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The solar energy storage market size is estimated to grow at a CAGR of 9% between 2022 and 2027. The market size is forecast to increase by USD 5,508.04 million. The growth of the market depends on several factors, including a reduction in the costs of solar PV systems, a rise in global energy demand and growth in government support.
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A key factor shaping the solar energy storage market growth is the increasing investment in renewable energy sources. Renewable energy sources plays a crucial role due to the e global shift toward achieving a sustainable and less carbon-intensive environment. There has been an increasing demand for renewable energy sources due to a sharp reduction in the cost of solar PV systems and wind power systems.
Furthermore, there is a rise in nvestments in clean energy significantly across the world. For instance, according to the IEA, the annual global energy investment increased to USD 1.9 trillion in 2021, rebounding nearly 10% from 2020. The investment in renewable power was boosted by record spending on solar PV, of which China accounted for the highest share in 2021. Thus the increase in use of renewable energy sources, such as solar PV and wind with the support of several government investments is expected to drive the solar energy storage market growth during the forecast period.v
The market share growth by the utilities segment will be significant during the forecast period. Due to the stringent regulations put forth by governments to reduce carbon emissions during power generation, several countries have been transitioning to include renewable power in the grid. However, utilities have invested substantially in fossil fuel-based power generation as fossil fuels have been traditionally used to produce electricity.
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Energy storage is one of the important aspects in helping governments decarbonize economies, due to the rise in the use of renewables, such as solar and wind energy, which are intermittent sources of power generation. For instance, energy use in Hawaii has historically been linked to the expensive import of polluting diesel fuel. Due to this, there has been a large-scale adoption of rooftop solar as well as batteries to create dispatchable solar power plants. The battery systems are expected to reduce the dependency on fossil fuels in Hawaii, particularly during the peak demand time or when solar production is low. In January 2019, Hawaiian Electric Co. Inc. contracted PPAs for 75 MW of solar projects, including battery storage, with developer Clearway Energy Group (Clearway). Clearway was awarded two grid-scale, solar-plus-storage projects on the island of Oahu. Thus such factors are expected to drive the growth of the utilities segment which in turn will drive the solar energy storage market growth during the forecast period.
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APAC is estimated to contribute 59% 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. Some of the key contributors to solar energy storage market growth include countries like South Korea, Japan, and China. For instance, China is planning to build large cities, factories, and supporting elements such as infrastructure, housing, research and development centers, and universities with significant energy storage capacity. There has been an increasing adoption of solar PV systems by the residential and utility sectors in Japan due to the efforts undertaken taken by the government to boost renewable power generation. Thus, such factors are expected to drive the solar energy storage market growth during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of solar energy storage market witnessed a significant slowdown due to the lockdowns and stringent social distancing norms which halted the production operations of manufacturing industries in APAC. As a result, it reduced the demand for solar energy storage systems from the commercial and industrial sectors during the first half of 2020. However, in 2021, the initiation of large-scale vaccination drives has lifted the lockdown and travel restrictions, which led to the resumption of operations in the commercial and industrial sectors. Such factors are expected to drive the market during the forecast period.
One of the key factors driving the solar energy storage market growth is the rise in global energy demand.Over the past decade, the cost of solar PV modules and associated equipment has declined, making solar energy economically competitive with traditional sources. Factors contributing to cost reduction include economies of scale from increased manufacturing capacities and declining energy storage costs. This integration of solar PV with affordable energy storage technologies enhances reliability and flexibility, driving market growth. The adoption of solar energy has increased globally, leading to a higher demand for efficient energy storage solutions. This trend is expected to continue driving the growth of the global solar energy storage market. China and the US are expected to contribute significantly to this growing energy demand. Global electricity demand has also experienced substantial growth, doubling between 1990 and 2020. In 2021, global electricity demand expanded by 4.5% and is forecasted to grow twice as fast as overall energy demand, with a projected increase of over 25% by 2040. This surge in global electricity demand is primarily driven by emerging economies like China and India.
The challenges associated with solar energy storage is one of the key challenges hindering the solar energy storage market growth. Even though there is a growing popularity for energy storage, there is still a considerable lack of utility-scale energy storage solutions.
Factors such as cost, technological readiness, safety concerns, and quantification of storage value significantly impact the deployment of energy storage. Also, one of the main factors which increase the cost of solar ESSs is the high capital expenditure involved in manufacturing solar batteries. Furthermore, the lack of awareness regarding the benefits and functioning of solar ESSs in countries such as India, resulted in delays in granting permits as local authorities are unfamiliar with ESSs. Hence, such factors are expected to hinder the solar energy storage market growth 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 Solar Energy Storage 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.
Acciona SA: The company offers solar energy storage solutions based on three complementary and synergistic technologies photovoltaic panels, concentrated solar energy with standard Rankine cycles and energy storage with molten salts and batteries.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 solar energy storage 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.
Solar Energy Storage Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9% |
Market growth 2023-2027 |
USD 5508.04 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.52 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 59% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abengoa SA, Acciona SA, AEG Power Solutions BV, Aura Power Developments Ltd., BASF SE, BYD Co. Ltd., Canadian Solar Inc., Enact Systems Inc., EnerSys, General Electric Co., Helios New Energy Technology Australia Pty. Ltd., Leclanche SA, LG Electronics Inc., Primus Power Solutions, Samsung Electronics Co. Ltd., SMA Solar Technology AG, SolarEdge Technologies Inc., Tesla Inc., TotalEnergies SE, and ABB Ltd. |
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 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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