Battery Energy Storage System Market - Growth, Trends, and Forecasts (2020 - 2025)

The Market is Segmented by Type (Lithium-Ion Batteries, Lead-Acid Batteries, Nickel Metal Hydride, and Others), Application (Residential, Commercial and Industrial), and Geography (North America, Asia-Pacific, Europe, South America, and Middle-East and Africa)

Market Snapshot

Study Period:

2018-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

24 %

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Market Overview

The market for battery energy storage system is expected to register a CAGR of over 24% during the forecast period 2020–2025. The major factors driving the market studied are the increasing levels of renewable penetration, demand for reliable and uninterrupted power supply, and aging grid infrastructure. However, the high initial investment required for the installation of the energy storage system is expected to hinder the growth of the market studied.

  • The lithium-ion battery segment is expected to be the fastest-growing segment for the battery energy storage system market. Additionally, the commercial and industrial segment is expected to dominate the market by application.
  • The commercial and industrial (C&I) sector is far more sensitive to power outages than the residential sector, and thereby the increase in reliability and decrease in the cost of battery energy storage system is expected to propel the adoption by the commercial and industrial sector, creating an opportunity for the growth of the market during the forecast period.
  • Asia-Pacific dominated the market across the globe with the largest consumption from countries, such as China.

Scope of the Report

The battery energy storage system market includes:

Type
Lithium-ion Batteries
Lead-acid Batteries
Nickel Metal Hydride
Others (Sodium-sulfur Batteries, Flow Batteries)
Application
Residential
Commercial and Industrial
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Key Market Trends

Increasing Demand from Commercial and Industrial Sector

  • Utilities can use batteries to store electricity during periods of low demand and then tap the stored energy during peak periods to shave peak loads. The demand for energy storage systems in the utility sector is expected to increase in the future on account of technical advantages and decreasing prices of energy storage systems.
  • The commercial and industrial segment has recently been explored by project developers, for whom it constitutes a significant growth opportunity. Key factors like increasing energy bills and price volatility are expected to drive the segment’s growth in the coming years. Further, developing hybrid energy storage systems with the ability to respond to a wide variety of needs is expected to be a key to unlocking future segment growth.
  • Driven by strong growth in China and India, the commercial and industrial storage segment is expected to reach 9 GW by 2025. In Europe, a total of 500-600 MW of commercial and industrial storage is expected to be deployed by 2021 in Germany and the United Kingdom.

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Asia-Pacific to Dominate the Market

  • The Asia-Pacific region consists of two main types of power grids, each with different characteristics and opportunities for energy storage systems. On the one side are highly developed nations, such as Japan, South Korea, with advanced grids that operate reliably and utilize advanced technologies. On the other side, there are nations that are still developing and have unreliable or limited power grids.
  • The developing regions are also witnessing rapid population growth and urbanization, which is increasing the demand for electricity. Renewable energy is becoming increasingly cost-effective, and the developing countries are expected to include huge amounts of renewable energy into their grid. Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems and thereby creating a potential for growth of the battery energy storage system market in the region.
  • China’s residential energy storage market is expected to grow on the back of government support and policies. It has shown its ability to stimulate high growth in domestic demand for solar-related equipment, through subsidies and installation targets.
  • Australia is undergoing an energy transformation, which is expected to intensify over the coming decades. The transformation includes a greater reliance on renewable energy in response to climate mitigation policies.
  • Renewable energy is becoming increasingly cost-effective, and the developing countries are expected to include huge amounts of renewable energy into their grid. Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems.

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Competitive Landscape

The battery energy storage system market is highly fragmented. The major companies include BYD Company Limited, Panasonic Corporation, LG Chem Ltd, and Contemporary Amperex Technology Co. Limited.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, until 2025

    3. 4.3 Global Annual Energy Storage Deployments Forecast, in MW, until 2025

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Lithium-ion Batteries

      2. 5.1.2 Lead-acid Batteries

      3. 5.1.3 Nickel Metal Hydride

      4. 5.1.4 Others (Sodium-sulfur Batteries, Flow Batteries)

    2. 5.2 Application

      1. 5.2.1 Residential

      2. 5.2.2 Commercial and Industrial

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 BYD Company Limited

      2. 6.4.2 Panasonic Corporation

      3. 6.4.3 LG Chem Ltd

      4. 6.4.4 Contemporary Amperex Technology Co. Limited

      5. 6.4.5 Sony Corp.

      6. 6.4.6 Panasonic Corporation

      7. 6.4.7 Tesla Inc.

      8. 6.4.8 Samsung SDI Co Ltd

      9. 6.4.9 Cellcube Energy Storage System Inc

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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