ENERGY STORAGE AS A SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global energy storage as a service market growth can be hampered due to high initial capital costs associated with energy storage solutions. Setting up large-scale battery energy storage facilities requires massive upfront investment in procuring battery modules, power conversion systems, bi-directional inverters and related infrastructure. For commercial and industrial customers, such high capital expenditure poses significant financial hurdles. Even for utilities and grid operators, scaling up battery energy storage are quite expensive that put pressure on return on investments. The costs of battery technologies like lithium-ion have still not come down significantly to levels that ensure reasonable payback periods. This high barrier to entry poses serious adoption challenges for energy storage as a service globally.

Market Opportunity: Emergence of Electric Vehicles Market

Rapid growth of electric vehicles market worldwide can offer growth opportunities for the global energy storage as a service market. With many countries aiming to ban new petrol and diesel cars by 2030, there will be huge demand for electric vehicles in the near future. This rising EV adoption indirectly benefits the energy storage industry since EV batteries can be utilized for providing storage as a service when the vehicles are parked for long durations. Aggregators are setting up innovative business models where these can dispatch stored energy from stationary vehicle batteries to the grid during peaks. This emergence of electric vehicles can open a new revenue stream for the energy storage industry and improve the utilization rates as well as economics of large battery deployments.