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The off-grid energy storage system market share is expected to increase by USD 6.22 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 7%.
This market research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the market segmentation by battery type (Li-ion, LAB, sodium-based batteries, and others) and geography (North America, APAC, Europe, South America, and the Middle East and Africa). The off-grid energy storage system (ESS) market report also offers information on several market vendors, including Amperex Technology Ltd., Aquion Energy, Boston Power, CALB Co. Ltd., CEA, EnerSys, Fronius International GmbH, General Electric Co, LG Energy Solution Ltd., Mitsubishi Heavy Industries Ltd., NEC Corp., NRG Energy Inc., Primus Power Solutions, Saft Groupe SAS, Samsung SDI Co. Ltd., Sonnen GmbH, Sumitomo Electric Industries Ltd., Toshiba Corp., Xtreme Power Inc., and ZEN Energy Retail Pty Ltd. among others.
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Our researcher studied the historical data for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the market. During the COVID-19 pandemic, the market demand has been impacted greatly. A holistic analysis of drivers will help in predicting exact demands and refining marketing strategies to gain a competitive advantage.
Key Off-Grid Energy Storage System Market Driver
Change in the energy mix is one of the key factors driving the off-grid energy storage system (ESS) market growth. 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 has resulted in the diversification of energy resources, with renewables increasingly accounting for a significant share of the global energy mix. Moreover, new regulatory mandates on the use of renewable energy resources by governments worldwide have also led to a change in the global energy mix. This, in turn, will drive market growth during the forecast period.
Key Off-Grid Energy Storage System Market Trend
The increased adoption of microgrids is one of the key off-grid energy storage system (ESS) market trends fueling the market growth. Microgrids are gaining popularity in commercial and industrial facilities where downtime of even a minute can cause significant monetary losses. Moreover, when natural disasters occur, they expose the fragility of the centralized grid architecture. Thus, governments worldwide are supporting the adoption of microgrids due to their strong endurance capabilities in times of natural calamities. This has spurred the adoption of microgrids among many communities to overcome power outages that occur during natural disasters. Such factors are expected to fuel the growth of the market during the forecast period.
Key Off-Grid Energy Storage System Market Challenge
The widening demand-supply disparity with regard to lithium is one of the factors challenging the off-grid energy storage system (ESS) market growth. Li-ion batteries are being used by several major EV manufacturers such as Honda, General Motors, Ford, and Nissan. Lithium is a metal that is mainly extracted from mines in Australia and South America. However, with the growing demand from the EV industry 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 need to become operational to meet the growing demand from the automotive battery sector. Hence, these factors are expected to hamper the growth of the market in focus during the forecast period to some extent.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global off-grid energy storage system (ESS) market as a part of the global renewable electricity market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the off-grid ESS market encompasses successful business strategies deployed by the key vendors. The off-grid ESS market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the off-grid ESS market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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42% of the market’s growth will originate from North America during the forecast period. The US is the key market for off-grid energy storage systems in North America. Market growth in this region will be slower than the growth of the market in the MEA.
The growing investments in ESS will facilitate market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID-19 Impact and Recovery Analysis
The outbreak of COVID-19 hampered the growth of the regional market in 2020. However, the demand for off-grid ESS is expected to rise further in the coming years due to the ongoing construction of infrastructure and developments in North America. Hence, such factors are expected to fuel the growth of the regional market during the forecast period.
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The market share growth by the Li-ion segment will be significant during the forecast period. The self-discharge rate of Li-ion batteries is also lower than most other battery chemistries, such as lead-acid batteries (LAB), nickel-cadmium (Ni-Cd) and nickel-metal hydride batteries (NiMH). These beneficial characteristics of Li-ion batteries contribute to their high preference. Such factors are expected to drive the growth of the Li-ion batteries segment of the market during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the off-grid ESS market size and actionable market insights on the post-COVID-19 impact on each segment.
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Off-Grid Energy Storage System Market Scope |
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Report Coverage |
Details |
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Page number |
139 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7% |
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Market growth 2022-2026 |
$6.22 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
6.8 |
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Regional analysis |
North America, APAC, Europe, South America, and the Middle East and Africa |
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Performing market contribution |
North America at 42% |
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Key consumer countries |
US, China, India, Germany, and France |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Amperex Technology Ltd., Aquion Energy, Boston Power, CALB Co. Ltd., CEA, EnerSys, Fronius International GmbH, General Electric Co, LG Energy Solution Ltd., Mitsubishi Heavy Industries Ltd., NEC Corp., NRG Energy Inc., Primus Power Solutions, Saft Groupe SAS, Samsung SDI Co. Ltd., Sonnen GmbH, Sumitomo Electric Industries Ltd., Toshiba Corp., Xtreme Power Inc., and ZEN Energy Retail Pty Ltd. |
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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, and Market condition analysis for the forecast period. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Battery Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 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
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