USD 10.71 Billion
Global Battery Energy Storage Market Size, Share, Growth Analysis, By Capacity(Small Scale (less than 1 MW) and Large Scale (greater than 1 MW)), By Ownership(Customer-owned, Third party-owned), By Application(Residential, Non-residential), By Type(Lithium-ion Battery, Lead-acid Battery) - Industry Forecast 2024-2031
Report ID:
SQMIG25A2250 |
Region:
Global |
Published Date: April, 2024
Pages:
157
|
Tables:
117 |
Figures:
74
Global Battery Energy Storage Market Insights
Global Battery Energy Storage Market size was valued at USD 10.71 Billion in 2022 and is poised to grow from USD 12.46 Billion in 2023 to USD 41.69 Billion by 2031, growing at a CAGR of 16.3% in the forecast period (2024-2031).
The global battery energy storage market is undergoing dynamic changes driven by technological advancements, process improvements and market competition. Advances in battery chemistry, energy management software, and system integration technologies grow battery storage solutions for various applications influencing market growth in factors such as changing energy consumption patterns, grid modernization systems and increasing adoption of renewable energy.
In addition, regulatory policies and government incentives play an important role by investing in battery storage projects, encouraging the use of renewable energy and encouraging market competition. Battery power to address regulatory challenges, meet technical challenges, and seize emerging opportunities. To also expect the evolving needs of customers to drive sustainable growth in the market.
Market snapshot - (2024-2031)
Global Market Size
Largest Segment
Lithium-ion
Fastest Growth
Lead-acid
Growth Rate
16.3% CAGR
Global Battery Energy Storage Market ($ Bn)
Country Share for Asia Pacific Region (%)
Global Battery Energy Storage Market By Type ($ Bn)
Global Battery Energy Storage Market By Type (%)
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Global Battery Energy Storage Market Segmental Analysis
Based on capacity, the market is predominantly bifurcated into small scale (less than 1 MW) and large scale (greater than 1 MW). The market is trifurcated into customer-owned, third-party-owned, and utility-owned based on ownership. By application, the market is segmented into residential, non-residential, utility, and others. The market is bifurcated into off-grid and on-grid based on connectivity. Based on type, the market is categorized into lithium-ion battery, lead-acid battery, flow battery, and others. Based on Region the market is segmented as Europe, North America, Asia Pacific, and the Rest of the World.
Analysis by Type
The lithium-ion battery segment is dominating the market which is projected to lead the enterprise and is anticipated to keep a big part of the worldwide marketplace all through the forecast duration. Increasing deployment of the latest big-ability grid infrastructure, alongside non-stop improvements in Li-ion BESS products, will pressure the segment increase. Demand for lead-acid batteries may be fostered by means of the transportation zone slated to develop exponentially at the stop of 2029 due to increasing hybridization of automobile fleets and their security.
The lead-acid battery segment plays an important role in the battery energy storage market, especially in applications where cost effectiveness, reliability and proven technology are leading due to the low upfront costs as compared to other battery chemistries such as lithium ion. Acid batteries have been central to the energy storage industry for decades/ These costs make lead acid batteries an attractive choice for a variety of energy storage applications including residential, commercial and industrial special system applications requiring large storage capacities, such as backup power for telecommunications networks or off-grid solar installations, lead batteries offer a cost-effective solution.
Analysis by Application
Residential is the dominating segment in the market driven by homeowners’ desire for energy independence. Residential BESS empowers homeowners to generate, store, and manage their own electricity, reducing their reliance on traditional grids. By combining solar photovoltaic (PV) systems with battery storage, homeowners can store excess solar energy generated during the day for use during periods of low sunlight or peak power demand of utilities, reducing utility costs and increasing actual energy consumption. Another major cause of residential BESS is the provision of backup power during grid outages, or an emergency has occurred. Instead of storing systems with batteries, homeowners can ensure continuous power supply to supply critical loads such as lighting, cooling, and rotating appliances, increasing resilience and safety in the event of a power outage natural disasters. The ability to maintain electrical independence during a blackout contributes to peace of mind and quality of life for homeowners.
The non-residential segment is the fastest growing segment which includes commercial, industrial, and utility-scale applications, where BESS plays a key role in grid stabilization and management. Non-residential BESS provides supporting services such as frequency regulation, voltage support, peak shaving and others enhance grid reliability and stability whether injected or absorbed, BESS helps balance supply and demand, reduce grid variability, and improve overall grid performance, and thus risk management to reduce power outages and grid disturbances. BESS non-residential, solar and wind power and other renewables facilitates the integration of energy sources into the grid, excess renewable energy storage is used when demand exceeds production or renewable resources are unavailable. In commercial and industrial scenarios, BESS including on-site regeneration systems are added by businesses. In addition to providing energy efficiency, reducing electricity costs, and achieving sustainable development goals, BESS in profit supports the connectivity of large-scale renewable energy projects to the grid, increases flexibility and disruption of renewable generation, grid It also increases flexibility.
Global Battery Energy Storage Market By Type (%), 2022 (%)
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Global Battery Energy Storage Market Regional Insights
Asia-Pacific is emerging as the dominant region in the global battery energy storage market, driven by rapid urbanization, technological advancement and increasing energy demand. Countries such as China, Japan, South Korea and Australia are leading the way in implementing battery energy storage systems, with government policy, renewable energy targets and investment in grid infrastructure.
North America is the fastest growing segment in the global battery energy storage market. North America benefits from a strong focus on renewable energy integration, grid modernization and energy exchange. The United States and Canada are seeing significant revenue a is invested in the battery storage industry, which states that Driven by mandates, utility purchases, and federal incentives, the market, supportive regulatory environment, and technological know-how support innovation and adoption battery energy storage solutions for grid stability, interconnection, and commercial deployment.
