Battery Energy Storage Market size is poised to surpass USD 212.8 Billion by the end of 2035, growing at a CAGR of 28% during the forecast period, i.e., 2023- 2035. In the year 2022, the industry size of battery energy storage was over USD 11 Billion. Increasing investments in solar and wind power, creating intermittent energy generation patterns, and substantial transition towards low-carbon energy generation solutions will contribute to a substantial expansion of industry size. In 2022, global investment in battery storage was over USD 20 billion with most investments concentrated on grid-wide deployment, representing almost 65% of overall expenditure.
The growth of electric vehicles (EVs) has created a demand for charging infrastructure and battery energy storage solutions. Electric car sales have more than tripled in three years, from roughly 4% in 2020 to 14% in 2022. EV sales are predicted to remain strong through 2023. Over 2.3 million electric vehicles were sold in the first quarter, representing a 25% increase over the same period last year.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 28% |
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Base Year Market Size (2022) |
~ USD 11 Billion |
|
Forecast Year Market Size (2035) |
~ USD 212.8 Billion |
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Regional Scope |
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Battery Type (Lithium-Ion Battery, Lead-Acid Battery, Flow Battery)
Battery energy storage market from the lithium-ion battery is expected to lead the industry and account for a sizable percentage of 58% over the forecast period. The increasing deployment of new high-capacity grid infrastructure, as well as continual developments in Li-ion BESS devices, will fuel market expansion.
The primary benefit of Li-ion batteries is their high specific energy, which can reach up to 250 kWh/kg for commercially accessible products. Furthermore, multiple companies are investing in developing operational capabilities of various types, such as vanadium redox (VRB) flow batteries, to meet the growing demand across a wide range of applications.
Connection (On Grid, Off Grid)
The market is divided into On-Grid Connections and Off-Grid Connections based on the kind of connection. For the forecast period, the Off-Grid Connection category is anticipated to experience the greatest CAGR. The deployment of behind-the-meter units is on the rise, especially in developing nations, and this is one of the causes that can be linked to the segment's growth.
Application (Commercial, Residential, Utility)
Utility segment is anticipated to have the largest share of the battery energy storage market due to growing electrification attempts to power far-flung and isolated areas. The establishment of new cutting-edge commercial and industrial infrastructures as well as the rising demand for energy security across all verticals are further factors contributing to the expectation that the non-residential segment would expand gradually.
Our in-depth analysis of the global market includes the following segments:
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Battery Type |
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Connection |
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Application |
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APAC Market Forecast
The battery energy storage market in the Asia Pacific region is predicted to represent the largest market size of 38%. New electrification targets, the ability to produce renewable energy, the presence of numerous industry participants, and the exponential growth of industrialization and urbanization are some of the factors bolstering the region.
North American Market Statistics
The market in North America is anticipated to have considerable expansion, over the forecast period. Some of the key elements supporting the growth of the regional market size include the availability of supportive governmental policies, tax benefits for the deployment of renewable energy sources, and rising investments by public and private firms. Analysts predict continued EV market penetration in the US, which raises the demand for battery storage systems at EV charging stations. Prices have risen in line with this, with the cost of storage per kilowatt-hour rising from USD 1.5 billion in the first quarter of 2021 to USD 1.9 billion in 2022.
Author Credits: Payel Roy, Dhruv Bhatia
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