Energy Storage Systems Market Overview:

The Energy Storage Systems Market size is expected to be worth around USD 798.8 billion by 2032 from USD 420.8 billion in 2021, growing at a CAGR of 6% during the forecast period from 2022 to 2032.

The market will continue to grow due to the growing demand for competitive and efficient energy resources over the next few years.

Alternatives to fossil fuel-based power are available with clean and renewable energy. Its use can reduce overdependence on fossil energy, reduce greenhouse gas emissions and subsequent air pollution, and diversify the power supply.

Global Energy Storage Systems Market Analysis

Technology Analysis

The technology segment of pumped hydro technology dominated the market. In 2021, it accounted for more than 90% of the total market share. The market will be supported by continued investments in North America and the Asia Pacific to upgrade the energy infrastructure and increase the on-grid capacity. Positive compliance regulations in China and America are expected to increase long-term demand.

The electricity demand for electrochemical storage is expected to rise in countries such as India, the United States, the United Kingdom, and the United States. The long-term thermal storage demand is expected to be driven by countries in the Middle East and Africa as well as Central and South America.

Thermal Energy Storage systems collect and store excess thermal energy produced by a variety of technology for later use. There are several types of TES systems: sensible, latent, and thermochemical. Some of the storage media used in sensible heat storage are water, concrete, sand, and rock beds.

Application Analysis

Battery energy storage systems for residential use provide power to single-family homes, condominiums, cooperative societies, and co-operative societies. They also serve as an emergency power source in residential areas. Rapid industrialization and urbanization in developing countries are major factors expected to drive the growth of the global energy storage system market over the next few years. Market experts predict steady growth for the global energy storage system market. This market is expected to witness a compound annual growth rate for efficient and continuous power supply.

Large amounts of energy can be generated from renewable sources such as solar and wind. With batteries embedded in the batteries, battery energy storage systems can store this energy during peak production. Because they can store energy during peak production periods, which results in less waste, battery energy storage systems are becoming more popular in residential applications. lead-acid batteries are further being utilized in commercial electric-drive vehicles due to their safety, high power, and low price which drive the global market for energy storage.

This is because the residential sector around the world is shifting to renewable energy sources for routine tasks. Battery energy storage systems are useful in residential applications for electricity bill savings, self-consumption, and emergency power backup. Installation of battery energy storage systems in rural areas could be a way to provide power for local businesses and communities.

Key Market Segments

By Technology

• Pumped Hydro
• Electrochemical
• Thermal
• Electromechanical

By Application

• Residential
• Industrial

Market Dynamics

The demand will rise due to an increasing number of data storage facilities and rapidly growing competition across many industrial sectors such as finance, and IT. Additionally, the residential sector is expected to see increased utilization due to changing consumer habits and rising power outages.

In the United States, energy storage systems were 28 GW in 2021. They are expected to increase to 67 GW in 2032. The U.S. energy storage market will grow due to the increased use of electricity and strict energy efficiency standards. The increasing focus on lowering electricity bills and the widespread use of renewable technology will contribute to the industry’s expansion.

According to the Institute for Energy Economics and Financial Analysis, investments in renewable power production technologies, which are dominated by wind energy and solar energy reached US$ 65 trillion in the United States in 2021. The U.S. market will grow if there are more investments in new power system networks and ongoing improvements to the distribution infrastructure. As such, they require to have a reliable power supply, uninterrupted power supply, and continuous power supply from renewable and conventional sources of energy that increases the overall system efficiency and ensures economic savings across the system life cycle.

Regional Analysis

The Asia Pacific accounted for 45% of the total market share in 2021. This was due to the rapid growth of economies like India, China, and India. As the region is subject to frequent power outages, energy storage devices can be crucial in applications such as UPS and data centers. This market has seen a rise in demand for grid energy storage systems due to the many benefits of modern energy storage systems such as reliability, cost-effectiveness, and environmental friendliness.

These European countries’ energy storage authorities have chosen to use battery energy storage technology to increase renewable energy sources and reduce dependence on fossil fuels. The growing popularity of electric vehicles is likely to help the market growth over the long term.

Central and South America offers promising opportunities for investment in the automotive and energy industries as well as the biochemical industry. Brazil, Argentina, Chile, and Colombia are all important nations in the region.

Argentina will experience a significant decline in energy investments as it emerges from the current recession. Many countries in the Asia Pacific region are developing nations that are rapidly industrializing.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
  • Latin America
• 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
• MEA
  • GCC
  • South Africa
  • Israel
  • Saudi Arabia
  • Rest of MEA

Market Share & Key Players Analysis:

There are several major players on the market as well as small and medium-sized regional players. Many companies have specific renewable energy sectors they specialize in and have high penetration in that particular sector.

Active Power, for instance, announced plans to travel to the United States in August 2021 to transport its containerized POWERHOUSE UPs to users’ homes. Active Power engineers are partnering with service and sales partners in order to provide live demonstrations of the POWERHOUSE SUPs throughout the US.

Key Market Players:

• Altair Nanotechnologies Inc.
• Electrovaya Inc.
• Ecoult
• Langley Holdings PLC
• Samsung SDI Co.
• Eos Energy Storage
• Saft
• General Electric
• AES Corporation
• ABB Ltd.
• Panasonic Corporation
• Siemens Energy
• Exide Industries Ltd.
• Tesla Inc.
• Maxwell Technologies Inc.
• LG Chem Ltd.
• Other Key Players