Battery Energy Storage Market Size & Share, by Battery Type (Lithium-Ion Battery, Lead-Acid Battery, Flow Battery); Connection (On Grid, Off Grid); Application (Commercial, Residential, Utility) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3048
  • Published Date: Aug 29, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

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.


Battery Energy Storage Market
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Battery Energy Storage Sector: Growth Drivers and Challenges

Growth Drivers

  • Reduced Emissions - Battery energy storage systems contribute to reduced greenhouse gas emissions by enabling greater integration of renewable energy sources and reducing the need for fossil fuel-based peaking power plants. To meet the goal of reducing greenhouse gas emissions by 55% by 2030, batteries are the fastest-growing storage technology.
  • Government Policies - Many governments around the world are implementing policies and incentives to promote the transition to clean energy sources and reduce greenhouse gas emissions. Battery energy storage is often a key component of these initiatives, further driving market growth
  • Technological Advancements- The developments in battery technology are leading to improvements in energy density, cycle life, security, and cost-effectiveness. As batteries become more efficient and affordable, adopting energy storage systems is likely to accelerate the market for battery energy storage. In research conducted by our analysts, over the next five years, capacity for energy storage worldwide is expected to grow by 55 % and reach 260 GW in 2026.

Challenges

  • High Cost of Integration -Battery energy storage systems can be expensive to install, with the cost of batteries being a significant portion of the overall system cost. While costs have been decreasing over the years, further reductions are needed to make these systems more economically viable, especially for large-scale applications
  • Limited Energy Density
  • Lack of Standardization

Battery Energy Storage Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 28%

Base Year Market Size (2022)

~ USD  11 Billion

Forecast Year Market Size (2035)

~ USD 212.8 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Battery Energy Storage Segmentation

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:

   Battery Type

  • Lithium-Ion Battery
  •  Lead-Acid Battery
  •  Flow Battery

   Connection

  • On Grid
  •  Off Grid

   Application

  • Commercial
  •  Residential
  •  Utility

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Battery Energy Storage Industry - Regional Synopsis

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.

Research Nester
Battery Energy Storage Market Size
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Companies Dominating the Battery Energy Storage Landscape

top-features-companies
    • ABB
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Delta Electronics, Inc
    • Hitachi, Ltd
    • General Electric
    • SAMSUNG SDI CO., LTD.
    •  Siemens
    • Panasonic Holdings Corporation
    • NEC Corporation 
    •  AEG Power Solutions
    • Toshiba International Corporation 

In-the-news

In The News

  • Delta introduces a portable skid-mounted energy storage system on Industrial and Commercial premises, as well as EV recharging stations
  • The next generation of the mesh (1) portfolio of energy storage and digital automation solutions was launched by Hitachi Energy.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3048
  • Published Date: Aug 29, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing investments in solar and wind power, supportive government policies, and technological advancements are some of the factors responsible for market growth.

The market size of ABC is anticipated to attain a CAGR of 28% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Delta Electronics, Inc, Hitachi, Ltd, General Electric, SAMSUNG SDI CO., LTD., Siemens, Panasonic Holdings Corporation, AEG Power Solutions, and others.

The Utility -segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Battery Energy Storage Market Report Scope
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