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Battery Energy Storage Market Size, Share, and Analysis, By Element (Hardware, Battery, Other Elements), By Type (Sodium–Sulphur Batteries, Lithium-Ion Batteries, Advanced Lead-Acid Batteries), By Application (On-Grid Connection, Off-Grid Connection), By End-User (Customer Owned, Utility Owned, Third-Party Owned), By Vertical (Residential, Non-Residential, Utilities, Others) and Regional Forecasts, 2022-2032
Battery Energy Storage Market size was USD 7.21 billion in 2021 and projected to grow from USD 10.6 billion in 2023 to USD 61.5 billion by 2032, exhibiting a CAGR of 21.6% during the forecast period.
Battery energy storage system refers to an electrochemical device which piles the energy from a power plant or the grid and then delivers that to provide electricity when required. Battery storage is vital technology that improves the flexibility of power system. Battery energy storage systems generally involve computerized control systems & a built-in inverter which is simple to install, effortless and maintenance-free. Battery energy storage systems have several uses in both residential and commercial purposes. Commercial applications include load shifting, peak shaving, different grid services and emergency backup. Residential applications involve off-grid homes, emergency backup, self-consumption etc.
Battery Energy Storage Market is expected to reach USD 61.5 billion, growing at a CAGR of 21.6% during forecast period owing to the growing demand for authentic and effective solutions of energy storage. The huge increment in the installations of renewable energy sources, reducing battery costs, grid modernization efforts are expected to boost the market growth.
Battery Energy Storage Market is classified based on the Type into Sodium–Sulphur Batteries, Lithium-Ion Batteries, Advanced Lead-Acid Batteries. Lithium-ion Batteries segment is expected to dominate the market in the forecast period owing to the increasing popularity of lithium-ion batteries as a good power storage due to the efficiency improvements, high-power density, and long discharge cycle. The advancements in the technology and the low cost of lithium-ion battery are anticipated to drive the demand for market.
Battery Energy Storage Market is classified based on the Application into On-Grid Connection, Off-Grid Connection. On-grid connection segment is expected to dominate the market in the forecast period. As the power sent to the grid is high and can be utilized later, the on-grid connections have low costs which is expected to boost the market growth. The reduction in power bills who depend on utility grid for electricity and awareness for grid modernization along with new power regulatory policies are together aiding in the growth of the market.
Switching to Low Carbon Energy Production is Expected to Boost Market Growth
The growing awareness on the switching to low carbon energy production is expected to boost he growth of the market for decreasing the greenhouse emission of gases in various regions. The high investments in the fields of battery energy storage systems by various governments to meet the aim of green energy may propel market growth. The utilization of several systems for piling up and shifting generated power utilizing wind energy and solar power is boosting the market growth. Several technologies can be employed for the storage of energy with the use of flow batteries, solid-state batteries, pumped hydro storage, thermal energy storage systems etc.
Increasing Demand for Energy Storage Systems is Expected to Boost Market Growth
Grid energy storage is even referred to as large-scale energy storage, includes few processes used for storage of energy on a large scale inside an electrical power grid. are the most prominent renewable energy types stored in grids. The fluctuating wind currents in solar and wind lead to differences in operating energy generation. These fluctuations produce the necessity for flexible grid systems for energy storage. Electrical energy is deposited when electricity is ample and affordable. Battery energy storage systems have become an integral part of grid modernization which assisted the grid operators to conserve electricity.
High Cost May Restrain the Growth of the Market
The cost of battery energy storage systems includes high investment and the initial capital expenditure required is also expected to restrain the growth of the market.
Battery Energy Storage Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific region dominated the market in 2021 and is expected to continue its dominance over the forecast period owing to the rising acceptance of renewable energy and appreciative government policies which is expected to boost the growth of the market. Few countries in this region are major producers and leading in the consumption of energy storage systems. Few countries are also aiming in the production of electric vehicles which is expected to boost the growth of battery storage systems market.
The COVID-19 outbreak had resulted in the economic downfall. Several countries had imposed lockdowns and applied travel restrictions to control the spread of the virus. The supply and procurement of battery components and materials were disrupted due to the pandemic. The manufacturing facilities were closed which delayed the production of battery energy storage systems. Covid-19 had a negative impact on the growth of the Battery Energy Storage Market.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2021-2032 |
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Historical Period |
2019-2021 |
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Growth Rate |
CAGR of 21.6% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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Element |
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Type |
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Application |
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End-User |
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Vertical |
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By Region |
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Battery Energy Storage Market size was estimated at USD 7.21 billion in 2021 and is expected to reach USD 61.5 billion in 2032.
Battery energy storage system refers to an electrochemical device which piles the energy from a power plant or the grid and then delivers that to provide electricity when required. Battery storage is vital technology that improves the flexibility of power system.
Lithium-Ion Batteries and On-Grid Connection segment accounted for the largest Battery Energy Storage market share.
Key players: ABB, Samsung SDI, Nissan, Enersys, LG Chem Ltd., General Electric, Panasonic Corporation, Exide Technologies, BYD Company Limited, Tesla, Contemporary Amperex Technology Co. Limited, AES Energy Storage and Other Prominent Players are the key players in the Battery Energy Storage Market.
Switching to Low Carbon Energy Production and Increasing Demand for Energy Storage Systems are the factors driving the Battery Energy Storage market.
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