Global Battery Energy Storage Market By Geography, (2024-2031)
- Largest
- Fastest
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Global Battery Energy Storage Market Dynamics
Drivers
Shift to Renewable Energy Sources
- Global shift towards renewable energy sources, such as solar and wind energy, is a major driver of the global battery energy storage market. Battery energy storage system (BESS) stores excess energy produced during periods of high renewable, peak demand. Releasing it during or when renewable resources are not available plays an important role in connecting renewable energy to the grid. As countries seek to meet emissions reduction targets and increase renewable energy generation, the demand for battery energy storage solutions continues to grow.
Grid Modernization
- Grid modernization and investment in smart grid infrastructure drives the use of battery energy storage systems for grid stability, demand management, and frequency regulation Utilities and grid operators BESS improve grid reliability, provide energy supply efficiency, and mitigate the challenges posed by change renewable energy production. The battery storage technologies they are using enable utilities to increase grid resilience, consolidate distributed power, and support the transition to a more robust and sustainable energy system.
Restraints
High Initial Investment
- One of the major restraints of the global battery energy storage market is the high cost of implementing BESS. While the cost of a battery storage system has decreased in recent years due to advances in technology and finance, the initial investment is still high for many consumers, especially for consumer products in terms of profit and trade can, especially in markets without adequate financial incentives or regulatory frameworks.
Technological Limitations
- Despite advances in battery technology, battery energy storage systems still face limitations such as energy density, cycle life, and efficiency. Lithium-ion batteries, a major technology available on the market, subject to inherent safety, thermal handling, and resource constraints. Furthermore, limited availability of rare metals and raw materials poses challenges to increase battery production to meet the increasing demand. Meeting these technological constraints requires them to strive for continuous R&D to improve battery performance, reliability and durability.
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Global Battery Energy Storage Market Competitive Landscape
With Asia leading the global battery energy storage market, a majority of players in the region have a stronger hold in the Indian market. These include Usha Shriram Enterprises Pvt. Ltd., Luminous India, Exide Industries Ltd., Su-Kam, Okaya Power Pvt. Ltd., Eastman Auto & Power Ltd., Microtech, HBL Power Systems Ltd., Servotech Power Systems, Amara Raja Energy and Mobility Ltd., V-Guard Industries Ltd., Loom Solar Pvt. Ltd. To further increase their market share, these companies use various strategies, such as mergers and acquisitions, partnerships, joint ventures, licensing agreements and new type launches.
Top Player’s Company Profiles
- Exide Industries Ltd.
- Luminous Power Technologies Pvt. Ltd
- HBL Power Systems Ltd.
- TATA AutoComp GY Batteries Pvt. Ltd
- Okaya Power Pvt. Ltd.
- Amara Raja Batteries Ltd.
- Su-Kam Power Systems Ltd.
- Base Corporation Ltd.
- Southern Batteries Pvt. Ltd.
- Evolute Solutions Pvt. Ltd.
- EnerSys
- BYD Company Limited
- EVE Energy Co., Ltd.
- Siemens AG
- LG Energy Solutions Co., Ltd.
- Kokam
- Narada Asia Pacific Pte. Ltd.
Recent Developments
- December 2021 – TotalEnergies completes a battery energy storage facility in Dunkirk, France. The plant has a capacity of 61 MW and a total capacity of 61 MWh (MWh). The project was selected as part of a long-term plan announced by the French electricity network (RTE) in February 2020. The commissioning of the site is believed to be a development that will increase TotalEnergies battery energy storage capacity.
- April 2021 – ABB Power Grids announces a joint investment with Atlas Renewable Energy to develop and develop a battery energy storage system (BESS) for its renewable energy projects.
- June 2023: Agratus Energy Storage Solutions Pvt Ltd, a subsidiary of the Tata group, signed an agreement with the Gujarat government to set up India's first giga plant for lithium-ion battery manufacturing at the domestic Company's inception will invest US$1.57 billion (about $5 per person in the US) to develop a 20-gigawatt (GW) capacity.
- December 2022: Amara Raja Battery Ltd (ARBL) announced plans to invest over $1,148.89 million (about $4 per person in the US) over ten years to set up research and development and greenfield plants for lithium-ion batteries in Mahbubnagar district of Telangana.
Global Battery Energy Storage Key Market Trends
- Integration of Energy Storage and Renewable Microgrids: A key trend in the battery energy storage market is the integration of energy storage systems with renewable microgrids. Renewable microgrids though solar, wind and other renewable energies combine with battery storage to form local energy systems. Gluten solutions for communities, communities, remote areas provide a reliable and sustainable energy supply, increase resilience, reduce reliance on centralized grid systems and combine battery energy storage with renewable microgrids to improve energy efficiency, demand response and grid island capabilities, driving market growth and innovation.
Global Battery Energy Storage Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
The global battery energy storage market is driven by the shift towards renewable energy, grid modernization, and integration of energy storage into renewable microgrids but challenges such as large initial investment and technology restrictions hinder the growth of the market. Asia-Pacific and North America play a key role in the ongoing market expansion, with favorable regulations, investments in grid infrastructure and advancements in battery technology as the market grows in their interventions to support long-term growth opportunities in dynamic global battery energy storage market Focus on product innovation, cost reduction and regulatory compliance.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 10.71 Billion |
| Market size value in 2031 | USD 41.69 Billion |
| Growth Rate | 16.3% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Battery Energy Storage Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Battery Energy Storage Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Battery Energy Storage Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Battery Energy Storage Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Battery Energy Storage Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Battery Energy Storage Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Battery Energy Storage Market Report Snapshots
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