Stationary Battery Storage Market Trends

Growth Drivers

• Emphasis on effective hybrid energy storage will support the demand for stationary battery storage- The increasing need for electricity will present growth prospects for companies that create battery storage systems. According to IEA data, electricity will make up 50% of all energy consumed by 2050, up from 20% in 2018. This will encourage the adoption of stationary battery storage devices to maintain grid resilience. The main market driver for stationary energy storage is the quick adoption of renewable energy sources combined with supportive government initiatives to lower carbon emissions. Additionally, the market for stationary energy storage is expected to grow as a result of the ongoing integration of renewable energy sources like solar and wind, which call for affordable network synchronization solutions. Moreover, during the projection period, growing electricity demand and grid stability are driving the stationary energy storage market's expansion. It is anticipated that a lack of standardization and unstable investment prospects across many industrial sectors will hinder the growth of the stationary energy storage market.

• Lower Costs and Advancements in Battery Technology Are Driving the Stationary Battery Storage Market's Expansion- Because renewable energy sources are non-flexible, they cannot be deployed as needed to meet the constantly shifting demands of energy users. Energy storage solutions are anticipated to emerge as a leading contender in tackling their flexibility issue, even if conventional power plants and interconnections will remain crucial tools in addressing this challenge. Improvements in battery technology and decreasing costs are driving the advent of stationary energy storage devices. Energy storage devices need to be charged in order to deliver electricity when needed, unlike fuel cells, which produce power on demand. Batteries and an electronic control system are the foundation of stationary energy storage systems. The most popular element used in batteries to store chemical energy is lithium.

• Advancements in Digital Technologies- The SES market is anticipated to follow trends set by the introduction of new technologies like blockchain, artificial intelligence (AI), and predictive analytics. Among solution providers, the most exciting advances may be the emergence of new business models that integrate customer-sited storage to offer a range of services to utilities, grid operators, and electrical consumers like residential or commercial and industrial (C&I).

Challenges

• Maintenance Issues Influencing the Expansion of Stationary Battery Storage- Correct cleaning and maintenance of the batteries are essential components. The safety measures that must be followed when cleaning batteries are challenging and even dangerous if done carelessly. Thus, the market for stationary battery storage is being impacted by each of these issues.

• Energy storage systems with stationary batteries are linked to kidney and brain damage, even with their expanding range of applications. The public's awareness of these health concerns could, in part, put up barriers to the industry's advancement.

• The market's expansion is being impeded by the high cost of storage systems.