Global Battery Energy Storage Systems Market Overview
Global Battery Energy Storage Systems Market Size was valued at USD 7,314.2 million in 2022. The Battery Energy Storage Systems Market industry is projected to grow from USD 8,952.6 million in 2023 to USD 69,769.8 million by 2032, exhibiting a compound annual growth rate (CAGR) of 25.6% during the forecast period (2023 - 2032). A battery energy storage system (BESS) is a system that uses batteries to store electrical energy and release it when needed. A BESS can be charged by various sources of electricity, such as renewable energy, grid power, or diesel generators. A BESS can also provide various services to the electricity grid, such as peak shaving, frequency regulation, voltage support, or backup power. The Components of a battery energy storage system include are battery management are battery system, Battery Management System (BMS), Power Conversion System (PCS) or Hybrid Inverter, Controller, HVAC (Heating, ventilation, and air conditioning), Fire Suppression, SCADA Supervisory, and Control and Data Acquisition System). The global battery energy storage system market is experiencing significant growth as industries, businesses, and residential users increasingly recognize the need for a dependable energy supply. The growing demand for renewable energy sources such as wind and solar power has been a major driver of the battery energy storage system market. These sources of energy are intermittent, meaning that they are not always available when needed. Battery energy storage systems can help to store excess energy generated during peak times and release it during periods of low generation, ensuring a more consistent and reliable supply of energy.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Battery Energy Storage Systems Market Trends
The Growing Integration of Renewable Energy Sources
One of the main drivers for the growth of the global BESS market is the growing adoption of renewable energy sources, such as solar, wind, and hydropower. The rapid growth of renewable energy sources, particularly solar PV, wind, and hydropower, has led to an increasing demand for energy storage solutions, including battery energy storage systems. In 2022, Solar PV generation increased by a record 270 TWh (up 26%), reaching almost 1,300 TWh, marking the largest absolute generation growth of all renewable technologies and surpassing wind energy generation for the first time in history. In 2022 wind electricity generation increased by a record 265 TWh (up 14%), reaching more than 2 100 TWh, reflecting a 14% increase from the previous year. Additionally, hydroelectricity generation increased by almost 70 TWh (up close to 2%) in 2022, reaching 4 300 TWh. Renewable energy sources are intermittent and variable, meaning that they depend on weather conditions and time of day. This poses a challenge for the power system, as it needs always to balance the supply and demand of electricity. If there is too much or too little renewable generation, it can cause fluctuations in the grid frequency and voltage, which can affect the quality and stability of the power supply.
BESS can help overcome this challenge by storing excess renewable energy when it is available and releasing it when it is needed. This can smooth out the fluctuations in the grid and improve the integration of renewable energy sources. BESS can also provide additional services to the grid, such as frequency regulation, voltage support, and spinning reserve, which can enhance the grid's reliability and resilience. Moreover, BESS can enable the use of renewable energy in remote and isolated areas, where grid connection is not feasible or cost-effective. BESS can also reduce the dependence on fossil fuels and lower greenhouse gas emissions from the power sector. In 2022, hydropower accounted for the largest share of renewable energy generation, with a capacity of 43%, followed by wind power at 26% and solar power at 26%. The remaining 5% was attributed to other renewable energy sources.
As the capacity and generation of renewable energy sources continue to expand, the need for energy storage solutions becomes increasingly critical to ensure a stable and reliable power supply. Battery energy storage systems play a vital role in balancing the intermittent nature of renewable energy generation, providing a reliable source of energy during periods of low generation. Therefore, the growth of the renewable energy sector, particularly solar PV, wind, and hydropower, is driving the expansion of the battery energy storage system market. This growth presents significant opportunities for investment and technological advancements in energy storage solutions, creating a positive impact on the global battery energy storage system market.
