14 DAY TRIAL // Analysts have been speaking a lot about PCs and tablets lately, but there are other items that are poised to see massive growth over the next decade or so, like lithium ion batteries.
Analysts have reached the conclusion that smart power grids will be a major market for lithium ion batteries.
A smart grid is a utility electricity delivery system that grants efficiency and flexibility to power distribution through computer and communications technology.
Their major asset is that power is generated both by big utilities and individual consumers and businesses, unlike normal power grids where power flows just one way, from generators to users.
It turns out that the direction taken by smart grids is one that will greatly benefit lithium ion batteries, as they are already being used in energy storage systems.
Single-home systems to clusters of homes or a building are all possible form factors for smart grid energy storage solutions, as are uninterruptible power systems, for corporate information technology operations.
Adding to this all the large-scale systems used by grid operators, there are many instances where such batteries, being rechargeable, are ideal for storing the energy needed to ensure grid stability and backup power.
As such, analysts predict that worldwide revenue of such batteries for smart grids will grow to $5.98 billion (4.43 billion Euro) in 2020, by a factor of 80 compared to the $72 million of 2012 (53.3 million Euro).
“Smart grids require rechargeable batteries to adjust to fluctuations in demand and to optimize the delivery of electric power throughout the system,” said Satoru Oyama, principal analyst for Japan electronics research for IHS.
“With their inherent advantages compared to alternative technologies, lithium ion batteries are uniquely suited for use in smart grids. Because of this, lithium ion is set to emerge as the dominant rechargeable battery technology for electrical smart grids during the coming years.”