Enjoy complimentary customisation on priority with our Enterprise License!
The AESS market size is forecast to increase by USD 9.83 billion at a CAGR of 10.98% between 2023 and 2028. The market is witnessing significant growth due to the increasing adoption of renewable energy sources and the need for grid stability. Electrochemical storage, including batteries and supercapacitors, and chemical storage, such as compressed air energy storage and pumped hydro storage, are the two main types of AESS. Lithium-ion batteries are currently the most dominant battery technology in the market, driven by their high energy densities and improving costs. However, the high initial costs and uncertainty regarding long-term returns remain challenges for the market. In the US, the growing trend towards electrifying transportation, particularly with Electric Vehicles (EVs), is driving demand for advanced energy storage systems to support the charging and discharging of these vehicles. Key players in the market are focusing on developing new battery technologies and improving the performance and safety of existing ones to address these challenges and capture market share.
_Market_size_abstract_2024_v1.jpg?format=webp)
The renewable energy sector is witnessing significant growth in the United States, driven by the increasing demand for clean, nonpolluting energy sources. The electric vehicle industry is a key contributor to this trend as the shift toward sustainable transportation gains momentum. Energy efficiency and the need for on-grid energy storage solutions are crucial to ensuring the reliability and stability of the electricity grid. Battery and battery energy storage systems (BESS) are at the forefront of the energy storage technologies revolution. BESS plays a vital role in integrating renewable energy sources, such as photovoltaic systems, into the electricity sector.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The grid storage segment is estimated to witness significant growth during the forecast period. Advanced Energy Storage Systems have gained significant importance in the global market due to the increasing adoption of renewable energy sources and the need for energy efficiency in various sectors. The electric vehicle industry is one of the major contributors to this trend, as the demand for non-polluting and clean energy sources grows. In the electricity sector, AESS technologies, such as lithium-ion batteries, flow batteries, and compressed air energy storage, are increasingly being used for power generation capacity expansion and grid stabilization. Microgrids and on-grid energy storage systems are becoming essential components of the electricity infrastructure, allowing for the effective integration of renewable energy sources into the grid.
For instance, the Hornsdale Wind Farm in Australia, which utilizes Tesla's lithium-ion battery energy storage system, has demonstrated the capabilities of energy storage in grid balancing. As the world prioritizes sustainability and decarbonization, energy storage systems are poised to play a crucial role in altering the energy landscape. By storing excess energy during periods of low demand and releasing it during peak usage times, these technologies help ensure a reliable power supply and promote clean energy integration. The global AESS market is expected to grow significantly in the coming years, driven by these factors and the increasing focus on system stability and grid resilience.
_Market_segments_abstract_2024_v2.jpg?format=webp)
Get a glance at the market share of various segments Request Free Sample
The grid storage segment was valued at USD 6.50 billion in 2018 and showed a gradual increase during the forecast period.
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.
_Market_regions_abstract_2023_geo_v2.jpg?format=webp)
For more insights on the market share of various regions Request Free Sample
The market in the Asia Pacific region is experiencing significant growth due to the increasing integration of renewable energy sources and the necessity to maintain grid stability. Key countries, including China, India, and Japan, are leading the charge, implementing advanced storage solutions to meet their renewable energy targets and decrease dependence on fossil fuels. The rapid industrialization, urbanization, and escalating energy demands in the region are also fueling the need for efficient energy storage systems. Government policies and incentives are significantly contributing to the expansion of the AESS market in Asia Pacific. For instance, China's 14th Five-Year Plan focuses on the advancement of energy storage technologies to enhance grid flexibility, while India's National Solar Mission encourages the utilization of solar energy, which necessitates advanced storage solutions.
