Stationary Storage Developers, Hit by Tumult in the Grid Storage Market, Will Achieve Supply-Demand Balance in the Decade as They Carve Out an $896 Million Niche in 2020, Lux Research Says
BOSTON, MA--(Marketwired - Oct 22, 2013) - Led by Lithium-ion, emerging battery technologies used in the backup and UPS markets will grow six-fold from $143 million this year to $896 million in 2020, as storage developers shift focus in the face of tumult and uncertainty in the emerging grid storage market, according to Lux Research.
Li-ion batteries will account for a bulk of this market, reaching $553 million in 2020, and additionally restoring demand-supply balance in the Li-ion market. The medical, commercial and datacenter operators are the major users of the conventional backup and UPS markets, which have a global installation base of 800 GW, or 15% of global peak consumption.
"Energy storage developers continue to pump blood, sweat, tears, and cash into emerging markets for energy storage. However, the wisest developers have recently focused efforts on the mature backup and UPS markets for stable revenues," said Steven Minnihan, Lux Research Senior Analyst and the lead author of the report titled, "Backup and UPS: Stable Growth in the Unstable Stationary Storage Markets."
The Li-ion chemistry offers enhanced life and power density over incumbent lead acid systems, justifying higher capital expenditure. This market growth carries an additional payoff in bringing the global demand for stationary Li-ion systems in line with forecasted supply, ending years of glut, he added.
Lux Research analysts studied the broader impact of the battery technologies on the global stationary storage market. Among their conclusions:
The report, titled "Backup and UPS: Stable Growth in the Unstable Stationary Storage Markets," is part of the Lux Research Grid Storage Intelligence service.
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Carole Jacques
Lux Research, Inc.
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