The U.S. market for energy-storage-management systems—software suites designed to increase the operating efficiency and overall value of energy storage—will grow tenfold between 2014 and 2019, reaching $136 million, GTM Research says in its latest report, “Energy Storage Management Systems 2015-2019: Applications, Players and Forecast.”
The market is intrinsically tied to energy-storage deployments, which GTM Research and the Energy Storage Association recently forecasted will reach 860 megawatts in 2019.
“As energy storage proliferates, many users—especially non-utility users—are learning that they can’t just put batteries and power-control systems together to create value,” report author James Belcher writes.
Originally designed to monitor the health and safety of energy-storage deployments, storage-management systems are being expanded to include optimization and economic gain.
“The real value in energy-storage-management systems,” Belcher writes, “lies in achieving peak performance on a given application—and in using them for the most valuable available application at any given time. The algorithms that determine in real time what a battery is used for are the key to unlocking that value.”
As these applications become more complex and widespread, there are opportunities for intelligent software to be used not just in managing energy-storage systems, but effectively communicating with the grid and following grid signals in real time, Senior Energy Storage Analyst Ravi Manghani notes. He describes the result as a “system of systems” in which energy storage is an extension of the grid and interfaces with it seamlessly.
Behind-the-meter applications for energy-storage-management systems include demand-charge reduction, energy arbitrage, peak shaving, and use in microgrids. Front-of-meter applications such as time-shift, capacity, ancillary services, upgrade deferral, and power-quality management require the use of energy-storage-management systems.
Although the market opportunity for energy-storage-management systems is substantial, “The expertise required to compete is high, and players will need to add to that expertise and evolve as the market does,” Belcher writes.
Manghani adds: “The vendor ecosystem consists of a few pure-play software-centric companies, but the majority are power electronic vendors and system integrators.”
The report identifies energy-storage-management-system market drivers and barriers, details the vendor landscape, provides case studies, and forecasts sales on both sides of the meter.
For more on the report, click here.