The need for storing energy along with the preference for cleaner storage techniques opens the door to enormous opportunities for alternative energy storage technologies in numerous end-user and almost all geographical markets worldwide.
The main purpose of alternative energy storage technology is to replace conventional batteries and thus offer as many opportunities as the current conventional battery market. In 2008, the traditional secondary battery market was worth approximately $30 billion globally, while alternative energy storage solutions occupied less than 1% of this share. With the recent boom in renewable energy, the need for cleaner storage technologies has become more pressing than ever. The biggest challenge faced by the renewable energy sector is the lack of efficient storage mechanisms; therefore the alternative energy storage market is expected to grow substantially.
The limited availability of credit for investment into the research and development of alternative energy storage solutions coupled with falling oil and gas prices might inhibit the growth of this sector. However, environmental concerns and energy security are expected to be major drivers of the market, despite the economic downturn. Moreover, with renewable energy generation such as wind or solar being intermittent in nature, storage of energy helps balance the load during peak demand. It also helps stabilize the transmission and distribution grid.
It is not just alternative storage that is showing promises. Energy storage as a whole offers a strong growth potential. Increased demand for hybrid and electric vehicles has stimulated growth in the lithium-ion battery market. Frost & Sullivan estimates the electric and hybrid vehicle market to reach $2 billion by 2014, and the lithium-ion battery market is expected to grow right along with it. In general, the renewable energy market seems well-equipped to withstand the current recession.
Malavika Tohani, Power Supplies & Batteries Expert at Frost & Sullivan states, “Owing to the vast potential this industry holds, manufacturers and investors have their eyes focused on alternative energy storage solutions all through the recession and beyond. This is where the future lies.”