Grid Scale Battery Market size was over USD 6.61 Billion in 2023 and is set to reach USD 246.38 Billion by the end of 2036, witnessing around 32.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of grid scale battery is assessed at USD 8.52 Billion. The growth of the market can be attributed to the rising investment in renewable energy, and the low cost of grid scale batteries in the coming years. The scarcity of renewable energy sources across the world with the rising consumption of electricity with increasing population is anticipated to drive market growth. Electricity consumption across the world raised over 25,000 terawatt-hours in the year 2021. The growing number of electronic devices used around the world is also rising the growth of the market.
The increasing population, rapid industrialization, and growing urbanization are expected to drive market growth in the coming years. The market growth is also attributed to the increasing utilization of consumer electronics and rising internet penetration worldwide. The escalating industries globally that use a high amount of renewable sources for the operation of heavy machinery and equipment are also anticipated to have a positive impact on the market growth as per the market analysis. The increasing development in the industrial sector involves continuous utilization of manufacturing units that need regular electricity and power supply which increases the demand for electricity. More than 5 billion people worldwide are using the internet in the year 2023 i.e., equal to 65% of the global population.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
32.1% |
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Base Year Market Size (2023) |
USD 6.61 Billion |
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Forecast Year Market Size (2036) |
USD 246.38 Billion |
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Regional Scope |
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Type (Lithium-Ion, Lead Acid, Flow Battery, Sodium-Based)
The global grid scale battery market is segmented and analyzed for demand and supply by type into lithium-ion, lead acid, flow battery, and sodium-based. Out of these types, the lithium-ion segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the efficiency of the batteries to store energy for more than 30 minutes to 3 hours. Also, the high utilization of lithium-ion battery in various sectors is estimated to drive market growth. The replacement of cobalt with lithium-ion in batteries is also expected to propel market growth. The growth of the market is attributed to the increasing use of these batteries in many electronic devices and consumer electronics. Consumer electronics are increasing day by day with the rising disposable income of people across the world. More than 90% of U.S. respondents are using consumer electronics such as smartphones.
Application (Frequency Regulation, Peak Shaving, Bill Management, Load Shifting, Renewable Integration)
The global grid scale battery market is also segmented and analyzed for demand and supply by application into frequency regulation, peak shaving, bill management, load shifting, renewable integration, and others. Amongst these segments, the renewable integration segment is expected to garner a significant share. The rising importance of variable renewable energy (VRE) technologies owing to the reduced cost, policies that support the technology, and rising advancements are estimated to drive market growth. The integration of renewable energies can decrease the production of carbon and many air pollutants hence the growth of the market segment is estimated to rise during the forecast period. According to the estimations, the release of carbon dioxide from the electric power sector in the United States in the year 2021 was estimated to be more than 1500 million metric tons which is over 30% of the total carbon dioxide emissions in the U.S. The increasing electricity security and the decarbonization effect are the factors that are anticipated to propel market growth in the coming years.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Application |
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APAC Market Statistics
The Asia Pacific grid scale battery market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036. The growth of the market can be attributed majorly to the growing electricity demand, and rapid urbanization in the region. As per the United Nations Department of Economic and Social Affairs, it is projected that India and China will have added 416 million and 255 million urban dwellers respectively. In addition, expanding the grid capacity of developing nations, and increasing the deployment of renewables for energy generation is also expected to accelerate the market growth in the region in the coming years. The increasing number of sectors that require energy storage units with increasing consumption of power and electricity is estimated to drive market growth. The rising adoption of power backup in IT sectors and other software industries to prevent unwanted disturbance in the program is anticipated to drive the growth of the market in the coming years.
North American Market Forecast
Moreover, the market in North America is projected to grab a notable share by the end of 2030 owing to the growing focus of the government on utilizing renewable energy storage in residential, non-residential, and utility sectors in the region. The rising power plants in the region with increasing industries in the region are also anticipated to drive market growth in the coming years. The growth rate of industrial production in the United States increased by more than 0.6% in the year 2023.
Europe Market Forecast
On the other hand, Europe had set a goal of meeting approximately 21% of its renewable sources with sustainable power by 2020, so the sustainable energy market in Europe was anticipated to grow at a rapid pace in the following decade. Over the projected timeframe, the development of the renewable energy sector is projected to generate sales of grid-scale batteries in the region.
ABB Ltd. developed safety heights for sustainable battery power solutions with the tallest wooden skyscrapers. The electricity comes from renewable sources such as hydro and wind generation. The wooden structure will remove twice the emissions of carbon dioxide released during operation.
General Electric Company tripled the production capacity of its solar and energy storage battery Power Electronics Systems to reach 9GW per year by the end of 2022 to back up the decrease in the first six months of the year.
Author Credits: Dhruv Bhatia
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