Advanced Energy Storage Systems Market Overview:
Advanced Energy Storage Systems Market Size was valued at USD 72.6 Billion in 2022. The advanced energy storage systems market industry is projected to grow from USD 79.21 Billion in 2023 to USD 159.12 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.11% during the forecast period (2023 - 2032). Growing investment in renewable energy, an increase in the global electric vehicle industry, and shifting government policies to raise demand for energy efficiency are the major market drivers boosting the advanced energy storage systems market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Advanced Energy Storage Systems Market Trends
Rising investments in renewable energy sources is driving the market growth
The market CAGR for advanced energy storage systems is anticipated to expand due to rising investments in renewable energy sources. Due to its non-polluting nature and strong demand, renewable energy, also known as clean energy, is also known as clean energy. Globally, governments and the corporate sector are spending a lot on renewable energy since it helps to reduce pollution and preserve natural resources. The increased usage of renewable energy sources will increase the demand for improved energy storage systems, which are required to store, manage, and provide energy when needed. For instance, the International Energy Agency (IA), an independent intergovernmental agency, predicted that global investments in the electricity sector would increase by 5% from 2020 to 2021, reaching more than $820 billion. In 2021, $530 billion was invested in new power generation capacity, with 70% of that money going to renewables. Grids and storage were purchased with the balance. Due to significant technological development and cost reductions, a dollar invested in deploying wind and solar photovoltaic (PV) systems generates four times as much power as a dollar invested in the same technologies ten years ago. Therefore, the market for sophisticated energy storage systems would expand due to the rising investments in renewable energy.
The global market for advanced energy storage is driven primarily by the rapid growth in the battery energy storage industry, the enormous increase in global microgrid and on-grid energy distribution infrastructure, and the absence of significant regulatory barriers to energy storage. The electrochemical (battery) energy storage market has expanded, benefiting the growth prospects of the global advanced battery storage market due to the excellent growth seen in the battery industry over the past few years that has significantly lowered battery prices. The market for advanced energy storage is expected to increase significantly because of the tremendous expansion in the microgrid and on-grid energy distribution sectors that have been seen, particularly in some of the world's top developed and rising economies. Especially in nations around Europe and Asia Pacific where governments assist the industry through loan rebates and subsidies, the market is anticipated to benefit in the near future from the relaxation of tax structure and supportive government laws on energy storage.
The market for advanced energy storage systems has seen a significant improvement in technology. The market's major companies are concentrating on putting technological innovations—like software integration in sophisticated energy storage systems—into practice. These cutting-edge energy storage technologies enable efficient use of energy by enabling sophisticated features like better controls, monitoring, and forecasting capabilities. These systems can give providers of them a market advantage. For instance, Honeywell, a US-based multinational advanced technology firm, debuted its battery energy storage system (BESS) platform technology in June 2021. This technology has integrated controls, monitoring, and forecasting capabilities. Thus, driving the advanced energy storage systems market revenue.
Advanced Energy Storage Systems Market Segment Insights:
Advanced Energy Storage Systems Application Insights
The Advanced Energy Storage Systems Market segmentation, based on application includes Grid Storage, Transportation and Others. The transportation segment dominated the market. The advanced energy storage system (AESS) market will be driven by the increasing use of lithium-ion batteries in electric cars. The key reason for this is the growing need for peak shaving, which will further increase the penetration rate of AESS in transportation applications by cutting back on the electricity supply during peak hours.
Figure 1: Advanced Energy Storage Systems Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Advanced Energy Storage Systems Technology Insights
The Advanced Energy Storage Systems Market segmentation, based on technology, includes Mechanical, Thermal, Electro Chemical and Others. The thermal category generated the most income. In a process known as thermal energy storage, energy is kept in heat. During peak hours, thermal energy storage devices are helpful because they may be used to store thermal energy from renewable sources, including solar or wind power. Thermal energy storage devices are reasonably priced and, when put in place adjacent to a renewable energy source, can offer grid stability by acting as a backup power supply.