Simultaneously, energy storage technologies, such as Thermal energy storage, Hydrogen storage, Battery, Pumped hydro storage, and Flywheel storage, are gaining popularity in the region. These technologies play a crucial role in addressing energy conservation and reducing CO2 emissions and greenhouse gases. Photovoltaic systems, in particular, are benefiting from the adoption of advanced energy storage systems, enabling the efficient utilization of solar energy. The AESS market in Asia Pacific is poised for continued growth as countries recognize the importance of renewable energy and energy storage in their sustainable energy strategies.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. Moreover, flywheel storage, on the other hand, uses a large rotating mass to store energy. The intermittent nature of renewable energy sources poses a challenge to the electricity sector. Advanced energy storage systems play a crucial role in addressing this challenge by storing excess energy during periods of high production and releasing it during periods of high demand. This not only improves grid stability but also reduces the need for fossil fuel-based power generation. In conclusion, the advanced energy storage systems market is poised for significant growth in the United States, driven by the increasing demand for clean, renewable energy sources and the need for energy efficiency and grid stability. The market offers various energy storage technologies, each with its unique advantages and applications. The supportive regulatory environment and government incentives are expected to further boost the growth of the AESS market.
The growing adoption of renewable energy sources is the key driver of the market. The market plays a crucial role in addressing the challenges posed by the intermittent nature of renewable energy sources, such as wind and solar. Energy generation policies promoting the use of renewables have led to an increase in their adoption, resulting in excess energy production during certain periods. Advanced energy storage systems, including sodium sulfur batteries and flow batteries, enable the storage of excess energy during these times and its subsequent release during energy deficits.
Additionally, this energy storage and release mechanism is vital for maintaining a stable electrical grid and ensuring energy conservation efforts are effective. For instance, solar energy generated during daylight hours can be stored in batteries and utilized during nighttime hours, providing a consistent power supply. The integration of advanced energy storage systems is a significant step towards effective energy management and reducing energy wastage.
The increasing dominance of lithium-ion batteries is the upcoming trend in the market. In The market, lithium-ion batteries have emerged as a leading trend due to their high energy density and compact design. This attribute allows for substantial energy storage in minimal space, making them an ideal choice for various applications. The cost-effectiveness of lithium-ion batteries has increased significantly over the years due to advancements in manufacturing processes, economies of scale, and scientific discoveries. Their versatility is evident in their extensive use in consumer electronics, renewable energy integration, and electric vehicles (EVs). For instance, Tesla's Gigafactories have revolutionized the production of lithium-ion batteries, leading to the widespread adoption of EVs and large-scale energy storage projects.
In addition, intermittent energy sources, such as wind and solar, necessitate peak load control and sustainable energy solutions. AESS plays a crucial role in managing these energy sources by storing excess energy during off-peak hours and releasing it during peak demand. Safety concerns are a critical factor in the AESS market, and lithium-ion batteries have demonstrated a strong safety record. Financing and investment are essential components of the AESS market's growth. Green bonds, a type of fixed-income investment, have gained popularity as a sustainable financing option for AESS projects. Grid modernization is another significant trend, with AESS playing a vital role in enhancing grid stability and reliability.
Simultaneously, the utility market and consumer electronics are major sectors driving the demand for AESS. The utility market requires energy storage solutions to manage peak loads and integrate renewable energy sources, while consumer electronics rely on AESS for longer battery life and uninterrupted power supply. In conclusion, lithium-ion batteries have become the go-to solution in the AESS market due to their energy density, cost-effectiveness, and versatility. They address the challenges posed by intermittent energy sources and contribute to grid modernization, making them an indispensable component of the sustainable energy landscape. Financing and investment opportunities, such as green bonds, further fuel the growth of the AESS market.
