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Energy Storage Systems Market

Energy Storage Systems Market

Energy Storage Systems Market Analysis, By Technology (Electro Chemicals, Thermal Storage, Mechanical Energy Storage), By Application (Transportation, Grid Storage), By End User - Global Forecast 2022-2031

Energy Storage Systems Market
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Energy Storage Systems Market Outlook (2022-2031)

Consumption of energy storage systems is predicted to increase at a CAGR of 5.6% from 2022 to 2031, . The global energy storage systems market stands at US$ 45.1 billion in 2022, and is projected to reach a valuation of US$ 73.8 billion by the end of 2031.

Report Attributes

Details

Energy Storage Systems Market Size (2022)

US$ 45.1 Billion

Projected Year Value (2031F)

US$ 73.8 Billion

Global Market Growth Rate (2022-2031)

5.6% CAGR

Asia Pacific Market Value (2031)

US$ 16.5 Billion

Key Companies Profiled

  • ABB Ltd.
  • BYD Company Limited
  • EOS Energy Storage
  • Evapco Inc.
  • Maxwell Technologies Inc.
  • General Electric Company
  • Hitachi Ltd.
  • LG Chem Ltd.
  • NEC Corporation
  • Panasonic Corporation
  • Schneider Electric SE
  • Siemens AG
  • Tesla

Increasing energy generation via renewable energy generation plants is expected to boost the adoption of energy storage systems over the coming years.

Rising popularity of electric vehicles will also positively boost demand for energy storage systems (ESS) along with electric car battery charger systems. The market for energy storage systems in the Asian region is anticipated to expand at a higher CAGR of 6% through 2031.

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Energy Storage System Consumption Analysis (2017-2021) in Comparison to Market Growth Forecasts (2022-2031)

Demand for energy is increasing at a substantial pace as the world witnesses a rise in population spanning multiple nations. Increasing focus on environment conservation and sustainability has increased demand for low-carbon grids that provide more carbon-free power as compared to conventional grids.

Rapid urbanization and industrialization on a global scale have also propelled the demand for energy which positively impacts ESS market potential over the coming years. Rising use of renewable energy technologies and rapid adoption of electric battery-operated vehicles that require portable device charging kiosks are also expected to influence energy storage system sales across the forecast period.

Investments in the research & development of longer-duration storage systems will further advance technologies for products such as flow batteries, rechargeable batteries, etc. Next-generation energy storage systems and advanced energy storage systems are expected to be high in demand as focus on research activities bolsters

However, high costs of battery energy storage systems are expected to have a restraining effect on global ESS market growth throughout the forecast period.

The energy storage systems market is expected to register expansion at a CAGR of 5.6% from 2022 to 2031.

Which Industry Will Positively Impact the ESS Market?

“Rising Popularity of Electric Vehicles to Drive ESS Market Potential”

The automotive industry has seen a paradigm shift towards electric vehicles from conventional IC engine-powered vehicles and this has substantially increased the demand for EV connectors and battery energy storage systems.

Key energy storage system manufacturers are investing in research and development of energy storage batteries with longer-duration storage capacity and this is expected to drive energy storage systems market growth.

The trend of electric vehicles is projected to boost demand for battery energy storage products such as flow batteries, lithium-ion batteries, rechargeable batteries, ultra-batteries, etc.

Energy storage systems market forecast by Fact.MR

Which Region is Seeing Rising Consumption of Energy Storage Systems?

“Asian Region to Leads Global ESS Market”

The regions of East Asia and South Asia are anticipated to be the most lucrative markets on a global scale. Rising urbanization and increasing popularity of electric vehicles are expected to be prominent trends driving the ESS market potential in the Asian region. India and China are projected to see high demand for energy storage technologies.

The Asian region energy storage systems market share is expected to exhibit a dominant outlook across the forecast period and account for a value of US$ 16.5 billion by 2031.

North America accounts for the second-largest market share in the global energy storage market in 2022. Increasing use of renewable energy resources, rising demand for energy-efficient solutions, and growing focus on reduction of energy costs are some major factors that influence energy storage system shipments in this region.

Energy storage technology providers should focus on economies of Canada and the United States in this region throughout the forecast period.

Europe is also projected to provide a lucrative setting for energy storage system companies owing to the increasing focus on sustainability and the rising use of energy storage technologies in multiple industries. Supportive government initiatives and subsidies to boost renewable energy generation are also projected to favor the establishment of low-carbon grids that deploy battery energy storage systems.

