Global Battery Energy Storage Systems Market; By Battery Type (Lithium-ion Battery, Lead Acid battery, and Other Battery Types); By Application (Data Center, Marine, and Other Applications); as well as By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast: 2022-2032
- account_circleAbout Me
Quick Navigation
Battery Energy Storage Systems Overview
The global Battery Energy Storage Systems Market is projected to reach a valuation of USD 57,861.90 million by 2032 at a CAGR of 26%, from USD 4,553.2 million in 2021.
This market will be strengthened by a growing demand for reliable, continuous power supply solutions from various end-use sectors, such as medical, telecom, marine, and data centers.
Global Battery Energy Storage Systems Market Analysis
Battery Type Analysis
With 53% of market revenue, the lithium-ion battery segment accounted for the highest revenue share. Due to its low weight, cost and limited coverage, lithium-ion battery energy storage systems are projected to register an increase in demand. The market for lithium-ion batteries will continue to grow due to increased infrastructural spending by both the residential and commercial sectors.
Governments of different countries are focusing on reducing adverse effects on the environment of the energy sector and it is leading the increase in deployment of battery energy storage system in public and residential utility applications.
The second-largest share of market for battery energy storage systems was accounted for by the lead-acid battery segment. The cost of lead-acid batteries is lower than that of other batteries. They can also be manufactured using low-tech equipment. This will allow for industry growth. However, the rise of alternative battery technology like Li-ion and volatile material prices are likely to slow down the revenue growth trajectory of this market over the next decade.
Flywheel battery technology is expected grow the fastest due to these products being able to offer continuous uninterrupted power supply. It also has instant response, frequency regulation, quality improvements in terms electricity, and response. Flywheel batteries can be more cost-effective than other options. The flywheel’s longer service life and lower maintenance costs are other main reasons.
Application Analysis
Data center applications accounted for a significant market share in 2021, and it is expected that this segment will grow at a substantial CAGR over the forecast period. Data centers need uninterrupted power supply. The financial losses that can be caused by power outages are significant. Annual losses of around US$50 million in the USA are due to power outages and other related problems. Energy dips and spikes can cause equipment in data centers to suffer from damage, leading to losses. The line-interactive UPS can also be used as a filter to refine power entering the UPS. This adjusts the output to ensure internal systems have an uninterrupted supply.
For the supply of electricity to the consumers, utility grids are used by battery energy storage systems which reduces energy bills for customers.
Market growth for battery energy storage systems is expected to be boosted by the replacement of diesel generators with highly efficient batteries in telecom industrial sectors.
Market players in the telecom industry have agreements with battery storage system manufacturers. This allows them to provide continuous, cost-effective power supply. The rise in telecom subscriptions has led to a spike in telecom tower installations, which is expected positively to impact the battery storage system market. The CAGR for the ‘Other Applications’ segment is expected to be 27% over the forecast period.
The forecast period will also index an increase in product demand due to the augmentation of renewable energy sources and the development of numerous solar and wind renewable energy projects. Micro-grid development is an area of great potential that can be used to aid in military operations and in disaster relief. Additionally, the rapid development of grid storage infrastructure and the support provided by governmental regulations are likely have a positive effect on this market’s growth trajectory.
Key Market Segments:
By Battery Type
- Lithium-Ion Battery
- Lead Acid Battery
- Flywheel Battery
- Other Battery Types
By Application
- Data Center
- Telecommunications
- Marine
- Industrial
- Other Applications
Market Dynamics
Electricity suppliers use battery energy storage technology to store excess power and make it available for future use. This increases grid flexibility and reliability, as well as the reliability of transmission, power generation and distribution solutions. Due to the rapid industrialization, infrastructure development, and continuous population growth over the forecast period, there is expected to be a high demand for uninterrupted electricity.
Rural electrification can be made easier by battery energy storage systems.
On account of an increase in in the number of battery storage system manufacturers throughout the United States, this regional market is expected to register significant growth. NextEra Energy, an American electric services company, has built a battery storage of 10MW energy capacity with a large solar power plant. It also provides clean energy via a solar-plus storage facility.
