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The advanced energy storage systems (AESS) market size is estimated to grow at a CAGR of 8.52% between 2022 and 2027. The market size is forecast to increase by USD 6,703.96 million. The growth of the market depends on several factors such as the growing adoption of renewable energy sources, increasing demand for stable and reliable power supply, and inclination toward energy independence.
This advanced energy storage systems market report extensively covers market segmentation by application (grid storage and transportation), end-user (non-residential and residential), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing adoption of renewable energy sources is the key factor driving the growth of the market. The global advanced energy storage systems market is greatly impacted by the increasing use of renewable energy sources such as solar and wind. Wind and solar energy are green options, but their sporadic nature presents challenges. These energy sources can intermittently produce energy depending on the time of day and weather, resulting in periods of excess or shortage of availability.
Furthermore, additional solar power generated during the day can be stored in batteries and used at night to ensure a stable and reliable power supply. The interaction of renewables and energy storage will improve grid stability, promote renewables integration, and pave the way for eventual substitution by more sustainable energy sources. Therefore, such factors are expected to drive the growth of the market during the forecast period.
The increasing dominance of lithium-ion batteries is the primary trend shaping the growth of the market. Due to their excellent energy density, lithium-ion batteries can store large amounts of energy in small units, meeting the growing need for effective and space-saving solutions. Lithium-ion batteries have become more economical for a variety of applications over time due to improved manufacturing processes, economies of scale, and scientific advances.
Moreover, extensive applications in areas such as consumer electronics, renewable energy integration, and electric vehicles (EVs) have proven the adaptability and reliability of lithium-ion batteries. For example, Tesla's Gigafactory will significantly reduce the cost of manufacturing lithium-ion batteries, enable widespread deployment of electric vehicles and large-scale energy storage projects, and are expected to drive the growth of the market during the forecast period.
High initial costs and uncertainty regarding the long-term returns of advanced energy storage systems is a challenge that affects the growth of the market. Potential users are deterred by the large upfront costs of infrastructure, equipment, and research required to deploy a new storage system. For example, despite the widespread use of lithium-ion battery systems, complex manufacturing processes, and high raw material costs result in high set-up costs.
Furthermore, it is difficult for stakeholders to accurately predict the economic benefits of these systems over their lifetimes, as changing advanced energy storage systems market dynamics, technological advances, and changes in energy policies contribute to the uncertainty of return on investment. is. The growth of the market is hampered by this financial ambiguity, hindering organizations in both the public and private sectors from engaging in widespread adoption. Therefore, high initial cost and economic viability are expected to create challenges for the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Advanced Energy Storage Systems Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
TotalEnergies SE: The company offers advanced energy storage systems such as Intensium Energy Storage Systems, through its subsidiary Saft Group.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The grid storage segment is estimated to witness significant growth during the forecast period. The increasing use of renewable energy sources and the need for reliable power supply are growing the demand for grid-scale storage solutions. Technologies such as lithium-ion batteries, flow batteries, and compressed air energy storage are gaining importance due to their ability to store excess energy when demand is low and release it again when usage is high.
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The grid storage segment was the largest segment and was valued at USD 6,038.90 million in 2017. As utilities and governments around the world prioritize system stability and decarbonization, energy storage system technology is poised to play a key role in transforming the energy landscape, promoting sustainability, and alleviating concerns about electricity supply. Hence, such factors are expected to grow the acceptance of advanced energy storage systems in grid storage applications, thereby driving the growth of the advanced energy storage systems market during the forecast period.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, the market for advanced energy storage systems is experiencing strong growth driven by energy storage modernization and sustainability promotion. At the forefront of this trend are countries such as China, Japan, South Korea, and India.
Besides, the regional advanced energy storage systems (AESS) market is dominated by lithium-ion batteries, with major players such as CATL, Panasonic, and LG Chem. Innovative alternatives to batteries are becoming popular, such as China's Three Gorges Dam pumped-storage power plant and Japan's flywheel energy storage project. Furthermore, aggressive government initiatives, ambitious renewable energy targets, and a focus on energy security will drive the advanced energy storage systems market in APAC to grow even more rapidly, providing significant support for sustainable energy during the forecast period.
Due to the outbreak of the COVID-19 pandemic in 2020, the APAC market for advanced energy storage systems was negatively affected. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions. Furthermore, increasing government support for clean energy initiatives and growing environmental awareness are driving the adoption of advanced energy storage systems. Increasing integration of renewable energy, efforts to modernize grids, and the need to provide energy security and flexibility, especially in countries such as China, Japan, and South Korea, will drive regional advanced energy storage systems market growth during the forecast period.
The advanced energy storage systems market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Advanced Energy Storage Systems Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.52% |
Market growth 2023-2027 |
USD 6,703.96 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.32 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Aquion Energy, BYD Co. Ltd., Dow Chemical Co., EOS Energy Enterprises Inc., General Electric Co., GS Yuasa Corp., Hitachi Ltd., Leclanche SA, LG Chem Ltd., NEC Corp., Panasonic Holdings Corp., S and C Electric Co., Samsung SDI Co. Ltd., Siemens AG, Tesla Inc., Toshiba Corp., TotalEnergies SE, Trane Technologies Plc, and Wartsila Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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