Frost & Sullivan: The Alternative Energy Storage Market Looks Forward to a Bright Future

LONDON - The need for storing energy along with the preference for cleaner storage
techniques opens the door to enormous opportunities for alternative energy
storage technologies in numerous end-user and almost all geographical markets
worldwide.

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Frost & Sullivan’s Programme Manager Malavika Tohani has no doubts:
“While most industries are stalling major projects and investments, the
alternative energy storage industry is embarking on a busy expansion spree.”
The lustre this industry promises is too bright to be eclipsed by meltdowns.
Investments in technologies such as flywheels and fuel cells are on the rise.
Additionally, venture capitalists and government agencies have shown great
interest in the potential of alternative energy storage.

The main purpose of alternative energy storage technology is to replace
conventional batteries and thus offer as many opportunities as the current
conventional battery market. In 2008, the traditional secondary battery
market was worth approximately US$30 billion globally, while alternative
energy storage solutions occupied less than 1% of this share. With the recent
boom in renewable energy, the need for cleaner storage technologies has
become more pressing than ever. The biggest challenge faced by the renewable
energy sector is the lack of efficient storage mechanisms; therefore the
alternative energy storage market is expected to grow substantially.

Coming into 2009, the limited availability of credit for investment into
the research and development of alternative energy storage solutions coupled
with falling oil and gas prices might inhibit the growth of this sector.
However, environmental concerns and energy security are expected to be major
drivers of the market, despite the economic downturn. Moreover, with
renewable energy generation such as wind or solar being intermittent in
nature, storage of energy helps balance the load during peak demand. It also
helps stabilize the transmission and distribution grid.

It is not just alternative storage that is showing promises. Energy
storage as a whole offers a strong growth potential. Increased demand for
hybrid and electric vehicles has stimulated growth in the lithium-ion battery
market. Frost & Sullivan estimates the electric and hybrid vehicle market to
reach US$2 billion by 2014, and the lithium-ion battery market is expected to
grow right along with it. In general, the renewable energy market seems
well-equipped to withstand the current recession.

Despite the potential and advantages that alternative energy storage
holds, it still has a long way to go before it becomes mainstream. Nowhere in
the near future can the industry produce clean storage solutions that are as
efficient, cost-effective, and advantageous as traditional batteries. Much
technological advancement needs to be made in order to have alternative
energy storage solutions that lack the negative features of batteries, yet do
not compromise any of the benefits. Another disadvantage is that alternative
energy storage solutions can not be universally used as batteries. The nature
of each technology limits its usage in specific applications and end-user
markets. Its potential lies in creating niche solutions for specialized
applications. This could be a major stumbling block for massive
popularization of green energy storage.

“What is interesting is not in the masses among which these technologies
do not take hold, but the niches where interest has mushroomed,” concludes
Malavika Tohani, who is a Power Supplies & Batteries expert at Frost &
Sullivan. “Owing to the vast potential this industry holds, manufacturers and
investors have their eyes focused on alternative energy storage solutions all
through the recession and beyond. This is where the future lies.”

If you are interested in receiving more information on this
market, then send an e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.
Upon receipt of the above information, a brochure will be sent to you by
e-mail.

GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate
Growth - GIL Global - into several major cities around the world including
London. For the first time ever in Europe, Frost & Sullivan will be hosting
the Growth, Innovation and Leadership Congress ‘GIL 2009: Europe’ on 19-20
May, at the Sofitel St James in London. GIL Global is the industry’s only
event designed to support senior executives in their efforts to achieve
sustainable, top-line growth. To register, obtain a programme agenda, explore
sponsorship opportunities, or attend as a member of the media for ‘GIL 2009:
Europe’, please contact Chiara Carella, Head of Corporate Communications for
Frost & Sullivan in Europe, at chiara.carella@frost.com. One-on-One
interviews with Frost & Sullivan senior growth consultants are also being
scheduled. For more information you can also visit www.frost.com/giluk

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Contact:
Chiara Carella
Corporate Communications - Europe
P: +44(0)20-7343-8314
M: +44(0)753-3017689
E: chiara.carella@frost.com

www.frost.com

Source: Frost & Sullivan

Chiara Carella, Corporate Communications - Europe, P: +44-20-7343-8314, M: +44-753-3017689, E: chiara.carella at frost.com