Lead-acid batteries have a high manufacturing readiness level and technology readiness level. However, they have a short cycle life. This is assuming that it is one cycle per day. Flywheel batteries are a relatively recent technology that competes with other types of battery technology. The flywheel battery storage segment is slated to continue to grow as a result of technological advancements and lower overall costs.
A major growth driver for the market for battery storage systems is the plummeting cost of lithium-ion cells. As lithium is the lightest element in nature, lithium-ion batteries are very lightweight. The non-aqueous electrolytes used in lithium-ion batteries allow for higher operating voltages than other products. The cost of lithium-ion batteries is the main limiting key factor in their growth. However, manufacturers have managed to bring prices down with new technologies.
Another major factor of growth in the market for energy storage systems is the growing acceptance of electric vehicle and hybrid vehicles by consumers.
Market growth may be hindered by other batteries storage technologies in the industry. There are many other energy storage options available, in addition to batteries. These include electrical, thermal and mechanical energy-based solutions.
Superconductors as well as capacitors can be used to store electrical energy. There are many advanced technologies in mechanical energy, including hydropower, flywheel and Compressed Air Storage (CAES). Pumped storage uses electricity to pump water to elevated tanks. The water can be used to propel hydroelectric turbines when electricity becomes available. The United States has greater hydroelectrically pumped storage capacities than battery storage solutions at its disposal.
Lithium-ion batteries offering high energy density, less maintenance, and having low rate of self discharge, and it is costly also.
Market expansion is expected to be driven by increased demand for distributed power storage devices in various countries and increasing renewable penetration.
Flywheels can store energy by rotating the rotating mass with an electric motor. The turbine then spins to generate electricity. The mass rotates within a housing with very little friction to reduce loss. Flywheels work well in performance-oriented applications that have many charge/discharge cycles.
Grid modernization is driving an increase in demand for battery energy storage systems. Solar energy and wind energy are the most popular renewable energy types that are stored on grids. The solar energy storage system uses a battery helps to manage renewable energy sources and to increase the power density .
In the next few years, the market for energy storage will be driven by growth factors such as renewable energy sector and the support provided by government regulatory policies and programs for energy storage (ESS), as well improving energy storage economics and renewable energy revolution.
Regional Analysis
The Asia Pacific was responsible for 39% of this market’s revenue in 2021. Rapid population growth has caused an increase in electrical power consumption across developing countries. To prevent power outages, grid operators have been installing battery energy storage systems over the past seven years to increase grid flexibility and improve grid flexibility.
Furthermore, this region will index increased penetration of renewable energies and a growing demand for distributed power generation in many Asian Pacific economies. This is expected to increase regional market growth prospects in the process.
In the Asia-Pacific, countries such as Australia, Japan, and India are experiencing rapid population growth. This tends to increase the demand for electricity and uninterrupted power, which in turn will boost the growth of the regional battery storage market over the forecast period. China emerged as the Asia-Pacific’s largest country for battery storage deployment in 2021.
China’s battery energy storage market will continue to grow due to its lower technology costs and greater technological advancements. The unit cost of lithium batteries has fallen by half in recent years compared with industry benchmarks. Additionally, industry growth will be driven by innovative business cases and manufacturing economies that are large-scale.
North America is second in this market for batteries energy storage systems. This is due to the U.S. contributing the most to regional growth. Energy storage is an integral part of energy planning in the U.S. Owing to this, the safety of these storage systems is one of this industry’s top priorities.
After the explosion at the Arizona Public Service facility, it was imperative to establish safety regulations for storage technology and energy storage system integration monitoring. North American nations such as the U.S., Canada, and Mexico have well-developed energy markets.
These markets include power generation, capacity and transmission, as well as pollutant emission trading permits and renewable credits. Canada and the United States are major contributors to the battery storage market’s revenues in North America.
Key Regions and Countries Covered in This Report:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Spain
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- GCC
- South Africa
- Israel
- Rest of MEA
Competitive Landscape:
There are many prominent players in this global industry that offer a wide variety of products and solutions to boost their respective market position. There has been steady participation among several key regional and global players, as well as small and medium-sized system integrators. ABB Ltd., a Swedish firm, is working to promote its strong BESS portfolio of products and solutions for energy generating stations around the globe. Hitachi ABB Power Grids selected a modern park in Thailand, to be equipped with innovative BESS units.
