Grid Scale Stationary Battery Storage Market Size & Share, by Battery (Lithium Ion, Sodium Sulphur, Lead Acid, Flow Battery); Grid Services (Frequency Regulation, Flexible Ramping, Energy Shifting & Capacity Deferral, Transmission,Distribution Congestion Relief) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3476
  • Published Date: May 01, 2023
  • Report Format: PDF, PPT

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

Grid Scale Stationary Battery Storage Market size is expected to cross USD 85 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 grid-scale stationary battery storage was USD 42 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.


Grid Scale Stationary Battery Storage Market
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Grid Scale Stationary Battery Storage Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Carbon Footprint Across the World – In the recent period, governments of different nations and regulatory bodies have been focusing on the adoption of energy-efficient technologies. Moreover, there has been a rising focus on achieving net-zero targets. Such initiatives and programs to curb the carbon footprint in the world are anticipated to bolster the installation of grid-scale battery energy storage systems since these systems are beneficial in accommodating high renewable energy share and further contribute to grid stability. As per the data released by the International Energy Agency (IEA), it has been stated that the global carbon dioxide (CO2) emission from energy combustion and industrial processes rose to 0.9% or 321 Mt in 2022 to a new all-time high of 36.8 Gt.
  • Escalation in Need for Power Generation – Grid-scale stationary battery storage can bridge the demand and supply of power generation in the world. The energy stored in the grid-scale stationary battery storages could be used to supply an uninterrupted supply of power for a broad range of users and applications in numerous industries. This factor is estimated to drive the market expansion in the upcoming years. For instance, it has been forecasted that rising commercial activity and the growing global economy are projected to boost energy demand by approximately 15%. Moreover, with the development of the middle-class community in developing countries, the energy demand is expected to increase by around 35%.
  • Rise in Research Spending – Growth in the global grid scale stationary battery storage market during the forecast period could be further attributed to increased investment in research and development activities to continuously find more viable solutions for the distributed control system which includes grid-scale stationary battery storage. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in 2019.
  • Penetration of Smart Cities Across the World - Revenue generated from the smart cities projects, technologies, products, and services generated by startups was estimated to be about USD 40 billion in the year 2021. This number is further estimated to grow and reach approximately USD 100 billion by 2025.
  • Increasing Demand for Renewable Energy Sources - According to the International Renewable Energy Agency, the most capacity expansion of any renewable energy source happened in 2020 when new solar PV capacity increased by almost 125 GW globally.

Challenges

  • Increasing Awareness about Environmental Hazards – In spite of favorable market growth opportunities, the high utilization of lead-acid batteries is associated with potential environmental hazards. Moreover, the improper disposal of a single battery generates large tons of solid waste. Solid waste can have a worse environmental impact if not treated properly. Therefore, the negative impact on the environment is estimated to hamper the development of grid-scale stationary battery storages and subsequently pose a challenge to market growth during the forecast period.
  • Requirement of Higher Initial Investment
  • Rising Stringent Government Rules and Regulations

Global Grid Scale Stationary Battery Storage Market: Key Insights

 

Base Year

2022

Forecast Year

2023-2035

CAGR

~28%

Base Year Market Size (2022)

~ USD 42 Billion

Forecast Year Market Size (2035)

~ USD 85 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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Grid Scale Stationary Battery Storage Segmentation

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 2035. 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 2035, 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:

     By Battery

  • Lithium Ion

  • Sodium Sulphur

  • Lead Acid

  • Flow Battery

     By Grid Services

  • 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

  • Others

 

 


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Grid Scale Stationary Battery Storage Industry - Regional Synopsis

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 2035, 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 2035. 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 2035. 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.

Research Nester
Grid Scale Stationary Battery Storage Market - Regional
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Companies Dominating the Grid Scale Stationary Battery Storage Landscape

top-features-companies
    • GS Yuasa Corp.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Johnson Controls, Inc.
    • Exide Technologies, Inc.
    • Enersys, Inc.
    • Northstar Battery Company LLC
    • C&D Technologies, Inc.
    • Robert Bosch GmbH
    • Saft Groupe S.A.
    • East Penn Manufacturing Co.
    • Exide Industries Limited
    • AEG Power Solutions Group
    • Hitachi Ltd.

In the News

  • AEG Power Solutions Group announced the joint venture with CMI Energy to provide battery energy storage systems for the MiRIS project in Seraing, Belgium.
  • Hitachi ABB Power Grids, a subsidiary of Hitachi Ltd., to deliver powerful solutions for Amprion, the largest transmission operator in Germany, as Germany is undergoing a renewable energy transition.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3476
  • Published Date: May 01, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major growth drivers for the market are rising demand for industrial batteries from data centers and the telecom industry and increasing renewable energy integration around the world.

The market size of grid-scale stationary battery storage is anticipated to attain a CAGR of 28% over the forecast period, i.e., 2023-2035.

Safety concerns associated with grid scale battery storage along with the requirement of higher initial investment are some of the factors that are estimated to be the growth hindering factors for the market expansion.

The market in the North America 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 GS Yuasa Corp., Johnson Controls, Inc., Exide Technologies, Inc., Enersys, Inc., Northstar Battery Company LLC, C&D Technologies, Inc., Robert Bosch GmbH, Saft Groupe S.A., East Penn Manufacturing Co., Exide Industries Limited, Hitachi Ltd., AEG Power Solutions Group, and other key players.

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 battery, grid services, 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 Stationary Battery Storage Market Report Scope
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