Battery Energy Storage Systems Market Segment Insights:
Battery Energy Storage Systems by Battery Type Insights
The global Battery Energy Storage Systems Market segmentation, based on Battery Type has been segmented into Lithium-Ion and Sodium-Ion. In 2022, the Lithium-Ion segment drove the global Battery Energy Storage Systems Market by holding a substantial market share. Because lithium-ion batteries are suitable for storing high-capacity power, they are used in a wide range of applications, including consumer electronics such as smartphones and PCs, industrial robots, production equipment and automobiles. Lithium-ion battery is composed of the anode and the cathode; a separator between the two electrodes; and an electrolyte that fills the remaining space of the battery. The anode and cathode are capable of storing lithium ions.
Battery Energy Storage Systems By Industry Vertical Insights
Based on Industry Vertical, the global Battery Energy Storage Systems Market is segmented into Manufacturing, Commercial Building, Retail & Residential, Renewable Energy and Others. In 2022, the Renewable Energy segment drove the Global Battery Energy Storage Systems Market by holding a substantial market share during the assessment period. It is projected to register a highest growth rate during the projected timeframe. Battery energy storage systems play a crucial role in seamlessly integrating renewable energy sources by mitigating their intermittent nature. These systems store excess energy generated during peak renewable production periods, such as sunny or windy days, and release it during low generation periods. This ensures a consistent and reliable power supply, overcoming the variability inherent in renewables. Battery storage facilitates grid stability, supports efficient energy utilization, and enables a smoother transition to a sustainable energy landscape.
Battery Energy Storage Systems By Battery Capacity Insights
Based on Battery Capacity, the global Battery Energy Storage Systems Market is segmented into Low Scale Systems, Medium Scale Systems and High Scale Systems. In 2022, the High Scale Systems segment drove the Global Battery Energy Storage Systems Market by holding a substantial market share during the assessment period. It is projected to register a highest growth rate during the projected timeframe. High-scale battery energy storage systems are important for extensive utility projects, grid-level applications, and large industrial complexes. These systems play a crucial role in stabilizing the grid, integrating renewables on a massive scale, and ensuring overall grid reliability. Essentially, they act as powerhouse solutions for major energy infrastructure, providing the capacity and capabilities needed to support widespread adoption of renewable energy and maintain a resilient and stable power grid.
Battery Energy Storage Systems By Application Insights
Based on Application, the global Battery Energy Storage Systems Market is segmented into Microgrid Support, Electric Vehicle (EV) Charging Infrastructure, Peak Shaving, Renewable Integration, Generation Optimization and Others. In 2022, the Renewable Integration segment drove the Global Battery Energy Storage Systems Market by holding a substantial market share during the assessment period. It is projected to register a highest growth rate during the projected timeframe. Renewable Integration with Battery Energy Storage Systems (BESS) is like having a reliable friend for solar and wind power. BESS helps by making sure there's a steady supply of energy even when the weather is not favourable. It does this by smoothing out the ups and downs in renewable energy production and storing extra energy for times when the renewable sources can't meet the demand. This way, there we can always have a consistent and dependable energy supply.
Battery Energy Storage Systems Regional Insights
Based on Region, the Battery Energy Storage Systems Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia-Pacific Battery Energy Storage Systems Market held the maximum market share and is also expected to account for the significant revenue share during the forecast period. In the Asia-Pacific region, Battery Energy Storage Systems (BESS) are gaining traction as key components of sustainable energy infrastructure. Governments are actively promoting BESS through incentives, subsidies, and favorable policies. By encouraging research and development, offering financial support, and streamlining regulations, government aim to boost BESS adoption. This proactive approach aligns with the region's commitment to renewable energy, enhancing grid reliability, and mitigating environmental impact, and fostering a promising future for Battery Energy Storage Systems in the Asia-Pacific.
Battery Energy Storage Systems Key Market Players & Competitive Insights
The global battery energy storage system market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, frequent changes in government policies, and regulations are key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. The top 10 key players in the market includes Hitachi, ABB, Mitsubishi, Toshiba, GE, Schneider, Siemens, BYD Company, Honeywell.