Key Market Developments Siemens Energy and EnergyNest entered into a long-term partnership in June 2020 to supply industrial users with thermal energy storage systems.
Some prominent key companies in battery energy storage systems market are BYD Company Ltd., S&C Electric Company, AES Corporation, Siemens Energy, Panasonic Corporation, NEC Energy Solutions, LG Energy Solution Ltd, SAMSUNG SDI Co., Ltd., Siemens AG, Honeywell Corporation, Toshiba Corporation and other major players.
Market Key Players:
- LG Chem Ltd.
- ABB Ltd.
- LG Energy Solution Ltd
- NEC Energy Solutions
- Samsung SDI
- LG Energy Solutions Co., Ltd.
- SAMSUNG SDI Co., Ltd.
- Siemens AG
- Honeywell Corporation”’
- Panasonic Corporation
- Exide Technologies
- BYD Company Limited
- Enersys
- General Electric
- Other Key Players
For the Battery Energy Storage Systems Market research study, the following years have been considered to estimate the market size:
Attribute Report Details Market Size in 2022
USD 4,553.2 million
Growth Rate
26%
Forecast Value in 2032
USD 57,861.90 million
Historical Years
2016-2020
Base Year
2021
Estimated Year
2022
Short Term Projection Year
2028
Projected Year
2023
Long Term Projection Year
2032
Report Coverage
Competitive Landscape, Revenue analysis, Company Share Analysis, Manufacturers Analysis, Volume by Manufacturers, Key Segments, Key company analysis, Market Trends, Distribution Channel, Market Dynamics, COVID-19 Impact Analysis, strategy for existing players to grab maximum market share, and more.
Regional Scope
North America, Europe, Asia-Pacific, South America, Middle East & Africa
Country Scope
United States, Canada and Mexico, Germany, France, UK, Russia and Italy, China, Japan, Korea, India and Southeast Asia, Brazil, Argentina, Colombia etc.Saudi Arabia, UAE, Egypt, Nigeria and South Africa
Frequently Asked Questions (FAQ)
What is the size of the battery energy storage systems market in 2021?
The battery energy storage systems market size is USD 4,553.2 million in 2021.
What is the projected CAGR at which the battery energy storage systems market is expected to grow at?
The battery energy storage systems market is expected to grow at a CAGR of 26% (2023-2032).
List the segments encompassed in this report on the battery energy storage systems market?
Market.US has segmented the battery energy storage systems market by geographic (North America, Europe, APAC, South America, and MEA). By Battery Type, market has been segmented into Lithium-Ion Battery, Lead Acid Battery, Flywheel Battery, Other Battery Types. By Application, the market has been further divided into Data Center, Telecommunications, Marine, Industrial, Other Applications.
List the key companies of the battery energy storage systems market?
Battery energy storage systems market's major players include BYD Company Ltd., S&C Electric Company, AES Corporation, Siemens Energy, Panasonic Corporation, NEC Energy Solutions, LG Energy Solution Ltd, SAMSUNG SDI Co., Ltd., Siemens AG, Honeywell Corporation, Toshiba Corporation and other major companies.
- account_circleAbout Me
- ondemand_videoVideos
- LG Chem Ltd.
- ABB Ltd.
- LG Energy Solution Ltd
- NEC Energy Solutions
- Samsung SDI
- LG Energy Solutions Co., Ltd.
- SAMSUNG SDI Co., Ltd.
- Siemens AG
- Honeywell Corporation'''
- Panasonic Corporation Company Profile
- Exide Technologies
- BYD Company Limited
- Enersys
- General Electric
- Other Key Players
- settingsSettings
Our Clients
Request a Sample Report
We'll get back to you as quickly as possible
Single User
$5,999
$4,499
USD / per unit
save 25%
|
Multi User
$7,999
$4,999
USD / per unit
save 38%
|
Corporate User
$9,999
$5,499
USD / per unit
save 45%
|
|
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |