As the global transition toward renewable energy accelerates, energy storage has emerged as a cornerstone of sustainable power systems. With the scaling up of renewable energy adoption, the demand for energy storage solutions grows to balance supply and demand, enhance grid stability, bolster energy security and drive carbon emission reductions. However, the development of energy storage technologies continues to be influenced by key challenges, including high initial costs, energy density limitations, efficiency concerns, scalability constraints, lifespan limitations, degradation issues and recycling complexities.
Market landscape: a surge in demand
Industry reports indicate that the energy storage market is experiencing exponential growth, with global annual capacity additions projected to reach 228 GW/965 GWh in 2035, primarily driven by government mandates and targeted schemes. By the end of 2035, cumulative capacity is anticipated to reach 1,722 GW/6,214 GWh, with key markets including China, the United States, Germany, India, Italy and the United Kingdom.
Lithium-ion batteries continue to dominate capacity additions, while long duration energy storage (LDES) technologies, such as flow batteries and compressed air energy storage (CAES), are gaining traction as viable alternatives. In the power conversion system (PCS) segment, 2+ MW PCS units are expected to lead in the coming years, while the deployment of string PCS architectures is increasing. Research forecasts suggest PCS shipments will exceed 150 GW by 2030.
