Grid Scale Stationary Battery Storage Market size was over USD 81.9 Billion in 2023 and is likely to reach USD 889 Billion by the end of 2036, growing at around 27.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of grid scale stationary battery storage is assessed at USD 116.2 Billion.. The primary reason for the extensive growth of the global market is the rising demand for electricity by the global population. Owing to the rapid industrialization and urbanization, the demand for electricity has increased considerably. This factor has generated the need for grid-scale stationary battery storage for uninterrupted power supply to carry out various applications and services. Hence, the increased demand for energy and electricity is estimated to bring lucrative growth opportunities for the expansion of the global grid-scale stationary battery market during the forecast period. As per recent statistics, it is forecasted that the global demand for electricity is expected to considerably grow by the end of 2023. Furthermore, it is stated that an additional 2,500 terawatt hours (TWh) of electricity demand is anticipated to be added by 2025. Thus, this 9% growth would take the global electricity demand to almost 30,000 terawatt hours (TWh).
The work of a grid-scale stationary battery storage system is to store energy and discharge it in the form of electricity whenever needed. An array of batteries, an electronic control system, an inventor, and a thermal management system are integrated into grid-scale stationary battery storage. It is very useful in storing electricity in such situations when energy is available at cheap rates, or the demand is low for later use when demand is high and electricity costs are higher. Thus, the global grid scale stationary battery storage market is expected to rise during the analysis period on account of its ability for power quality management, successful renewable integration, as well as grid peak load management. Furthermore, its low costs, long life span, and growing consumer dependence on energy storage systems are other advantages that are anticipated to bring favorable opportunities for market growth during the forecast period.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
27.7% |
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Base Year Market Size (2023) |
USD 81.9 Billion |
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Forecast Year Market Size (2036) |
USD 889 Billion |
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Regional Scope |
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Battery (Lithium Ion, Sodium Sulphur, Lead Acid, Flow Battery)
The global grid scale stationary battery storage market is segmented and analyzed for demand and supply by the battery into lithium-ion, sodium-sulfur, lead acid, and flow battery. Out of the three types of battery, the lithium-ion segment is estimated to gain the largest market share of about 38% in the year 2036. The major factor for the segment growth is the rising awareness level about the advantages of lithium-ion such as its low cost, durability, battery- life, zero maintenance, and others. As a result, the global lithium-ion batteries industry generated almost USD 50 billion in 2022 and is expected to further grow with a steady CAGR of 16%. Also, lithium-ion batteries are being heavily used in electrical products and electronics such as e-bikes, e-vehicles, smartphones, laptops, and others. Furthermore, the recent technological advancement in lithium-ion batteries is also anticipated to bring in growth opportunities for segment expansion.
Grid Services (Frequency Regulation, Flexible Ramping, Energy Shifting)
The global market is also segmented and analyzed for demand and supply by grid services into frequency regulation, flexible ramping, energy shifting and capacity deferral, transmission and distribution congestion relief, capacity firming, reduced RE curtailment, reduced reliance on diesel genets, black start service and others. Amongst these three segments, the hospital pharmacies segment is expected to garner a significant share of around 22% in the year 2036, owing to the increased demand for power system flexibility related to power outages or power system failures, which is anticipated to increase the demand for structured systems for launching black start. Furthermore, the increasing investments in the sector for introducing novel solutions are also anticipated to bring in lucrative opportunities for segment growth.
Our in-depth analysis of the global market includes the following segments:
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By Battery |
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By Grid Services |
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APAC Market Statistics
The market share of grid scale stationary battery storage in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about 35% by the end of 2036, ascribing to the rapid rate of industrialization and urbanization, high manufacturing output of countries such as China and India, and rise in the development of new products in the region. For instance, in 2017, the share of the urban population in China was approximately 59 percent, which increased to about 64 percent by the end of the year 2020.
North American Market Forecast
The North American grid scale stationary battery storage market is estimated to be the second largest, registering a share of about 24% by the end of 2036. The regional growth can majorly be attributed to the increasing government initiatives to improve energy distribution, which is expected to fuel the growth of the market in the region in the coming years. Moreover, the North American market is expected to account for the largest share during the forecast period owing to heavy R&D investments in new energy storage technologies and the strong presence of market players in the region.
Europe Market Forecast
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2036. The rising demand and production of electricity is considered to be the major factor for market growth in the region. Also, the increasing number of industries in the region that demand a high amount of energy is anticipated to create a positive outlook for market growth.
Author Credits: Dhruv Bhatia
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