Battery Energy Storage System Market Size, Share, Trends and Growth Report – Global Opportunities & Forecast, 2023-2030
GMI Research analysis indicates that the Battery Energy Storage System Market size was estimated at USD 5.1 billion in 2022 and is slated to register a double digit CAGR of 23.7% over the forecast period, and is projected to reach USD 28.0 billion in 2030.
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Battery Energy Storage System Market Key Drivers
The primary factors propelling the demand for the global battery energy storage system market are a significant rise in demand for renewable energy sources, a reduction in lithium-ion battery prices, innovative developments in fresh battery technologies, a continuous rise in population, and rapid industrialization. In addition, a considerable rise in adoption of hybrid vehicles, and electric vehicles, and a growing renewable penetration are estimated to present a positive impact on global market growth in the forecast period. Over time, different firms have invested strongly to meet the growing energy demand and have followed low-carbon emission strategies. Thus, different organizations have begun establishing new facilities to introduce large-scale storage buildings along low-carbon release. For instance, in 2021, Pacific Green joined hands with TUPA Energy to establish a BESS (Battery energy storage system) of 1,100 MW across the U.K.
In addition, the growing need to move to a low-carbon, fossil fuel-free economic system, coupled with the continuous revolution in renewable energy, is propelling the growth of the battery energy storage system market in the forecast period. Solar and wind power are popular forms of renewable energy stored in grids. Prime factors such as weather changes and wind fluctuations lead to alterations in power generation, propelling the demand for grid systems to maintain a stable power supply. Power storage systems allow grids to store excess electricity and use it throughout the power outages. These systems are rapidly becoming an important element of grid modernization. The implementation of these storage systems develops reliability and augments electricity generation, flexibility, and transmission. These key factors facilitate the implementation of these systems, propelling the global battery energy storage systems market growth. For instance, according to the International Energy Agency, the number of countries committing to accomplish net-zero emissions during the coming period is steadily growing. Government needs to decrease global power-related greenhouse gas emissions by 2050 to deliver the world with an equal opportunity to restrict the temperature increase to 1.50C.
However, increasing capital expenditure necessary for establishing battery storage systems restricts the global market growth. On the contrary, a significant rise in the proportion of electrification projects and solar projects globally, development in the requirement for supplying power because of the rise in the volume of data centers, and availability of lithium-ion at competitive prices are estimated to introduce market opportunities increasingly for the integration of battery power storage systems in the forecast period. For instance, in 2022, Woodside Energy offered a proposal to the Western Australian Environmental Protection Authority for a 500 Megawatt solar facility and 400 MWh of battery storage. As per the proposal, the facility would span nearly 975.6 hectares within an advancement envelope of 1,100.3 hectares. It involves the installation of nearly 1 million solar panels, along with assisting infrastructure like an electrical substation, and battery energy storage system.
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By Battery Type, Lithium-Ion Batteries segment dominated the market
A growing deployment of new large-capacity grid energy storage system, coupled with continuous developments in Li-ion Battery Energy Storage Systems products will drive the growth of this segment. Lithium-ion batteries offer distinct features such as high energy density, excellent productivity, and durable lifecycle. These batteries are lighter in weight competed to nickel-metal-hydride and nickel-cadmium batteries. These features are estimated to propel the global battery energy storage system market. Additionally, it is predicted that the substantial initial investment necessary for deploying lithium-ion batteries may pose a significant challenge to the progress of the battery energy storage system market.
By Ownership, Utility Owned segment held the largest share of the market growth
Utility battery energy storage systems are vital in delivering power quality, voltage control services, and frequency, particularly in response to abrupt fluctuations in energy supply. These systems empower grid operators to store surplus electricity introduced from renewable sources, confirming effective energy management. The high increase in investment from non-government and government utility market players will drive the demand for utility-owned BESS units during the forecast period. Further, the utility-owned segment in the global battery energy storage market is growing increasingly due to the growing need for energy security in different verticals.