The high initial costs and uncertainty regarding long-term returns of advanced energy storage systems is a key challenge affecting market growth. The market encompasses various technologies, including electrochemical storage and chemical storage, that offer electrical energy storage solutions for renewable energy sources. Electrochemical storage, such as battery technologies, and chemical storage, like supercapacitors, play crucial roles in enhancing grid stability by providing backup power and balancing energy supply and demand. However, the high initial investment required for implementing AESS is a significant barrier to entry for potential users. For instance, lithium-ion batteries, a widely used energy storage solution, have substantial upfront costs due to the complex production processes and expensive raw materials. Moreover, predicting the economic benefits of these systems over their entire lifespan is challenging due to fluctuating market conditions, technological advancements, and evolving energy policies, which add to the uncertainty surrounding the return on investment.
However, in the US market, the adoption of advanced energy storage systems is gaining momentum due to the increasing integration of renewable energy sources and the need for grid stability. According to recent studies, the energy densities of battery technologies and supercapacitors continue to improve, making them more cost-effective and efficient. Additionally, the growing electric vehicle market is expected to create significant demand for advanced energy storage systems. Despite these opportunities, stakeholders must carefully consider the upfront costs and long-term economic benefits before investing in AESS.
The market forecasting 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 market growth analysis strategies.
_Market_customer_landscape_abstract_2023_geo_v1.jpg?format=webp)
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.
ABB Ltd. - The company offers advanced energy storage systems such as eStorage Flex, eStorage OS, and eStorage Max, under the brand called ABB Energy Storage Solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Advanced Energy Storage Systems (AESS) have gained significant attention in the electricity sector due to the increasing integration of renewable energy sources. The electric vehicle industry and the need for energy efficiency in the power generation sector have further boosted the demand for non-polluting, clean energy storage solutions. Battery energy storage systems, including electrochemical energy storage technologies like lithium-ion batteries, have become popular choices due to their high energy densities and fast charging and discharging capabilities. Microgrids and on-grid energy storage systems have emerged as key applications for AESS, enabling peak shaving, peak load control, and grid stability. Mechanical storage systems like compressed air and thermal storage and electrochemical storage systems like sodium sulfur batteries and flow are also gaining traction.
Moreover, regulatory barriers and tax structures have been identified as key challenges in the AESS market. However, government subsidies and financing and investment opportunities through green bonds and performance-based contracts are driving the market growth. The integration of software and safety features is essential for ensuring grid modernization and consumer electronics applications. The AESS market is expected to grow significantly due to the increasing focus on energy conservation efforts, energy management, and sustainable energy solutions. Intermittent energy sources like wind, hydro, and solar energy require reliable storage systems to ensure power reliability and reduce energy wastage. The transportation sector is also adopting electric vehicles, leading to an increased demand for battery technologies.
Further, government incentives and subsidies are being provided to encourage the deployment of renewable energy sources and energy storage technologies. This supportive regulatory environment is expected to boost the growth of the AESS market. Thermal energy storage, hydrogen storage, EV battery technologies, supercapacitors, and flywheels are some of the energy storage technologies that are gaining popularity in the AESS market. These technologies offer varying energy densities, charging and discharging rates, and lifecycles, making them suitable for different applications. Pumped hydro storage and flywheel storage are two traditional energy storage technologies that have been in use for several decades. Pumped hydro storage involves the use of two water reservoirs at different elevations, with excess energy used to pump water to the higher reservoir, and the water released to generate electricity when demand increases.
Simultaneously, safety concerns and performance-based contracts are crucial factors influencing the financing and investment decisions in the AESS market. The utility market and consumer electronics industries are significant end-users, with grid modernization and peak load control being key applications. Hydrogen storage and supercapacitors are emerging technologies that offer promising potential in the AESS market. In conclusion, the AESS market is witnessing significant growth due to the increasing integration of renewable energy sources, the need for energy efficiency, and the growing demand for sustainable energy solutions. The market is driven by various factors, including regulatory policies, energy generation policies, and technological advancements. The market is expected to continue growing, with various applications and end-users driving the demand for advanced energy storage systems.
|
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 analysis, market growth inducers and obstacles, market forecast, 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 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. Get in touch
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Get the report (PDF) sent to your email within minutes.
Complimentary full Excel data with your report purchase.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
