The plummeting cost of batteries will lead to a boom in energy storage system uptake between now and 2040, attracting $620 billion (£548bn) in investment.
That’s the view offered by research company Bloomberg New Energy Finance (BNEF) in a new report, which predicts the global energy storage market will grow to a total capacity of 942GW over the next 22 years.
It expects the cost of a utility-scale lithium-ion battery system falling by 52% before 2030, making them much more economical for use in both the vehicle and the electricity sector.
The report suggests behind-the-meter installations will increasingly be sited at business and industrial premises and at millions of residential properties to help balance grid demand, cut costs, store excess output and improve reliability.
China, the US, India, Japan, Germany, France, Australia, South Korea and the UK are forecast to be the leading countries, representing two-thirds of global installed capacity by 2040.
BNEF claims demand for batteries for stationary storage will make up only 7% of total battery demand in 2040, which will be “dwarfed” by the electric vehicle market.
Logan Goldie-Scot, Head of Energy Storage at BNEF, said: “We see energy storage growing to a point where it is equivalent to 7% of the total installed power capacity globally in 2040.
“The majority of storage capacity will be utility-scale until the mid-2030s, when behind the meter applications overtake.”