"Actionable Insights to Fuel Your Growth"
The global battery energy storage market size was USD 10.88 billion in 2022 and is projected to reach USD 31.20 billion by 2029, exhibiting a CAGR of 16.3% during the forecast period. Factors such as renewable integration, grid stability & government policies to boost battery energy storage market growth.
Based on our analysis, the global market exhibited a growth of about 33.6% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with battery energy storage systems experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. In 2021, the global battery energy storage market was valued USD 9.21 billion.
Energy is a quintessential need needed to lead day-to-day activities across private, commercial, industrial, and numerous different verticals. Different organizations and countries are constantly endeavoring to secure agreements with innovation system stakeholders with the quickly expanding electricity demand in different sectors. Moreover, continually rising unsafe ozone-harming greenhouse gas (GHG) discharges have forced organizations to take on low carbon emission frameworks while generating energy. Subsequently, one such facet significantly creating innovation is Battery Energy Storage Systems (BESS) that use different battery chemistries to store energy to serve extreme demand.
Stoppage in Supply Chains amid COVID-19 Pandemic to Hamper Market Growth
The abrupt outbreak of COVID-19, or coronavirus disease, has affected different countries across the globe. A worldwide crisis, such as the COVID-19 pandemic, has altogether impacted other business and modern tasks around the world. The outcome of the pandemic has additionally left the economies of various fast-growing developing countries in unrest. Virtually all the nations across the world have noticed a surge in the number of the impacted population since the start of 2020.
However, the national administrations have set significant targets to move the 'green wave' brought about by interferences of industrial processes leaning toward the industry landscape. Moreover, various state governments' supportive economic stimulus packages combined with industry players' persistent endeavors are set to boost the interest for BESS units. For example, in August 2020, ABB announced to combine efforts with Zenobē Energy Limited, a BESS producer, to give an advanced traction power solution for the U.K. railroads. The association plans to manufacture a 25 kilovolt (kV) rail traction power system framework to convey yield by converting power from batteries over to proceed with a continuous power supply to trains.
Request a Free sample to learn more about this report.
Investment in Designing and Manufacturing of BESS Devices to Play a Significant Role in Industry Dynamics
Various industry players are ceaselessly endeavoring to start new natural and inorganic extensions to boost their product acceptability across the globe. Likewise, various players are presenting new and advanced BESS units to keep up with the growth across the business. For example, in March 2021, Tesvolt, a German storage system manufacturer, launched a technologically advanced product line TS-I HV 80 battery, for the most part, created to shave load peaks and comply with the demand from business and modern clients.
Expanding Grid Infrastructure to Unlock New Opportunities for Market Growth
The exponential demand for energy resources across developing and developed countries, combined with expanding measures to guarantee energy security, is set to push the market growth. Furthermore, advancements in the rising integration of new power generation technologies and revamping existing foundations have increased the requirement for new grid systems with effective backup and peak load characteristics. For example, in June 2020, National Thermal Power Corporation (NTPC) Limited, an India-based free power maker (IPP), announced its arrangements to convey around 1 GWh BESS across the principal matrix scale age offices.
Paradigm Shift Toward Low Carbon Energy Generation to Increase BESS Demand
The shift toward low carbon energy generation to reduce greenhouse gases emission has propelled the growth of the market in different regions. Huge investments have been witnessed in various battery energy storage systems by nations to meet their green energy targets. The residential, non-residential, and utility sectors have deployed numerous systems for accumulating and transferring power generated, using concentrated solar power and wind energy. Energy storage can be achieved via various technologies, of which majorly used technologies are solid-state batteries, flow batteries, thermal energy storage systems, and pumped hydro storage.
Furthermore, growing initiatives by various organizations to set up new plants to establish large-scale storage infrastructures with low carbon discharges are also projected to add to the industry outlook. For instance, in March 2021, Pacific Green, a clean energy technology company operating across the globe, announced to initiate an exclusive agreement with an infrastructure project developer TUPA Energy to establish a battery energy storage system with a capacity of 1.1 GW in the U.K. as part of the TUPA agreement. The company also acquired the rights to 100MW of BESS in Kent, U.K. and plans to conclude the remaining 1,000MW by 2023.
Rising Peak Energy Demand and Favorable Policy Framework to Augment Market Size
The increasing population across the world, coupled with growing initiatives to boost rural electrification, has increased the peak energy demand. Besides, the increased rate of urbanization and the introduction of infrastructure projects have increased the power supply-demand from utilities.
For example, as per the Italian transmission system operator (TSO) Terna S.p.A., the total peak load in the country reached a maximum of about 55.16 GW during the year 2020. The company further stated that the lowest value of the national peak load was around 37.44 GW in the same year, observing a steep change of over 47.3% between the lowest and highest demands.
High Initial Investment May Hinder Market Pace
The primary factor that restrains the battery energy storage market growth is the requirement of substantial capital investments. These systems are mainly deployed for large BESS plants to cater to the energy demand at peak loads. For instance, as per the Energy Sector Management Assistance Program (ESMAP), a particular unit administered by the World Bank reported that the total installed cost of various energy storage technologies can vary in a substantial range from just over USD 2,000 per kW and growing up to around USD 3,300 kW, impacting the initial capital expenditures. However, the continuous research and development activities to improve the performance features of the batteries while decreasing the capital required for new systems are likely to counterbalance the market growth during the forecast period.
