Energy Storage System Market Size was valued at USD 25,038.6 million in 2022. The Energy Storage System Market industry is projected to grow from USD 31,194.0 million in 2023 to USD 1,53,663.4 million by 2030, exhibiting a compound annual growth rate (CAGR) of 25.46% during the forecast period (2023 - 2030). The Energy Storage System (ESS) market refers to the industry that involves the development, manufacturing, deployment, and operation of technologies and systems designed to store energy for later use. Energy storage systems play a crucial role in the integration of renewable energy sources, such as solar and wind power, into the grid, as they help manage the variability and intermittency of these renewable sources.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Grid-scale stationary energy storage has the potential to revolutionise the electric power business. Energy storage technologies are a critical facilitator of grid modernisation, addressing the most pressing demands of the electric grid by enhancing its stability and resiliency. Investment in energy storage is critical for keeping up with the increasing demand for electricity caused by continuous productivity development, cultural transformations and expansion (e.g., the distributed grid and electric cars), and the predicted rise in renewable energy sources internationally. The development of low-cost energy storage technologies will offer the flexibility required by the electric grid to adapt to variable and growing electricity demands, ensuring that electricity is accessible when and when it is required.
Grid modernization is the process of improving the energy grid's efficiency and resilience. It entails a number of changes, including the incorporation of new technologies, new forms of electricity generation and distribution, the installation of smart meters, the upgrading of grid infrastructure, the incorporation of renewable energy sources, and others. The grid mordenization has gained acceleration as interruptions and poor energy technology, the aging electric power infrastructure exacts significant expenses. The increasing frequency and intensity of extreme weather (drought, hurricanes, etc.) has an impact on power generation and stresses the robustness of the electric power infrastructure. Physical infrastructure damage caused by hostile actors or natural disasters increases the risk to important assets. Cyber threats/attacks create interruption in energy production/flow and equipment damage. Global rivalry in the energy market is increasing as countries transition to sustainable energy technology. Energy markets that are competitive are required for economic competitiveness. Thus, the aforementioned factors are driving the grid modernization globally.
Also, electricity usage is expected to rise more in the coming years. For instance, electricity demand in the United States is predicted to rise at a 1% annual pace through 2035, when the country would consume 5,021 billion kilowatt-hours. This rising demand has put strain on power generating, transmission, and distribution facilities, and it will continue to do so. To fulfill the increased energy demand predicted by 2035, the electricity generation infrastructure would need to be expanded by 250 gigawatts. The majority of this increased producing capacity will come from renewable energy sources such as wind and solar power. High-speed flywheels, electrochemical capacitors, traditional and advanced lead-acid batteries, high-temperature sodium batteries (e.g., sodium-sulfur and sodium-nickel-chloride), lithium-ion batteries, flow batteries (e.g., vanadium redox and zinc bromine), compressed air energy storage, pumped hydro, and other advanced battery chemistries such as metal-air, nitrogen-acid, and lithium-ion While pumped hydro has been widely deployed, all of the feasible pumped hydro locations are now in operation, meeting just a tiny percentage of the baseload energy demands. These devices' diverse chemistries and architectures allow them to be tuned to satisfy the discharge duration, capacity, and frequency requirements of individual applications.
The Energy Storage System Market segmentation, based on technology has been segmented as pumped-hydro storage, battery-energy storage, compressed air energy storage, and flywheel energy storage. Among these, pumped-hydro storage is projected to dominate the Energy Storage System Market revenue through the projected period. Pumped-hydro storage provides grid stability by balancing supply and demand fluctuations. During times of excess electricity generation, such as when renewable sources like solar and wind produce more power than needed, the surplus energy is used to pump water from a lower reservoir to an upper reservoir. During periods of high demand or when renewable energy generation is low, the stored water is released back to the lower reservoir through turbines to generate electricity. Pumped-hydro storage projects are often capable of storing gigawatt-hours of energy, making them suitable for large-scale storage requirements. As the demand for grid-level energy storage increases, pumped-hydro facilities are well-positioned to meet these needs, helping utilities manage energy supply and demand more effectively. Pumped-hydro storage is known for its ability to store energy for extended periods, ranging from hours to days. This long duration of storage is crucial for maintaining grid stability during extended periods of low renewable energy generation or during emergencies.