By Application, Residential segment is estimated to grow at the fastest rate
The self-consumption of rooftop solar PV generation and the ability to store and utilize backup power for uninterrupted residential applications are the primary drivers propelling the growth of this segment. Additionally, the introduction of technologically advanced products positively impacts the requirement for BESS. For example, in 2020, Tesla announced the introduction of a new solar system for residential properties at competitive rates. Such developments are attributed to the growing demand for battery energy storage systems in the residential segment.
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Asia Pacific estimated to hold the largest market size in the forecast period
The exponential rise in urbanization, and industrialization, coupled with new electrification objectives, developing, and enlarging renewable energy generation capacity, and the existence of different industry players, are foremost aspects propelling the regional growth. Additionally, the existence of favorable government policies, growing investments by both public and private market players, and tax incentives for renewable deployment are key drivers fostering the expansion of regional market size. According to the International Energy Agency, the government of China announced an installation plan for more than 30 GW of power storage by 2025. Also, during 2021, the government has approved an invitation for expressions of interest to initiate the setup of a 1,000 MWh BESS.
The emerging nations are also observing a high increase in population, and industrialization, growing the electricity need. Renewable energy is becoming more competitive, leading emerging nations to integrate substantial amounts of renewable energy into their grid systems. Different locations are predicted to move towards a distributed grid development method, incorporating microgrid systems and local power generation. This trend holds the potential for significant growth in the Asia Pacific battery energy storage system market. Moreover, in 2021, the Central Government of India’s approval to invite expressions of interest for establishing a 1000 MW BESS as a pilot scheme marks a significant stride toward accomplishing India’s objectives. The decision aids with the Ministry of New and Renewable Energy’s goal to accomplish the 450 GW sustainability objectives by 2030, propelling the regional market growth in the forecast period.
By Region, North America is predicted to be the fastest-growing region
The demand for battery energy storage systems in North America is predicted to be fostered by some foremost drivers such as considerable growth in demand for efficient energy storage, rise in energy consumption in urban places, significant growth in demand for renewable energy sources, and rising requirement for grid energy storage systems because of continuous grid modernization. Presently, the US leads the market growth, due to present safety concerns and advancements.
Top Market Players
Major key players in global battery energy storage system market include LG Chem, Panasonic Corporation, ABB, NEC Corporation, Samsung SDI Co. Ltd., General Electric, Siemens AG, Hitachi, AEG Power Solutions, Tesla Inc., Toshiba Corporation, Exergonix Inc. and Mitsubishi Heavy Industries Ltd. among others.
Key Market Developments:
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- In 2023, the New York Power Authority and the New York State Energy Research and Development Authority found an innovative BESS employing patented high-safety Lo-ion supercell technology. This system offers energy peak-shaving abilities to NYPA’s White Plains offices as part of a groundbreaking demonstration project.
- In 2023, China’s CATL and Power Electronics have secured billion-dollar contracts from the state Western Australian Government. Under this agreement, the companies have committed to delivering BESS totaling 2.8 GHh to decarbonize the surrounding.
- In 2022, General Electric established a new hybrid factory to increase the capacity of manufacturing power electronics systems in solar and battery energy storage to 9 gigawatts in a year. The expansion triples its present capacity.
- In 2022, LG Energy Solution acquired NEC Energy Solutions to develop the business portfolio of LG Energy Solution’s Energy Storage System by extending its services.
- In 2022, Fluence Energy GmbH and TransnetBW GmbH have unveiled plans to implement the world’s largest project on battery-based energy storage-as-transmission. This initiative focuses on developing energy security and making a shift by boosting the effectiveness of the prevailing grid infrastructure. The 250 MW energy storage system based on battery, offered by Fluence, will be positioned at Kupferzell, a crucial grid hub. The project is scheduled for completion during 2025.
- In 2019, Panasonic Corporation launched a new residential energy storage system named as “EverVolt” at Solar Power International 2019. This product has a modular design and is available in both AC & DC version which improve energy requirements for homes. This launch has been improve the portfolio for home energy solutions of the company.
