Advanced Energy Storage Systems Market Analysis

Advanced Energy Storage Systems Market Overview:

Advanced Energy Storage Systems Market Size was valued at USD 79.21 Billion in 2023. The advanced energy storage systems market industry is projected to grow from USD 86.43 Billion in 2024 to USD 159.12 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.93% during the forecast period (2024 - 2032). Growing investment in renewable energy, an increase in the global electric vehicle industry, and shifting government policies to raise demand for energy efficiency are the major market drivers boosting the advanced energy storage systems market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Advanced Energy Storage Systems Market Trends

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  Rising investments in renewable energy sources is driving the market growth

  
  

The market CAGR for advanced energy storage systems is anticipated to expand due to rising investments in renewable energy sources. Due to its non-polluting nature and strong demand, renewable energy, also known as clean energy, is also known as clean energy. Globally, governments and the corporate sector are spending a lot on renewable energy since it helps to reduce pollution and preserve natural resources. The increased usage of renewable energy sources will increase the demand for improved energy storage systems, which are required to store, manage, and provide energy when needed. For instance, the International Energy Agency (IA), an independent intergovernmental agency, predicted that global investments in the electricity sector would increase by 5% from 2020 to 2021, reaching more than $820 billion. In 2021, $530 billion was invested in new power generation capacity, with 70% of that money going to renewables. Grids and storage were purchased with the balance. Due to significant technological development and cost reductions, a dollar invested in deploying wind and solar photovoltaic (PV) systems generates four times as much power as a dollar invested in the same technologies ten years ago. Therefore, the market for sophisticated energy storage systems would expand due to the rising investments in renewable energy.

The global market for advanced energy storage is driven primarily by the rapid growth in the battery energy storage industry, the enormous increase in global microgrid and on-grid energy distribution infrastructure, and the absence of significant regulatory barriers to energy storage. The electrochemical (battery) energy storage market has expanded, benefiting the growth prospects of the global advanced battery storage market due to the excellent growth seen in the battery industry over the past few years that has significantly lowered battery prices. The market for advanced energy storage is expected to increase significantly because of the tremendous expansion in the microgrid and on-grid energy distribution sectors that have been seen, particularly in some of the world's top developed and rising economies. Especially in nations around Europe and Asia Pacific where governments assist the industry through loan rebates and subsidies, the market is anticipated to benefit in the near future from the relaxation of tax structure and supportive government laws on energy storage.

The market for advanced energy storage systems has seen a significant improvement in technology. The market's major companies are concentrating on putting technological innovations—like software integration in sophisticated energy storage systems—into practice. These cutting-edge energy storage technologies enable efficient use of energy by enabling sophisticated features like better controls, monitoring, and forecasting capabilities. These systems can give providers of them a market advantage. For instance, Honeywell, a US-based multinational advanced technology firm, debuted its battery energy storage system (BESS) platform technology in June 2021. This technology has integrated controls, monitoring, and forecasting capabilities. Thus, driving the advanced energy storage systems market revenue.

Advanced Energy Storage Systems Market Segment Insights:

Advanced Energy Storage Systems Application Insights

The Advanced Energy Storage Systems Market segmentation, based on application includes Grid Storage, Transportation and Others. The transportation segment dominated the market. The advanced energy storage system (AESS) market will be driven by the increasing use of lithium-ion batteries in electric cars. The key reason for this is the growing need for peak shaving, which will further increase the penetration rate of AESS in transportation applications by cutting back on the electricity supply during peak hours.

Figure 1: Advanced Energy Storage Systems Market, by Application, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Advanced Energy Storage Systems Technology Insights

The Advanced Energy Storage Systems Market segmentation, based on technology, includes Mechanical, Thermal, Electro Chemical and Others. The thermal category generated the most income. In a process known as thermal energy storage, energy is kept in heat. During peak hours, thermal energy storage devices are helpful because they may be used to store thermal energy from renewable sources, including solar or wind power. Thermal energy storage devices are reasonably priced and, when put in place adjacent to a renewable energy source, can offer grid stability by acting as a backup power supply.

Advanced Energy Storage Systems Storage Type Insights

The Advanced Energy Storage Systems Market segmentation, based on storage type, includes Batteries, Flywheels, Compressed Air Storage, Pumped Hydro-Power and Others. The compressed air storage category generated the most income. Energy can be easily stored using compressed air technology. Several industries employ compressed air, including the automotive and transportation industries. The segment is developing as a result of the energy industry's growth and expansion. The government is continually investing to support the global expansion and improvement of the automobile industry. The need for compressed air is increasing significantly as a result of this reason.

Advanced Energy Storage Systems Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American advanced energy storage systems market area will dominate this market. The government subsidies for renewable energy and attempts to cut carbon emissions in the area are primarily responsible for this increase in demand for ADESS. Furthermore, several important firms are actively developing and deploying advanced energy storage systems. This technology is crucial for electrical networks and is rapidly improving.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Advanced Energy Storage Systems Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe advanced energy storage systems market accounts for the second-largest market share due to the increased production of power via renewable energy sources. The demand for cutting-edge energy storage devices is growing as more electric vehicles are on the road. Additionally, the market is predicted to grow in response to the rising demand for greater power reliability and efficiency, providing large advanced energy storage system providers with a potential opportunity. Further, the German advanced energy storage systems market held the largest market share, and the UK advanced energy storage systems market was the fastest growing market in the European region.