November 2021:Panasonic launched the EverVoltTM 2.0, a Next-Generation Solar Energy Battery Storage Solution. EverVolt 2.0 has more customization options, a handy modular footprint, and a waterproof construction. A modular architecture that enables homeowners to customize their energy storage system to their own requirements.
The Energy Storage System Market segmentation, based on application, the market is segmented as stationary and transportation. Out of which transportation segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. The increasing adoption of electric vehicles has created a higher demand for energy storage solutions. ESS is essential for EVs as it enables efficient energy management, providing power for propulsion and supporting various vehicle functions. High-performance batteries in EVs also drive innovation and advancements in battery technology, benefitting other sectors that utilize energy storage. Energy storage systems play a crucial role in supporting EV charging infrastructure. They can store excess electricity during off-peak hours and discharge it during peak charging times, reducing strain on the electrical grid and optimizing the use of renewable energy sources.
June 2021:Schneider Electric, introduced Schneider Home, a first-of-its-kind home energy management solution for homeowners looking for savings, comfort, and energy independence. The Schneider Home energy management solution consists of a house battery for clean energy storage, a high-power solar inverter, a smart electrical panel, an electric car charger, and linked electric plugs and light switches, all of which are managed by the simple Schneider Home app.
The Energy Storage System Market segmentation, based on end-user, the market is segmented as residential, non-residential, and utilities. Out of which utilities segment dominated base year market and is also projected to be holding a dominating share in the forecasted period as well. Energy storage systems help utilities enhance grid stability and reliability by providing grid balancing services. ESS can quickly respond to fluctuations in electricity demand and supply, helping to maintain grid frequency and voltage within desired limits. Utilities are increasingly incorporating renewable energy sources, such as solar and wind, into their energy mix. ESS facilitates the integration of intermittent renewables by storing excess energy during times of high generation and releasing it when renewable generation is low or unavailable, ensuring a smooth and stable supply.
May 2020:BYD revealed its latest Electroweb energy storage device BYD Cube at the 14th SNEC Expo in 2020. According to reports, the BYD Cube has a storage capacity of 2.8MWh and a footprint of only 16.66m2. As compared to the industry's typical 40-foot integrated energy storage system, the product's energy density per unit area has risen by more than 90%, and it is the first to support 1300V DC voltage and match multiple brands of high-voltage converters.
By Region, the study segments the Energy Storage System market into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The sizable energy storage system industry in Asia-Pacific is likely to make the region the largest expanding global market for energy storage system. Asia Pacific is home to some of the world's fastest-growing economies, resulting in increased energy consumption and a higher demand for energy storage solutions. As cities in the region continue to grow and urbanize, the need for reliable and resilient power systems becomes more critical, promoting the deployment of ESS. Many countries in Asia Pacific have ambitious renewable energy targets. To accommodate the variable nature of renewable sources such as solar and wind, there is a growing need for energy storage to balance supply and demand, ensuring a stable and continuous power supply.
February 2023:BYD and Energy storage integrator Energy Vault will deploy a 543 MWh Cube Pro liquid-cooled battery energy storage system for NV Energy south of Las Vegas. Energy Vault, located in Switzerland, and BYD, based in China, expect the energy storage project to go operational in the second quarter of 2023. The system will store and dispatch extra wind and solar electricity, allowing NV Energy to make greater use of renewable energy.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Energy Storage System Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Energy Storage System Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global energy storage system industry to benefit clients and expand the Energy Storage System market sector is partnerships and acquisitions. The market for Energy Storage System is recognized as being extremely competitive and fragmented. The market for Energy Storage System offers considerable potential opportunities for domestic and unorganized companies. Some of the key players operating in the Energy Storage System Market are ABB Ltd. (Switzerland), BYD Company Ltd. (China), EOS Energy Enterprises Inc. (United States), Evapco, Inc. (United States), UCAP Power (U.S.), General Electric, Hitachi Ltd. (Japan), Schneider Electric SE (France), Siemens AG (Germany), Panasonic Corporation (Japan). To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.