Advanced Energy Storage Systems Storage Type Insights
The Advanced Energy Storage Systems Market segmentation, based on storage type, includes Batteries, Flywheels, Compressed Air Storage, Pumped Hydro-Power and Others. The compressed air storage category generated the most income. Energy can be easily stored using compressed air technology. Several industries employ compressed air, including the automotive and transportation industries. The segment is developing as a result of the energy industry's growth and expansion. The government is continually investing to support the global expansion and improvement of the automobile industry. The need for compressed air is increasing significantly as a result of this reason.
Advanced Energy Storage Systems Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American advanced energy storage systems market area will dominate this market. The government subsidies for renewable energy and attempts to cut carbon emissions in the area are primarily responsible for this increase in demand for ADESS. Furthermore, several important firms are actively developing and deploying advanced energy storage systems. This technology is crucial for electrical networks and is rapidly improving.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Advanced Energy Storage Systems Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe advanced energy storage systems market accounts for the second-largest market share due to the increased production of power via renewable energy sources. The demand for cutting-edge energy storage devices is growing as more electric vehicles are on the road. Additionally, the market is predicted to grow in response to the rising demand for greater power reliability and efficiency, providing large advanced energy storage system providers with a potential opportunity. Further, the German advanced energy storage systems market held the largest market share, and the UK advanced energy storage systems market was the fastest growing market in the European region.
The Asia-Pacific Advanced energy storage systems Market is expected to grow at the fastest CAGR from 2023 to 2032. In developing nations, in particular, the market is anticipated to be driven high by increased power demand. Government initiatives, market forces, and accessible technology have all worked together to create the conditions for an increase in the share of low-carbon energy sources in the electrical supply from 36% to 52% in 2040. Increases in energy efficiency partially balance rising digitalization and electrification. Moreover, China’s advanced energy storage systems market held the largest market share, and the Indian advanced energy storage systems market was the fastest growing market in the Asia-Pacific region.
Advanced Energy Storage Systems Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the advanced energy storage systems market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, advanced energy storage systems industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global advanced energy storage systems industry to benefit clients and increase the market sector. In recent years, the advanced energy storage systems industry has offered some of the most significant advantages to market. Major players in the advanced energy storage systems market attempting to increase market demand by investing in research and development operations include AES Corporation (US), Tesla, Inc. (US), GENERAL ELECTRIC (US), ABB (Switzerland), Saft (France), LG Chem. (South Korea), Siemens AG (Germany), Panasonic Corporation (Japan), Electrovaya (Canada), and Hitachi, Ltd. (Japan).
A worldwide conglomerate, Hitachi Ltd. (Hitachi), is active in construction equipment, electronics, power systems, information technology, and social infrastructure. Construction equipment, automotive systems, smart life and eco-friendly systems, electronic systems and equipment, power systems, information and telecom systems, social infrastructure and industrial systems, and power systems are all produced and sold by the corporation.
Siemens Energy AG (Siemens Energy) is an energy technology supplier. This company develops, produces, sells, and installs various devices, including multi-megawatt gas turbines, steam turbines, turbines powered by gas engines, and others. The company offers various products and services for power generation, transmission, automation, smart grid, mechanical drives, compression and expansion, and renewable energy.
