Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Battery Energy Storage Systems market.
Trusted Business Insights presents an updated and Latest Study on Battery Energy Storage Systems Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Battery Energy Storage Systems market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Battery Energy Storage Systems Market
The global battery energy storage systems market size was valued at USD 2.3 billion in 2020 and is projected to witness a compound annual growth rate (CAGR) of 6.1% over the forecast period 2021-2027. Rising demand for reliable and continuous power supply from end-use sectors such as industrial, telecom, data centers, marine, and medical are expected to strengthen the market over the forecast period.
Battery energy storage systems help the electricity suppliers to save excess power for later use, thereby improving the grid flexibility and reliability in terms of power generation, transmission, and distribution. Moreover, demand for uninterrupted power is expected to grow exponentially owing to continuous population growth, infrastructure development, and rapid industrialization over the coming years.
In the U.S., the market is projected to witness prominent growth on account of an increasing number of battery energy storage system manufacturers across the country. For instance, U.S. based electric services company NextEra Energy has integrated a 10-MW capacity battery storage with a large scale solar power plant, providing clean energy through a solar-plus-storage facility.
The cost of lithium ion batteries has decreased by 80.0% between 2010 to 2019 reaching approximately $200/kWh for small installations and is predicted to reach $96/kWh within the next seven years. Lithium-ion batteries offer the best option today in terms of cost, performance, calendar and cycle life, and technology maturity.
While lead-acid batteries have a high Manufacturing Readiness Level (MRL) and Technology Readiness Level (TRL), their cycle life is limited, leading to a life of fewer than 3 years assuming one cycle per day. Flywheel batteries are comparatively new technology and advancements are being made to compete with other battery technologies. However, with further reduced cost and technological up-gradation, flywheel battery storage is anticipated to grow in the coming future.
Application Insights: Battery Energy Storage Systems Market
The data center application segment held a market share of 37.3% in 2019 and is expected to ascend with a prominent CAGR over the forecast period. Uninterruptible power supply is of utmost importance in data centers. The losses incurred due to power failure are huge. In the U.S. alone, around USD 50.0 billion are annually lost due to power failures and related problems.
Irregularities such as energy dips and spikes can adversely affect the equipment at data centers, resulting in losses. A line-interactive UPS system can also act as a filter that refines power that comes into the UPS, adjusting the output so that the internal systems receive a consistent and uninterrupted supply.
Replacement of diesel generators by highly efficient batteries in the telecom industry is expected to augment the growth of the market for battery energy storage systems. Market players in telecom industry have contracts with battery energy storage systems manufacturers, thereby facilitating continuous and cost-effective power supply. Rising number of telecom subscriptions has resulted in growth of telecom tower installations, which is expected to positively influence the battery energy storage systems market.
Others segment is expected to witness a significant CAGR of 28.0% over the forecast period. Growth of renewable energy with the deployment of numerous wind and solar energy projects over the past years is expected to augment product demand over the forecast period. In addition, there is a huge potential for growth in micro-grid development for military and disaster relief in the economy. In addition, rapid development in grid storage infrastructure and supportive government regulations are likely to have a positive impact on the growth of the market for battery energy storage systems.
Battery Type Insights: Battery Energy Storage Systems Market
Lithium-ion batteries accounted for the largest revenue share of 55.0% of the market. Demand for lithium-ion batteries for energy storage systems is projected to subsequently increase owing to its low weight, low cost, and limited coverage area. Moreover, growing infrastructural spending from residential industrial and commercial sectors will bolster the lithium-ion battery energy storage systems market growth in the coming years.
Key Li-ion battery manufacturers include Toshiba Corporation, Panasonic Corporation, Hitachi Chemical Co., Ltd., GS Yuasa International Ltd., Samsung SDI Co., Ltd., LG Chem Power (LGCPI), and China BAK Battery Co., Ltd. Lithium-ion battery finds application in battery forklift trucks, automatic guided vehicles, wind and photovoltaic power storage, backup power source, and UPS.
Lead-acid battery occupies the second-largest revenue share in the market for a battery energy storage systems. The lead-acid batteries are relatively cheaper as compared to other batteries and are easily manufactured with relatively low technology equipment, which in turn will drive system growth in the near future. However, the emergence of alternative battery technology such as Li-ion and volatile raw material prices are expected to hamper the growth of the segment over the next seven years.
Flywheel battery technology is expected to witness the fastest growth on account of continuous uninterrupted power supply to the grid along with the instant response, frequency regulation, and quality improvement in terms of electricity. Flywheel batteries are more economical than other battery solutions. The main reasons for this are the long service life and low maintenance costs of the flywheel compared to the battery, which compensates for the higher purchase costs at the beginning of the installation.
Regional Insights: Battery Energy Storage Systems Market
The market in Asia Pacific occupied a significant revenue share of 41.9% in 2019. Rapid population growth has led to increased power demand across developing economies. Grid operators are deploying battery energy storage systems to prevent power outages and enhance grid flexibility over a period of the next seven years.
Growing penetration of renewable energy along with rising demand for distributed power generation across several Asia Pacific economies are further expected to intensify the regional market growth. Surplus renewable energy is stored in the battery systems and is used later for local power generation and grid power supply in times of peak demand.
North America occupies the second-largest share in the market for battery energy storage systems, with the U.S. being the major contributor to regional growth. Owing to the growing number of utilities and corporations, energy storage has been cornerstone of all energy plannings in the U.S., and safety of these energy storage systems is among the top priorities of industry leaders. The explosion at an Arizona Public Service facility propelled the need for standardized safety regulations for storage technology of energy storage system integration and monitoring.
The New York Fire Department (NYFD), issued regulations for the deployment of stationary energy storage systems in New York City (NYC). It will be the first municipality in a dense urban area to examine, study, and determine how energy storage can be placed and used in a city. These regulations will eventually influence the market for battery energy storage systems and provide insight into the direction of the industry over the coming years.
Key Companies & Market Share Insights: Battery Energy Storage Systems Market
Key companies are indulging in organic and inorganic growth strategies to enhance their foothold in the market through diversification of their product offerings. Some of the prominent players in the battery energy storage systems market include:
Key companies Profiled: Battery Energy Storage Systems Market Report
- LG Chem Ltd.
- Panasonic Corporation
- Samsung SDI
- BYD Company Limited
- Contemporary Amperex Technology Co. Limited
- Exide Technologies
- General Electric
- AES Energy Storage
- Hoppecke Batteries Inc.
This report forecasts revenue growth at global, regional, country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global battery energy storage systems market on the basis of application, battery type, and region:
Application Outlook (Revenue, USD Million, 2016 – 2027)
- Data Center
Battery Type Outlook (Revenue, USD Million, 2016 – 2027)
- Flywheel battery
- Lead acid battery
- Lithium-ion Battery
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