Energy Storage Market to Hit $44B by 2015

With virtually every major automaker planning an electric
vehicle launch, and governments worldwide funneling billions of dollars into smart grid
technologies, the prospects for energy storage technologies are getting lots of attention.

The market for batteries, supercapacitors and fuel cells
targeting transportation and smart grid applications will more than double from $21.4 billion in
2010 to $44.4 billion in 2015, according to a new report from Lux Research.

The report analyzes prospects for several technologies, including batteries, supercapacitors, fuel cells in transportation and
storage, distributed generation, and transmission and distribution technologies on the power
grid.

One key finding of the report is that Electric vehicle storage
technology markets will nearly double from $7.7 billion in 2010 to $14.5 billion in 2015, a CAGR of 13.5%. Surprisingly, markets for electronic bike (e-bike) and scooter batteries will lead the charge, growing from $6.4 billion this year to $10.9 billion in 2015, a CAGR of 11%.  

"Policy-makers, auto manufacturers and the media have locked their attention on battery
technologies for plug-in and electric vehicles," said Jacob E. Grose, an analyst for Lux Research.  "But in fact e-bikes and scooters will drive the biggest growth for
these batteries in the next five years."

Other findings include:

• Lead-acid batteries dominate transportation markets, but Li-ion technology is rapidly
  growing. Lead-acid batteries will drive 93% of China’s e-bikes in 2010, and dominate the micro-hybrid automotive market. However, lithium-ion (Li-ion) batteries in e-bikes are growing fast, and have gained further momentum from plug-in and electric vehicles. With a compound annual growth rate (CAGR) of 22% through 2015, Li-ion battery markets are growing almost three times faster than those for lead-acid.

• In the power grid segment, the smart plays are in the smart grid. Markets for emerging technologies in the power grid will skyrocket from $13.7 billion in 2010 to $30 billion in 2015, a CAGR of 17%. Here the largest market is the smart-grid, which will grow at an explosive CAGR of 23%, from $5.4 billion this year to $15.8 billion in 2015.