Key Companies in the advanced energy storage systems market include
- AES Corporation (US)
- Tesla, Inc. (US)
- GENERAL ELECTRIC (US)
- ABB (Switzerland)
- Saft (France)
- LG Chem. (South Korea)
- Siemens AG (Germany)
- Panasonic Corporation (Japan)
- Electrovaya (Canada)
- Hitachi, Ltd. (Japan)
Advanced Energy Storage Systems Industry Developments
June 2023- A subsidiary of General Motors, GM Defense, was chosen by the Department of Defense's (DoD) Defense Innovation Unit (DIU) to model an energy storage unit. GM Defense's solution will fulfill the needs of DIU's Stable Tactical Expeditionary Electric Power (STEEP) program. STEEP looks forward to aid tactical microgrid and energy management capabilities in austere locations, significantly minimizing the transportation requirements and dependence on the fossil fuels as the main source in the DoD. GM Defense is set to be leveraging GM's high-tech electric vehicle propulsion architecture, the Ultium Platform, to supply an accessible and adjustable energy storage unit backing the deliberate energy needs of the warfighter. The prototype solution will propose uninterruptable and environmental power for mission-critical equipment, like command & control systems, radar, weapons, and communications in isolated areas or where the stable power grid is lacking. GM Defense's STEEP energy storage system is set to supply smart tactical microgrid capabilities operating with hydrogen-powered generators, present fuel-powered generators, or stationary and mobile battery electric power to support efficient power management and distribution.July 2023- A leading provider of cutting-edge battery energy storage solutions, TROES happily announced the successful field certification of various off-grid projects, including a noteworthy project in Canada, which recently bested the field inspection process based on UL9540 standards for one of its off-grid projects. Boasting a selection of off-grid projects spanning the Caribbean and Canada, TROES' pledge to safety and quality in advanced Battery Energy Storage Systems (BESS) is characterized by the testing it has undertaken and continued agreement to industry best practices, guaranteeing the reliable and safe operation of off-grid projects with BESS components.July 2023 – A subsidiary of Fluence Energy, Inc., Fluence Energy GmbH (Fluence), and Transmission grid operator TenneT announced their cooperation on two Netzboosters (Grid Boosters) with a contract signing at Fluence's technology center in Erlangen.
May 2022: For an unknown sum, Bhago Mobility Solutions Private Limited, an Indian green energy business of Modern Automotive Limited, an Indian next-generation technology startup, purchased a share in Pastiche Energy Solutions (P) Ltd. Producing solid-state batteries, lithium batteries, and related products for uses including energy storage, electric mobility, military, and other industries will allow this stake acquisition to take advantage of both firms' experience in the field of advanced energy storage and green mobility.
July 2021: A deal for intellectual property rights was announced by the National Renewable Energy Laboratory of the United States Department of Energy and Babcock & Wilcox. It will be given exclusive marketing rights for sophisticated thermal energy storage technology and particle-based energy storage.
Advanced Energy Storage Systems Market Segmentation:
Advanced Energy Storage Systems Application Outlook (USD Billion, 2018-2032)
- Grid Storage
Advanced Energy Storage Systems Technology Outlook (USD Billion, 2018-2032)
- Electro Chemical
Advanced Energy Storage Systems Storage Type Outlook (USD Billion, 2018-2032)
- Compressed Air Storage
- Pumped Hydro-Power
Advanced Energy Storage Systems Regional Outlook (USD Billion, 2018-2032)
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
Rest of the World
- Middle East
- Latin America
Market Size 2022
USD 72.6 Billion
Market Size 2023
USD 79.21 Billion
Market Size 2032
USD 159.12 Billion
Compound Annual Growth Rate (CAGR)
Market Forecast Period
Market Forecast Units
Value (USD Billion)
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Application, Technology, Storage Type, and Region
North America, Europe, Asia Pacific, and the Rest of the World
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled
AES Corporation (US), Tesla, Inc. (US), GENERAL ELECTRIC (US), ABB (Switzerland), Saft (France), LG Chem. (South Korea), Siemens AG (Germany), Panasonic Corporation (Japan), Electrovaya (Canada), and Hitachi, Ltd. (Japan)
Key Market Opportunities
Increase in demand for renewable energy gradual
Key Market Dynamics
Growing need for uninterrupted power supply with substantial increase in power demand throughout the world
Frequently Asked Questions (FAQ) :
The Advanced Energy Storage Systems Market size was valued at USD 72.6 Billion in 2022.
The global market is projected to grow at a CAGR of 9.11% during the forecast period, 2023-2032.
North America had the largest share in the global market.
The key players in the market are AES Corporation (US), Tesla, Inc. (US), GENERAL ELECTRIC (US), ABB (Switzerland), Saft (France), LG Chem. (South Korea), Siemens AG (Germany), Panasonic Corporation (Japan), Electrovaya (Canada), and Hitachi, Ltd. (Japan).
The transportation category dominated the market in 2022.
The thermal category had the largest share in the global market.
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