Battery Energy Storage Systems Market Growing at 24% CAGR, Lithium-Ion Batteries Segment Set to Dominate; According to MarketResearch.biz
The demand for Battery Energy Storage Systems is expected to rise in the coming years as the growing demand for renewable energy integration, grid flexibility, and the need to address intermittency challenges in power generation.
New York, July 11, 2023 (GLOBE NEWSWIRE) — The Global Battery Energy Storage Systems Market size accounted for USD 24.5 Bn in 2022. It is projected to surpass around USD 199.5 Bn by 2032, and it is poised to reach a CAGR of 24% from 2023 to 2032.
A Battery Energy Storage System (BESS) is a technology that stores electrical energy in rechargeable batteries for later use. It is designed to provide power on-demand, improve grid stability, and enable the integration of renewable energy sources into the electricity grid. BESSs are commonly used in various applications, including residential, commercial, and utility-scale installations.
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- By product type, the lithium-ion battery segment leads the market with the highest revenue share of 53%.
- By application, the data center segment dominates the application segment during the projection period.
- The United States held a significant revenue share of 39% in 2022.
- North America is anticipated to grow at a high CAGR during the forecast period.
Rapid industrialization, infrastructure development, and continuous population growth are primary factors boosting the market growth over the forecast period. Also, the growing acceptance of electric vehicle and hybrid vehicle and increasing renewable penetration is expected to stimulate market growth during the projection period.
Factors Affecting the Growth of the Battery Energy Storage Systems Market
Several factors can affect the growth of the Battery Energy Storage Systems market. Some of these factors include:
- Increasing acceptance of electric vehicles: Overall, the increasing acceptance of electric vehicles is significantly driving the demand for Battery Energy Storage Systems by creating opportunities for grid optimization, renewable energy integration, as well as the repurposing of second-life EV batteries.
- Rising renewable energy penetration: The rising penetration of renewable energy sources necessitates efficient energy storage solutions to maximize the utilization and reliability of these intermittent resources. Battery Energy Storage Systems offer the flexibility, stability, and grid support required for the effective integration of renewable energy, making them an essential component of the clean energy transition.
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Top Trends in Global Battery Energy Storage Systems Market
Growing grid modernization:
Overall, the grid modernization trend is driving the demand for Battery Energy Storage Systems by requiring increased grid flexibility, enhanced resilience, optimized grid operation, and improved integration of renewable energy sources and electric vehicle. As grids continue to evolve and transition to smarter and more efficient systems, the role of BESS becomes increasingly crucial in enabling a reliable, sustainable, and resilient energy infrastructure.
The increased demand for distributed power storage devices in various countries and increasing renewable penetration are driving the demand for battery energy storage systems. Also, increasing government investments in the renewable energy sector is stimulating the market’s growth during the projected time period. Furthermore, rising demand for electric vehicles, new strategic initiatives and the launch of new high-quality battery energy storage systems will propel market growth over the forecast period.
United States region leads the Battery Energy Storage Systems market by accounting for a significant revenue share of 39%. The increased penetration of renewable energies and a growing demand for distributed power generation in many Asian Pacific economies are some factors influencing the market’s growth during the estimated time period.
The North America region is expected to grow at a high growth rate over the projection period. The region’s demand for battery energy storage systems is anticipated to be driven by some key factors such as rising demand for efficient energy storage, and supportive government policies and regulations.
The competitive landscape of the market has also been examined in this report. Some of the major players include LG Chem Ltd., ABB Ltd., LG Energy Solution Ltd, NEC Energy Solutions, Samsung SDI, LG Energy Solutions Co., Ltd., SAMSUNG SDI Co., Ltd., Siemens AG, Honeywell Corporation, Panasonic Corporation, Exide Technologies, BYD Company Limited, Enersys, General Electric, and Other Key Players.
