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The Battery for Energy Storage Systems (ESS) Market size is forecast to increase by USD 47.19 billion and is estimated to grow at a CAGR of 37.62% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is witnessing a growing demand for increased adoption of microgrids, declining costs of battery storage systems and the requirement of continuous power supply in data centers.
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The requirement of continuous power supply in data centers is an emerging trend shaping market growth. When the main power supply fails, data centers employ an uninterrupted power supply (UPS) to provide power to loads. In data centers, battery energy storage devices play a critical role in reducing electricity fluctuations. When utility problems or outages are detected, the combination of battery energy storage systems with UPS assures continuous power supply to selected important loads. thus, major data centers have increased their demand for UPS.
As a result, demand for energy storage systems based on Li-ion and lead-acid batteries is expected to rise. The battery management system (BMS) software ensures that UPS batteries are properly charged by monitoring their charge/discharge operations. Datacenter operators can benefit from the monitoring data collected and displayed by BMS. Such factors will drive the growth of the market during the forecast period
The on-grid segment is estimated to witness significant growth during the forecast period. On-grid battery systems are generally used to store excess photovoltaic energy solar energy, or hydropower for use at home and can provide essential on-grid battery storage power after dark using the excess solar PV power or energy generated during the daytime. The stored energy is then transferred to modular storage batteries.
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Furthermore, the launch of new on-grid batteries will also drive the growth of the battery for energy storage systems (ESS) market. For instance, in February 2023, SolarEdge Technologies Inc., a leading global company in smart energy technology, launched its first Battery Virtual Power Plant that supports Great Britain National Grid ESO Demand Flexibility Service (DFS). Thousands of SolarEdge Home Battery owners with appropriate smart meters across Great Britain can now earn financial incentives by deploying their stored battery energy during DFS peak demand events, which will be utilized to stabilize the grid. Such developments are expected to increase the demand for the on-grid ESS segment, which, in turn, will propel the growth of the market during the forecast period.
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APAC is estimated to contribute 58% 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 2023, the key countries contributing to the battery for energy storage systems (ESS) market in APAC were South Korea, Japan, and Australia. The battery market for energy storage systems market in APAC is expected to grow rapidly during the forecast period. The energy demand is increasing exponentially in the region due to population growth and rising living standards. These factors have increased the need for more reliable sources of energy that can meet the growing demand for electricity in the region.
In addition, the adoption of mini-grids and microgrids has increased in the region due to the growing use of renewables and the lack of reliable grid infrastructure. These mini-grids and microgrids supply electricity to people and industries in remote areas by using renewable energy sources such as solar and wind. Thus, the use of battery energy storage enables microgrids to utilize the stored power to supply power to a particular area where the microgrid is installed. Therefore, the rise in the number of microgrid installations is driving the growth of the market in APAC during the forecast period.
Changing the energy mix from fossil fuels to stainable and renewable energy resources is notably driving the market growth. The global energy mix has changed significantly over the years. Fossil fuels account for a major share of the global energy mix. However, burning fossil fuels for power generation increases the amount of GHG emissions released into the atmosphere. Due to the increase in GHG emissions, governments worldwide have started focusing on sustainable and renewable energy resources such as solar, biomass, and wind, which help in reducing GHG emissions. This resulted in the diversification of energy resources, with renewables increasingly accounting for a significant share of the global energy mix.
Moreover, the rapid adoption of renewables, in turn, is spurring the need for ESS to overcome the issues that arise because of the intermittent nature of renewable sources. Thus, the intermittent power generated from renewables will drive the need for users to adopt solutions such as battery energy storage, which enables them to optimize renewable power generation. Therefore, the rise in the adoption of renewable energy is driving the growth of the market during the forecast period.
Widening demand-supply disparity with regard to lithium is a significant challenge hindering market growth. Li-ion batteries had, until recently, been primarily used for applications in consumer electronics. However, in the past few years, these batteries have been rapidly used in energy storage systems (ESS). In 2023, lithium-based batteries accounted for more than three-fourths of global electrochemical energy storage. In the transportation sector, the demand for Li-ion batteries from electric vehicles (EVs) has increased due to the growing need for larger batteries and stationary storage in EVs.
However, with the growing demand for lithium from the EV and other battery application segments, the exploration of new lithium reserves is being undertaken across the world. Although lithium reserves are available in abundance, new lithium mines will take time to become operational to meet the growing demand from the automotive battery sector which will negatively impact the battery for energy storage systems (ESS) market growth. Such factors will hinder 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 Battery for Energy Storage Systems (ESS) 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.
dSPACE GmbH - The company offers batteries for energy storage such as HIL testing, SIL testing, and power HIL testing.
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 battery for energy storage systems (ESS) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Battery For Energy Storage Systems (ESS) Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 37.62% |
Market Growth 2024-2028 |
USD 47.19 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
33.78 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 58% |
Key countries |
US, China, Australia, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., AEG Power Solutions BV, Corvus Energy, dSPACE GmbH, East Penn Manufacturing Co. Inc., Exergonix Inc., General Electric Co., Hitachi Ltd., LG Electronics Inc., Mitsubishi Heavy Industries Ltd., NEC Corp., Panasonic Holdings Corp., Philadelphia Scientific LLC, Samsung SDI Co. Ltd., Siemens Energy AG, SolarEdge Technologies Inc., TDK Corp., Tesla Inc., The AES Corp., and Toshiba 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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