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
- Offshore Wind
- Oil & Gas
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
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
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Below is a snapshot of these quadrants.
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The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
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