Grid Scale Battery Market Growth | Demand Analysis & Opportunity Outlook 2023-2035ery Market

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

The global grid scale battery market is estimated to garner a revenue of USD 106 Billion by the end of 2035 by growing at a CAGR of ~32% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 5 Billion in the year 2022. 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.

Global Grid Scale Battery Market: Growth Drivers and Challenges

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.

Market Segmentation

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.

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 grid scale battery 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

Global Grid Scale Battery Market Regional Synopsis

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.

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.

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.

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Top Featured Companies Dominating the Global Grid Scale Battery Market

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

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.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the grid scale battery market?

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

2) What would be the CAGR of grid scale battery market over the forecast period?

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

3) What are the challenges affecting the grid scale battery market growth?

Ans: 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.

4) Which region will provide more business opportunities for growth of grid scale battery market in future?

Ans: 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.

5) Who are the major players dominating the grid scale battery market?

Ans: 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.

6) How are the company profiles selected?

Ans: 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.

7) What are the segments in the grid scale battery market?

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

8) Which segment captures the largest market size in the type segment in the grid scale battery market?

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

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)

Grid Scale Battery Market