To know how our report can help streamline your business, Speak to Analyst
Lithium-ion Battery Segment to Dominate Market
Based on type, the market is categorized into lithium-ion battery, lead-acid battery, flow battery, and others. The lithium-ion battery segment is projected to lead the industry and is anticipated to hold a significant portion of the global market during the forecast period. Increasing deployment of new large-capacity grid infrastructure, along with continuous advancements in Li-ion BESS products, will drive the segment growth. Demand for lead-acid batteries will be fostered by the transportation sector slated to grow exponentially at the end of 2029 due to increasing hybridization of vehicle fleets and their safe & reliable operations in rechargeable systems. Furthermore, various companies are investing in expanding operational capabilities of different types, such as vanadium redox (VRB) flow batteries, to cater to the increasing need across numerous applications.
On-grid Segment Size to Underpin Substantial Growth
The market is bifurcated into off-grid and on-grid based on connectivity. Continuous launch of BESS expansion projects by various large and small scale utility companies is set to favor the on-grid BESS market size. The growing setup of vast electricity networks by public and private utility companies and increasing investments to revolutionize the grid infrastructure are set to favor the segment scenario.
Utility Segment is Backed by Growing Grid Expansion Plans and Large Power Generation Facilities
By application, the market is segmented into residential, non-residential, utility, and others. Clear directives to boost the integration of storage devices across solar power technologies coupled with rapidly expanding residential solar power installation are set to favor the residential segment size.
The utility segment is projected to account for the leading share in the industry due to increasing electrification initiatives to power distant and remote locations. Further, the non-residential segment is anticipated to grow steadily due to the setup of new advanced commercial & industrial infrastructures coupled with increasing demand for energy security across the verticals.
Customer Owned industry to Observe Significant Growth over the Forecast Period
The market is trifurcated into customer-owned, third-party-owned, and utility-owned based on ownership. The presence of different solutions providers & manufacturers of compact & small renewable energy systems in the region is expected to favor the customer-owned segment to rise.
The utility-owned segment held the largest battery energy storage market share in the global market in 2021. The rise in investment from the government & non-government utility companies will propel the demand for utility-owned BESS units in the coming years. Furthermore, the third-party-owned segment growth is backed by continuous partnerships by different players to establish BESS networks, especially across low-income areas.
Based on capacity, the market is predominantly bifurcated into small scale (less than 1 MW) and large scale (greater than 1 MW). The large scale segment is projected to hold the major share of the market, owing to significant usage of advanced technologies to simulate the operational capabilities of the grid networks mandated by regional regulatory policies.
Asia Pacific Battery Energy Storage Market Size, 2021 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market is analyzed geographically across four main regions, Europe, North America, Asia Pacific, and the Rest of the World. The Asia Pacific market size was estimated at USD 4.16 billion in 2021 and is projected to account for the major share in terms of value and volume. The exponential increase in industrialization & urbanization, new electrification targets, renewable energy generation capacity and the presence of various industry players are some of the drivers supporting the regional outlook.
Furthermore, the North America market is projected to observe significant growth over the forecast period. The availability of favorable government policies, tax benefits for renewable deployment, and growing investments by public and private companies are some of the critical features promoting the expansion of regional market size. For instance, in September 2019, the Senate Energy and Natural Resources Committee presented an amended draft of the Better Energy Storage Technology (BEST) Act to propel research on long-duration BESS units, among other features. The legislation is a combination of various bills, including the Expanding Access to Sustainable Energy Act of 2019, Promoting Grid Storage Act of 2019, the Joint Long-Term Storage Act of 2019, and the Reducing the Cost of Energy Storage Act of 2019 to deliver a comprehensive framework for BESS facilities.
The Europe battery energy storage market size is favored by significant installation of different power generation technologies along with encouraging government and organizational policy frameworks to deploy green energy solutions in different areas. The region is also supported by increasing investments and plans to expand and fortify the grid infrastructure networks and energy security policies stimulating demand for BESS devices.
ABB Focus on Acquiring New Contracts through its Subsidiaries to Fortify its Position in Industry
The global market has observed a significant number of players delivering a wide range of products & solutions to bolster their position. The industry has also experienced steady involvement of key global and regional players along with several small & medium scale system integrators.
ABB, a Swedish company, is gearing to convey its solid BESS products & solutions portfolio for various energy generating plants across the globe. For example, in May 2021, the organization's joint endeavor association, Hitachi ABB Power Grids, pronounced a savvy modern park in Thailand with its imaginative BESS units and controls innovation.
Additionally, Samsung SDI, Total, LG Chem, and GE are among the leading players delivering numerous types of advanced energy storage battery systems & solutions. These participants are also concentrating on R&D activities to extend their product reach across different applications and grasp new contracts with large-capacity projects.
An Infographic Representation of Battery Energy Storage Market
To get information on various segments, share your queries with us
The research report offers a qualitative and quantitative in-depth analysis of the global industry. It further provides details on the adoption of BESS systems across several regions. The report provides a detailed competitive landscape by presenting information on key players and their strategies in the market. Information on trends, drivers, opportunities, threats, and market restraints can further help stakeholders gain valuable insights into the market.
Volume (MW) and Value (USD Billion)
By Type, By Connectivity, By Application, By Ownership, By Capacity, and By Region
According to latest report by Fortune Business Insights, the battery energy storage market size was valued USD 9.21 billion in 2021 and USD 9.21 billion in 2021 respectively. The market is projected to grow worth USD 31.20 billion by 2029, at CAGR of 16.3% during 2023-2029 forecast period.
In 2021, the market value of Asia Pacific stood at USD 4.16 billion.
Registering a CAGR of 16.3%, the market is projected to exhibit staggering growth during the forecast period (2022-2029).
The lithium-ion type segment is anticipated to hold the leading share in this market during the forecast period.
The paradigm shift toward low carbon energy generation and rising peak energy demand coupled with a favorable policy framework are some of the major factors driving the market growth.
Siemens Energy, ABB, Fluence, Total, Samsung SDI, and GE are some of the leaders in energy storage market.
Asia Pacific dominated the market in terms of share in 2021.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry