Battery Energy Storage System Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 30.63 Billion |
| Market Size (2029) | USD 50.70 Billion |
| CAGR (2024 - 2029) | 10.61 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Battery Energy Storage System Market Analysis
The Battery Energy Storage System Market size is estimated at USD 30.63 billion in 2024, and is expected to reach USD 50.70 billion by 2029, growing at a CAGR of 10.61% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020. Presently the market reached pre-pandemic levels.
- Over the medium term, factors such as declining prices of lithium-ion batteries and increased penetration of renewable energy are likely to drive the battery energy storage systems market in the forecast period.
- On the other hand, the demand-supply mismatch of raw materials like cobalt, lithium, copper, etc., will likely hinder the growth of the battery energy storage systems (BESS) market in the studied period.
- Nevertheless, technological advancements in new battery technologies to store energy will likely create lucrative growth opportunities for the BESS market during the forecast period.
- Asia-Pacific is the fastest-growing market during the forecast period due to the rising energy demand. This growth is attributed to increasing investments, coupled with supportive government policies in the countries of this region, including India, China, and Australia.
Battery Energy Storage System Market Trends
Residential Expected to be the Fastest-growing Segment
- Recently, the energy storage system (ESS) experienced significant growth, especially in the residential sector, along with the rising investments in renewable energy infrastructure across the regions.
- Electricity consumption in residential buildings is estimated to increase during the forecast period due to increasing annual disposable incomes and the rising work-from-home trend worldwide. Energy storage systems are used for continuous power supply at homes during power outages at peak hours.
- Various incentive programs initiated by several governments worldwide are in place to support the residential energy storage market. For instance, California's Self-Generation Incentive Program (SGIP) primarily supports the residential storage sector and offers incentives for new and existing distributed energy resources.
- The residential energy storage segment will likely proliferate because of increasing technological advancements in energy storage technology, leading to a decline in battery prices and the widespread deployment of renewable power sources.
- In renewable power sources, the majority of demand in the residential sector comes from the solar energy segment, which, in turn, creates demand for residential battery energy storage systems. For instance, according to France Territoire Solaire, in Q2 2022, France's total residential photovoltaic solar energy capacity accounted for 1,758 MW, an increase of 13.8 % compared to Q2 2021.
- Market players like Harmony Energy Income Trust, an investment firm, announced in November 2022 that its Pillswood project in Yorkshire, United Kingdom, had gone live four months earlier than planned. According to Harmony, the 98MW/196MWh facility is Europe's largest BESS project by MWh. It is enough to power approximately 300,000 UK homes for two hours. The project will provide balancing services to the UK electricity grid network using a Tesla two-hour Megapack. Harmony Energy developed the project, with Tesla overseeing construction. Autobidder, Tesla's algorithmic trading platform, will manage the project.
- In June 2022, Toyota entered the energy storage market by launching the O-Uchi Kyuden System, a residential battery product. Toyota launched a rated output of 5.5 kWh and a rated capacity of 8.7 kWh battery storage system. It uses the company's electric vehicle battery technology. When connected to a photovoltaic rooftop system, the system can power a home day and night. Initially, the company aimed to sell the storage system in Japan.
- Therefore, owing to these factors, the residential application is expected to create lucrative demand in the battery energy storage systems market during the forecast period.
Asia-Pacific Expected to Dominate the Market
- Asia-Pacific is expected to keep leading the market for battery energy storage over the next few years. The region consists of two main types of power grids, each with different characteristics and opportunities for energy storage systems. On one side are highly developed countries like Japan, South Korea, New Zealand, and Australia, as well as other large cities with advanced grids that work well and use the latest technologies.
- The developing regions are also witnessing rapid population growth and urbanization, increasing the electricity demand. Renewable energy is becoming increasingly cost-effective, and developing countries are expected to include huge amounts of renewable energy into their grid. Many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems. It is creating the potential for the regional market's growth.
- China's residential energy storage market is expected to grow due to government support and policies. It showed its ability to stimulate high growth in domestic demand for solar-related equipment through subsidies and installation targets.
- Australia is undergoing an energy transformation, expected to intensify over the coming decades. The transformation includes a greater reliance on renewable energy in response to climate mitigation policies.
- In January 2022, Woodside Energy submitted a proposal for a 500 MW solar facility and 400 MWh of battery storage to the Western Australian Environmental Protection Authority. The facility would cover approximately 975.6 hectares within a development envelope of 1,100.3 hectares. According to the proposal, the solar facility will install approximately 1 million solar panels and support infrastructures such as a battery energy storage system and an electrical substation.
- Renewable energy is becoming increasingly cost-effective, and developing countries are expected to include huge amounts of renewable energy into their grid. Many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems.
- Therefore, owing to such factors, Asia-Pacific is expected to dominate the market during the forecast period.
Battery Energy Storage System Industry Overview
The battery energy storage system market is fragmented. Some of the major players in the market (in no particular order) are BYD Company Limited, Panasonic Corporation, LG Energy Solution Ltd, Tesla Inc, and Contemporary Amperex Technology Co. Limited.
Battery Energy Storage System Market Leaders
BYD Company Limited
Contemporary Amperex Technology Co. Limited
Tesla Inc
Panasonic Corporation
LG Energy Solution, Ltd.
*Disclaimer: Major Players sorted in no particular order
Battery Energy Storage System Market News
- February 2023: The New York Power Authority (NYPA) and the New York State Energy Research and Development Authority (NYSERDA) announced their first-of-its-kind battery energy storage system (BESS) utilizing patented, high-safety, lithium-ion (Li-ion) superCell technology. It provides energy peak-shaving capabilities to NYPA's White Plains offices as part of a demonstration project.
