Global Energy Storage Systems Market Size, Share, and COVID-19 Impact Analysis, By Technology (Pumped Hydro, Battery, Compressed Air & Thermal), By Application (Transportation & Stationary), By End User (Residential, Commercial, Utility), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2024-2031

KEY MARKET INSIGHTS

The energy storage systems market was valued at USD 256.49 Bn in 2023. The market is projected to grow USD 506.50 Bn in 2031, at a CAGR of 9.07%. An energy storage system is a piece of equipment that allows various technologies of energy, such as electrochemical and mechanical, to be stored and used as per needs. When it comes to storing renewable energy, energy storage is crucial. These are modular blocks that are used to store and discharge energy generated by any renewable source. The energy storage market is predicted to grow gradually as the number of renewable energy installations increases.

Because of rising electricity demand in developing countries, global energy consumption has increased significantly. Governments and international organizations have implemented a slew of measures to address the growing need for stored energy. The paradigm shifts toward renewable energy generation and advanced energy storage systems to minimize GHG emissions promote the use of various storage technologies, which will positively affect the industry outlook and favor the worldwide market.

COVID-19 ANALYSIS

The outbreak of COVID-19 has impacted severely the supply chain of the power and energy sector. With suspended manufacturing activities, utility infrastructure construction, renewable energy structures, and car production across the globe due to government-imposed lockdown measures, demand for energy storage devices have decreased. Various governments have ordered lockdowns in order to stem the spread of the epidemic. As a result, supply chain disruptions have occurred all across the world. The world's economies have suffered as a result of a significant drop in product demand. The pandemic has hampered production across industries, resulting in a lack of basic materials. The drop in production is primarily due to a drop in exports and supply chain interruptions.

LATEST TREND

Growing Adoption of Renewable Energy Sources

Growing environmental concerns, carbon footprint reduction, and the development of sustainable energy sources are some of the major variables that will have a substantial impact on market growth. Furthermore, government measures to promote the adoption of renewable energy sources are likely to be a prominent driver driving market expansion.

DRIVING FACTORS

Increasing Deployment for Grid Energy Storage Systems Aiding the Growth of Energy Storage System

The deployment of flexible grid solutions for energy storage is likely to propel the growth of the energy storage system market. Grid deployment is increasingly using battery energy storage technology. When the electricity generated exceeds the electricity demand, these solutions assist grid operators in saving electricity. The implementation of these technologies increases the electrical supply systems' reliability and flexibility in terms of electric power generation, transmission, and distribution.

RESTRAINTS

Concerns Pertaining to High Initial Cost Required for Installing Battery Energy Storage Systems

Because of the high energy density and higher performance given by battery energy storage technologies such as lithium-ion batteries, flow batteries, and lead-acid batteries, increased installation investments are required. Lithium-ion batteries are expensive because they have a high energy density, a low self-discharge rate, and require little maintenance. Lithium-ion batteries are projected to become less expensive in the future. Because they are lightweight and compact, as well as having a huge capacity, these batteries are also employed in electric vehicles (EVs). Furthermore, the high initial investment cost of manufacturing flow batteries could be a major stumbling block to the market's expansion.

SEGMENTATION

The global energy storage systems market is segmented by Technology (Pumped Hydro, Battery, Compressed Air & Thermal), By Application (Transportation & Stationary), By End User (Residential, Commercial, Utility), and Region. Based on the technology, the market is categorized into pumped hydro and battery. Based on application, the market is categorized into transportation, and stationary. Based on end-user, the market is categorized into residential, commercial, and utility. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.

Technology Insights

Based on the technology segment, the global energy storage systems market is categorized into the pumped hydro, battery, compressed air & thermal. The pumped hydro segment has dominated the market share in 2020 of global energy storage systems market owing to the rising demand for pumped hydro storage power generation is increasing around the world. Furthermore, government initiatives to promote renewable energy generation are projected to fuel market expansion over the forecast period. Furthermore, an increase in global power consumption is expected to drive market expansion in the future years. Favorable compliance rules and expanding energy consumption in China and the United States are expected to promote long-term demand for pumped hydro storage (PHS).

Application Insights

Based on the application segment, the global energy storage systems market is categorized into transportation & stationary. The stationary segment has dominated the market share in the 2020 global energy storage systems market owing to the rapid rise of major industries and projects such as dams, power plants, power grids, refineries, and mills is to blame for this. Furthermore, the growing number of hydropower projects around the world is expected to drive the stationary energy storage systems market in the future years.

End-User Insights

Based on the end-user segment, the global energy storage systems market is categorized into residential, commercial, and utility. The utility segment is dominated the market share in the 2020 global energy storage systems market owing to the increased spending for the construction of utility-scale power facilities. In addition, the utility industry is growing due to an increase in construction projects such as decentralized renewable power plants, rural electrification projects, and commercial buildings.

REGIONAL INSIGHTS

The global energy storage systems market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Asia Pacific region is dominating the market share of the global energy storage systems market owing to the presence of a large customer base, the quick development of the renewable energy sector, and the presence of regional significant actors in the region's increasing industrialization and urbanization Furthermore, the government's policies are drawing significant FDI to the region. The Asia Pacific has become a manufacturing hub due to the accessible and affordable availability of production factors in key nations such as India and China. Due to increased energy consumption, the robust growth of industries is boosting demand for energy storage systems.

However, North America region is anticipated to grow over the next few years of global energy storage systems market owing to the government's increased actions and investments in the development and adoption of renewable energy sources. The increased push to minimize carbon emissions is driving up demand for electric vehicles among the general public. To encourage the use of electric vehicles, countries such as Canada are providing subsidies to its owners. The growing demand for electric vehicles is likely to propel the market for energy storage systems in North America.

PLAYERS PROFILED:

• LG Energy Solution
• Beacon Power, LLC
• Convergent Energy + Power
• BYD Motors Inc.
• ABB
• TATA POWER
• Wärtsilä
• Electrovaya
• S&C Electric Company
• Scheider Electric
• Linde plc
• SMA Solar Technology AG
• Eos Energy Enterprises, Inc.
• Exide Industries Limited

Key Developments:

August 2021- Tata Power launched a 50MWh battery energy storage system at Phyang village in Leh, Ladakh with a value of ÌNR 386 crores.

June 2021- Wärtsilä has signed multiple energy storage contracts with Universal Power Solutions with a capacity of 20 MW / 20 MWh and 40 MW / 40MWh respectively in Philippines.

SEGMENTATION 

By Technology

• Pumped Hydro
• Battery
• Compressed Air
• Thermal

By Application

• Transportation
• Stationary

By End-User

• Residential
• Commercial
• Utility

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia