The Grid-Scale Battery Market is valued at USD 2093.9 Million in 2021 and is expected to reach USD 15092.5 Million by 2028 with a CAGR of 32.6% over the forecast.
Global Grid-Scale Battery Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2028- 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.
Grid-scale battery demand is boosted by factors such as increasing ESS demand from grid-scale battery market utilities. Utilities are constantly diversifying their energy production portfolio as demand for electricity from renewable sources continues to grow. Energy reserves balance the demand for electricity during on peak and off-peak periods. Energy storage technology can use occasional renewable energy sources, such as solar and wind energy, to generate electricity, which can then be stored and used. This can help utilities save money and reduce their carbon footprint. The integration of the Internet of Things (IoT) with energy-saving technology enables utilities to understand their energy usage. Utilities can use data generated from IoT devices for their strategic planning, demand forecasting, and load balancing. Energy storage during power outages and another unexpected grid downtime can help provide backup power. Therefore, the demand for ESS from utilities has increased rapidly.
All electrical and electronics companies suffered serious losses during the pandemic. The proliferation of Covid-19 has affected and continues to affect the passive electronic component industry, reducing the level of operations among key components of the supply chain and plant suppliers producing raw materials, and declining global sales in various countries and regions. As a result, many market suppliers have revised their global revenue and volume shipment estimates. The pandemic of Covid-19 has hampered the expansion of the grid-scale battery market as it has damaged supply chains for the region as the largest sellers in the battery market are in Asia-Pacific. China is the largest producer and supplier of these components. This had a bad effect on the market growth for some time. But since the Covid-19 crisis eased in mid-2021, players have been working hard to get back to normal.
The global grid-scale battery market is segmented based on type, application, and geography. Based on type, the market is segmented into lithium-ion, lead acid, flow battery, and sodium-based. Based on application, the market is segmented into frequency regulation, peak shaving, bill management, load shifting, renewable integration, and others.
Some of the major players in the global grid-scale battery market report are
On May 18th, 2022; Danish-owned Danfoss India recently opened India’s first privately owned and operated grid-scale battery based energy storage system at its Oragadam campus in Chennai to store the access energy generated by renewables (solar power plat) installed inside the campus.
On May 18th, 2021; Converge Energy Solutions Services Ltd (CESL), the newest energy solutions company launched under the aegis of state-owned EESL, will launch the country’s first grid-scale battery storage program. The company, which has executed projects in electric mobility and LEDs in rural areas, will also expand in solar-agri solutions, electric public transport and charging infrastructure.
To meet the growing energy demand and reduce carbon emissions, various governments are planning to increase their renewable energy capacity, which iso one of the major factors driving the demand for grid-scale batteries. Over the last several years, the use of electricity has increased tremendously, leading to several government campaigns in various countries, through which large-scale projects are being undertaken to generate electricity in a natural way in which grid-scale batteries are being used extensively. For instance; on May 2nd, 2022, the US Department of Energy (DOE) today announced 3.1 billion in funding from President Biden's Bilateral Infrastructure Act to build more batteries and components in the United States, expand the domestic supply chain, create better-paying jobs, and help reduce costs. For families. The investment in infrastructure will help create new, retrofitted, and expanded commercial facilities as well as product demonstrations and battery recycling. In July 2021, the US Senate passed the USD 550 billion Clean Energy Investment Bill, which the White House named a ""one-generation investment"" to dramatically improve the U.S. clean energy landscape.
Population growth has also led to a significant increase in energy demand, and this growth is also benefiting the grid-scale batteries market. To complete the growing increasing demand for energy, various countries' governments and private industries have focused on establishing renewable energy sources for energy generation. As a result, Grid-scale batteries are becoming more and more widely used, leading to more growth in the market. For instance; according to the National Energy Administration, 2021 saw a steady increase in renewable energy capacity in China. In 2021, China generated 2.48 trillion kWh of electricity from renewable energy sources, accounting for 29.8 percent of the country's total electricity consumption. In 2021, renewable energy sources accounted for about 12.2% of total US consumption and about 20.1% of power generation. India's installed renewable energy capacity in 2021 has increased by 286% in the last 7.5 years and is more than 151.4 gigawatts (including large hydro), which is about 39% of the total capacity of the country (till 31st December 2021).
However, harmful environmental impacts and high capital investment may hinder market growth. In spite of that, reducing costs of grid-scale batteries owing to technological advancements and expanded deployment will create more opportunities for the further growth of the market.
The market in the Asia Pacific is projected to see significant growth and will gather the largest share within the forecast period against the backdrop of rising electricity demand and rapid urbanization in the region. For instance; India and China are expected to add 416 million and 255 million urban dwellers, respectively, according to the United Nations Department of Economic and Social Affairs. In addition, expanding grid capacity of developing nations and deploying renewable energy for energy generation is also expected to accelerate market growth in the region. For instance; India and Germany have recently signed a number of agreements focusing on sustainable development, which will enable India to provide. 10.5 billion in aid by 2030 to boost the use of clean energy resources. India has set an ambitious target of 175 GW of renewable energy capacity by the end of 2022, which will be expanded to 500 GW by the upcoming 7 to 8 years. The largest expansion plan in the world is in renewable energy. India's installed renewable energy capacity has increased by 286% in the last 7.5 years, exceeding 151.4 gigawatts (including large hydro), which is about 39 percent of the country's total capacity (as of 31 December 2021).
Furthermore, the ever-growing population and their electricity demand have a positive impact on the growth of the grid-scale battery market. In 2021, China generated 2.48 trillion kWh of electricity from renewable energy sources, accounting for 29.8 percent of the country's total electricity consumption. Thus, increasing demand for electricity and rapid urbanization, and rapidly growing green energy production in the region, drive the growth of the grid-scale battery market.
Following in the footsteps of Asia-Pacific, North America has a large share of revenue in the grid-scale battery storage technology market. Development of market space for grid-scale batteries from the first round of pilot projects and compliance with new federal and state-level regulations on auxiliary service and storage requirements are some of the major factors driving the market growth in this region. The North American grid-scale battery market will be driven by a new confidence in locally-based NaS products, the addition of renewable energy over the years, and smart grid investments.
Middle East and Africa
|2018 - 2021
|2021 - 2028
|Market Size in 2021:
|USD 2093.9 Million
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2028:
|USD 15092.5 Million
|Tables, Charts & Figures:
|Grid-Scale Battery Companies
|ABB Ltd., BYD Co. Ltd., NGK Insulators Ltd., General Electric Co., LG Electronics Inc., Contemporary Amperex Technology Co. Ltd., Samsung SDI Co. Ltd., SolarEdge Technologies Inc., Sumitomo Electric Industries Ltd., and Tesla Inc. and others.
|By Type, 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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