The global battery energy storage market is estimated to witness a robust CAGR over the forecast period, i.e., 2021–2029. The growth of the market can be attributed to the increasing modification in the traditional energy storage and distribution system, along with rapid adoption of smart grids around the world. The global investment in smart grid infrastructure, in the year 2019, accounted to more than USD 16.5 billion. Moreover, the various advantages of the battery energy storage systems, such as, peak shaving, load shifting, emergency backup, and renewable integration, are expected to drive the market growth. In addition to this, increasing adoption of renewable energy, especially solar and wind energy, among households, is estimated to boost the market growth as battery energy storage systems can store the energy generated by solar and wind power plants, and keep the supply uniform even in adverse climatic conditions.
The market is segmented by battery type into lithium-ion, lead-acid, flow battery, and others, out of which, the lithium-ion segment is anticipated to hold the major share in the market during the forecast period on account of its longest life, temperature tolerance, and safe and fast charging. On the basis of application, the market is segmented into commercial, residential, utility, and others, out of which, the utility segment is anticipated to witness notable revenue share in the market throughout the forecast period. This can be attributed to the need for constant and equal electric voltage in the electric grids for generation of electricity, which is achieved by installation of battery energy storage systems. Unequal or interrupted supply of electricity can cause damage to the equipment along with power outages.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years. CLICK TO DOWNLOAD SAMPLE REPORT
Regionally, the global battery energy storage market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America region is estimated to garner the largest share over the forecast period on the back of increasing adoption of renewable energy in residential as well as non-residential applications. Moreover, increasing commercialization of solar farms in the countries, such as, the U.S. and Canada, is estimated to drive the growth of the regional market. According to the data provided by the U.S. Energy Information Administration (EIA), there were more than 2,500 utility scale solar power plants in the U.S. in 2018. Furthermore, many major companies in the region are focusing on increasing the use of renewable energy, which is further expected to promote the market growth.
The market in the Asia Pacific region is anticipated to attain highest CAGR over the forecast period owing to the rising government initiatives to provide access to electricity in remote areas, backed by the economic and infrastructural development in the region. Countries, such as, Japan, India, China, and Singapore, are the fastest growing economies in the world, which is estimated to positively impact the battery energy storage market in the region.
The global battery energy storage market is further classified on the basis of region as follows:
Our in-depth analysis of the global battery energy storage market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Rising government initiatives to promote the use of renewable energy, and increasing modernization of electricity distribution system, are the major factors driving the market growth.
The market is anticipated to attain a robust CAGR over the forecast period, i.e., 2021-2029.
High cost of batteries and lack of proper management of supply-chain process in the power generation sector are some of the factors estimated to hamper the market growth.
The market in North America is estimated to garner the largest market share owing to the awareness among people on using renewable energy in the region.
The major players in the market are Hitachi, Ltd., The General Electric Company, Samsung SDI Co., Ltd., Siemens Aktiengesellschaft, Panasonic Corporation, ABB Ltd, NEC Energy Solutions, Inc., AEG Power Solutions Group, Toshiba International Corporation, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by battery type, connection, application, and by region.
The utility segment is anticipated to hold largest market share over the forecast period on the back of the need for stable and constant energy supply, which can be attained by using battery energy storage systems.
Select License Type
Direct access to analyst to help you understand the market in a better way to handle your critical question
Citing your business specific requirement our consultant would assist you ensuring targeted goal is achieved
Get 10% free customization