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The advanced energy storage systems market is projected to reach $19.04 Billion by 2022, at a CAGR of 8.38%, from 2017 to 2022.
The increasing renewable energy investments, reducing costs lithium-ion battery, and electrification of the transportation sector are the major drivers of the advanced energy storage systems market. High capital requirement for some of the technologies, hazardous environmental impact of batteries, and lack of common codes and standards in the energy storage industry could hinder the growth of the AESS market.
The lithium-ion battery sub-segment, within the technology segment, is likely to grow at the highest CAGR, during 2017 to 2022. It led the electro chemical technology segment sector within the advanced energy storage systems market in 2016 and is projected to dominate the market during the forecast period.
This market is expected to grow in the future as a result of rapid growth in the electric vehicles market coupled with the falling cost of these batteries. Furthermore, technological advancements and the rapid involvement of domestic manufacturers to cater to the varied applications demand for lithium-ion batteries are some of the reasons behind the segment's strong hold in the market.
The market in Asia Pacific is currently the largest market for advanced energy storage systems, followed by North America. The market in Asia Pacific is primarily driven by China and Japan. China has a major share in the world's electric vehicle market, which makes it a key market for lithium-ion batteries.