Market Overview
The offshore energy storage market is projected to expand at a CAGR of 9.5% between 2023 and 2030.
Storage of energy produced by wind turbines and gas storage systems is what is known as offshore energy storage. Through energy storage systems, surplus power may be saved for later use.
The offshore energy storage market is projected to grow due to rising environmental consciousness and the strict laws and regulations put in place by regulatory bodies to encourage the widespread use of renewable energy sources.
The worldwide offshore energy storage market is predicted to be propelled by an increase in investment in discovering and developing unconventional and conventional resources in deep water areas. Offshore oil and gas production facilities rely on energy storage devices for uninterrupted power supply and during power outages.
Lockdowns imposed in numerous nations due to the COVID-19 outbreak have severely impacted many industries. Several limits on manufacturing operations have been imposed during these lockdowns. Major end-user sectors, including the oil and gas industry, have also ceased output. The oil and gas industry and offshore wind farms primarily use offshore energy storage. So, lockdowns that prevent offshore and maritime activity have negatively affected the offshore energy storage industry.
Key Players:
- ABB (Switzerland)
- General Electric (US)
- Siemens (Germany)
- Deepwater Wind (US)
- Duke Energy (US)
- E.ON (Germany)
- LG Chem (South Korea)
- Johnson Controls (US)
- SolarEdge (Israel)
- Tesla (US)
Market Segmentation
The offshore energy storage market is broken down by the kind of energy source, type of end user, and geographic location.
Lithium-ion, lead acid, sodium chemistry, flow vanadium, flow zinc, and vessels are the various source-based segments of the market based on the sources. Due to their early adoption of new battery technology, market share is held mostly by lithium-ion batteries. The price of this technology would drop much more, propelling the lithium-ion market. In May of 2018, Siemens introduced an energy storage system based on lithium-ion batteries designed for use in offshore activities, particularly offshore wind. This would aid the research and development of energy storage technologies for use in the maritime and offshore oil and gas industries.
End-users, such as the oil & gas and offshore wind industries, provide additional breakdowns of the offshore energy storage market worldwide. Since there is a global trend toward investing more money in renewable energy sources, the offshore wind sector is expected to expand quickly throughout the projected period.
Regional Classification
It is anticipated that Europe will lead the market for offshore energy storage over this predicted period. This is owing to investments in renewable industries such as onshore, solar, and energy. A major element driving investment in renewable technology is the introduction of rigorous environmental laws and regulations to minimize CO2 emissions.
The adoption of smart city projects and rising demand for Internet of Things devices that may harness renewable energy sources place, North America is in a prime position to capture a big portion of the global market's future earnings, yet another major reason for the growth of the market in this region.
Industry News
In 2018, Shell announced that in 2020, its New Energies business would receive up to USD 2 billion in investments in renewable energy technologies, including solar, wind, and gas. Danish Energy Company Dong Energy plans to spend $30.26 billion on renewable energy by building the biggest offshore wind farm in the world. The development of the offshore energy storage industry stands to benefit from this.
Norway's Statoil invested $12 billion in renewable energy projects in August 2018, a figure suggesting the Marine energy storage industry will expand quickly. In addition, South Asian businesses are putting their focus on batteries, a market-growing technology.
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