Superconducting
magnetic energy storage market to witness tremendous demands from the renewable
energy sector to cater to the ever-increasing global energy requirements
Energy is an essential commodity in every end-user
industry, including but not limited to, manufacturing, automotive, aerospace
& defense, consumer electronics, and the healthcare vertical. The energy we
use is limited, and balancing the power consumption alongside production is
imperative. Therefore, storing energy is paramount for electricity as it offers
beneficial ways in which electricity is consumed, delivered, and generated.
Storing energy can help during power outage emergencies due to equipment
failure, natural calamity, and accidents. All these factors have encouraged the
exploration of some of the conventional renewable energy storage methods such
as the solid-state batteries, pumped hydroelectric storage dams, thermal energy
storage, flywheel energy storage, electrical energy storage, and solar energy
storage. One of the energy storage methods, superconducting magnetic energy
storage (SMES) is gaining popularity due to its time delay and brief discharge
feature during charging. The SMES system stores energy in a magnetic field
created by the direct flow of electrons in a superconducting coil which is
further cryogenically cooled to a temperature below its superconducting
critical temperature. The SMES system is witnessing demands in the industry
owing to quick recharge and reduced discharge delay without degrading the
magnetic properties. SMES plays a vital role in incorporating renewable energy
sources such as thermal or wind generator to the power grid by controlling the
output power of thermal or wind plant and improve the power system stability
Thus, the globally incrementing renewable energy activities is the major
driving factor in the Superconducting Magnetic Energy Storage Market which
registered the global market size of $7.6 billion as of 2018, and is projected
to flourish at a CAGR of 10% during the forecast period of 2019 to 2025.
Regional Outlook of the Superconducting Magnetic Energy
Storage Market
North America was the most lucrative region in the global
SMES market, with a global market share of 34.82% in 2018. The prevailing
energy storage and renewable energy development activities are shaping the
regional demands. Additionally, the integration of distributed energy storage
systems, smart grids, and renewable resources are burgeoning the demands in the
regional SMES market. According to a report from the Information Technology
& Innovation Foundation (ITIF) the USA, a total of 580 Advance Research
Projects Agency-Energy (ARPA-E) project teams received an investment of
approximately $1.5 billion and formed 56 new companies and generated funding of
more than $1.8 billion in the private sector. Such investments are prevalent in
the region owing to the sound financial status and the growing awareness
towards the prominence of renewable energy storage in the region. The United
States and China have started a 10-year program in collaboration under China’s
Ministry of Science and Technology and the US Department of Energy, termed
China Clean Energy Research Center for Building Energy Efficiency (CERC-BEE).
This project is conducting research and development on developing sustainable
and energy-efficient strategies for existing and upcoming infrastructures. The
program aims to reduce greenhouse gas emissions and develop advanced energy
storage solutions for the upcoming construction activities. Such efforts to
achieve a sustainable energy storage solution are active in the APAC region as
well. Moreover, the presence of some of the fastest developing economies such
as India, China, and Japan are the major causes for the increased demands in
the superconducting energy storage systems market.
Automotive Sector Depicting the Key Application in the
SMES Market
Despite the vast applications in the numerous end-user
industries, the automotive sector is observed to be the most profitable
vertical in the global SMES market, and the opportunities in the same are
estimated to grow at a CAGR of 12% during the forecast period. The advent of
electric vehicle (EV) segment in the automotive industry is a major application
area for the superconductive magnetic energy storage system. With the outbreak
of electric vehicles, the requirements for charging infrastructures are evident
to propel, which indicates the growing demands for superconducting magnetic
energy storage. According to the International Energy Agency, global electric
mobility is escalating at a radical pace, reaching 5.1 million units in 2018
portraying an unprecedented growth of 2 million vehicles since the preceding
year. Also, the same source suggests that the global extent of electric
vehicles on the road is projected to surpass 125 million by 2030. With such
bolstering demands for electric vehicles in the automotive industry, the
related SMES market is also estimated to witness considerate demands.
Potential of the SMES Market in Renewable Energy
With continually increasing population and rapidly
developing infrastructure, global energy consumption and demands have
significantly increased. According to the International Energy Agency, energy
consumption grew by 2.3% in 2018, mainly due to the higher cooling and heating
needs in certain parts of the world. Electrical energy is recognized as an
essential factor for the economic and social development of humanity. According
to The World Economic Forum, around 1.1 billion people still lack electricity
connection. Undoubtedly, the ultimate sources of electricity are fossil fuels,
which are facing depletion. Thus, it leaves the human society to achieve
commercially viable renewable energy solution. A collective effort to fulfill
global energy needs is encouraged for the development and adoption of various
renewable energy sources such as wind energy, thermal energy, and solar energy.
With the technology to harness energy from such sources, there exists a need to
store, distribute, and amplify the collected energy. Henceforth, the demands
for energy storage systems such as the superconductive magnetic energy storage
system arises. These systems extract energy from a renewable source such as
wind, hydro, or solar and stores them in a magnetic setup. Once the energy is
stored, it can be extracted and can be used in the form of electricity. Thus,
the global efforts to develop an efficient and productive alternative renewable
energy is driving the global superconducting magnetic energy storage market.
According to the International Energy Agency, the global energy investment
reached $1.8 trillion in 2017, and a significant amount of this was attracted
from the renewable energy sector. Wind energy is considered to be one of the
most prominent renewable energy sources. It is being used as alternative energy
in various continents. As per the report from the Windeurope.org, the wind
energy capacity of Europe surpassed 160GW in 2017. This was the result of 12,484
MW onshore and 3,154 MW offshore wind turbine installments in 2017. Further,
this accumulated energy is parsed through relevant superconducting magnetic
energy storage systems to convert it into electric energy. Therefore, the
growing demands for SMES systems in the wind energy infrastructure will support
the SMES market growth. Similar to wind energy, solar energy is also witnessing
a significant capital investment all around the world. According to the
International Renewable Energy Agency, the global solar energy investment was
evaluated to be $160.8 billion in 2017. Considering the rising opportunities in
the solar energy vertical, the demands in the adjacent SMES system market will
witness substantial traction in the upcoming years.
Market Competitive Landscape
The companies influencing the superconducting magnetic energy storage market are Fujikura, Hyper Tech Research, ASG Superconductors SpA, American Superconductor Corporation, Super Power In, Bruker Energy & Supercon Technologies, Nexans SA, ASG Superconductors SpA, Luvata U.K., Superconductor Technologies Inc. These companies have been continuously improvising operations and geographical reach to stay ahead of their competitors in the market.
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