The Battery Storage Market is valued at USD 6.98 Billion in 2021 and is expected to reach USD 49.28 Billion by 2028 with a CAGR of 27.68% over the forecast.
Global Battery Storage Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2022-2028- The fall in the cost of battery technology and the growing need for grid stability, and the flexibility of integrating renewable energy into the power market are some of the major factors driving the market growth.
Battery energy storage systems are used in many power applications where they are used for their on- and off-grid flexibility. Some of the popular sectors that drive product development in the battery energy storage system market include frequency control, peak shaving, voltage control in renewable integration, and energy shifting. The increasing trend in the use of battery power storage devices for on- and off-grid transitions in the renewable sector is a major trend supporting the growth of the market. In recent years, a number of industry promoters have focused on reducing their dependence on renewables and accelerating the global adoption of renewable energy. They have expanded their partnerships with leading companies in solar energy production. As a result, given the cyclical nature of wind and solar energy, the role of battery energy storage systems is likely to become a variable. Wind and solar energy production have increased worldwide to meet green energy proposals. Increased use of wind and solar energy for commercial and residential applications has led to the installation of large battery energy storage systems.
The Covid-19 pandemic has disrupted the value chain of businesses, including the battery energy storage systems market. This has led to a new form of investment in robotics and digital channels. Businesses in industries are carefully evaluating current operational models to extract value from the globalized world. Thus, there is a new optimism to shift businesses to these models for profit in the post-epidemic world. The new normal is expected to maintain its relevance in the coming years. Global efforts by various industry stakeholders to adopt green energy have given impetus to development projects in the battery storage market.
The global battery storage market is segmented based on the storage system, battery type, connection type, ownership, energy capacity, application, and geography. Based on storage systems, the market is segmented into front-of-the-meter and behind-the-meter. Based on battery type, the market is segmented into lithium-ion batteries, advanced lead-acid batteries, flow batteries, and others. Based on connection, the market is segmented into on-grid, and off-grid. Based on energy capacity, the market is segmented into below 100 MWh, between 100 to 500 MWh, and above 500 MWh. Based on application, the market is segmented into residential, commercial, and utility.
Some of the major players the global battery storage market report covers are
On June 24th, 2021; Finnish nuclear power company Teollisuuden Voima (TVO) selected Hitachi ABB Power Grids for the provision and installation of what is claimed to be one of Europe’s largest battery energy storage projects.
On April 21st, 2021; Atlas Renewable Energy, a leading renewable energy company in the Americas, signed a Collaboration Agreement with Hitachi ABB Power Grids, to jointly develop and execute Battery Energy Storage Systems (BESS) at a utility scale level for Atlas’ renewable projects.
Governments around the world are rapidly launching battery energy storage systems such as, In March 2022, the Indonesian government-owned utility and battery maker launched the 5MW Battery Energy Storage System (BESS) pilot project as it seeks to move away from diesel-generated energy. In September 2021, the Government of India announced plans to install about 14 GWh grid-scale battery storage systems at the world's largest renewable energy park at Khawda in Gujarat, said Union Minister for Energy and New and Renewable Energy Raj Kumar Singh. In the Energyscape Conclave. And, in March 2017, ABB received an order for Denmark's first urban energy storage system. The company agreed to supply DONG Energy with a two-megawatt (MW) battery energy storage system (BESS). In August 2015, General Electric announced plans to supply a 30-MW battery power storage system to Kochela Energy Storage Partners (CESP), which in February 2015, to develop one of the largest battery storage plants in the western US, Hitachi America, Ltd., Hitachi, Ltd., and Demansys Energy, Inc. Thus, in the last few years, the governments of many countries have become more inclined toward energy products. As a result, a number of government projects are being launched, which are boosting the battery storage market.
Turning to low carbon power generation to reduce greenhouse gas emissions IS also supplementing the market growth in various sectors. Residential, non-residential, and utility sectors have deployed numerous systems to collect and transfer energy generated using centralized solar energy and wind energy. Energy storage can be achieved through a variety of technologies, the most commonly used of which are solid-state batteries, flow batteries, thermal energy storage systems, and pumice hydro storage. Furthermore, growing initiatives by various organizations to set up new plants to install large-scale storage infrastructures with low carbon discharges are ALSO expected to add to the industry outlook. For instance; in March 2021, Pacific Green, a worldwide clean energy technology company, disclosed the launch of a special agreement with infrastructure project developer TUPA. The company is based in Kent, U.K. BESS has also acquired 100MW rights here and plans to complete the remaining 1,000MV by 2023.
However, ever-changing characteristics of the products may hinder the growth of the battery storage market. The constant change in features and the introduction of new product lines by the manufacturers of battery energy storage systems increases the possibility of internal replacement. Lithium-ion batteries are expected to face stiff competition from other types of batteries such as flow batteries, sodium-sulfur batteries, and sodium-ion batteries.
The market for global battery storage has grown exponentially in the last few years. This is due to the scale economy led by a growing number of projects. The same trend is expected to continue for the foreseeable future, with the continued decline in the cost of energy storage batteries helping further.
On a geographic basis, North America is expected to dominate the global battery storage market The availability of favorable government policies, tax benefits for renewable deployments, and increasing investment by public and private companies are some of the key factors driving the expansion of the market in North America. For example; in September 2019, the Senate Energy and Natural Resources Committee introduced a revised draft of the Better Energy Storage Technology (BEST) Act, among other features, to facilitate research on long-term BESS units. This statement is a combination of various bills, including the extension of the Sustainable Energy Act of 2019, the promotion of the Grid Storage Act of 2019, and the reduction of the cost of energy storage in 2019 to provide a comprehensive plan and facilities for BESS. The Joint Long-Term Storage Act of 2019. Due to many such laws and the movement of players in the region, the market is gaining momentum.
Asia Pacific is the second-largest regional market to which China is a major contributor. Rapid population growth has increased the demand for electricity in developing economies. Grid operators are deploying battery energy storage systems to prevent power outages and increase grid flexibility over the next seven years. Also, increasing access to renewable energy is expected to further accelerate regional market growth, with increasing demand for distributed power generation in many Asia-Pacific countries. Additional renewable energy is stored in the battery system and then used for local power generation and grid power supply during peak demand. In addition, China, Japan, India, South Korea, Australia, and other countries in the Asia-Pacific region are experiencing rapid population growth and urbanization, leading to increase the demand for electricity.
Middle East and Africa
|2018 - 2021
|2021 - 2028
|Market Size in 2021:
|USD 6.98 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 49.28 Billion
|Tables, Charts & Figures:
|Battery Storage Companies
|ABB, LG Chem Ltd., Panasonic Corporation, Samsung SDI, BYD Company Limited, and Contemporary Amperex Technology Co. Limited, Exide Technologies, General Electric, Enersys, Nissan, AES Energy Storage, Hoppecke Batteries Inc., Tesla, and others.
|By Storage System, By Battery Type, By Connection Type, By Ownership, By Energy Capacity, By Application
|North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa
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