Navigant Research Report Shows Asia Pacific is Expected to Account for Nearly 55% of Vendor Revenue for Large Distributed Energy Storage Systems in the Commercial & Industrial Space
October 17, 2018
High costs, complexity of permitting and installing
behind-the-meter energy storage projects are encouraging customers to
deploy larger systems
BOULDER, Colo.–(BUSINESS WIRE)–A new report from Navigant
Research analyzes the global market for large distributed energy
storage systems (LDESSs) in the commercial and industrial (C&I) space,
providing market forecasts, segmented by technology, building type, and
region, through 2027.
The market for large C&I energy storage remains in the early stages of
development and is highly concentrated in select markets that have the
right mix of high electricity prices, demand charges and/or time-based
rate structures, and supportive government policies and incentives.
While significant growth is expected in new markets, three regions are
projected to lead in terms of installed vendor revenue. Click
to tweet: According to a new report from @NavigantRSRCH,
through 2027, Asia Pacific, North America, and Western Europe are
expected to account for an estimated 54.8%, 24.9%, and 23.6% of the
global market, respectively.
“As the C&I energy storage market has grown, key challenges in
identifying and acquiring customers have driven a push to target larger
buildings with greater electricity demands,” says Alex Eller, senior
research analyst at Navigant Research. “This trend is also due to the
relatively high costs and complexity of permitting and installing
behind-the-meter energy storage projects.”
Given that these high upfront costs do not scale directly with project
size, it is far more profitable to deploy larger systems for C&I
customers, according to the report. The LDESS market is currently
considerably larger than the small-scale market—and is expected to
remain so.
The report, Market
Data: Large Commercial and Industrial Energy Storage, analyzes
the global market for LDESSs that are over 250 kW in capacity. The study
provides an overview of the market developments, drivers, and barriers
that are likely to influence the growth of LDESSs in the large C&I
energy storage space. Global market forecasts, segmented by technology,
building type, and region, extend through 2027. The report also examines
the key business models and regional market trends related to the LDESS
market. An Executive Summary of the report is available for free
download on the Navigant
Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides
market research and benchmarking services for rapidly changing and often
highly regulated industries. In the energy sector, Navigant Research
focuses on in-depth analysis and reporting about global clean technology
markets. The team’s research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of the
Energy Technologies, Utility Transformations, Transportation
Efficiencies, and Buildings Innovations sectors. Additional information
about Navigant Research can be found at www.navigantresearch.com.
About Navigant
Navigant Consulting, Inc. is a specialized, global professional services
firm that helps clients take control of their future. Navigant’s
professionals apply deep industry knowledge, substantive technical
expertise, and an enterprising approach to help clients build, manage
and/or protect their business interests. With a focus on markets and
clients facing transformational change and significant regulatory or
legal pressures, the Firm primarily serves clients in the healthcare,
energy and financial services industries. Across a range of advisory,
consulting, outsourcing, and technology/analytics services, Navigant’s
practitioners bring sharp insight that pinpoints opportunities and
delivers powerful results. More information about Navigant can be found
at navigant.com.
* The information contained in this press release concerning the
report, Market Data: Large Commercial and Industrial Energy Storage, is
a summary and reflects Navigant Research’s current expectations based on
market data and trend analysis. Market predictions and expectations are
inherently uncertain and actual results may differ materially from those
contained in this press release or the report. Please refer to the full
report for a complete understanding of the assumptions underlying the
report’s conclusions and the methodologies used to create the report.
Neither Navigant Research nor Navigant undertakes any obligation to
update any of the information contained in this press release or the
report.
Contacts
Navigant Research
Lindsay Funicello-Paul, +1-781-270-8456
lindsay.funicello.paul@navigant.com