An Adaptive Approach to Modern-day Research Needs

Country-wise Insights

Will the Battery Energy Storage System Market in India Be Beneficial for Manufacturers?

“Rapid Urbanization & Increasing Adoption of Electric Vehicles to Drive Industry Growth”

India is one of the prime markets in the Asian region owing to the massive population and the developing nature of its economy. Urbanization has picked up pace in the nation at a notable pace and is driving demand for energy by its massive population.

Carbon-free power is the main focus of government in India as the awareness of sustainable energy increases across the forecast period. Moreover, increasing sales of electric vehicles are also projected to boost sales of advanced energy storage systems over the years to come.

Category-wise Insights

What is Driving High Sales of Lithium-ion Batteries?

“Growing Sales of Electric Vehicles Augmenting Consumption of Lithium-ion Batteries”

As the focus on sustainability and environment conservation increases the demand for sustainable alternatives is also witnessing a subsequent rise. This is majorly driving the popularity of electric vehicles that are environment friendly and are in accordance with new norms set by multiple governments across the world to ensure the conservation of the environment and reduce pollution.

Lithium-ion batteries are used in electric vehicles due to their high energy density, low standby discharge, high efficiency, and longer life expectancy than most batteries out there on the market.

However, the high costs of lithium-ion batteries are expected to have a hindering effect on global energy storage systems market growth.

Did Energy Storage Equipment Sales Dip in 2020?

“Sudden Emergence of COVID-19 Led to Decline in ESS Demand”

Sales of energy storage devices were negatively impacted in 2020 owing to the emergence of coronavirus infections on a global scale. This resulted in a pandemic situation across the world. To contain the spread of infections across the world lockdowns were imposed across multiple nations that bought about various restrictions and hampered business operations.

Shuttered production and manufacturing facilities caused a gap in the demand-supply chain of the global ESS market and this had a negative impact on the growth in 2020. The closure of multiple automotive manufacturing facilities also further weakened energy storage system consumption during the pandemic.

Shipments of energy storage systems are anticipated to see a rise in demand at a steady pace in the post-pandemic era as lockdown restrictions are lifted. Increasing focus on power grid optimization and rising focus on environment conservation will drive demand for low-carbon grids in the post-pandemic world.

Competitive Landscape

Energy storage system manufacturers are focusing on mergers, acquisitions, collaborations, and partnerships to expand their business scope and fast-track their production processes in order to gain a competitive edge in the global landscape.

  • In December 2021, LG Energy Solution, a storage battery manufacturing organization, announced the signing of a MoU (Memorandum of Understanding) with Siemens AG. This collaboration will be aimed at the digitization of the battery manufacturing process.

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Key Segments Covered in Energy Storage Systems Industry Research

  • Energy Storage Systems Market by Technology :

    • Electro Chemicals
      • Lithium-Ion Batteries
      • Lead Acid Batteries
      • Sodium Sulfur (NAS) Batteries
      • Flow Batteries
      • Others
    • Thermal Storage
    • Mechanical Energy Storage
      • Pumped Hydro Energy Storage
      • Flywheel Energy Storage
      • Compressed Air & Liquid Air Energy Storage
    • Other Storage Technologies
  • Energy Storage Systems Market by Application :

    • Transportation
    • Grid Storage
  • Energy Storage Systems Market by End User :

    • Residential
    • Non-residential
    • Utilities
    • Automotive
  • Energy Storage Systems Market by Region :

    • North America Energy Storage Systems Market
    • Latin America Energy Storage Systems Market
    • Europe Energy Storage Systems Market
    • East Asia Energy Storage Systems Market
    • South Asia & Oceania Energy Storage Systems Market
    • MEA Energy Storage Systems Market

- FAQs -

The global energy storage systems market stands at US$ 45.1 billion.
By 2031, the energy storage systems market is projected to reach a valuation of US$ 73.8 billion.
The global market for energy storage systems is predicted to record expansion at a CAGR of 5.6% from 2022 to 2031.
Applications of energy storage systems are transportation and grid storage.
Potential customers of energy storage systems are residential, non-residential, utilities, and automotive.
Key ESS manufacturers are ABB Ltd., BYD Company Limited, EOS Energy Storage, Evapco Inc., Maxwell Technologies Inc., General Electric Company, Hitachi Ltd., LG Chem Ltd., and NEC Corporation.

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