According to GMI Research’s latest report, the Global battery energy storage system market is expected to grow at a robust CAGR of 37.5% from 2019-2026. Global battery energy storage system market generated revenues of USD 1,950 million in 2018 and is projected to reach USD 34,249 billion in 2026.

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Key Drivers

The major factors propelling the global battery energy storage system market growth include the increasing demand for lithium-ion technology in renewable energy sectors and the reducing cost of lithium-ion batteries. In addition, favourable government policies and regulations, upcoming mega projects across major economies along with the rising demand for the grid-connected solutions are the other important drivers of battery energy storage system market. Moreover, the higher penetration of variable renewable generation technology across the globe is anticipated to drive the demand for battery energy storage systems. There has been an increased demand for technologically advanced battery energy storage systems which possess properties such as enhanced capacity, durability and reliability across the globe.

In addition, the growing demand for reliable and uninterrupted power supply from several end-use industries like telecom, industrial, data centers, marine, and medical are projected to expand the market growth. The strategic initiative enforced by several organizations to establish new plants with low carbon discharges have paved the way for market. For instance, in March 2021, Pacific Green, a clean energy technology company entered into an exclusive agreement with an infrastructure project developer TUPA Energy to develop a battery energy storage system with a capacity of 1.1 GW in the U.K. Moreover, the battery energy systems help electricity suppliers to conserve excess power for later use, thereby enhancing the grid flexibility and reliability in terms of power production, transmission, and distribution, driving the market.

According to IEA, the overall installed battery energy storage system capacity in 2018 is 3.1GWh. In China, the demand for domestic applications increased significantly owing to the two companies of China, which financed a range of projects supporting the network operations, and the country became a global leader, having around 0.5 GW of the new storage installed and also 1GW in the development stage.

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Element Segment Analysis

Battery element segment dominated the market in 2018 and is anticipated to grow at the highest rate during the forecast period. The battery is the key element of the battery energy storage system and holds the maximum share in the overall cost of the entire battery energy storage system. The battery used in the energy storage system enhances the power density and is beneficial in managing the sources of renewable energy. The battery can be utilized as stabilisers during the balancing problem owing to the fluctuations in the energy, which leads to an increase in the deployment of batteries in the energy storage system.

Battery Type Segment Analysis

Lithium-Ion Batteries segment held the largest revenue share in 2018 and is expected to grow at the highest CAGR of 39.0% during the forecast period owing to the rise in the number upcoming mega renewable energy projects across the globe wherein the battery energy storage system containing lithium-ion batteries are being extensively used. In addition, there are several advantages associated with lithium-ion battery such as high energy & power density, extended lifespan, requirement of less space, high specific energy, high capacity, simple charge algorithm coupled with reasonably short charge times.

Connection Type Segment Analysis

On-Grid Connection type segment captured the maximum share in 2018 owing to its characteristic to improve the reliability and flexibility of distribution, generation, and transmission of electricity through the grid. This type of connection helps the grid operators to save the electricity so that it can be utilized for later use and is thus gaining prominence across the globe.

Application Segment Analysis

Utilities end-user segment dominated the market in 2018 due to the rising awareness among the grid regulators and operators regarding the battery energy storage system and their characteristics to provide numerous services. The battery energy storage system enables the utilities sector to overcome the problem of deviation in voltage and frequency which can cause damage to the equipment and power outages leading to increase in the demand of such system in this application. The strategic automotive initiatives to power distant and remote locations will further bolster the segment growth.

Ownership Segment Analysis

Utility-Owned segment captured the maximum share the market in 2018 as a result of rising deployment of the battery energy storage system in the utility sector having high installed capacity. The favourable government policies pertaining to the usage of battery energy storage system coupled with the declining costs of battery energy storage system for both grid and power consumers are the other important factors propelling the growth of the segment. However, the different solutions vendors and manufacturers of compact & small renewable energy systems are projected to expand the size of customer-owned segment.

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Regional Analysis

Asia-Pacific is projected to grow at the highest CAGR during the forecast period owing to the increase in the demand of battery energy storage systems from key economies such as India, China, Japan, and Korea among others. The rising government investments in renewable energy projects across emerging economies such as India and China are propelling the market growth in this region.

North America is estimated to hold a larger share over the forecast period, because of the strategic government norms, tax rebates for renewable deployment, and rising investments by public and private organizations. For example, in September 2019, the Senate Energy and Natural Resources Committee introduced an amended draft of the Better Energy Storage Technology (BEST) Act to stimulate research on long-duration BESS units, among other features.