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Scope of Report
|Market Value (2022)||USD 24.5 Bn|
|Market Size (2032)||USD 199.5 Bn|
|CAGR (from 2023 to 2032)||24%|
|United States Revenue Share||39%|
|Historic Period||2016 to 2022|
|Forecast Year||2023 to 2032|
Increasing acceptance of electric vehicles and growing renewable energy penetration
As the number of EVs on the road continues to rise, there is a growing need for robust charging infrastructure. BESS can play a crucial role in managing the demand and supply of electricity in charging stations. By using BESS, charging stations can store energy during off-peak periods and release it during peak times, reducing strain on the grid and minimizing electricity costs.
Thus, the growing acceptance of electric vehicles is likely to drive the demand for battery energy storage systems during the projection period. Also, rising renewable energy penetration is expected to drive market growth during the estimated time period.
Availability of alternatives and high cost of lithium-ion batteries
There are many other energy storage options available, in addition to batteries. These include electrical, thermal and mechanical energy-based solutions. Thus, the availability of alternative energy solutions may limit the market growth during the projected time period. Also, high cost of lithium-ion batteries may affect the market growth during the estimated time period.
Government regulatory policies and programs for energy storage
Government policies and programs are significantly instrumental in stimulating the adoption of key energy storage technologies, including BESS. By providing financial support, setting targets, facilitating grid integration, supporting R&D, and establishing favorable regulatory frameworks, governments are fostering an enabling environment for the deployment of energy storage systems and accelerating the transition to a cleaner and more sustainable energy future.
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Report Segmentation of the Battery Energy Storage Systems Market
By Battery Type Insight
The Lithium-Ion Batteries segment leads the battery type segment by accounting for a major revenue share in the market. Due to its low weight, cost and limited coverage, lithium-ion battery energy storage systems are projected to register an increase in demand. On the other hand, the lead-acid batteries segment is expected to witness high growth during the estimated time period. The cost of lead-acid batteries is lower than that of other batteries. They can also be manufactured using low-tech equipment. This is like to fuel segment growth during the projection period.
By Application Insight
The data center segment leads the application segment. Data centers need uninterrupted power supply. The financial losses that can be caused by power outages are significant. This is likely to fuel the demand for battery energy storage systems in data centers. Moreover, the telecommunication segment is anticipated to experience high growth over the projected time period. The rise in telecom subscriptions has led to a spike in telecom tower installations, which is expected positively to impact the segment growth.
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By Battery Type
- Lithium-Ion Batteries
- Sodium–Sulfur Batteries
- Flow Batteries
- Nickel Cadmium Batteries
- Other Battery Types
By connection type
- On-Grid Connection
- Off-Grid Connection
- Data Center
- Other Applications
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Key Market Players
The global Battery Energy Storage Systems market is highly competitive and fragmented. It comprises key large market players who hold a prominent position in the market. The market is growing rapidly due to rising demand for energy-efficient systems. Additionally, key R&D initiatives, new strategic agreements, mergers and acquisitions, and the launch of new battery energy storage systems by key market players will likely positively impact market growth in the upcoming years.
- LG Chem Ltd.
- ABB Ltd.
- LG Energy Solution Ltd
- NEC Energy Solutions
- Samsung SDI
- LG Energy Solutions Co., Ltd.
- SAMSUNG SDI Co., Ltd.
- Siemens AG
- Honeywell Corporation
- Panasonic Corporation
- Exide Technologies
- BYD Company Limited
- General Electric
- Other Key Players
Recent Development of the Battery Energy Storage Systems Market
February 2022: Battery manufacturer Saft announced that it had secured a contract from Neoen to deliver a turnkey 8MW/8 MWh battery energy storage system (BESS) in Antugnac, Southern France. The facility will be France’s first co-located BESS and solar farm connected to Réseau de Transport d’Électricité’s (RTE) high-voltage transmission grid. Saft is building the new ESS on an EPC basis, with completion scheduled for spring 2022, within 10 months of contract signing.
June 2020: Siemens Energy and EnergyNest entered into a long-term partnership to supply industrial users with thermal energy storage systems.
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