Flywheel-based technology is receiving grants from government for its development and installations. For example, U.S. based Beacon Power Corporation received $2.25 million from U.S. Department of Energy for development of flywheel energy storage system; which is also boosting growth in the market.
Capacitor-based energy storage is expected to grow at a CAGR of 10.4% due to growing capacitor applications in transportation and electronics segment. The growing flat panel display, digital camera, and consumer electronics market are driving growth in capacitor-based storage technologies. Battery storage technology is expected to grow at a CAGR of 9.2% due to growing market for lithium ion batteries and adoption of NiMH batteries in automotive applications.
The major drivers for energy storage technologies market are identified as energy arbitrage across the globe, government funding and grants, growing smart grid infrastructure development, growing market for hybrid vehicles, and enhanced performance. The capital intensive nature of energy storage technologies combined with environmental concerns over safe disposal of batteries offer little resistance towards adoption of energy storage technologies. The opportunities are cited in renewable energy integration and focus on lithium ion technology development.
