Ottawa, April 24, 2024 (GLOBE NEWSWIRE) -- The global energy storage systems market size surpassed USD 246.54 billion in 2023 and is anticipated to reach around USD 502.28 billion by 2032, According to Precedence Research.
The market is driven by increasing renewable energy integration, grid modernization, rising government policies and incentives, increasing energy demand, and rising investment. Additionally, the rapid growth in EVs is expected to propel the market growth during the forecast period.
Energy storage systems (ESS) refer to technologies and methods used to store energy for later use. These systems play a crucial role in managing the intermittency and variability of renewable energy sources, such as solar and wind power, by storing excess energy when it is available and releasing it when demand is high or when renewable sources are not generating electricity. The term energy storage system denotes storage systems that are divided into two different application groups.
Storage solutions for private households also referred to as home storage, are used in combination with private photovoltaic systems. This solution allows generated electricity to be stored until it is needed during periods of little sunlight but high energy demand. In industrial applications, ESSs are used as a source of emergency power or to stabilize electricity networks. The growing product launch is expected to propel the energy storage systems market growth during the forecast period.
- For instance, in June 2023, AlphaESS, a leading worldwide supplier of cutting-edge energy storage technologies, put on a spectacular display at EES Europe 2023. Through product innovation, excellent customer service, and growing its worldwide market presence, the firm demonstrated its commitment to a greener future when it debuted the SMILE-G3 series for home use and STORION-H30 for commercial usage.
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Key Insights:
- Asia Pacific led the market with the largest market share of 47.14% in 2023.
- By technology, the pumped hydro technology segment has generated the biggest market share of 95.4% in 2023.
- The electrochemical storage segment expected is to expand at a notable CAGR of 14.2% from 2024 to 2033.
Regional Stance
The Asia Pacific energy storage systems market size was valued at USD 116.21 billion in 2023 and is expected to expand to around USD 259.73 billion by 2033, with a CAGR of 8.36% from 2024 to 2033.
The region has seen a substantial increase in the deployment of renewable energy sources, including solar and wind. Energy storage systems are being increasingly utilized to address the intermittent nature of these renewables, providing grid stability and enabling a more reliable integration of clean energy into the power grid. Additionally, rapid urbanization and industrialization, especially in countries like India and China, have led to increased energy demand. Energy storage systems play a vital role in meeting this demand efficiently, optimizing grid operations, and supporting a stable and reliable power supply.
- For instance, according to secondary sources, China saw a 6.6% growth in industrial production in November 2023. Monthly, there was a 0.87 percent change in industrial production.
- For instance, according to the data given by Invest India, with big hydro and nuclear included, India's installed non-fossil fuel capacity has expanded by 396% in the previous 8.5 years to exceed 176.49 GW or over 43% of the nation's total capacity (as of July 2023). In 2022, India saw the largest annual growth rate of 9.83% in the addition of renewable energy. As of July 2023, installed solar energy capacity is at 70.10 GW, having expanded by 30 times in the previous nine years. Since 2014, there has been an approximate 128% growth in the installed capacity of renewable energy, including big hydro.
North America is expected to grow at a steady rate over the projected period. The regional growth of the energy storage systems market is attributed to the presence of major players such as General Electric, NextEra Energy Inc., Bloom Energy, and others. These players continuously adopted various strategies, including product launch, R&D, collaboration, and investment, to remain competitive in the industry.
- For instance, in November 2023, an agreement was signed between GE Vernova and Our Next Energy Inc. (ONE) to work together to advance battery energy storage systems in the US utilizing locally produced batteries. Under the agreement of the partnership, ONE will deliver battery modules to GE Vernova's nationwide Solar and Storage Solutions business projects. These battery modules will feature lithium iron phosphate (LFP) cells made in the United States. GE Vernova and its consumer base will be able to benefit from incentives provided by the Investment Tax Credits (ITC) and the Inflation Reduction Act (IRA) with the integration of locally produced LFP batteries. Thus, this is expected to drive the market growth over the forecast period.
