New Energy Storage Industry: Rapid Development, Diverse Technological Landscape, and Market Segmentation Analysis

1. Introduction to the New Energy Storage Industry

Energy storage refers to the advanced technology that utilizes specific devices or physical media to store different forms of energy in diverse ways for future use when needed. In the energy storage technology system, new energy storage encompasses all forms of storage technology except for pumped hydro storage. Based on differences in technological pathways, energy storage can primarily be categorized into three main types: thermal energy storage, electrical energy storage, and hydrogen energy storage. Specifically, electrical energy storage can be further subdivided into physical storage, electromagnetic storage, and electrochemical storage. Within physical storage, aside from the common pumped hydro storage, various forms are included such as compressed air energy storage, flywheel energy storage, and gravitational energy storage. Electromagnetic storage consists of superconducting storage and supercapacitor storage, while electrochemical storage includes a rich array of technologies like lithium-ion batteries, sodium batteries, lead-acid batteries, flow batteries, sodium-sulfur batteries, and fuel cells. Thermal energy storage primarily includes molten salt storage and thermochemical storage.

2. Characteristics of the New Energy Storage Industry

• Rapid Development: In recent years, the installed capacity of new energy storage has experienced explosive growth. It saw consecutive growth rates exceeding 200% in 2022 and 2023, followed by a 130% increase in 2024. By the end of 2024, the total installed capacity surpassed 73 million kilowatts, approximately 20 times the capacity at the end of the 13th Five-Year Plan.
• Diverse Technological Pathways: Currently, lithium-ion battery storage dominates the market, accounting for over 95%. However, other technologies, including flow batteries, compressed air, flywheel storage, liquid air storage, and carbon dioxide storage, are accelerating their engineering applications, each with unique advantages and applicable scenarios.
• Rich Application Scenarios: New energy storage can be integrated across all segments of the power system, including generation, grid, and load. On the user side, it can lower energy costs and improve energy quality; on the generation side, it enhances the compatibility of renewable energy; and on the grid side, it provides various services such as peak shaving and frequency regulation, thereby strengthening supply reliability.
• High Flexibility in Deployment: Compared to pumped hydro storage, which faces strict site selection and lengthy construction periods, new energy storage offers notable advantages such as flexible deployment, shorter construction cycles, and rapid response times, allowing for easier applications in various scenarios.

3. Analysis of the New Energy Storage Industry’s Segmentation

(1) Superconducting Storage

Superconducting storage is a method that allows for the direct storage of electrical energy without energy conversion. It involves directing electrical currents into inductive coils made of superconducting materials. Theoretically, the current can circulate endlessly within the coil with no losses until it is extracted. Currently, the primary materials used in superconducting coils are niobium-titanium (NbTi) and niobium-tin (Nb3Sn) superconductors. A typical superconducting magnetic energy storage device typically consists of superconducting magnet units, low-temperature constant temperature systems, and power conversion systems.

The application prospects of superconducting storage technology within power systems are vast. Superconducting storage systems can respond rapidly to frequency changes in the power grid, adjusting active power through charge and discharge to maintain frequency stability, enhance frequency regulation accuracy and efficiency, instantaneously compensate for voltage dips and surges, improve power quality, and ensure stable electricity supply for industrial production and critical users. This is particularly beneficial for industries with high power quality requirements. Additionally, it can smooth out the output power of renewable energies such as wind and solar, reducing their impact on the grid and enhancing grid absorption capacity. In transportation, superconducting storage can serve as a buffering device in electric vehicle charging stations, providing additional power support to avoid grid issues and enhance charging efficiency. In rail transport, it can assist during train acceleration and recover energy during braking to reduce energy consumption. In the defense sector, it can supply stable power for military equipment such as radar and communications systems, ensuring operation in complex environments, and deliver high power for energy-intensive weapons as a backup power source for military bases during grid failures or attacks, enhancing the power security and survivability of the base.

(2) Molten Salt Thermal Storage

The molten salt thermal storage industry has emerged due to the growing demand for energy storage and an increased focus on renewable energy utilization. The technology operates on the phase change properties of mixed salts like sodium nitrate and potassium nitrate, which absorb heat and melt into liquid at high temperatures, storing heat as latent energy, and releasing heat upon solidification for thermal energy utilization. In market applications, this technology is particularly prevalent in solar thermal power generation, where concentrated solar power plants convert solar energy into thermal energy to heat the salt medium, storing heat for electricity generation during periods of insufficient sunlight, thus enhancing reliability and flexibility. In industrial waste heat recovery, it can capture residual heat from industries such as steel, providing heat for industrial production to improve energy efficiency, reduce costs, and minimize thermal pollution. In district heating, it can store heat during low-demand periods at thermal power plants and release it during peak periods to meet user heating needs, balancing loads, and enhancing heating stability and economic viability.

(3) Compressed Air Energy Storage

Compressed air energy storage is a technique that compresses air using electrical energy during periods of low demand and stores it for later use during peak demand to drive turbines for electricity generation. This system comprises several essential subsystems, including the compression subsystem, gas storage subsystem, heat storage/cooling subsystem, and expansion turbine subsystem. Key equipment within the system includes compressors, heat exchangers, and expanders, which play critical roles in the stable operation and energy conversion processes of the system.

The compressed air energy storage technology is primarily categorized into traditional and new technological pathways. The latter includes various forms such as adiabatic compressed air energy storage, thermal compressed air energy storage, isothermal compressed air energy storage, liquid air energy storage, supercritical compressed air energy storage, and advanced compressed air energy storage.

Currently, the compressed air energy storage industry is in its early stages of industrialization. Despite being a clean and efficient storage technology with vast development potential, it faces several challenges. First, the technology is not yet fully mature, leading to potential instability in actual applications, including frequent equipment failures, unstable system operations, and fluctuations in energy conversion efficiency, all of which can impact the reliability and safety of the storage system. Second, the construction and operating costs of compressed air energy storage systems are relatively high, encompassing gas storage facilities, compression and release systems, and thermal management systems, which can hinder widespread adoption and commercialization. As technology matures and innovations emerge, coupled with national supportive policies for the energy storage sector, there is significant growth potential for compressed air energy storage.

The report titled “2025-2031 New Energy Storage Industry Segmentation Market Analysis and Investment Outlook” covers the global and Chinese development landscape, supply-demand data, market size, industry policies/plans, relevant technologies, competitive landscape, upstream raw material conditions, downstream primary application market demand scale and prospects, regional structure, market concentration, key enterprises/players, market share, industry characteristics, driving factors, market outlook forecasts, investment strategies, key barriers, and related risks.

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