- October 2022: Fluence Energy GmbH and TransnetBW GmbH announced their plans to deploy the world's largest battery-based energy storage-as-transmission project. The project will improve energy security and significantly support Germany's energy transition pathway by increasing the efficiency of the existing grid infrastructure. The 250 MW battery-based energy storage system, supplied by Fluence, will be located at Kupferzell, a significant grid hub. It is planned for completion in 2025.
- February 2022: Battery manufacturer Saft announced that it had secured a contract from Neoen to deliver a turnkey 8MW/8 MWh battery energy storage system (BESS) in Antugnac, Southern France. The facility will be France's first co-located BESS and solar farm connected to Réseau de Transport d'Électricité's (RTE) high-voltage transmission grid. Saft is building the new ESS on an EPC basis, with completion scheduled for spring 2022, within 10 months of contract signing.
Battery Energy Storage System Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, until 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Lithium-ion Batteries
5.1.2 Lead-acid Batteries
5.1.3 Nickel Metal Hydride
5.1.4 Other Types (Sodium-sulfur Batteries and Flow Batteries)
5.2 Application
5.2.1 Residential
5.2.2 Commercial and Industrial
5.2.3 Utility-scale
5.3 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 France
5.3.2.3 United Kingdom
5.3.2.4 Italy
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Chile
5.3.4.4 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 South Africa
5.3.5.4 Qatar
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Company Limited
6.3.2 Panasonic Corporation
6.3.3 LG Energy Solution Ltd
6.3.4 Contemporary Amperex Technology Co. Limited
6.3.5 Sony Corp.
6.3.6 Varta AG
6.3.7 Tesla Inc.
6.3.8 Samsung SDI Co. Ltd
6.3.9 Cellcube Energy Storage System Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Battery Energy Storage System Industry Segmentation
Battery energy storage systems (BESS) are rechargeable batteries that can store energy from different sources and discharge it when required. BESS consists of one or more batteries that can balance the electric grid, deliver backup power, and enhance grid stability. BESS enables energy from renewables, like solar and wind, to be stored and discharged when consumers need power.
The battery energy storage system market is segmented into type, application, and geography. The market is segmented by type into lithium-ion batteries, lead-acid batteries, nickel metal hydride, and other types. By application, the market is segmented into residential and commercial & industrial. The report also covers the market size and forecasts across major regions. The market sizing and forecasts for each segment are based on revenue (in USD billion).
| Type | |
| Lithium-ion Batteries | |
| Lead-acid Batteries | |
| Nickel Metal Hydride | |
| Other Types (Sodium-sulfur Batteries and Flow Batteries) |
| Application | |
| Residential | |
| Commercial and Industrial | |
| Utility-scale |
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | |||||||
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Battery Energy Storage System Market Research FAQs
How big is the Battery Energy Storage System Market?
The Battery Energy Storage System Market size is expected to reach USD 30.63 billion in 2024 and grow at a CAGR of 10.61% to reach USD 50.70 billion by 2029.
What is the current Battery Energy Storage System Market size?
In 2024, the Battery Energy Storage System Market size is expected to reach USD 30.63 billion.
Who are the key players in Battery Energy Storage System Market?
BYD Company Limited, Contemporary Amperex Technology Co. Limited, Tesla Inc, Panasonic Corporation and LG Energy Solution, Ltd. are the major companies operating in the Battery Energy Storage System Market.
Which is the fastest growing region in Battery Energy Storage System Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Battery Energy Storage System Market?
In 2024, the Asia Pacific accounts for the largest market share in Battery Energy Storage System Market.
What years does this Battery Energy Storage System Market cover, and what was the market size in 2023?
In 2023, the Battery Energy Storage System Market size was estimated at USD 27.69 billion. The report covers the Battery Energy Storage System Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Battery Energy Storage System Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the future trends expected in the Battery Energy Storage System Market?
The future trends expected in the Battery Energy Storage System Market are a) Development of hybrid energy storage systems b) Increasing focus on rural electrification c) Technological innovations leading to cost reductions d) Expansion of renewable energy sources and distributed power storage
What are the primary application segments of the Battery Energy Storage Systems Market?
The primary application segments of the Battery Energy Storage Systems Market include a) Residential b) Commercial c) Utility d) Industrial
Battery Energy Storage System Industry Report
The global Battery Energy Storage System (BESS) Market is witnessing substantial growth, fueled by increasing demand for grid energy storage systems amid grid modernization and the rising adoption of renewable energy sources. Key market segments include elements, battery types, connection types, ownership, and energy capacity, with lithium-ion batteries leading due to their high energy density and efficiency, suitable for residential and utility-scale applications. The trend is shifting towards larger capacity systems, especially those above 500 MWh, crucial for stabilizing power grids with renewable energy sources. Utility-owned systems represent the largest market segment in the BESS industry, with utilities investing heavily to enhance grid reliability and manage peak loads. The Asia Pacific region dominates the BESS market share, driven by rapid industrialization and significant investments in grid infrastructure. Despite high initial costs, the declining prices of lithium-ion batteries and ongoing technological advancements are poised to propel BESS market growth further. Challenges such as installation and maintenance in remote areas persist, yet the market outlook remains robust with positive growth projections. For detailed statistics and a market forecast, access a free report PDF download from Mordor Intelligence™ Industry Reports.
