Grid Scale Battery Market Size & Share, by Type (Lithium-Ion, Lead Acid, Flow Battery, Sodium-Based); Application (Frequency Regulation, Peak Shaving, Bill Management, Load Shifting, Renewable Integration) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3764
  • Published Date: Mar 29, 2023
  • Report Format: PDF, PPT

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

Grid Scale Battery Market size is anticipated to reach USD 106 billion by the end of 2035, growing at a CAGR of 32% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of grid scale battery was over USD 5 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.


Grid Scale Battery Market
Get more information on this report: Request Free Sample PDF


Grid Scale Battery Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~32%

Base Year Market Size (2022)

~ USD 5 Billion

Forecast Year Market Size (2035)

~ USD 106 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)
Get more information on this report: Request Free Sample PDF

Grid Scale Battery Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Rapid Urbanization and Industrial Growth Across the World –  The increasing number of industries across the world with urbanization and digitalization are estimated to drive market growth in the coming years. The economic standards of many countries are rising day by day with increasing disposable income of people expected to drive the market growth as per the market analysis. The increasing migration of people from rural populations for job opportunities is rising urbanization. As per the estimations, more than 50% of the population across the world i.e., more than 4 billion people lived in the cities as of 2022.
  • Growing Investments in Renewable Energy Worldwide – The investment in renewable energy technologies in the United States is estimated to reach about USD 60 billion in the year 2019.
  • Declining Costs of Grid-Scale Battery Across the World – The price of lithium-ion battery cells was decreased by more than 95% in the last three decades since 1991. The price of a battery with a capacity of one kilowatt per hour was more than USD 7000 and decreased to USD 180 in the year 2018 globally.
  • Rising Need for Electricity and Power Storage Plants – The residential and commercial energy demand across the world is estimated to increase by over 10% by the end of 2050.

Challenges

  • High Demand-Supply Mismatch of Raw Materials for the Battery
  • Challenges Faced in the Recycling of Batteries
  • Side Effects Caused by using Batteries on the Population – The increasing use of batteries may cause health complications such as bronchial irritation, cough, headache, reduced mental ability, muscle cramps, numbness, itching of the skin, and burns, and are harmful to the eyes and skin. These are the side effects that are estimated to hamper the market growth in the coming years.


Grid Scale Battery Segmentation

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:

       By Type

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

     By Application

  • Frequency Regulation
  • Peak Shaving
  • Bill Management
  • Load Shifting
  • Renewable Integration
  • Others

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Grid Scale Battery Industry - Regional Synopsis

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 2035. 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.

Research Nester
Grid Scale Battery Market Size
Get more information on this report: Request Free Sample PDF

Companies Dominating the Grid Scale Battery Landscape

top-features-companies
    • Panasonic Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • LG Chem Ltd.
    • Samsung SDI Co. Ltd
    • BYD Co. Ltd
    • Contemporary Amperex Technology Co Ltd
    • Tesla, Inc.
    • ABB, Ltd.
    • General Electric Company
    • Toshiba Corporation
    • NGK Insulators, Ltd.

In-the-news

In The News

  •  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:  Payel Roy, Dhruv Bhatia


  • Report ID: 3764
  • Published Date: Mar 29, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the market growth are growing investments in renewable energy worldwide and declining costs of grid-scale batteries.

The market size of grid scale battery is anticipated to attain a CAGR of 32% over the forecast period, i.e., 2023-2035

High demand-supply mismatch of raw materials for the battery and side effects caused to the batteries are estimated to be the growth hindering factors for the market expansion.

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.

The major players in the market are Panasonic Corporation, LG Chem Ltd., Samsung SDI Co. Ltd, BYD Co. Ltd, Contemporary Amperex Technology Co Ltd, Tesla, Inc., ABB, Ltd., General Electric Company, Toshiba Corporation, NGK Insulators, Ltd., and others.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, application, and by region.

The lithium-ion segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Grid Scale Battery Market Report Scope
  GET A FREE SAMPLE

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying