The global energy storage market will add over 30 GW a year by 2030, according to a report from the Clean Energy Technology service at IHS Markit.
It forecasts that energy storage will experience rapid growth in 2021, with installations reaching over 12GW, an increase of over 7GW from 2020, said IHS Markit.
It added that this will mark the start of a period of continued expansion, with annual global installations set to exceed 20GW in 2024 and 30GW by 2030.
The outlook is underpinned by a growing number of ambitious national energy storage targets linked to strengthened decarbonisation commitments from around the globe, the report said.
Increase in the outlook for electric vehicle (EV) adoption is leading to increased constraints in the supply of Li-ion batteries. This could lead to delays in project commissioning and supply shortages. However, IHS Markit said that diversification in supplier base by system integrators and firming up of EV sector procurement plans mean that the disruption experienced will ease within a year and a half.
IHS Markit clean energy technology senior analyst George Hilton said that “delays associated with supply tightness have not yet led to any significant reductions in the outlook for the industry,” and with global supply of lithium-ion batteries expanding to meet market demand, IHS Markit “still expects [battery storage] installations to grow strongly”.
Decarbonisation goals will play a crucial role in driving the storage industry over the coming decade, the report said.