Nanotechnology Now

Our NanoNews Digest Sponsors

Heifer International

Wikipedia Affiliate Button

Home > Press > The $41 billion energy storage market: the next big energy investment

Abstract:
Lux Research report predicts growth to $64 billion in 2012, but entrants struggle with a complex market

The $41 billion energy storage market: the next big energy investment

New York, NY | Posted on May 29th, 2008

From the mobile phones carried by 3.3 billion people to the half a million hybrid electric vehicles sold last year, the world runs on energy storage technologies - the batteries, capacitors, and other devices that play a hidden, vital role in the energy economy. Energy storage is poised as the next big energy investment field: Venture capital in the field grew 74% to $709 million in 2007. But a complex market with many competing technologies will challenge firms that seek simple routes to success, according to a new report from Lux Research entitled "Alternative Power and Energy Storage State of the Market Q2 2008: Making Sense of the Next Big Thing."

"Energy storage is fragmented because it covers a vast range of technologies - from batteries to flywheels to compressed air systems - that play into multiple market segments," said Ying Wu, Senior Analyst at Lux Research and principal author of the report. "But the prize for companies that succeed is tremendous: The market will grow by 55% over the next five years."

To make sense of the energy storage opportunity, Lux Research studied the field from two perspectives - analyzing seven energy storage markets, like "transportation" and "consumer electronics," on one hand, and five technology variations - from batteries to energy harvesting devices - on the other. The team's methodology combined expert interviews with exhaustive secondary research and rigorous quantitative modeling. Report highlights include:


The transportation energy storage market will grow from $12.9 billion last year to $19.9 billion in 2012, the greatest growth of all seven markets studied - principally driven by light electric vehicle shipments rising from about 500,000 to nearly three million as new plug-in hybrid and pure electric vehicles emerge. NiMH and Li-ion batteries will take center stage in this market, benefiting companies like Matsushita Electric and LG Chem.

Fuel cells will return from the dead. Commercial sales will rise from $92 million in 2007 to $1.8 billion in 2012, driven almost entirely by new applications in residential combined heat and power systems and distributed generation deployments - not transportation or consumer electronics. Adoption of both polymer electrolyte membrane fuel cells (PEMFCs) and solid oxide fuel cells (SOFCs) will drive growth for leaders like Ballard Power Systems and Ceramic Fuel Cells.

Bulk energy storage for utilities - shifting large amounts of energy from excess production times to peak usage times - presents the biggest potential opportunity of all markets studied: If even 10% of installed wind power plants adopted large-scale energy storage, the market would hit $50 billion. However, utility companies' risk aversion and long planning cycles will sharply limit market size through 2012 to only $600 million.

After conquering the consumer electronics market, lithium-ion batteries will make similar inroads in the portable and transportation markets - going from $6.8 billion in 2007 sales to $16.9 billion in 2012. Nickel metal hydride and nickel cadmium technologies will be almost completely wiped out in consumer electronics.

Financing activities have swelled in energy storage: 2007 saw the greatest level of venture capital spending to date and a resurgence of IPOs. Expected IPOs from companies like A123Systems will drive venture capital, M&A, and IPO activity further upward in the next two years.

"The energy storage landscape will change over the next five years as new technologies enter in earnest from 2011 onward," said Wu. "Flywheels will branch out from datacenter backup power to grid frequency regulation; fuel cells will finally achieve scale in stationary applications; and new battery types including zinc-bromide and vanadium redox flow batteries, silver-zinc batteries, and zinc-air rechargeables will stake out valuable niches. Opportunities abound for investors to take a portfolio approach to the market and for corporations to partner with start-ups for market development, system integration, and large-scale manufacturing."

"Alternative Power and Energy Storage State of the Market Q2 2008: Making Sense of the Next Big Thing" is part of the LR Alternative Power and Energy Storage Intelligence service. Clients receive: 1) State of the Market reports every six months; 2) ongoing technology scouting reports and proprietary data points in the weekly Lux Research Power Journal; and 3) on-demand inquiry with Lux Research analysts. For information on how to become a client, contact John Schwartz at or (646) 649-9582.