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Scope of Energy Storage Systems Market
| Report Coverage | Details |
| CAGR | 8.05% from 2024 to 2033 |
| Market Size by 2033 | USD 535.53 Billion |
| Market Size in 2023 | USD 246.54 Billion |
| Market Size in 2024 | USD 266.82 Billion |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Year | 2024 to 2033 |
| Historical Year | 2021-2022 |
| Segments Covered | By Technology, By Application, By End User, and By Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Report Highlights:
Technology Insights
The pumped hydro segment held the largest share of the energy storage systems market in 2023. Pumped hydro storage is well-suited for grid stability and balancing due to its capacity to respond promptly to changes in energy demand. It can serve as a large-scale energy storage, assisting in matching power output with demand. Moreover, these storage systems are known for their high efficiency, with round-trip efficiencies typically exceeding 70-80%. This makes them a cost-effective solution for storing and retrieving a large amount of energy.
Furthermore, the growing number of pumped hydro projects across the globe is expected to offer a potential opportunity for market expansion during the forecast period.
- For instance, a 250 MW pumped storage power plant called the Kidston Pumped Storage Hydro Project (K2-Hydro) is being built in Queensland, Australia. It is going to be the third-biggest power storage plant in Australia and the first pumped hydro storage project in the nation in over 40 years. Australia-based Genex Power is a renewable energy generating and storage firm working on the project. The K2H project is scheduled to be finished in 2024, having started in 2021.
- It is anticipated that the power plant will be commissioned in the second half of 2024. Every generating cycle, the Kidston pumped storage plant will store and release 2,000MWh of power. It will provide at least six hours' worth of electricity, enough to power 143,000 houses. It is anticipated that the project will produce 900 jobs and $250 million in net public benefits to regional and national economies.
Application Insights
The grid management segment is expected to hold a significant share of the energy storage systems market over the forecast period. Systems for storing energy can react quickly to changes in supply and demand, which helps to stabilize the grid. When there are abrupt changes in generation or load, they can enhance grid stability by responding nearly instantaneously to changes in frequency and voltage.
Furthermore, in periods of high-power demand, these systems can release stored energy to meet peak loads. This helps utilities reduce costs and increase grid efficiency by avoiding the need for additional traditional power plants that would only be used during peak hours. Thus, these advantages drive the segment expansion over the forecast period.
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End User Insights
The residential segment dominated the energy storage systems market in 2023. Homeowners in some parts of the world are increasingly interested in generating and storing their electricity, reducing reliance on the grid and traditional utility services. Residential energy storage systems enable greater energy independence by storing excess energy for use during periods of high demand or grid outages. Moreover, the innovative product launch by the market participants also propels the segment expansion. For instance, in September 2023, at the RE+ 2023 Exhibition, North America's premier lithium-ion battery and energy storage system provider, ROYPOW, debuted its newest all-in-one home energy storage system.
Market Dynamics:
Drivers
Rising adoption of electric vehicles
The increasing adoption of electric vehicles contributes to the demand for energy storage systems. These systems are used in EVs and are also integrated into charging infrastructure to manage demand and provide fast charging capabilities.
- According to the report published by the Electric Vehicle Council, 46,624 EVs have been sold in Australia as of the end of June 2023, over three times the number during the same period in 2022 (a 269% increase). When considering the overall quantity sold, new electric vehicles (EVs) now account for 8.4% of all new automobile sales in Australia. This is a 120.5% rise over 2022 as a whole. As a result, during the study period, the aforementioned statistics are anticipated to boost the market for energy storage systems.
Restraint
Lack of standardization and technological limitations
The absence of established protocols and standards for energy storage systems might impede their seamless integration with the current grid infrastructure and cause interoperability problems. Although there are continuous initiatives to standardize, the lack of consistent standards might impede industry expansion. Furthermore, the energy density, cycle life, and efficiency of present energy storage methods are all limited. Although development is always being made, it is still difficult to solve these restrictions, especially when it comes to satisfying the various needs of diverse sectors and applications.
