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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 and was valued at USD 6.5 billion in 2018. 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 increase the acceptance in grid storage applications, thereby driving the growth of the market during the forecast period.
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APAC is estimated to contribute 44% 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 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 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 market in APAC to grow even more rapidly, providing significant support for sustainable energy during the forecast period.
The market is experiencing remarkable growth, driven by the increase renewable energy adoption and the rapid expansion of the global electric vehicle industry. As emphasized by the International Energy Agency (IEA), the market is witnessing increased deployment of wind and solar photovoltaic (PV) systems alongside advancements in battery energy storage technology. From microgrid to on-grid energy distribution infrastructure, diverse solutions like electrochemical and thermal technology are being employed, bolstering the battery energy storage industry. With innovations in mechanical and electrochemical technology, coupled with the growing demand for plug-in electric vehicles (PHEVs), the market is poised for substantial growth, offering solutions for grid storage and reducing greenhouse gas emissions through stored energy potential from various renewable sources such as vanadium redox and pumped hydro storage.
The market is experiencing rapid growth, influenced by the escalating adoption of renewable energy sources worldwide, particularly in the global electric vehicle industry. The increasing deployment of wind and solar photovoltaic (PV) systems necessitates advanced energy storage solutions to address intermittency challenges. Battery energy storage, mechanical technology, and thermal energy storage (TES) systems play crucial roles in ensuring grid stability and maximizing the utilization of renewable sources while reducing GHG emissions.
Further, technologies like pumped hydro-storage and vanadium redox enhance stored energy potential and overall system efficiency, catering to diverse applications in buildings and microgrid infrastructure. With a focus on reducing carbon footprints and enhancing grid resilience, the market for advanced energy storage systems is poised for significant expansion, driven by the imperative for sustainable energy solutions.
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 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 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 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 market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Hydrogen storage and liquid air energy storage are emerging technologies enhancing energy storage capacity. The market faces regulatory barriers, tax structure complexities, and financing and investment challenges. Government subsidies and green bonds support energy conservation efforts and grid modernization. Electrical grids, energy management, and performance-based contracts are critical for optimizing power generation capacity and ensuring power reliability. Addressing safety concerns and energy wastage remains pivotal as the sector continues to grow, with electrical storage and chemical storage playing central roles.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.98% |
Market Growth 2024-2028 |
USD 9.83 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.01 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Germany, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Aquion Energy, BYD Co. Ltd., Dow Inc., EOS Energy Enterprises Inc., General Electric Co., GS Yuasa International Ltd., 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 growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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