####

About Lux Research, Inc.
Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance, and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections, and competitive advantage to our clients.

For more information, please click here

Contacts:
Carole Jacques
Lux Research, Inc.
(646) 649-9585

Copyright © Lux Research, Inc.

If you have a comment, please Contact us.

Issuers of news releases, not 7th Wave, Inc. or Nanotechnology Now, are solely responsible for the accuracy of the content.

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

News and information

Picosun’s ALD nanolaminates improve lifetime and reliability of electronic circuit boards October 24th, 2017

JPK reports the research of the Schwille Group at the Max Planck Institute of Biochemistry near Munich using the NanoWizard® ULTRA Speed AFM October 24th, 2017

Researchers bring optical communication onto silicon chips: Ultrathin films of a semiconductor that emits and detects light can be stacked on top of silicon wafers October 23rd, 2017

Nanotube fiber antennas as capable as copper: Rice University researchers show their flexible fibers work well but weigh much less October 23rd, 2017

Investments/IPO's/Splits

Arrowhead Pharmaceuticals Reports Inducement Grants under NASDAQ Marketplace Rule 5635(c)(4) October 23rd, 2017

Arrowhead Hosts Investor & Analyst R&D Day to Introduce TRiM(TM) Platform and Lead RNAi-based Drug Candidates September 14th, 2017

Nanometrics Announces Upcoming Investor Events August 3rd, 2017

Nanometrics to Participate in the 9th Annual CEO Investor Summit 2017: Accredited investor and publishing research analyst event held concurrently with SEMICON West and Intersolar 2017 in San Francisco June 27th, 2017

Announcements

Picosun’s ALD nanolaminates improve lifetime and reliability of electronic circuit boards October 24th, 2017

JPK reports the research of the Schwille Group at the Max Planck Institute of Biochemistry near Munich using the NanoWizard® ULTRA Speed AFM October 24th, 2017

GTC Shanghai Highlights GF’s Momentum in China: Company shares details of technology roadmap and customer adoption in the world’s fastest-growing market for semiconductors October 23rd, 2017

Nanobiotix completes patient inclusion for Phase II/III trial of NBTXR3 in soft tissue sarcoma October 23rd, 2017

Interviews/Book Reviews/Essays/Reports/Podcasts/Journals/White papers

Nanotube fiber antennas as capable as copper: Rice University researchers show their flexible fibers work well but weigh much less October 23rd, 2017

A step closer to understanding quantum mechanics: Swansea University’s physicists develop a new quantum simulation protocol October 22nd, 2017

Creation of coherent states in molecules by incoherent electrons October 21st, 2017

Strange but true: turning a material upside down can sometimes make it softer October 20th, 2017

Energy

New nanomaterial can extract hydrogen fuel from seawater: Hybrid material converts more sunlight and can weather seawater's harsh conditions October 4th, 2017

Researchers set time limit for ultrafast perovskite solar cells September 22nd, 2017

Copper catalyst yields high efficiency CO2-to-fuels conversion: Berkeley Lab scientists discover critical role of nanoparticle transformation September 20th, 2017

Solar-to-fuel system recycles CO2 to make ethanol and ethylene: Berkeley Lab advance is first demonstration of efficient, light-powered production of fuel via artificial photosynthesis September 19th, 2017

Battery Technology/Capacitors/Generators/Piezoelectrics/Thermoelectrics/Energy storage

Strange but true: turning a material upside down can sometimes make it softer October 20th, 2017

On the road to fire-free, lithium-ion batteries made with asphalt October 12th, 2017

Organic/inorganic sulfur may be key for safe rechargeable lithium batteries October 12th, 2017

How to draw electricity from the bloodstream: A one-dimensional fluidic nanogenerator with a high power-conversion efficiency September 11th, 2017

NanoNews-Digest
The latest news from around the world, FREE



  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More











ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project