Opportunity
Increasing collaboration
The growing collaboration in the energy storage systems market is expected to offer an attractive opportunity for market revenue development during the forecast period. For instance, in October 2023, Energy Dome and MAN Energy Solutions, a well-known supplier of technological solutions to the energy industry, established a cooperative agreement. By signing a Memorandum of Understanding (MOU) for a non-exclusive partnership, the two firms have formally committed to working together, which is a significant advancement in the field of energy storage. The groundbreaking CO2 Battery from Energy Dome is a long-duration energy storage device that is renowned for its creative solution to the world's energy storage problem. Energy Dome is prepared to advance this technology with the help of MAN Energy Solutions; customers may now make use of the CO2 Battery that highlights the other company's turbomachinery.
Related Reports:
- Thermal Energy Storage Market: The global thermal energy storage market size reached USD 21.66 billion in 2022 and is projected to hit around USD 50.57 billion by 2032, growing at a CAGR of 8.9% during the forecast period from 2023 to 2032.
- Hydrogen Energy Storage Market: The global hydrogen energy storage market size is projected to surpass around USD 26.94 billion by 2030 from USD 14.72 billion in 2021, growing at a CAGR of 7.1% during the forecast period from 2022 to 2030.
- Advanced Energy Storage Systems Market: The global advanced energy storage systems market size was exhibited at USD 11.69 billion in 2022 and is projected to hit around USD 25.38 billion by 2032, registering a CAGR of 9% during the forecast period from 2023 to 2032.
- Energy Storage as a Service Market: The global energy storage as a service market size accounted for USD 62 billion in 2022 and is expected to hit around USD 138.25 billion by 2032, poised to grow at a CAGR of 8.40% during the forecast period from 2023 to 2032.
- Stationary Energy Storage Market: The global stationary energy storage market size reached USD 32 billion in 2022 and is expected to hit around USD 276.13 billion by 2032, poised to grow at a CAGR of 24.10% during the forecast period from 2023 to 2032.
Recent Developments:
- In December 2023, a UK-based company, Gravitricity, and ABB, made a deal to investigate how to hoist knowledge and technologies may hasten the creation and installation of gravity energy storage systems in abandoned mines. To combine the finest features of pumped hydro storage with lithium-ion batteries, Gravitricity created GraviStore, an inventive gravity energy storage technology that raises and lowers large weights in subterranean shafts. Future GraviStores will hold more than 20 MWh, enabling distribution networks, large power consumers, and network-constrained customers and operators to store and transmit energy quickly and efficiently.
- In November 2023, Wärtsilä, a technology company, added to its industry-leading track record and dedication to safety with the launch of Quantum High Energy (QuantumHE), a next-generation energy storage system with improved energy density and sophisticated safety measures.
- In May 2023, the launch of Rimac Energy marked Rimac Technology's entry into the stationary Energy Storage Systems (ESS) market. Built upon a unique electrical design, Rimac Energy's ESS is claimed to allow considerable improvements in terms of performance, safety, and availability, including a 40% lower system footprint and up to 50% reduction in energy losses.
Market Key Players:
- ABB Ltd.
- Eos Energy Storage
- BYD Company Ltd.
- LG Chem.
- Convergent Energy and Power Inc.
- Exide Industries Ltd.
- Seeo, Inc.
- S&C Electric Company
- Greensmith Energy Management Systems
- Scheider Electric
- Beacon Power, LLC
- SMA Solar Technology AG
Market Segmentation
By Technology
- Pumped Hydro
- Electro-Chemical
- Lithium Ion Battery
- Sodium Sulfur Battery
- Lead Acid Battery
- Flow Battery
- Others
- Electro-Mechanical
- Flywheel
- Compressed Air Energy Storage
- Thermal
- Water
- Molten Salt
- Phase Change Material
- Others
By Application
- Transportation
- Grid Management
By End User
- Residential
- Non-Residential
- Utilities
By Regions
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
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