The U.S. advanced battery energy storage system market is expected to reach USD 780.5 million by 2024, according to a new report by Grand View Research, Inc. Technological advancement and presence of a large number of market players are expected to propel demand over the forecast period.
Advanced battery energy storage systems market is expected to witness a significant rise in demand in the coming future on account of rising technological innovation in the field of smart metering, smart grids, and home control devices.In addition, growing R&D activities and rising investments in the field of distributed energy storage is expected to drive the market growth over the forecast period.
Rising emphasis by the government to reduce the dependency on fossil fuels to achieve energy needs and increase the share of renewable sources in the energy mix is expected to drive the market demand for the product in the grid storage over the forecast period.
Further key findings from the report suggest:
- Demand from transportation application in the U.S. is expected to witness a CAGR of about 15% over the forecast period. The demand for commercial electric vehicles has been driving the growth of advanced battery energy storage systems in the economy over the past years. Extensive R&D is being conducted by various institutesin order to develop advanced battery technologies for the transportation sector, thereby propelling growth.
- Advanced flow battery energy storage system demand was over USD 15 million in 2015. The flow batteries have become highly popular over the past years on account of increased storage capacity, high safety levels, and cost effective storage. The U.S. DOE have been promoting utilization of vanadium flow batteries for application in UPS systems installed in commercial buildings such as hospitals. These are also being utilized for application in nuclear power plants.
- The manufacturers supply the product through a wide distribution network. There is intense competition among the market players in order to fulfill changing consumer demand. Improving technology in various end-use markets requires arapid shift in advanced battery technology for meeting demand. Product differentiation also plays a major role in strengthening the position in this market.
- Market players are majorly involved in the direct supply of the product to the end-users. Some of the major strategies being adopted by key players at present include new product development to create product differentiation, expansion, and technological development in order to reduce cost and provide efficient battery storage to the customers.