EV boom will drive storage market to US$50 billion by 2020, study predicts

LinkedIn
Twitter
Reddit
Facebook
Email

Electric vehicles such as the Tesla Model S will be the fastest growing source of demand for energy storage between now and 2020. Image: Tesla Motors.
A boom in the use of electric vehicles will help push the energy storage market to US$50 billion by 2020, a study by Lux Research has concluded.

Demand for storage technologies in transportation applications will grow faster than for consumer electronics, becoming a US$21 billion market by 2020.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Electronics will remain the largest single market for storage in 2020, however, at US$27 billion, found the Lux report entitled ‘Finding Growth Opportunities in the $50 Billion Energy Storage Market’.

“The automotive market is well on its way to displacing consumer electronics as the biggest user of energy storage. As that happens, it will lead to further scale and a new round of cost reductions, which will impact stationary applications as well," said Cosmin Laslau, Lux Research analyst and the lead author of the report.

In transportation, Lux said electric vehicles represented the biggest opportunity. Even modest sales of 440,000 units represent US$6.3 billion of energy storage use.

The US will initially be the biggest customer for EV storage technologies, before China takes over as subsidies in the US dwindle.

In consumer electronics, smartphones will remain the strongest market, growing 12% CAGR by 2020 to reach US$8.4 billion.

Meanwhile, the market for stationary applications, including residential solar, will be worth US$2.8 billion by 2020, Lux said.

The report identified solar integration as the biggest opportunity for the stationary segment, with forecasts suggesting it will grow from US$0.1 billion to US$1.2 billion by 2020. This will be a consequence of what the report said was “robust” downstream industry and strong policies encouraging solar storage emerging in countries such as Germany and the US.

11 November 2025
San Diego, USA
The 2024 Summit included innovative new features including a ‘Crash Course in Battery Asset Management’, Ask-Me-Anything formats and debate-style sessions. You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

May 1, 2025
Yarra Energy Foundation has secured funding to install three new community batteries in and around Melbourne, Victoria, Australia.
May 1, 2025
AEMO has revealed that, as of March 2025, the pipeline of new standalone BESS in the NEM has increased by 86% year-on-year (YoY).
April 30, 2025
NYSERDA has launched a programme to incentivise residential and retail energy storage in the state, offering a total of US$775 million for energy storage projects.
April 29, 2025
A panel discussed the impact of CAISO’s interconnection reforms at last month’s Energy Storage Summit USA 2025 in Dallas.
April 28, 2025
Flow battery startup Quino Energy and developer Long Hill Energy Partners have been awarded US$10 million in grant funding by the California Energy Commission (CEC) to support a 8MWh flow battery energy storage system (BESS) project in Lancaster, California, US.

Most Popular

Email Newsletter