1Q 2023

Analyst Insight: Megatrends Impacting Energy Storage

Energy Storage Tracker Insights

Energy storage systems (ESS) provide critical services to the grid. They can increase energy savings, increase energy security and reliability, and decrease carbon footprints. A growing awareness of these advantages and the further integration of renewable generation into the grid have led to significant advances in the energy storage market in recent years. While energy storage projects are on the rise, monitoring the underlying drivers and barriers of storage adoption is important.

Three factors impacting the energy storage market are recent supply chain bottlenecks, inflation, and increases in demand for energy storage. Supply chain bottlenecks are being driven by labor shortages and political tensions that make access to the natural resources necessary for producing batteries more difficult. Global inflation is creating short-term increases in the costs for developing ESSs. Increased demand for Li-ion batteries in the grid storage and EV markets are leading to higher prices and a rush to increase manufacturing capacity. Additionally, grid operators with decarbonization mandates face significant cost premiums for storage solutions.

This Guidehouse Insights Energy Storage Analyst Insight focuses on three megatrends currently impacting the global energy storage market: supply chain bottlenecks, inflation, and demand shifts. It includes a discussion of market inflection trends; market drivers and barriers; analysis of supply chain bottlenecks, inflation, and demand shifts impacting ESS; an overview of the distribution of raw materials mined and refined for ESS development; and conclusions for stakeholders in the energy storage industry. It is based on data from the Energy Storage Tracker released in 4Q22.

Pages 14
Tables | Charts | Figures 3
  • What are the main megatrends in the energy storage industry?
  • How are demand side shifts impacting global energy storage?
  • How are supply chain bottlenecks impacting global energy storage?
  • How is global inflation impacting global energy storage?
  • Where are the main raw materials needed to produce batteries mined and refined?
  • Microgrid and smart grid technology companies
  • Microgrid project developers
  • Smart grid hardware and software providers
  • Large industrial power users
  • Government agencies
  • Military agencies
  • Non-governmental organizations
  • Investor community



Executive Summary

Market Inflection Trends

Market Drivers and Barriers

Energy Storage Trends: Supply Chain Bottlenecks

Battery Material Mining and Refining Distribution

Energy Storage Trends: Inflation and Demand Shifts

Key Conclusions

Acronyms and Abbreviations, Additional Resources, Contact

  • Battery Material Mining and Refining Distribution
  • Market Drivers and Barriers
  • ESSs: Industry Growth Potential, World Markets: 1Q23
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