Battery Energy Storage Systems Market

Battery Energy Storage Systems Market Size, Share, Growth (2024-2029)

The Battery Energy Storage System Market size is estimated at USD 30.60 billion in 2024, projected to reach USD 50.68 billion by 2029, with a CAGR of 10.60% during 2024-2029.

Battery Energy Storage Systems Market Overview

An electrochemical device that charges and collects energy from a power source and discharges energy when required is called the battery energy storage system. The flexibility and high level of renewable energy integration make this technology important. The modern technology system includes a built-in inverter and computerized control energy system. It is simple, easy to install, and requires low maintenance costs. Battery energy storage systems have a wide application used in various sectors. An important feature is it saves the excess power supply for the electricity providers by storing and discharging at the times of the requirement.

Battery Energy Storage Systems Market Drivers

The key players are launching new products with the latest technologies in favor to the end users is majorly propelling the demand of the market. For instance, in the year 2021, ENerpack is introduced by the Jakson Group as an innovation to mitigate climate change and provide a continuous supply of green power. To meet the growing demand for renewable energy sources adoption creates the demand for the continuous need for the launch of the new battery energy storage systems in the market. As battery energy storage systems are an ideal solution for enabling renewable energy storage sources to integrate into the grid and decrease the dependency on the non-renewable fossil fuel energy source.

Rise in demand for the grid energy storage system

The most prominent renewable storage energy used in the storage grid is solar and wind energy. Variations can be seen in the process of energy generation due to the concealing of the sun by the clouds and varying wind currents. This results in the increased demand for flexible grid systems to store energy. The grid modernization contains the battery energy storage systems as an integral part. The battery energy storage systems help the grid operators to store energy when there is excess supply and then demand in the market. With respect to electricity supply systems, the grid energy storage systems will provide reliability and flexibility in terms of electricity generation, transmission, and distribution.

Battery Energy Storage Systems Market Restraints

There are several restraints that are limiting the growth potential of battery energy storage systems market demand. The high upfront cost of installing the battery energy storage systems irrespective of the cost of the energy storage product is limiting the adoption for small companies. There are technical challenges that need to be overcome as the development of the battery energy storage systems is still in the initial stage. This results in the slowdown of demand in the market. Lack of standardization in the battery energy storage market is a restraint for the companies to compare products and find difficulty in making purchasing decisions. This can limit the purchasing demand for battery energy storage systems. The overall restraints faced by the battery energy storage systems market limit the market growth and development.

Battery Energy Storage Systems Market Opportunities

The increase in the demand for renewable energy sources and need for the grid stability and reliability will be an opportunity for the battery energy storage systems market. The need for maintaining stability and reliability will be an emerging opportunity for the market to increase growth. Features of the battery energy storage system like storing and release of energy during low production will ensure the continuous energy supply will drive the market. Rise in the demand for electric vehicle across the world increase need for the battery energy storage systems which are used in vehicle charging. This will a great opportunity for the battery energy storage systems market to have growth in the coming years.

REPORT COVERAGE:

COVID-19 Impact on the Battery Energy Storage Systems

COVID-19 had shown a negative impact on the battery energy storage systems market. The pandemic has disrupted the supply chain thus affecting the availability of the raw materials, components, and supply of the finished goods. The delay in production increased the cost to the manufacturers. The decline in the deployment of battery energy storage systems projects in certain regions caused a reduction in demand. The positive impact is the increase in the demand for reliable and resilient power supply systems as an increase in the shift to remote working is seen. The rise in the demand for residential energy is significant as more people are staying at home and so these systems reduce the energy bills.

Key developments in the market

• In 2022, a plan to build the Moss Landing Energy storage facility is announced by Vistra. A 15-year asset adequacy agreement is agreed upon by the Pacific Gas and Electric Company (PG&E) for an innovative 350 MW battery system. This will be added to the existing 400MW power storage capacity.

• In 2021, PRiMX is a new battery brand launched by Samsung SDI CO., Ltd in Korea and Europe and is soon to launch in the U.S.

Battery Energy Storage Systems Market Segmentation

By Type

• Lithium-Ion Batteries

• Lead-Acid Batteries

• Nickel Metal Hydride

• Other Types

Lithium-ion batteries category is expected to have the highest market share in the battery energy storage systems market. The high energy density, long lifespan, and high performance, when compared to other batteries, are the key drivers in the for lithium-ion batteries market demand. The wide application is also seen in grid-scale energy storage and commercial and industrial use.

By Application

• Residential

• Commercial and Industrial

Commercial and industrial sector is having the dominant shares of the market. The battery energy storage systems are having wide applications in the commercial and industrial sectors and making it have a high market share during the forecast period. The energy storage requirement is more in the renewable energy sources usage where mostly seen in the commercial and industries sectors. This help to have a reliable and stable power supply. The sector also has an application of battery energy storage systems like load shifting, and grid-scale energy storage.

Battery Energy Storage Systems Market Regional Analysis

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

 The Asia-Pacific battery energy storage systems market is having the largest shares. The growing demand for energy storage solutions in emerging countries like India, China, and South Korea is driving the market demand. The increase in investment activities in renewable energy sources and modernization in the region will be a market potential feature. North America and Europe are the next potential regions for the battery energy storage systems market.

Battery Energy Storage Systems Market Key Players

AES Corporation, BYD Company, Contemporary Amperex Technology, General Electric Hitachi, Ltd., LG Energy Solutions CO., Ltd., NEC Energy Solutions, Samsung SDI, Siemens AG, Sunverge Energy, Tesla Inc., Toshiba Corporation.