According to a new report from Pike Research, the market for energy storage in commercial buildings is poised for growth within the next five years. The firm forecasts, that the uninterruptible power supply (UPS) market, which is currently the largest segment within this industry, will increase from $3.4 billion in 2011 to $4.8 billion by 2016.
The market momentum toward greater energy efficiency in commercial buildings is driving heightened interest in the opportunity for energy storage in commercial buildings. Uninterruptible power supplies (UPS) are currently the most common form of energy storage.
Pike Research expects the main markets for energy storage in commercial buildings to continue to use UPS for risk reduction. Within the next five years, the market for battery-based storage in commercial buildings will begin including time shifting as an extra feature on UPS and on-site renewable energy systems. This will occur in regions where multiple incentives can be combined to make a business case, and where local distribution lines become saturated with intermittent solar generation (e.g., some local areas in Hawaii, California, and Germany). Beyond 2016, the market could expand rapidly as the price of battery capacity declines.
An Executive Summary of the report is available for free download on Pike Research’s website.