Annual storage deployments expected to almost quadruple between 2019 and 2024.

The global storage market is set to grow from approximately 4 GW in annual deployments in 2019 to more than 15 GW in 2024, according to new research from Wood Mackenzie. Based on analysis from its Foresight 20/20 series, the storage industry is in the enviable position of juggling growth game changers from multiple directions. As the 2020s progress, further recognition of the value of storage, rather than cost, will be the key factor in determining growth.

Analysts note that new value propositions for energy storage to keep an eye on over the next few years include aggregation of behind-the-meter resources, flexibility and resiliency services, and renewable shifting.

According to the announcement from Wood Mackenzie on the latest global energy storage trends, the first success stories for these emerging strategies are already being written. For example, Sunrun has aggregated solar-plus-storage in ISO-NE’s organized capacity market, while developers in Australia are confronting renewables curtailment.

Analysts expect the next three to five years to see storage market players moving quickly, as they pursue groundbreaking projects in the hopes of claiming market share. At the same time, ambitious or creative approaches to policy and regulation around storage may enable the industry to grow even faster than expected.

As supply chain shortages and commodity dynamics compressed the market in 2018 and 2019, the research firm indicates this type of challenge could continue to be a hurdle in the new decade. For example, The industry has seen how such factors can impact deployments and even force companies to take a look at different suppliers, such as Chinese lithium-ion phosphate battery vendors.

For more details and analysis, download the free research report.