- In 2019, Tesla launched a massive battery energy storage system named as Megapack which combines around 3MWh of storage capacity and 1.5MW inverter. This battery energy storage system helps in reducing the complexity of large-scale battery storage and also provides easy connection process and installation.
Segments covered in the Report:
Global battery energy storage system market is categorized on the basis of battery type, element, connection type, Application and ownership. Based on element, the market is segmented into battery, hardware and other elements. On the basis of battery type, the market is segmented into lithium-ion batteries, advanced lead acid batteries, sodium-sulfur batteries, flow batteries and others. Based on connection type, the market is segmented into on-grid connection and off-grid connection. Based on Application, the market is segmented into utilities, residential, non-residential and others. On the basis of ownership, the market is segmented into utility-owned, customer owned and third-party owned.
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Report Coverage |
Details |
| Market Revenues (2022) |
USD 5.1 billion |
| Market Base Year |
2022 |
| Market Forecast Period |
2023-2030 |
| Base Year & Forecast Units |
Value (USD Billion) |
| Market Segment | By Element, By Battery Type, By Connection Type, By Ownership, By Application and By Region |
| Regional Coverage | Asia Pacific, Europe, North America, and RoW |
| Companies Profiled | LG Chem, Panasonic Corporation, ABB, NEC Corporation, Samsung SDI Co., Ltd., General Electric, Siemens AG, Hitachi, AEG Power Solutions, Tesla Inc., Toshiba Corporation, Exergonix Inc. and Mitsubishi Heavy Industries Ltd. |
| 25% Free Customization Available | We will customize this report up to 25% as a free customization to address our client’s specific requirements |
Market Segmentation
Global Battery Energy Storage System Market by Element
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- Battery
- Hardware
- Other Elements
Global Battery Energy Storage System Market by Battery Type
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- Sodium-Sulfur Batteries
- Lithium-Ion Batteries
- Advanced Lead-Acid Batteries
- Flow Batteries
- Others
Global Battery Energy Storage System Market by Connection Type
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- Off-Grid Connection
- On-Grid Connection
Global Battery Energy Storage System Market by Ownership
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- Utility Owned
- Customer Owned
- Third-Party Owned
Global Battery Energy Storage System Market by Application
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- Residential
- Non-Residential
- Utilities
- Others
Global Battery Energy Storage System Market by Region
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North America Battery Energy Storage System Market (Option 1: As a part of the free 25% customization)
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- By Element
- By Battery Type
- By Connection Type
- By Ownership
- By Application
- United States of America (US) Market All-Up
- Canada Market All-Up
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Europe Battery Energy Storage System Market (Option 2: As a part of the free 25% Customization)
- By Element
- By Battery Type
- By Connection Type
- By Ownership
- By Application
- United Kingdom (UK) Market All-Up
- Germany Market All-Up
- France Market All-Up
- Spain Market All-Up
- Rest of Europe Market All-Up
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Asia-Pacific Battery Energy Storage System Market (Option 3: As a part of the free 25% Customization)
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- By Element
- By Battery Type
- By Connection Type
- By Ownership
- By Application
- China Market All-Up
- India Market All-Up
- Japan Market All-Up
- Rest of APAC Market All-Up
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ROW Battery Energy Storage System Market (Option 4: As a part of the free 25% Customization)
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- By Element
- By Battery Type
- By Connection Type
- By Ownership
- By Application
- Brazil Market All-Up
- South Africa Market All-Up
- Saudi Arabia Market All-Up
- UAE Market All-Up
- Rest of world (remaining countries of the LAMEA region) Market All-Up
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Battery Energy Storage Systems Leading market players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)
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- LG Chem
- Panasonic Corporation
- ABB
- NEC Corporation
- Samsung SDI Co., Ltd.
- General Electric
- Siemens AG
- Hitachi
- AEG Power Solutions
- Tesla Inc.
- Toshiba Corporation
- Exergonix Inc.
- Mitsubishi Heavy Industries Ltd.
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