Grid Scale Battery Market

Grid Scale Battery Market Size (2023-2028):

The Global Grid Scale Battery Market was worth US$ 3.35 billion in 2022 and is anticipated to reach a valuation of US$ 19.55 billion by 2028 and is predicted to register a CAGR of 34.56% during 2023-2028.

The electricity generation sector is built on three pillars: generation, transmission, and distribution. The increase in population has resulted in a huge increase in energy demand. Different countries are focusing on building renewable energy sources for power generation to meet the rising demand for energy.

Grid-scale batteries are used to improve the grid resilience and dependability of renewable energy-producing plants, resulting in cost savings in power generation, transmission, and distribution. Frequency regulation, peak power, VAR control, load shifting, and renewable integration are just a few of the applications for grid-scale batteries.

Grid-scale batteries allow for large-scale energy storage within electrical power systems. Automatic Grid Control (AGC) is a technology used by an energy transmission and distribution grid support system to balance generation and load. For major renewable energy projects like wind farms, energy management techniques are commonly utilized in bulk power management.

Grid-scale batteries are used in pumped-storage hydroelectricity, electric batteries, flow batteries, flywheel energy storage, supercapacitors, and other applications. Grid-scale batteries are frequently employed in ancillary services, renewable integration, firm capacity, and a variety of other applications at renewable energy-producing sites, as well as at power transmission and distribution facilities.

Market Growth:

The necessity for energy production from renewable sources such as solar photovoltaic and wind power to improve system stability and reliability is driving up demand for the global grid-scale battery market. Renewable energy sources like wind and solar are weather-dependent, which affects their efficiency; thus, combining renewable energy systems with grid-scale batteries can help to overcome these drawbacks and provide a reliable power supply.

Market Drivers:

The need to incorporate energy produced from renewable sources such as solar photovoltaic and wind power, as well as improve grid stability, reliability, and resiliency, are driving product demand. Because of its extraordinary ability to hold, absorb, and re-inject electricity, the market is evolving as one of the viable options to increase system flexibility. Furthermore, increased consumer knowledge of efficient energy usage, combined with a rising desire to save additional energy generated at the grid location with effective load control, is likely to drive demand. In addition, rising grid demand due to the growing requirement for distributed energy integration with the grid is expected to propel global grid-scale battery market growth.

Investments in renewable energy and the cost reduction of grid-scale batteries due to technological breakthroughs and greater deployment are two other important drivers driving market expansion. Furthermore, government incentives and standards aimed at increasing energy efficiency are expected to propel the grid-scale battery market forward in the future years. During the projection period, the growing focus on rural electrification via grid-scale battery deployment is likely to generate a substantial amount of opportunity for market growth.

Market Restraints:

The fundamental problem in the Grid Scale Battery Market is low energy and power density. The key restraints in the worldwide Grid Scale Battery Market are battery cycle life and safety concerns. Furthermore, the growing demand-supply mismatch of critical raw materials like cobalt has the potential to limit industry growth.

The COVID-19 pandemic has hampered market growth because supply chains for the battery industry have been harmed because the majority of vendors in the battery market are located in the Asia Pacific region, with China, the world's largest manufacturer and a leading supplier of components, being the first to be affected.

Market Recent Developments:

• Penso Power and Luminous Energy's joint venture, Welbar Energy Storage, has received planning clearance in the UK for a 350MW connection capacity battery storage installation with a five-hour endurance.

GRID SCALE BATTERY MARKET REPORT COVERAGE:

Market Segmentation: 

Grid Scale Battery Market - By Type:

• Lithium-Ion
• Lead Acid
• Flow
• Sodium Based
• Others

In 2021, the lithium-ion battery type had the biggest market share of more than 84 percent, and it is expected to grow at the fastest rate over the projected period. Due to technological advancements and increased manufacturing capacity, these batteries are now widely employed in a variety of applications. Additionally, their prices have dropped dramatically in the previous six years, and they are expected to continue to fall. Furthermore, lithium-ion batteries are compact and lightweight. In comparison to other items, they are also fast-charging and long-lasting.

Grid Scale Battery Market - By Application:

• Renewable Integration Battery
• Peak Shift Battery
• Ancillary Service Battery
• Back-up Power Battery
• Others

Ancillary services dominated the market in 2021, accounting for more than 63 percent of the worldwide share, and are expected to rise significantly over the forecast period. Grid-scale battery storage is likely to rely heavily on renewable energy sources like solar and wind in the future. Grid-scale battery storage devices are used by the operator to provide ancillary services to minimize the unpredictability and variability of wind-generating installations.

Grid Scale Battery Market - By Ownership-Model:

• Third-Party Owned
• Utility Owned

Market Regional Analysis: 

The Global Grid Scale Battery Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Over the projection period, 2022-2027, Asia-Pacific is expected to maintain its dominance in the grid-scale market. The countries in the region are experiencing rapidly rising electricity consumption as a result of urbanization and population increase. Large volumes of renewable energy, which are becoming increasingly cost-effective around the world, are likely to be included in the expanding grid in developing countries to meet electrical demand. During the projection period, the deployment of renewables is projected to provide an opportunity for a rise in demand for grid-scale batteries. Furthermore, by 2027, developing countries such as India want to build 275 GW of total wind and solar power. Renewable energy is expected to account for 43% of installed capacity by 2027. With the rising renewable energy sector, demand for grid-scale batteries to meet the issues of renewable power generating intermittency is likely to rise. Favorable regulations, such as increased peak demand charges and energy efficiency standards, are projected to promote demand for grid-scale batteries in the region.

The most competitive and developed geographic market is North America. The global grid-scale battery market industry is growing due to the rising demand for system flexibility and increased use of grid-size batteries with renewable energy systems in the residential sector and in power systems.

Market Key Players:

1. LG Chem Ltd.
2. Samsung SDI Co. Ltd
3. BYD Co. Ltd
4. Contemporary Amperex Technology Co Ltd
5. Tesla, Inc.
6. ABB, Ltd.
7. General Electric Company
8. Toshiba Corporation
9. NGK Insulators, Ltd.
10. Mitsubishi Electric Corp.