The Asia-Pacific Advanced energy storage systems Market is expected to grow at the fastest CAGR from 2023 to 2032. In developing nations, in particular, the market is anticipated to be driven high by increased power demand. Government initiatives, market forces, and accessible technology have all worked together to create the conditions for an increase in the share of low-carbon energy sources in the electrical supply from 36% to 52% in 2040. Increases in energy efficiency partially balance rising digitalization and electrification. Moreover, China’s advanced energy storage systems market held the largest market share, and the Indian advanced energy storage systems market was the fastest growing market in the Asia-Pacific region.

Advanced Energy Storage Systems Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the advanced energy storage systems market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, advanced energy storage systems industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global advanced energy storage systems industry to benefit clients and increase the market sector. In recent years, the advanced energy storage systems industry has offered some of the most significant advantages to market. Major players in the advanced energy storage systems market attempting to increase market demand by investing in research and development operations include AES Corporation (US), Tesla, Inc. (US), GENERAL ELECTRIC (US), ABB (Switzerland), Saft (France), LG Chem. (South Korea), Siemens AG (Germany), Panasonic Corporation (Japan), Electrovaya (Canada), and Hitachi, Ltd. (Japan).

A worldwide conglomerate, Hitachi Ltd. (Hitachi), is active in construction equipment, electronics, power systems, information technology, and social infrastructure. Construction equipment, automotive systems, smart life and eco-friendly systems, electronic systems and equipment, power systems, information and telecom systems, social infrastructure and industrial systems, and power systems are all produced and sold by the corporation.

Siemens Energy AG (Siemens Energy) is an energy technology supplier. This company develops, produces, sells, and installs various devices, including multi-megawatt gas turbines, steam turbines, turbines powered by gas engines, and others. The company offers various products and services for power generation, transmission, automation, smart grid, mechanical drives, compression and expansion, and renewable energy.

Key Companies in the advanced energy storage systems market include

• AES Corporation (US)


• Tesla, Inc. (US)


• GENERAL ELECTRIC (US)


• ABB (Switzerland)


• Saft (France)


• LG Chem. (South Korea)


• Siemens AG (Germany)


• Panasonic Corporation (Japan)


• Electrovaya (Canada)


• Hitachi, Ltd. (Japan)

Advanced Energy Storage Systems Industry Developments

On March 24, Schneider Electric and Hy Stor Energy concluded a memorandum of understanding to support the Mississippi Clean Hydrogen Hub (MCHH) project developed by Hy Stor Energy and its US development arm. The aims of this alliance are to address challenges that face large energy capacity and sustainability while transitioning into renewable and fossil-free energy systems. Among other provisions, Schneider Electric will supply auto-mation, safety solutions, AI optimization software, weather analysis, predictive operations, and digital energy management tools.

In November 2023, Schneider Electric invested $1.7m in the cutting-edge battery lab located in Bengaluru (Bangalore), which is equipped with modern tools as well as up-to-date safety systems and dedicated testing chambers, ensuring the strictest adherence to battery performance with regard to safety.

In July 2021 Babcock announced a deal giving it exclusive ground rights to begin negotiations towards licensing advertizable particle-based advanced thermal storage system technologies through an Intellectual Property Option Agreement with National Renewable Energy Laboratory.

In July 2021, the US department of energy National Renewable Energy Laboratory, together with Babcock & Wilcox, signed a contract on intellectual property rights granting them exclusive marketing rights for particle-based and advanced thermal energy storage technology.

In June 2021, Pearl Homes launched Cortez luxury home complexes. There are eighty-six solar-powered single-family homes fitted with Sonnen ecoLinx advanced energy storage devices in this scheme. Owners can manage their electricity consumption as well as have standby power using Sonnen ecoLinx.

In February 2021, ABB launched an innovative microgrid integrating batteries and flywheel-based storage designed to check scalability and improve power stability for approximately three hundred thousand people in Anchorage, Alaska, USA.

At Tesla’s announcement in 2021 during its partnership with PG&E, they were to build one of the largest Battery Storage Projects globally: a grid-connected lithium-ion battery facility called California Flats at Moss Landing Station worth about $100m for 182.5MW / 730MWh.

Tesla introduced the Megapack in 2021, which is a larger version of its energy storage system meant for commercial and utility-scale applications.

In 2020, LG Chem launched RESU Prime, a new line of residential energy storage systems that are compact, lightweight and easy to install.

May 2022: For an unknown sum, Bhago Mobility Solutions Private Limited, an Indian green energy business of Modern Automotive Limited, an Indian next-generation technology startup, purchased a share in Pastiche Energy Solutions (P) Ltd. Producing solid-state batteries, lithium batteries, and related products for uses including energy storage, electric mobility, military, and other industries will allow this stake acquisition to take advantage of both firms' experience in the field of advanced energy storage and green mobility.

July 2021: A deal for intellectual property rights was announced by the National Renewable Energy Laboratory of the United States Department of Energy and Babcock & Wilcox. It will be given exclusive marketing rights for sophisticated thermal energy storage technology and particle-based energy storage.

Advanced Energy Storage Systems Market Segmentation:

Advanced Energy Storage Systems Application Outlook (USD Billion, 2018-2032)

• Grid Storage


• Transportation


• Others

Advanced Energy Storage Systems Technology Outlook (USD Billion, 2018-2032)

• Mechanical


• Thermal


• Electro Chemical


• Others

Advanced Energy Storage Systems Storage Type Outlook (USD Billion, 2018-2032)

• Batteries


• Flywheels 


• Compressed Air Storage


• Pumped Hydro-Power


• Others

Advanced Energy Storage Systems Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America