Reasons for this growth include falling costs, direct incentives and clean energy targets are proliferating, and competitive markets and vertically-integrated electricity providers see energy storage’s potential. 

“In the next decade, the already consolidating web of manufacturers, developers, investors and integrators will compete for their slice of this burgeoning industry, carving out mature supply chains and propelling cost reductions,” the report stated. “As they do, continued policy and regulatory efforts will be key to driving upside in the market.” 

According to the report, there are six key themes that will be part of this growth. These are offsetting corporate emissions, promoting economic potential, behind-the-meter (BTM) resiliency, accelerating the energy transition, reshaping the financial world and supply chain constraints. 

“The energy storage industry is in the enviable position of juggling growth gamechangers from multiple directions,” said Daniel Finn-Foley, head of energy storage for Wood Mackenzie. “Plunging costs drove speculation in the first scaled markets, but as price declines enter a steadier rate, further recognition of storage’s value—rather than cost—will be the key factor in determining growth.” 

Around the world, millions of people are backing this technology, and many believe it has the potential to encourage alternatives to lithium-ion (the current technology standard for large-, medium- and small-scale energy storage batteries), which could have a lasting impact on the changing market according to the report. 

“While solar and wind can displace carbon-emitting forms of energy supply, storing energy will be critical when renewable generation is not prolific,” the report said. “Energy storage can play a role in balancing supply with demand on the electric grid, and opportunities for BTM residential and non-residential energy are growing,” Finn-Foley said.