Top Market Players

Major key players in global battery energy storage system market include LG Chem, Panasonic Corporation, ABB, NEC Corporation, Samsung SDI Co. Ltd., General Electric, Siemens AG, Hitachi, AEG Power Solutions, Tesla Inc., Toshiba Corporation, Exergonix Inc. and Mitsubishi Heavy Industries Ltd. among others.

Key Market Developments:

In 2019, Panasonic Corporation launched a new residential energy storage system named as “EverVolt” at Solar Power International 2019. This product has a modular design and is available in both AC & DC version which improve energy requirements for homes. This launch has been improve the portfolio for home energy solutions of the company.

In 2019, Tesla launched a massive battery energy storage system named as Megapack which combines around 3MWh of storage capacity and 1.5MW inverter. This battery energy storage system helps in reducing the complexity of large-scale battery storage and also provides easy connection process and installation.

Global battery energy storage system market is categorized on the basis of element, battery type, connection type, end-user and ownership. Based on element, the market is segmented into battery, hardware and other elements. On the basis of battery type, the market is segmented into lithium-ion batteries, advanced lead acid batteries, sodium-sulfur batteries, flow batteries and others. Based on connection type, the market is segmented into on-grid connection and off-grid connection. Based on end-user, the market is segmented into utilities, residential, non-residential and others. On the basis of ownership, the market is segmented into utility-owned, customer owned and third-party owned.

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Key questions answered in this research report:

• • At what pace is global battery energy storage system market growing? What will be the trend in growth in the future?
  • What are the key drivers and restraints in global battery energy storage system market? What will be the impact of drivers and restraints in the future?
  • What are the various battery types in the global battery energy storage system market, and how they are poised to grow?
  • How the penetration of lithium-ion batteries is changing and what is driving this change?
  • What are the different end-user areas of the global battery energy storage system in the market?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2018
Market Forecast Period	2019-2026
Market Revenues Currency	USD Million
Base Year & Forecast Units	Value (USD Million)
Market Segment	By Element, By Battery Type, By Connection Type, By Ownership, By Application and By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	LG Chem, Panasonic Corporation, ABB, NEC Corporation, Samsung SDI Co., Ltd., General Electric, Siemens AG, Hitachi, AEG Power Solutions, Tesla Inc., Toshiba Corporation, Exergonix Inc. and Mitsubishi Heavy Industries Ltd.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Battery Energy Storage System Market by Element

• • Battery
  • Hardware
  • Other Elements

Global Battery Energy Storage System Market by Battery Type

• • Sodium-Sulfur Batteries
  • Lithium-Ion Batteries
  • Advanced Lead-Acid Batteries
  • Flow Batteries
  • Others

Global Battery Energy Storage System Market by Connection Type

• • Off-Grid Connection
  • On-Grid Connection

Global Battery Energy Storage System Market by Ownership

• • Utility Owned
  • Customer Owned
  • Third-Party Owned

Global Battery Energy Storage System Market by Application

• • Residential
  • Non-Residential
  • Utilities
  • Others

Global Battery Energy Storage System Market by Region

• • North America Battery Energy Storage Systems Market (Option 1: As a part of the free 25% customization)

• • • By Element
    • By Battery Type
    • By Connection Type
    • By Ownership
    • By Application
    • United States of America (US) Market All-Up
    • Canada Market All-Up

• • Europe Battery Energy Storage Systems Market (Option 2: As a part of the free 25% Customization)

• • • By Element
    • By Battery Type
    • By Connection Type
    • By Ownership
    • By Application
    • United Kingdom (UK) Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

• • Asia-Pacific Battery Energy Storage Systems Market (Option 3: As a part of the free 25% Customization)

• • • By Element
    • By Battery Type
    • By Connection Type
    • By Ownership
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

• • ROW Battery Energy Storage Systems Market (Option 4: As a part of the free 25% Customization)

• • • By Element
    • By Battery Type
    • By Connection Type
    • By Ownership
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Battery Energy Storage Systems Leading market players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • LG Chem
  • Panasonic Corporation
  • ABB
  • NEC Corporation
  • Samsung SDI Co., Ltd.
  • General Electric
  • Siemens AG
  • Hitachi
  • AEG Power Solutions
  • Tesla Inc.
  • Toshiba Corporation
  • Exergonix Inc.
  • Mitsubishi Heavy Industries Ltd.