ABB Ltd:ABB Ltd. is a pioneering manufacturer that collaborates closely with customers in utility, industry, transportation, and infrastructure. Its operations are divided into four categories: electrification products, motion, process automation, and robotics & discrete automation. ABB manufactures and sells products such as energy storage systems in its traction offerings, along with drive products, system drives, motors, generators, and motion control equipment through its motion division. Direct and indirect sales via distributors, machine builders, system integrators, and OEMs create revenue. Furthermore, the organization provides services to lower life cycle expenses, as well as upgrades, smart solutions, and part replacement. It operates in over 86 countries worldwide. ABB Ltd primarily serves customers in North America, Latin America, and Europe. ABB's key subsidiaries include ABB Engg. Technologies Co. (KSCC) in Kuwait, ABB Holdings (Pty) Ltd in South Africa, and ABB Technologies W.L.L. in the United Arab Emirates. The company operates from offices in more than 500 locations.
BYD Company Limited.:BYD Company Limited. (BYD) is a leading Chinese manufacturer involved in the design, development, and production in various industries. Around 30 industrial parks have been established by the firm across the world, and it has played an important role in industries such as electronics, automobiles, new energy, and rail transit. BYD is dedicated to providing zero-emission energy solutions, including energy generation, storage, and applications. Battery-electric automobiles, buses, medium- and heavy-duty trucks and forklifts, the SkyRail monorail system, solar power generation and energy storage systems, and consumer electronics are among BYD's creative products. BYD Energy has over 13 years of operating experience and around 30 production sites worldwide. BYD Energy Storage System (ESS) technology has a modular, adaptable design, allowing the system to be easily adjusted to meet the needs of a wide range of clients.
September 2022:BYD, Chinese electric car and battery manufacturer, intends to increase the usage of blade batteries in energy storage system goods after widely utilizing the new type of power pack in vehicles. BYD, located in Shenzhen, is slated to debut the new energy storage system both domestically and internationally in 2023.
May 2022:Panasonic Corporation Electric Works Co., Ltd. introduced "eneplat", in Japan. This innovative technology connects storage batteries with V2H (Vehicle to House), which transfers power stored in electric car batteries to residences, allowing families to utilize solar-generated electricity. The "eneplat" V2H power storage system is the first in the industry to allow for the charging and discharging of electric cars and storage batteries at the same time. It attempts to achieve self-sufficiency in electricity by making greater use of solar power in the house and reducing the amount of power sold and acquired from the grid.
November 2021:Hitachi Energy unveiled the next version of its e-mesh range of energy storage and digital automation technologies. The most recent e-meshTM battery energy storage and digital solutions are designed for quick execution, modularity, and high renewable penetration. The release provides the most comprehensive collection of digital energy solutions in the energy business. It tightly combines sophisticated analytics with both software and hardware systems in order to enhance system performance and value while lowering total carbon footprint.
By Technology (Pumped-Hydro Storage, Battery-Energy Storage, Compressed Air Energy Storage, and Flywheel Energy Storage), By Application (Stationary and Transportation), By End-user (Residential, Non-Residential, and Utilities),
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 25,038.6 million |
| Market Size 2023 | USD 31,194.0 million |
| Market Size 2030 | USD 1,53,663.4 million |
| Compound Annual Growth Rate (CAGR) | 25.46 % (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 & 2021 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Technology, Application, End-user, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, Brazil, Saudi Arabia, UAE, Argentina, |
| Key Companies Profiled | ABB Ltd. (Switzerland), BYD Company Ltd. (China), EOS Energy Enterprises Inc. (United States), Evapco, Inc. (United States), UCAP Power (U.S.), General Electric, Hitachi Ltd. (Japan), Schneider Electric SE (France), Siemens AG (Germany), Panasonic Corporation (Japan) |
| Key Market Opportunities | ·      Various governments supporting storage deployment through targets, subsidies, regulatory reforms and R&D support. |
| Key Market Drivers | ·      Increasing demand for grid energy storage systems owing to ongoing grid modernization. |
Frequently Asked Questions (FAQ) :
Energy Storage System Market was US$ 25,038.6 Mn in 2022
The growth rate of the Energy Storage System Market was 25.46% in 2022.
Asia Pacific held the largest market share in the Energy Storage System Market
Key players in Energy Storage System Market included ABB Ltd. (Switzerland), BYD Company Ltd. (China), EOS Energy Enterprises Inc. (United States), Evapco, Inc. (United States), UCAP Power (U.S.), General Electric, Hitachi Ltd. (Japan), Schneider Electric SE (France), Siemens AG (Germany), Panasonic Corporation (Japan)
Pumped-hydro storage led the Energy Storage System Market
Transportation had the largest market share in the Energy Storage System Market
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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