Solar Energy and Battery Storage Market Analysis

Global Solar Energy and Battery Storage Market Overview:

Solar Energy and Battery Storage Market Size was valued at USD 0.12 Billion in 2023. The Solar Energy and Battery Storage market industry is projected to grow from USD 0.14 Billion in 2024 to USD 0.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.17% during the forecast period (2024 - 2032). Major key stakeholders' fresh product releases and R&D efforts a worldwide increase in the demand for electricity are the key market drivers enhancing the market growth.

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

Solar Energy and Battery Storage Market Trends

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  Growing demand for grid energy storage systems is driving the market growth

  
  

Market CAGR for solar energy and battery storage is being driven by the rising demand for grid energy storage systems due to continuous grid modernization. Energy storage is a technology that provides multiple residential, commercial, and industrial applications with the necessary energy sources. These energy systems are extremely efficient and can be utilized on demand. A battery energy storage system is a rechargeable battery that stores and distributes energy from a power grid or solar array to multiple applications.

Additionally, a system for storing energy is a device that can store various forms of energy safely, effectively, and conveniently. Continuous technological advancements ensure a constant energy supply, and it is anticipated that these energy storage systems will expand exponentially. Moreover, the continual promotion of renewable energy sources contributes to the expansion of the market for energy storage systems. The increasing emphasis on renewable energy generation is primarily attributable to the increase in energy consumption.

The exponential demand for energy resources in developing and developed nations, coupled with the expansion of measures to ensure energy security, is anticipated to drive market expansion. In addition, the increasing integration of new power generation technologies and the modernization of existing infrastructures have increased the need for new grid systems with effective standby and peak load characteristics.

Growth of population, urbanization, industrialization, awareness of the economic and ecological advantages of solar energy, pollution-free, and no emissions of greenhouse gases, helps to reduce reliance on fossil fuels, return on investment, less maintenance cost, job creation, to meet high energy demand, etc. are the major factors driving the Solar Energy and Battery Storage market revenue.

Solar Energy and Battery Storage Market Segment Insights:

Solar Energy and Battery Storage Battery Type Insights

The Solar Energy and Battery Storage market segmentation, based on Battery Type includes Lead-Acid, Li-ion, and NaS. Li-ion segment dominated the market in 2022. Lithium ions flow from the negative electrode to the positive electrode in the lithium ion battery, a kind of rechargeable battery. Due to the rise in industrialization, urbanisation, and consumer demand for various electric-based devices, vehicles, and sustainable energy solutions, the use of lithium ion batteries has increased in the electrical sector. This is expected to increase demand for lithium ion solar batteries, thereby increasing the market's sales potential.

Solar Energy and Battery Storage Solar Technology Insights

The Solar Energy and Battery Storage market segmentation, based on Solar Technology, includes PV, and CSP. The PV category generated the most income in 2022. Photovoltaic (PV) supplies and equipment convert solar radiation to electrical energy. PV materials and apparatus convert solar radiation to electrical energy.

Figure1: Solar Energy and Battery Storage Market, by Solar Technology, 2022 & 2032 (USD Billion)

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

Solar Energy and Battery Storage Connection Type Insights

The Solar Energy and Battery Storage market segmentation, based on Connection Type, includes On-Grid, and Off-Grid. The on-grid segment held the largest market share in 2022. Rising urbanization, technological advancements in the field of solar energy storage, and an increase in the number of on-grid solar energy system installations in both developed and developing economies such as the United States, China, and India have increased the demand for the solar energy storage market.

Solar Energy and Battery Storage Application Insights

The Solar Energy and Battery Storage market segmentation, based on Application, includes Load Leveling, Power Demand, and Peak Shaving. Load leveling segment held the largest market share in 2022. Typically, load leveling entails hoarding energy during periods of low demand and releasing it during periods of high demand. During these periods of elevated demand, the energy storage system provides electricity, thereby reducing the burden on less cost-effective peak-generation facilities.

Solar Energy and Battery Storage End-Use Insights

The Solar Energy and Battery Storage market segmentation, based on End-Use, Utility, Industrial & Commercial, and Residential. Increasing electrification initiatives to power remote and distant locations are anticipated to propel the utility segment to the top of the industry.

Solar Energy and Battery Storage Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific Solar Energy and Battery Storage market area will dominate this market, Existing fiscal incentives and regulatory policies in the region are favorable to these prospects. These will increase the market for solar energy and battery storage in the region. Moreover, China’s Solar Energy and Battery Storage market held the largest market share, and the Indian Solar Energy and Battery Storage market was the fastest growing market in the Asia-Pacific region.

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.

Figure2: Solar Energy And Battery Storage Market Share By Region 2022 (USD Billion)

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

Europe Solar Energy and Battery Storage market accounts for the second-largest market share due to significant deployment of a variety of power generation technologies, coupled with government and organizational policy frameworks that encourage the deployment of renewable energy solutions in a variety of locations. Further, the German Solar Energy and Battery Storage market held the largest market share, and the UK Solar Energy and Battery Storage market was the fastest growing market in the European region

The North America Solar Energy and Battery Storage Market are expected to grow at the fastest CAGR from 2023 to 2032. This is due to the availability of favorable government policies, tax incentives for renewable deployment, and increasing investments by both private and public enterprises are among the most important factors driving the growth of regional markets.

