According to the report, Energy Storage Enabling Technologies, global installed ESET revenue will grow from $605.8 million in 2015 to $21.5 billion in 2024.

Broadly speaking, the three main components of the ESET value chain are hardware, software, and services, which together ensure the intelligence, durability, and profitability of energy storage systems (ESSs). The distribution of the market among the three ESET segments will be skewed toward systems integration.

Systems integration services are expected to be the highest value piece of the ESET market, according to the report. Since this segment requires labor, labor prices are expected to buoy this portion of the market, and it is expected systems integration services will become more sophisticated as the market grows and customers become more perceptive, expecting more functionality from ESSs.

The grid-tied energy storage market is poised to take off, however, pricing remains inconsistent and economies of scale have yet to translate into accessible system costs for the end user. ESSs consist of a core storage technology as well as power conversion systems, software, and controls, and in addition to the hardware and software in an ESS, systems integration expertise is required to deliver a fully intelligent, bankable system to the customer.

—Anissa Dehamna, principal research analyst with Navigant Research