Offshore Energy Storage: Introduction
- Offshore energy storage refers to storage of energy produced by wind turbines and offshore oil and gas energy storage systems. The offshore energy storage technology helps store excess energy in order to meet the expected rise in demand for energy.
- Industrialization and the population have increased significantly across the globe over the last few decades. This has resulted in higher demand for energy. Offshore energy storage acts as an essential source for renewable electricity.
- Demand for offshore energy storage has been rising across the globe owing to the implementation of stringent laws and regulations on the consumption of energy
Key Drivers and Restraints of Global Offshore Energy Storage Market
- Increase in awareness about environment-related issues and implementation of stringent rules and regulations by regulatory authorities to promote the adoption of renewable technologies are anticipated to drive the offshore energy storage market
- Rise in investment in exploration & production of unconventional and conventional resources in deep water locations is anticipated to propel the global offshore energy storage market. Oil and gas producers utilize energy storage systems as back-up power sources during outages and to support the electric reliability of their operations in offshore locations.
- Rise in investment in development of renewable energy infrastructure is projected to boost the global offshore energy storage market between 2020 and 2030. Offshore energy storage offers reliable electrical network by providing clean and dispatchable power.
- Technological innovation in design of energy storage system is projected to propel the global offshore energy storage market between 2020 and 2030. However, high capital investment required for deployment of offshore energy storage is expected to act as a restraint for the global offshore energy storage market.
COVID-19 Impact Analysis
- The COVID-19 pandemic completely has hampered various sectors due to the imposition of lockdowns in many countries across the globe. During these lockdowns, several restrictions have been placed on industrial activities. Furthermore, major end-user industries such as oil & gas have halted their production facilities.
- Oil & gas and offshore wind are major end-users of offshore energy storage. Therefore, restriction on offshore and marine activities due to lockdowns has negatively impacted the offshore energy storage market.
- In August 2018, Norway-based oil and gas giant ‘Statoil’ (now renamed as ‘Equinor’) announced plans to invest US$ 12 Bn in renewable energy projects by 2030
Global Offshore Energy Storage Market: Key Segment
- The global offshore energy storage market can be segmented based on source, end-user, and region
- Based on source, the market can be divided into lithium-ion, lead-acid, sodium chemistry, flow vanadium, flow zinc, and vessels. The lithium-ion segment is expected to hold major share of the offshore energy storage market in the near future due to technological innovation in design of lithium-ion batteries. In May 2018, Siemens AG introduced a lithium-ion battery-based energy storage system for offshore operations (including offshore wind).
- Based on end-user, the global offshore energy storage market can be segregated into oil & gas and offshore wind. The offshore wind segment is anticipated to expand significantly due to rise in investment in development of wind technology.
Europe to Hold Major Share of Global Offshore Energy Storage Market
- Based on region, the global offshore energy storage market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Europe is expected to dominate the global offshore energy storage segment during the forecast period, owing to the rise in investments in renewable sectors such as solar, onshore, and offshore wind energy; and geothermal energy. Introduction of stringent environmental regulations to limit carbon emission is a key factor propelling investment in renewable technologies.
- North America is estimated to hold key share of the global offshore energy storage market in the near future owing to the implementation of smart city projects and rise in demand for IoT devices integrated with renewable energy sources in the region
- Asia Pacific is estimated to be a highly attractive region of the global offshore energy storage market owing to rise in urbanization and globalization in the region. The trend is projected to continue during the forecast period owing to growth in investments in renewable energy sources, primarily in China, India and Japan.
Key Players Operating in Market
Leading players operating in the global offshore energy storage market include:
- General Electric
- Deepwater Wind
- Duke Energy
- LG Chem
- Johnson Controls
Global Offshore Energy Storage Market: Research Scope
Global Offshore Energy Storage Market, by Source
- Sodium Chemistry
- Flow Vanadium
- Flow Zinc
Global Offshore Energy Storage Market, by End-user
Global Offshore Energy Storage Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa