Driven by environmental problems, a growing auto industry, and a big policy push, China’s advanced energy storage market will be worth $8.7 billion in 2025, more than quadrupling from the current $1.7 billion, according to Lux Research.

Transport applications will dominate with $7.4 billion, or 85% share of the revenues. Stationary applications will earn $1.3 billion. Overall, revenues will grow slower than volumes on account of continually falling battery and systems prices.

Transport applications will take an 85% share, or $7.4 billion, as pollution and policy drive the market for electric vehicles, Lux Research says

“Besides understanding the market dynamics and producing cost-competitive products, most players in these markets will require strong partnerships to succeed,” said Lilia Xie, Lux Research Associate and lead author of the report titled, “Clearing the Haze: Demystifying Energy Storage Opportunities in China.”

“Early leaders such as BYD will try their best to hold onto their positions but the diversification of the market will gradually create promising opportunities for those who operate with patience and savvy,” she added.

The authors of the report studied China’s growing energy storage market in the backdrop of drivers such as environmental pollution, the push toward renewables, and government incentives. Among their findings:

  • While transportation leads, stationary is a growth driver. Total demand for energy storage will grow to 31 GWh per year in 2025, with transportation again the dominant player. Transportation’s share of the market will grow to 29 GWh; the stationary market, at 2.3 GWh, is smaller but grows at a faster 30% CAGR.
  • Growth of NEVs cools. After a spike in sales of new energy vehicles (NEV) in 2014, China will settle to a more leisurely pace of growth, mainly on account of inadequate charging infrastructure. Still, the market will grow at a 19% CAGR, reaching 500,000 units in 2025, across passenger and heavy vehicles.
  • Renewables will drive stationary storage. Growth in China’s stationary storage will follow from an aggressive deployment of renewables. China leads the world in installed capacity of renewables, with plans for much more. In addition, preliminary policy developments suggest the electricity sector will implement pricing reforms, encouraging efficiency-boosting technologies including grid storage.

The report, titled “Clearing the Haze: Demystifying Energy Storage Opportunities in China,” is part of the Lux Research Energy Storage Intelligence service.

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  1. Michael Ioffe on

    Let make small calculation:
    If one person (100 kg) is driving alone in car (2,000 kg0 with engine efficiency ~30% and gasoline production efficiency~45%-real efficiency of that movement is less than 1%.
    Public transportation with stop on every light making efficiency even worse.

    If we will change our transportation system from heavy cars, moving by gasoline to small carts moving by electricity from grid, by road, on roads without intersection – we will reduce our needs for energy at least ten times. At the same time we will reduce significantly our needs for resources to rebuild today infrastructure.
    Read more: Amazon.com/book DOGMAS FOR BILLIONS.

    Please join me to make it happen.

    Michael Ioffe.

  2. Let me suggest my newest paper; “The Levelized Cost (US$/MWh; €/MWh; ILS/MWh) of Storing Wind Electricity on a Grid-Connected, Utility-Scaled (MW) Energy Storage System (ESS)”, which is scheduled for presentation at the 14th World Wind Energy Conference (WWEC), 26-28 October 2015, Jerusalem, Israel requires nine specifications to compute the LC of any ESS. Capacity (MWh) and power (MW) are only two of the nine specifications. You can get a copy of my paper by backing it on KICKSTARTER at https://goo.gl/9O8iKb