The global energy storage market will add over 30GW a year by 2030, up 250% on 2021 levels, according to a report from the Clean Energy Technology service at IHS Markit.
IHS Markit said it forecasts that energy storage will experience rapid growth in 2021, with installations reaching over 12GW, an increase of over 7GW from 2020.
It added that this will mark the start of a period of continued expansion, with annual global installations set to exceed 20GW in 2024 and 30GW by 2030.
The outlook is underpinned by a growing number of ambitious national energy storage targets linked to strengthened decarbonisation commitments from around the globe, the report said.
In particular, China’s recently announced 30GW energy storage target by 2025, which will help Asia to account for a growing share of global demand in the coming five years, IHS Markit said.
Tightening supply of Lithium-ion batteries, caused by an increase in the outlook for electric vehicle (EV) adoption, will cause delays but not dent the growth outlook, it added.
EV demand could cause delays to project commissioning as cell manufacturers prioritise larger customers in the automotive industry over relatively small energy storage system integrators, the report said.
However, IHS Markit said it expects the current disruption will ease within 12-18 months, as system suppliers diversify their supply base and EV manufacturers firm up their procurement plans for the coming years.
IHS Markit senior analyst clean energy technology George Hilton said: “Delays associated with supply tightness have not yet led to any significant reductions in the outlook for the industry and IHS Markit still expects installations to grow strongly as global supply of Li-ion batteries expands to meet demand.”
Decarbonisation goals will play a crucial role in driving the storage industry over the coming decade.