The superconducting magnetic energy storage (SMES) market, valued at USD 57.2 billion in 2023, is projected to grow to USD 100.1 billion by 2030, reflecting a compound annual growth rate (CAGR) of 8.4%.
This growth is driven by the increasing demand for continuous power supply, heightened investment in the utilities sector, and a growing emphasis on grid modernization.
As urbanization and population growth escalate the need for reliable energy, power storage solutions are becoming increasingly critical. Energy storage plays a pivotal role in meeting the rising energy demands across sectors, societies, and economies.
Key factors contributing to industry expansion include advancements in SMES technology, which offer higher efficiency, improved lifecycle, faster response times, lower maintenance needs, and greater power density compared to older technologies.
The electrification of the transportation sector also significantly boosts industry growth. Government subsidies aimed at reducing the environmental impact of fossil-fuel vehicles are accelerating the adoption of electric vehicles (EVs). Additionally, there is a growing public awareness of the importance of environmental sustainability.
In 2023, low-temperature SMES systems were the largest segment, commanding a 60% market share. This trend is expected to continue throughout the decade due to the superior safety and higher power density of low-temperature systems compared to high-temperature alternatives.
The power system application segment led the market and is anticipated to grow at an 8.6% CAGR. This growth is driven by the expansion of grid infrastructure to meet increasing electricity demands. SMES systems are integrated into critical facilities like data centers and medical centers to ensure reliable power during grid outages and emergencies.
In 2023, North America dominated the market with a 50% share, largely due to its advanced energy utility network, bolstered by significant investments in wind, hydro, and solar power. The U.S. is actively researching and developing enhanced SMES systems to address rising electricity needs, incorporate renewable energy sources, and stabilize the grid.
Asia-Pacific (APAC) is expected to experience the highest growth rate of 8.9% over the decade. This growth is fueled by increased availability of renewable resources, a booming electronics sector, rising power demand, and strong manufacturing capabilities in countries like China, India, Japan, and South Korea.
As investments in the utilities sector continue to rise, the superconducting magnetic energy storage industry is set for sustained growth in the coming years.
Source: P&S Intelligence
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