The global energy storage systems market is forecast to reach $500 billion (£410.7bn) by 2025.
A new report from Global Market Insights predicts the sector will grow at a compound annual growth rate of more than 6% over the next several years.
It says this will be driven by increasing demand for continuous electricity supply combined with a growing focus towards renewable energy power generation – the research notes the ability of storage systems to capture and store this energy for later use is one of the key underlying factors accelerating the technology’s adoption.
Global Market Insights also highlights that the policies set out by international governments, such as those to minimise carbon emissions and bolster grid stability, will additionally stimulate growth of the storage industry.
It adds continued technological innovations to improve the performance and efficiency of batteries will further contribute to their growing popularity.
While the majority of this growth will take the form of lithium ion batteries, the study also notes the pumped hydro storage market is likely to see growth of more than 3% by 2025 thanks to high efficiency, greater stability, longer lifespan and low storage costs.