Navigant ESET Energy Manage

Energy Storage Enabling Technology Market to Surpass $20B by 2024

Navigant ESET Energy ManageGlobal installed revenue for the energy storage enabling technology (ESET) market is expected to grow from $605.8 million in 2015 to $21.5 billion in 2024, according to Navigant Research.

While battery prices have fallen anywhere from 40 percent to 60 percent in the past 18 months, energy storage systems (ESSs) still vary widely in terms of price. This variation is a function of system size, volume ordering and business models.

Now that battery prices have responded to cost pressures, the ESET portion of system cost is under intense scrutiny to deliver more consistent pricing. Once this happens, more transparency in overall ESS pricing is expected, allowing the industry to scale further.

In its report, Energy Storage Enabling Technologies, Navigant covers three ESETs: power conversion (primarily inverters), system-level software and controls, and systems integration services.

The distribution of the market among the three ESET segments will be skewed toward systems integration. Power conversion revenue is expected to grow from $184.7 million in 2015 to $5.7 billion in 2024.

Because there is an expectation of regular innovation, cost pressures are expected to be less strong on software and controls. The highly variable pricing within the software space is expected to even out over the forecast period. Software and controls revenue is expected to grow from $16.7 billion in 2015 to $65.3 billion in 2024.

Systems integration services are expected to be the highest value piece of the ESET market. Labor prices are expected to buoy this portion of the market. Services will become more sophisticated as the market grows and customers become more perceptive, expecting more functionality from ESSs. Systems integration services revenue is expected to grow from $25.4 billion in 2015 to $92.5 billion in 2024.

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