Energy storage is set to take an increasingly central role in the global economy, growing almost tenfold over the next decade and a half, new research suggests.

The total energy storage market is expected to grow to $546 billion in annual revenue by 2035, up from just $59 billion in 2019, according to a report released by Lux Research.

Meanwhile, the stationary storage market will surpass the electronic devices market as early as 2023, when it is projected to become a $30 billion industry of 52 GWh in installations. The sector is driven by the need to support the rapidly growing amounts of renewable energy being deployed around the world, to meet grid storage mandates and it is also tapping into new revenue streams through application stacking. However, Lux warns, it can still be challenging to make money in this market due to uncertainties in regulation and regional differences.

Over the next 15 years, the commercialization of key technologies will grow the global energy storage market, Lux asserts, saying that these technologies are well-positioned to impact markets both inside and outside the energy industry:

– Battery recycling will alleviate the strain on securing key feedstocks like lithium and cobalt.

– Electric aviation will reduce the carbon cost of flying, and regional operators are already transitioning to electric powertrains.

– Flow batteries will play a critical role in a future grid with a high wind and solar penetrations by providing carbon-free bulk capacity.

– Solid-state batteries offer both improved energy density and safety, making them the most likely candidate to displace today’s Li-ion batteries.

– Thin-film batteries could enable innovations in wearables, medical applications, and IoT devices.