Solar Energy and Battery Storage 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 Solar Energy and Battery Storage market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their 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, Solar Energy and Battery Storageindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Solar Energy and Battery Storage industry to benefit clients and increase the market sector. In recent years, the Solar Energy and Battery Storage industry has offered some of the most significant advantages to energy sector. Major players in the Solar Energy and Battery Storage market, including ABB Ltd. (Switzerland), LG Chem Ltd. (South Korea), Samsung SDI Co. Ltd (South Korea), General Electric Company (U.S.), and others, are attempting to increase market demand by investing in research and development operations.

ABB Ltd. is a multinational Swedish-Swiss corporation with its headquarters in Zürich, Switzerland. ASEA was created in 1988 when Allmanna Svenska Elektriska Aktiebolaget (ASEA) of Sweden and Brown, Boveri & Cie of Switzerland merged. The Electrification division of ABB provides products and services from substation to outlet. Customers consist of a vast array of industrial and utility enterprises, as well as commercial and residential structures. The company has significant exposure to a number of swiftly expanding markets, such as renewable, e-mobility, data centers, and smart buildings. In 2020, ABB announced that it had reached an agreement with Italian solar inverter manufacturer Fimer to transfer its solar inverter business. All of ABB's manufacturing and research and development facilities in Finland, Italy, and India, along with 800 employees in 26 countries, are included in the transaction.

LG Chem Ltd., also known as LG Chemical, is the largest chemical corporation in South Korea and has its headquarters in Seoul. In 2017, it was the tenth largest chemical company in the world by revenue.(Reference Required). The company has eight facilities in South Korea and 29 business locations across 15 nations. In 2020, a catalyst powder containing alkylaluminum exploded due to excessive pressure while being transported in the packing room of the LG Chem facility in Seosan. The explosion caused a conflagration by exposing pyrophoric powder to the air. As a result, a 39-year-old researcher perished and two additional employees sustained second-degree burns.

Key Companies in the Solar Energy and Battery Storage market include

• ABB Ltd. (Switzerland)


• LG Chem Ltd. (South Korea)


• Samsung SDI Co. Ltd (South Korea)


• General Electric Company (U.S.)


• Tesla Inc. (U.S.)


• AEG Power Solutions (Germany)


• eSolar Inc. (U.S.)


• Abengoa S.A. (Spain)


• BrightSource Energy Inc. (U.S.)


• ACCIONA S.A. (Spain)


• EVERGREEN SOLAR INC. (U.S.)


• Alpha Technologies (U.S.)

Solar Energy and Battery Storage Industry Developments

March 2021:VRB Energy and the Xiangyang Municipal Government signed an agreement for the construction of a 100 MW solar facility with vanadium flow battery. This is expected to increase demand for solar energy storage in the Asia-Pacific region, creating lucrative opportunities for market players.

April 2021:ABB Power Grids and Atlas Renewable Energy have announced a joint partnership to deploy and create utility-scale battery energy storage systems (BESS) for Atlas' renewable energy initiatives. Through the partnership, ABB and Atlas will incorporate storage systems for energy into the design of early-stage development projects, with Hitachi ABB providing input on the most suitable technical solutions and interconnections.

In April 2023, there was an announcement that Innova Renewables & Schroders Greencoat are joining hands to create a strategic alliance focused on solar energy storage project development and operation in the UK. The objective of this partnership is to finance as well as develop large scale solar and storage projects. Their goal is to pool their various resources and experiences in order to ensure that cutting-edge solutions for storing sun’s rays are spread across the vast territories, thus facilitating the growth of renewable sources in the country.

March 2023 saw Sol Systems, one of the nation's leading solar energy companies focused on clean energy project development and operation, launch an innovative renewable energy procurement and investment strategy with Google. By using this new approach they hope to enable creation of new sun-driven power generating units, while also fulfilling social responsibility towards these areas.

In March 2023, LG Energy Solution stated its plan to spend USD 5.5 billion dollars for the creation of a battery manufacturing plant based in Arizona (U.S.). It will be made up by two plants – one producing lithium iron phosphate (LFP) pouch-type batteries used for ESSs (energy storage systems), another dedicated to cylindrical batteries employed in electric vehicles (EV).

In January 2023, Enphase Energy Inc today announced its partnership with Enerix to expand Enphase product offerings in Europe. Through this partnership agreement, Enerix will provide access to Enphase IQ Microinverters and IQ Batteries through over 100 franchise partners across Germany and Austria.

Tesla’s energy storage division delivered an all-time high number of batteries during Q3’22 as per data revealed by Tesla (TSLA) in October 2022. This is the energy arm of Tesla that installs solar panels, solar roofs, and stationary energy storage products such as Powerwall and Megapacks. Energy storage deployment reached a new record of 2.1 GWh last quarter in what was truly an impressive battery deployment.

Sonnen launched its first outdoor home battery solution which is a lithium-ion battery for the Australian and New Zealand markets in December 2021.

Solar Energy and Battery Storage Market Segmentation

Solar Energy and Battery Storage Battery Type Outlook

• Lead-Acid


• Li-ion


• NaS

Battery Backup Solar Technology Outlook

• PV


• CSP

 Solar Energy and Battery Storage Connection Type Outlook

• On-Grid


• Off-Grid

Solar Energy and Battery Storage Application Outlook

• Load Leveling


• Power Demand


• Peak Shaving

Solar Energy and Battery Storage End-Use Outlook

• Utility


• Industrial & Commercial


• Residential

Solar Energy and Battery Storage Regional Outlook

• North America
  
  
  
  • US
  
  
  • 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