China’s advanced energy storage market to to hit $8.7B by 2025
by Canadian Manufacturing.com Staff
Environmental problems will push China's energy storage market to new heights
BOSTON—Driven by environmental problems, a growing auto industry, and a big policy push, China’s advanced energy storage market will be worth US$8.7 billion in 2025, more than quadrupling from the current $1.7 billion, according to Lux Research.
Transport applications will make up the dominant part of the market, with $7.4 billion, or an 85 per cent share of the revenues. Stationary applications will also earn $1.3 billion. Revenues are expected to grow slower than volumes due to continually falling battery and systems prices.
“Besides understanding the market dynamics and producing cost-competitive products, most players in these markets will require strong partnerships to succeed,” said Lilia Xie, Lux research associate and lead author of the report.
Lux Research analysts studied China’s growing energy storage market in the backdrop of drivers such as environmental pollution, the push toward renewables, and government incentives. Among their findings:
- While transportation leads, stationary is a growth driver. Total demand for energy storage will grow to 31 gigawatt hour per year in 2025, with transportation again the dominant player. Transportation’s share of the market will grow to 29 gigawatt hours; the stationary market, at 2.3 gigawatt hours, is smaller but grows at a faster 30 per cent CAGR.
- Growth of NEVs cools. After a spike in sales of new energy vehicles in 2014, China will settle to a more leisurely pace of growth, mainly on account of inadequate charging infrastructure. Still, the market will grow at a 19 per cent CAGR, reaching 500,000 units in 2025, across passenger and heavy vehicles.
- Renewables will drive stationary storage. Growth in China’s stationary storage will follow from an aggressive deployment of renewables. China leads the world in installed capacity of renewables, with plans for much more. In addition, preliminary policy developments suggest the electricity sector will implement pricing reforms, encouraging efficiency-boosting technologies including grid storage.
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