According to an analysis by Future Market Insights (FMI), the global battery energy storage systems market is expected to grow at a steady CAGR of 11.1%, expanding from USD 18.5 billion in 2023 to USD 52.9 billion by 2033. This growth is driven by increased demand for grid energy storage, fueled by grid modernization efforts, the widespread adoption of lithium-ion batteries in renewable energy systems, and the transition toward a low-carbon, fossil-fuel-free economy.
Battery storage is essential for renewable energy grids, primarily storing solar and wind power. However, fluctuations in sunlight and wind patterns disrupt energy generation, creating a need for flexible grid storage solutions. Despite substantial financial investments required for battery storage systems, grid modernization initiatives are increasingly integrating this technology.
The market saw slowed growth in 2020 due to pandemic-related facility shutdowns, impacting installations. However, efforts to bring electricity to remote regions, such as rural and peri-urban areas and isolated islands, also offer potential for market growth, with battery storage systems supporting rural electrification. Based on these factors, the market is projected to reach USD 15.1 billion by 2027.
Key Takeaways:
- Lithium-ion batteries had the most significant market share in 2021, which is expected to continue throughout the projection period.
- In 2021, the on-grid category will hold the most significant share of the battery energy storage systems market, with a substantial CAGR projected over the forecast period. The segment’s growth is likely to be fuelled by lower energy bills for clients who rely on the utility system for electricity.
- In 2021, the utility application market will be prominent. The necessity to meet peak electricity needs is a fundamental factor driving the growth of the utility sector.
- From 2022 to 2027, the APAC market is predicted to develop at the fastest rate. In 2021, the region will have the most significant share of the battery energy storage systems market.
Competitive Landscape
The battery energy storage systems market is dominated by BYD Company Limited (China), SAMSUNG SDI Co., Ltd. (South Korea), LG Energy Solutions Co., Ltd. (South Korea), and Panasonic Corporation (Japan).
The significant investment by the key players can be a positive contribution to the battery energy storage systems market.
- SAMSUNG SDI Co., Ltd. announced PRiMX, a new battery brand, in December 2021 to provide consumers with quality, performance, and a demonstrated advantage, which means user convenience attained by the company’s developed technology. In Korea and Europe, the brand has been trademarked, and it will be registered in the United States soon.
- LG Energy Solutions Co., Ltd. and Siemens AG signed a Memorandum of Understanding (MoU) in December 2021 for collaboration in battery manufacturing, specifically the digitization of the manufacturing process. LG Energy Solutions Co., Ltd. created smart battery manufacturing methods at its factories using innovative technology due to this strategic relationship.
Key Players
- BYD Company Limited (China)
- SAMSUNG SDI Co., Ltd. (South Korea)
- LG Energy Solutions Co., Ltd. (South Korea)
- Panasonic Corporation (Japan)
Key Segments
By Storage System:
- Front-of-the-meter
- Behind-the-meter
By Element:
- Battery
- Others
By Battery Type:
- Lithium-ion Batteries
- Advanced Lead-acid Batteries
- Flow Batteries
- Others
By Connection Type:
- On-grid
- Off-grid
By Ownership:
- Customer-owned
- Third-party Owned
- Utility-owned
By Energy Capacity:
- Below 100 MWh
- Between 100 to 500 MWh
- Above 500 MWh
By Application:
- Residential
- Commercial
- Utility
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- The Middle East and Africa (MEA)
Report Preview: https://www.futuremarketinsights.com/reports/battery-energy-storage-system-market
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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