With a dramatic increase in demand for electric cars and solar power, the demand for battery storage in 22 years could cost over a trillion dollars worldwide.
Bloomberg New Energy Finance has revealed new figures showing that the global energy storage market will grow to 942 gigawatts by 2040.
That is twice the US energy consumption for the whole of 2008.
Providing infrastructure to meet this demand will cost $ 1.2 trillion globally by 2040, the report warns.
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Elon Musk's 100 megawatt lithium-ion battery (129MWh) near Jamestown, in the central north of South Australia.
According to the long-term energy storage outlook, the capital cost of a supply-based lithium-ion storage system will decrease by a further 52 percent by 2030, according to Bloomberg's detailed report.
This will change the economic value of batteries in both the vehicle and electricity sectors.
Low battery costs mean that renewable energy sources – especially solar and wind power – can operate the networks even when there is no breeze or overnight.
Governments around the world are also driving demand for electric cars and solar.
Yayoi Sekine, a New York-based analyst at BNEF and co-author of the report, said in an interview that costs had fallen faster than expected.
"Batteries will pervade our lives," she said.
Bloomberg New Energy Finance showed new figures showing that the global energy storage market will grow
Decreasing battery costs are a major driver of the boom, helping to bring climate change across industries and technologies
Despite the ever-increasing demand for batteries, even in the face of limited supply, the price has continued to fall in the last 20 years.
This is mainly because a growing battery manufacturing industry has achieved significant economies of scale and technological advances that cut costs.
The report predicts that the low cost of batteries will help bring together several industries and technologies to combat climate change.
Solar energy used to be just one source of energy per day until recently, but now batteries can store energy released by the sun.
A key player in the boom will be China, which is building its battery production capacity.
California has also passed legislation requiring all state power to come from non-carbon sources by 2045.
Edward Fenster, CEO of San Solar Corporation Sunrun Inc. "Storage is simply the most sensible next step in the development of renewable energy." need storage space.
KEY TAKEAWAYS FROM THE BNEF REPORT
It is predicted that annual energy storage implementations will exceed 50 gigawatt hours by 2020.
Energy storage can account for seven percent of the world's total installed capacity by 2040.
In the Asia-Pacific region, by 2040, 45 percent of total assets will be based on megawatts.
Another 29 percent will be distributed to Europe, the Middle East and Africa. The rest will be in America.
Most of the storage capacity will be available by the mid-2030s
A list of the leading battery countries is cited by China, the US, India, Japan, Germany, France, Australia, South Korea and South Korea. Today, South Korea dominates the market.
Storage also occurs in developing countries in Africa. BNEF explains that utility companies will probably recognize that the combination of solar, diesel and batteries in remote areas is cheaper than upgrading the power grid or building an all-fossil generator.