ADVANCED ENERGY STORAGE MARKET ANALYSIS

The global advanced energy storage systems market was valued at US$ 18.12 Billion in 2022 and is expected to expand at a CAGR of 9.8% in terms of revenue and market value is expected to reach at US$ 38.29 billion during 2023 – 2030.

Advanced Energy Storage (AES) systems involve the capturing of the required energy which is made at one time and can be used later. Energy is stored via a variety of mediums. Advanced Energy Storage technologies convert electricity into a different form of energy, which can be stored and converted back into usable electricity when needed. Energy can be transported via advanced energy storage and stored using grids. AES system is an evolving technology critical for the growth of the energy sector in the 21^st century. The stored energy can be used in the manufacturing of various semiconductors, data storage products, solar cells, and electricity. The increasing demand for large amount of renewable energy can be met with the help of AES.

AES can effectively help reduce the greenhouse gases and CO2 emissions, thus, reducing global warming. The various forms of energy that can be stored via AES include chemical, mechanical, thermal, electrical, electrochemical, tidal, solar, and biological. The increasing demand and investments in renewable sources of energy along with various governmental regulations supporting the use of renewable energy is a major driver that augments the growth of the global advanced energy storage market. However, the lack of a legislative and regulatory policy with regards to AES is a major restraining factor that affects the growth of the global AES market. The Assembly Bill 2514 passed on June 3, 2019 by the California State Assembly, was accepted to create a smarter, cleaner electric grid, and increasing the use of renewable energy. The bill required the California Public Utilities Commission by March 1, 2020 to consider procurement for viable and cost-effective energy storage systems. In 2019, Senate Bill 412 (Kehoe, 2012) expanded the Self-Generation Incentive Program to include Advanced Energy Storage as an eligible technology. The Self Generation Incentive Program (SGIP) provides financial incentives for the installation of new renewable qualifying technologies that are installed to meet all or a portion of the electric energy needs for a facility. These factors are expected to boost the demand for advanced energy storages systems globally in forecast period.

Drivers

Asia Pacific is expected to be the leading region of advanced energy storage market. According to International Energy Agency (IEA) estimated that emerging countries such as China and India will need to double their electrical power output by 2022. Also from the same source, emerging nations will accumulate around 80% energy production and consumption by 2035. Since most of the emerging countries lie in Asia Pacific, it is expected that this region will boost the growth of the advanced energy storage systems market in the near future.

Based on technology, advanced energy storage systems market segmented into electro chemical, thermal storage, mechanical energy storage, and other storage technology.

According to IEA, every year about 40% energy storage deployments will increase in the emerging markets, which will add about 80 GW new storage capacity to the estimated 2 GW.

Figure 1. Global Advanced Energy Storage Systems Market Share, By Application, 2022

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Advanced energy storage systems were mainly used in the transportation and grid system segment in 2022. The increasing adoption of electric vehicles is a major driver that has resulted in the rising demand for advanced energy storage systems in the transportation sector. The transportation sector accounted for 50.20% market share in the advanced energy storage systems market.

 According to the International Energy Agency, over 750,000 electric car sales were recorded worldwide in 2019. This is expected to positively boost the global advanced energy storage systems market. Countries such as China and the U.S. are expected to dominate the electric vehicle sales during the forecast period. China is the leading consumer of electric vehicles, registering as many as 352,000 new electric vehicles in 2022.

Figure 2. Global Advanced Energy Storage Systems Market Share, By Technology, 2022

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Based on technology, the market segmented into Pumped Hydro, Electrochemical Storage, Electromechanical Storage, and Thermal Storage. Pumped Hydro segment holds a large number of share in the market, whereas, Thermal Storage holds less number of share in the market.

Global Advanced Energy Storage Systems Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic caused a temporary prohibition on manufacturing across various businesses and electrical utilities, due to this advanced energy storage system market demand decreased in pandemic period. Lockdown has stopped building and construction of new electric utility infrastructures, renewable power plant, This restraint market growth throughout the pandemic period. But for residential use the demand was same in pandemic period also.

Recent Development:

On December 2022, ABB an automation company and Red Hat a software company announced a global partnership to enable industries using ABB’s process automation and industrial software to scale rapidly and flexibly leveraging Red Hat’s industry leading enterprise platform.

On 19 January 2023, LG Chem a chemical company completes acquisition of AVEO oncology. AVEO to become the U.S. foundation for LG Chem life science’s oncology division in 2023.

On 9 February 2023, GE helps recharge Eurotunnel so more trains can travel vital link between UK and the continent.

On 24 January 2023, Tesla made commitment to invest $3.5 billion in Nevada with their first gigafactory. Their goal was to build a facility capable of producing 35 GWh of battery cells annually.

Multinational players

Some of the leading players in the advanced energy storage system market include ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd, General Electric Company, and Tesla Inc.