependence on quality batteries, and supporting government policies, driving market growth. South America is not far behind, and governments have already announced several smart grid projects that will add revenue to the market, leading to its growth.
The solar batteries market in Europe, the Middle East, and Africa will be driven by the increasing support from government through various policies, enormous solar potential, and grants such as FiT. A high number of solar photovoltaic (PV) installations are taking place in countries like Germany, Italy, France, and Spain. The EU mandate, which states that 20% of the region’s total energy consumption should be from renewables by 2020, is expected to support market growth. Countries in the Middle East and Africa are experiencing frequent power outages and grid issues resulting from inconsistent power supply. This problem is being overcome by the gradual adoption of off-grid energy storage systems across the region. Regulatory boards and associations such as the Solar Electric Power Association (SEPA) and the Association for Demand Response and Smart Grid (ADS) are introducing standards that can be followed across geographies to maintain uniformity. This increased support from regulatory authorities worldwide had been boosting the market significantly.
China, Japan, and India are key markets where the demand for smart solar energy will be at its apex due to increasing emphasis and the need for smart energy management. China leads in investments in smart grids and smart solar power in the Asia-Pacific region. Two of the ambitious plans set by the government are: reducing the carbon intensity of its GDP by 40-45% by 2020 and meeting 20% of energy demand from renewable and nuclear power. This underlines the need of flexible transmission and distribution infrastructure to ensure a stable power supply and the reliability of the grid, leading to the installation of an appreciable number of smart meters in the country. Trends like this can be observed in other countries in the region as well, making this market the fastest growing with a forecast CAGR of almost 22%.
“Growing environmental concerns and rising energy demand are the two key parameters that will drive the growth of the market in Asia-Pacific,” said Chandrasekaran. “Additionally, growing demand for solar from the residential and utility sector will bring in considerable investments to this market. China, Japan, India and Australia are the major revenue contributors to the market in Asia-Pacific.”
For more information, visit www.technavio.com.