Market Databases and Segmentation

The market forecasts were founded on a consensus of several market studies undertaken by several nationally recognized market research organizations, combined with a bottom-up proprietary database. As a critical component of this project, M-WERC has developed a comprehensive global database of ESS projects, across all market segments and technologies considered here. The M-WERC Energy Storage Database tracks real-world projects that form the basis of the market values and projections included in this report. It is recommended that the M-WERC Energy Storage Database be updated quarterly to support ongoing market conditions; current project information; and identification of key growth areas, critical technologies, and market trends. M-WERC has also developed an industry/community database that tracks companies and other industry stakeholders and retains contact information.

The market segmentation that was developed along with this database mirrors the common segments used by most industry communities and documented by the US Department of Energy (DOE) and other leading experts. This segmentation generally describes technologies and applications in terms of where on the electric power system they are connected and perform their value-added functions. Key market segments include Bulk Generation, Transmission, Distribution, Industrial/Large Commercial, and Small Commercial/Residential. As of 2013, the Bulk Generation segment comprised 77% of the total ESS market, founded on a large global market for PHS. But other segments will gain significantly over the coming years: the Bulk Generation segment will fall to 45% of the total by 2025, while the Distribution, Industrial/Large Commercial, and Small Commercial/Residential segments will gain significantly by 2025.