Battery Energy Storage System Market

Global Battery Energy Storage System Market Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2024-2030: The global battery energy storage system market is anticipated to expand due to the increasing need to store data on the cloud and Intensifying demand for solar power and wind energy in battery energy storage systems for the data center.

Global Battery Energy Storage System Market is valued at USD 6,748.5 Million in 2023 and it is expected to reach USD 22,581.7 Million by 2030 with a CAGR of 18.8% over the forecast period.

Battery energy storage systems (BESS) are a technology devised to store energy produced by renewable sources like solar and wind. This stored energy can be discharged during periods of high demand. Presently, lithium-ion batteries, which are widely employed in mobile phones and electric vehicles, are the dominant storage technology for large-scale installations. They play a critical role in helping electricity grids ensure a consistent and reliable supply of renewable energy. Battery storage technology is pivotal in enabling homes and businesses to be powered by clean energy, even during periods of low solar or wind activity. For instance, the United Kingdom boasts the world's largest installed capacity of offshore wind energy. The ability to capture and strategically utilize this energy can enhance the overall value of clean energy production, potentially reducing costs and increasing output. The UK government estimates that technologies like battery storage systems, which support the integration of more low-carbon power, heating, and transportation solutions, could lead to savings of up to US$48 billion for the UK energy system by 2050. Ultimately, this could result in reduced energy bills for consumers.

Several alternative technologies for battery storage are currently in the development phase. Among these innovations is compressed air energy storage (CAES), which is typically situated in large chambers where excess power is utilized to compress air for storage. When energy is required, the compressed air is released and directed through an air turbine to produce electricity. A mechanical gravity energy storage system involves using energy to raise concrete blocks within a tower. When energy is needed, these concrete blocks are lowered, harnessing the force of gravity to generate electricity.

The COVID-19 pandemic had both short-term and long-term negative impacts on the global battery energy storage system (BESS) market because the global supply chain was severely disrupted due to lockdowns, travel restrictions, and factory closures. This affected the production and availability of components and materials required for battery manufacturing and BESS installation. Many BESS projects faced delays in construction and commissioning due to labour shortages, logistical challenges, and restrictions on movement. This resulted in postponed deployments and revenue losses for BESS providers.

Around the world, governments and utility companies are actively transitioning to cleaner and more sustainable energy sources as a part of their strategies to reduce greenhouse gas emissions. Battery energy storage systems (BESS) are instrumental in supporting and expediting this shift by enabling the smooth incorporation of renewable energy sources and reducing reliance on fossil fuels. As per the United States Environmental Protection Agency (EPA), the EPA has recently unveiled funding opportunities for various initiatives, including the US$14 billion national clean investment fund, the US$ 6 billion clean communities' investment accelerator, and the US$ 7 billion solar for all competition. Renewable energy sources like solar and wind often generate surplus energy during periods of high production, such as sunny days or windy nights. BESS captures and stores this excess energy for later use, ensuring that renewable energy is not wasted and is available when needed. BESS can provide various grid support services, such as frequency regulation and voltage control, which are crucial for maintaining grid stability when integrating intermittent renewables. Therefore, rising government investment is boosting the growth of battery energy storage systems (BESS) market share.

Excessive adoption of the battery energy storage systems (BESS) market has led many businesses to invest millions of dollars in the market. Tesla, Inc., LG Chem, Samsung SDI, Fluence, BYD Company, ABB, Enphase Energy, AES Energy Storage, Siemens Energy, Schneider Electric, and many other businesses are contributing to expanding their roots in this sector by executing organic strategies. For example, in April 2021, Atlas renewable energy, a leading renewable energy company in the Americas, announced that it has signed a collaboration agreement with Hitachi ABB Power Grids to jointly develop and BESS at a utility scale level for Atlas’ renewable ventures. As well, India's government has accepted a tender scheme to support the development and construction of BESS assets. All these business strategies are increasing the global sales of the Battery Energy Storage System (BESS) market.

Asia Pacific has accounted for almost 47.1% of the market share for battery energy storage System (BESS). This is due to several innovations and recent developments happening in the region. As well, renewable energy sources like solar and wind often generate surplus energy during periods of high production. North America is the fastest-growing region, with a CAGR of 24.3%.

According to BrandEssence Analyst, "Huge investments by various businesses and participation in BESS are generating lucrative opportunities for the Battery Energy Storage System (BESS) market worldwide and are projected to reach US$ 130.0 Billion in 2029.

Key Players of Global Battery Energy Storage System Market:

The global battery energy storage system market includes key players such as Tesla, Inc., LG Chem, Samsung SDI, Fluence (Siemens and AES joint venture), BYD Company, ABB, AES Energy Storage, Siemens Energy, Schneider Electric, Orison, Eaton, Panasonic Corporation, LG Energy Solution, Greensmith Energy (Wärtsilä Energy), Doosan GridTech, Exide Technologies, Saft and others.

Rapid Development In Battery Storage Systems Boosts Market Growth

The battery energy storage system (BESS) market is rapidly advancing due to ambitious renewable energy goals, increased deployment of renewables, and the need for grid stability. BESS is crucial for storing excess renewable energy and maintaining grid balance.

Furthermore, Europe's dedication to promoting clean energy and sustainability is driving a growing need for Battery Energy Storage Systems (BESS) during the evaluation period. For example, according to projections from the European Association of Energy Storage (EASE), Europe is expected to require approximately 187 gigawatts (GW) of energy storage capacity by 2030. Among this capacity, battery storage is anticipated to make a significant contribution, accounting for around 122 GW. This highlights the rapid advancements in countries like Germany, where battery storage solutions are being swiftly implemented to enhance energy security and address the challenges posed by the energy crisis resulting from the Russia-Ukraine conflict.

Furthermore, on 18^th September 2023, the Department of Defense announced a substantial commitment, allocating US$ 30 million over a span of three years to The University of Texas at Dallas. This investment aims to foster the development and commercialization of innovative battery technologies and manufacturing procedures. Additionally, it seeks to bolster the accessibility of vital raw materials domestically and facilitate the training of skilled personnel to meet the growing demand in the expanding battery energy storage workforce.

Additionally, this initiative not only promotes innovation in the field but also strengthens the domestic supply chain and human capital development, aligning with the broader goals of enhancing energy security and sustainability. It highlights the critical role of research and education in shaping the future of battery energy storage systems market.

Segmentation of Battery Energy Storage System Market:

By Battery Type:

• Lithium-Ion Batteries
• Lead-Acid Batteries
• Flow Batteries
• Sodium-Ion Batteries
• Others (e.g., Nickel-Cadmium, Redox Flow, others)

ByStorage Capacity:

• Large-Scale (Above 100 MWh)
• Medium-Scale (10 to 100 MWh)
• Small-Scale (<10 MWh)

By Ownership:

• Enterprise
• Utility-Owned
• Third-Party Owned

By Integration:

• On-Premises
• Off-Premises

By Regional & Country Level:

• North America
  • S.
  • Canada
• Europe
  • K.
  • France
  • Germany
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • GCC
  • Africa
  • Rest of Middle East and Africa