Off-Grid Energy Storage Market

Off-Grid Energy Storage Market Size (2023-2028):

The Global Off-Grid Energy Storage Market was worth US$ 43.63 billion in 2022 and is anticipated to reach a valuation of US$ 66.8 billion by 2028 and is predicted to register a CAGR of 7.55% during 2023-2028.

The global COVID-19 pandemic has been unprecedented and astounding, with demand for off-grid energy storage devices exceeding expectations in all locations compared to pre-pandemic levels. According to our calculations, the global market will rise by 33.6 percent in 2020 compared to 2019.

Energy is a fundamental requirement for daily operations in the private, commercial, industrial, and various other sectors. With the rapidly increasing electricity demand in various sectors, several companies and countries are continually attempting to achieve agreements with innovation system stakeholders. Furthermore, rising ozone-depleting greenhouse gas (GHG) emissions have compelled businesses to adopt low-carbon emission frameworks while generating energy. As a result, Off-Grid Energy Storage Systems, which use various battery chemistries to store energy to meet peak demand, are a key source of innovation.

Market Growth:

Some of the primary reasons driving the growth of this market are the growing demand for uninterrupted power supply and the growing necessity for backup power.

Market Drivers:

Demand for off-grid energy storage solutions has increased as the renewable energy sector has grown. Off-grid energy storage devices enable renewable energy surpluses to be stored and used as needed, reducing reliance on traditional grid infrastructure. In addition, as public awareness of climate change grows, more people are turning to off-grid energy storage solutions to help cut greenhouse gas emissions and minimize their consequences.

The world's population is growing, and there are more measures to enhance rural electrification, which has boosted peak energy consumption. Furthermore, rising urbanization and implementing infrastructure projects have increased the electricity supply-demand balance from utilities. As a result, the market is expected to rise due to the exponential need for energy resources in developing and developed countries and rising initiatives to ensure energy security. In addition, advances in the increasing integration of new power production technologies and the upgrading of existing foundations have boosted the demand for new grid systems with effective backup and peak load characteristics.

The drive to low-carbon energy generation to minimize greenhouse gas emissions has fueled market expansion in many regions. Countries have significantly invested in various off-grid energy storage technologies to satisfy their green energy ambitions. Numerous methods for accumulating and transporting power generated from concentrated solar and wind energy have been used in the residential, non-residential, and utility sectors.

Market Restraints:

The demand for significant capital investments is the key issue limiting the expansion of the off-grid energy storage business. Large plants mostly use these systems to meet energy demand during peak loads. According to the World Bank's Energy Sector Management Assistance Program (ESMAP), the total installed cost of various energy storage systems can range from slightly over USD 2,000 per kW to about USD 3,300 per kW, affecting initial capital expenditures. During the projected period, however, continuing research and development operations to increase performance features while lowering the capital required for new systems will likely offset market expansion.

OFF-GRID ENERGY STORAGE MARKET REPORT COVERAGE:

Market Segmentation: 

Off-Grid Energy Storage Market - By Product:

• Lithium-Ion Batteries

• Lead-Acid Batteries

Sodium-based batteries lithium-ion batteries are utilized in applications that need small, lightweight batteries with great energy density. These batteries have the highest energy density per weight and are commonly seen in mobile phones, laptops, and hybrid vehicles. The global lead-acid battery market is predicted to expand because of rising demand for automobiles and UPS systems and improvements in production methods. In addition, market demand for stationary lead-acid batteries is predicted to increase as demand for off-grid renewable energy generation grows. SIBs are rechargeable metal-ion batteries that use sodium ions as charge carriers. Because of the cheap availability of raw ingredients and cost-effectiveness, sodium-ion batteries have shown more promise than lithium-ion batteries.

Off-Grid Energy Storage Market - By Application:

• Residential Backup Power
• Industrial UPS
• Unattended Equipment
• Others

When the on-grid power supply is turned off, residential backup power devices act as backup storage for electricity in homes and infrastructure. These backup systems can be wholly electronic or a combination of mechanical and electronic circuitry (such as a rotary apparatus). The demand for continuous and mass manufacturing has expanded as urbanization and industrialization have increased. However, due to endangered fossil fuels and environmental worries about carbon emissions and CO2 levels, power supplies for these businesses have been reduced. In such conditions, companies turn to power backup/uninterruptible power supplies (UPS) to ensure continued output and avoid machine malfunctions. Electrical machinery or technology gear that does not require supervision are examples of unattended equipment. Unattended equipment such as kiosks, security alarms and systems, monitoring devices such as CCTV, and power and equipment failure alerts for industries are just a few examples of unattended equipment that must operate continuously to minimize any delays or mishaps.

Market Regional Analysis: 

The Global Off-Grid Energy Storage Market Report includes the segmentation of regions:

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

Lithium-ion batteries are the most common kind of storage utilized in off-grid systems in North America. Because of its low cost and great efficiency, the lead-acid battery is widely employed in various applications. However, due to the poor grid infrastructure, this region's rise might be ascribed to increased demand for backup power systems from individuals and businesses. In addition, increased investments in renewable energy projects are boosting market growth. On the other hand, high installation and maintenance expenses may limit market expansion in this region.

The growing demand for off-grid energy storage systems in Latin America can be ascribed to the region's residential and business organizations. Because of the country's vast potential for renewable energy sources such as solar and wind power, Brazil is a crucial market for off-grid energy storage devices in Latin America. Furthermore, Mexico is seeing tremendous growth in this sector due to increasing investments in renewable energy projects. Lead-acid batteries are expected to dominate the Latin American market during the projection period.

Market Key Players:

1. Amperex Technology
2. Aquion Energy
3. Boston-Power
4. CEA (Commissariatal energie atomique)
5. EnerSys
6. GE Renewable Energy
7. Green Charge
8. LG Chem
9. Mitsubishi Heavy Industries
10. NEC Energy Solutions
11. NRG Energy

Market Recent Developments:

• The projected 240 MWp/480 MWh Mornington large battery project on Victoria's coast, which is being developed by solar and energy storage company Maoneng, has received grid connection assessment clearance from the Australian Energy Market Operator (AEMO).
• Eiffage Energie Systèmes has awarded Saft, a subsidiary of TotalEnergies, a large contract to supply a 10 MW energy storage system (ESS) that will allow smooth grid integration for the Boundiali solar photovoltaic (PV) power plant. As a result, CI-Energies (Côte d'Ivoire Energies) will own and operate the 37.5 MWp (megawatt-peak) plant, which will be the country's first large-scale solar project.