The rising adoption of renewable energy sources for power generation is a major factor contributing toward the growing need for energy storage throughout the world. Due to the soaring pollution levels and global warming caused by the large-scale usage of fossil fuels for power generation, many countries are increasingly adopting solar, wind, and hydro-based sources of power generation. As the various renewable power technologies such as solar and wind have variable power outputs, their increasing adoption is boosting the demand for energy storage, because of its ability to smoothen the power supply from these renewable sources.

Energy storage systems offer rapid response and fast rate of discharging power to the grid which majorly assists in ensuring the grid stability, especially during the times of high power demand. Furthermore, the rising demand for smart grid systems is further pushing the usage of energy storage systems in several countries. Due to these factors, the total capacity of the installed energy storage devices is predicted to increase from 6,275.4 megawatt (MW) to 51,426.0 MW from 2017 to 2023. The global energy storage market is expected to register a CAGR of 42.5% during the forecast period (2018—2023).

Energy storage devices are widely used for a wide array of applications— ancillary services, fuel saving, arbitrage, air conditioning, running mills, and backup supply. Out of these, the utilization of energy storage systems is predicted to increase rapidly in the arbitrage applications during the forecast period. In simpler terms, arbitrage refers to incorporation of energy trading techniques within an energy/electricity environment in order to purchase electricity from the grid at lower costs and sell it later to the grid at higher prices.

One of the prominent trends currently being observed in the energy storage market is the increasing usage of energy storage devices, on account of the poor quality of power and high pollution levels associated with the conventional power sources. It has been observed in many reports that the conventional sources of energy generation such as natural gas, oil, and coal cause high environmental damage. As a result, many countries are increasingly setting up energy storage systems in order to produce high quality power and store the energy produced for future usage, especially during the times of power scarcity.

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Geographically, the Asia-Pacific (APAC) region is expected to register the fastest rise in the utilization of energy storage systems during the forecast period. This is primarily attributed to the rising requirement of smart grids (a power supply network using digital communications technology) in the region and the subsequent enactment of various measures and norms by the governments of several APAC countries for promoting the adoption of smart grids in order to cater to the rising demand for power.

Thus, it can be said with surety that the sales of energy storage systems will surge all over the world in the upcoming years, due to the increasing adoption of renewable energy sources and the increasing electricity requirements in several countries all around the world.