The competitive landscape in the battery energy storage system market is expected to remain strong further in the coming years. The market is expanding due to several factors. These include the rising demand for grid energy storage systems as part of ongoing grid modernization efforts, the increasing use of lithium-ion batteries, and the growing adoption of low-carbon and less fossil fuel-dependent economies. Additionally, the ongoing revolution in renewable energy is contributing to this battery energy storage system industry growth.
Hitachi, Ltd.: Hitachi, Ltd. provides digital system and services, green energy and mobility, and connective industry solutions in Japan and internationally. It operates through seven segments: Digital Systems & Services, Green Energy & Mobility, Connective Industries, Automotive System, Hitachi Construction Machinery, Hitachi Metals, and Others. The company offers system integration, consulting, cloud services, storage, servers, and ATMs; finance solutions, social infrastructure information systems, government and public corporation information system, big data and AI, and IoT and data management; and IT products. It also operates power grids, nuclear and clear energy, renewable energy; provides energy management services and distributed power source solutions; semiconductors; elevators and escalators; air conditioners; industrial equipment; and railway systems.
ABB: ABB is a global company specialized in electrification and automation, enabling a more sustainable and resource-efficient future. The company offers a wide range of products, solutions and services that span across industries, including utilities, industry, transport, and infrastructure. The company operates in 4 major business areas: electrification, motion, process automation, and robotics & discrete automation. ABB's Electrification business area provides a wide-ranging portfolio of products, digital solutions and services, from substation to socket, enabling safe, smart and sustainable electrification. The company's products include transformers, generators, motors, drives, switchgear and distribution equipment. ABB's Motion business area provides a comprehensive range of products, systems and services for motion control applications. The company's products include motors, drives, generators, transmissions, and robotic systems. The company operates in more than 100 countries worldwide.
Key Companies in the Battery Energy Storage Systems Market includes.
- Hitachi
- ABB
- JAKSON
- Toshiba Corporation
- General Electric
- Schneider Electric
- Siemens
- Panasonic Holdings Corporation
- BYD Company
- Honeywell
- Others
Battery Energy Storage Systems Market Segmentation:
Battery Energy Storage Systems Battery Type Outlook
Battery Energy Storage Systems Industry Vertical Outlook
- Manufacturing
- Commercial Building
- Retail & Residential
- Renewable Energy
- Others
Battery Energy Storage Systems Battery Capacity Outlook
- Low Scale Systems
- Medium Scale Systems
- High Scale Systems
Battery Energy Storage Systems Application Outlook
- Microgrid Support
- Electric Vehicle (EV) Charging Infrastructure
- Peak Shaving
- Renewable Integration
- Generation Optimization
- Others
Battery Energy Storage Systems Regional Outlook
- North America
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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USD Â 7,314.2 million
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Market Size 2023
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USD Â 8,952.6 million
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Market Size 2030
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USD Â 69,769.8 million
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Compound Annual Growth Rate (CAGR)
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25.6% (2023-2032)
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Base Year
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2022
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Forecast Period
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2023-2032
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Historical Data
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2018 to 2021
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Forecast Units
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Value (USD Million)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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Type, end use, and Region
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Geographies Covered
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North America, Europe, Asia Pacific, Rest of World
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Countries Covered
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US, Canada, Germany, UK, France, Spain, Italy, China, Japan, India, South Korea, Brazil, Mexico, Argentina, South Africa, GCC Countries
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Key Companies Profiled
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Hitachi, ABB, JAKSON, Toshiba Corporation, General Electric, Schneider Electric, Siemens, Panasonic Holdings Corporation, BYD Company, and Honeywell
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Key Market Opportunities
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The rise of electric vehicles (EVs)
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Key Market Dynamics
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The growing integration of renewable energy sources
Technological advancements and Growing demand for lithium-ion battery energy storage systems
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Frequently Asked Questions (FAQ) :
Hitachi, ABB, JAKSON, Toshiba Corporation, General Electric, Schneider Electric, Siemens, Panasonic Holdings Corporation, BYD Company, Honeywell and Others
