STATIONARY ENERGY STORAGE MARKET ANALYSIS

The global stationary energy storage market size was valued at US$ 35.17 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 23.64% from 2023 to 2030. The stationary energy storage market is rapidly growing on the account of growing demand for renewable source of energy and favorable government policies. Moreover, increasing demand for electric vehicles and rapid industrialization are other factors expected to propel market growth over the forecast period.

Global Stationary Energy Storage Market: Regional Insights

Based on geography, the global stationary energy storage market is segmented into North America, Europe, Asia Pacific and Japan, China and Rest of the World.

Among the regions, Asia Pacific is projected to dominate and hold a significant share of the global stationary battery storage market in the near future. Its market share is largely driven by the increased investments in expanding power generation capacities, along with the growing electricity demand from industrial sectors. Furthermore, the continued industrialization of countries such as China and India has led to an increase in the emphasis on grid stability and reliable electricity. Efforts to lower carbon emissions by updating renewable energy infrastructure are also projected to enhance the market outlook.

Europe is another major region in the global stationary battery storage market. It is predicted to record a substantial growth over the next few years, largely owing to favorable government initiatives and policies for reducing carbon emissions. In addition, ongoing clean energy systems integration such as solar and wind requires cost-effective technologies for different networks to synchronize, which is also projected to propel the market outlook.

Figure 1. Global Stationary Energy Storage Market, By Regional, 2022

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Global Stationary Energy Storage Market Drivers:

Rise in demand for renewable energy to foster market growth

The stationary battery storage market is a rapidly growing segment of the global energy storage market. This growth can be attributed to several factors, including the increased use of renewable energy sources due to growing environmental concerns.

Growing government policies and incentive schemes to expand market size

The market is projected to grow owing to favorable government policies and regulations. For instance, in February 2021, the Spanish government published its Energy Storage Strategy, wherein it set a target of deploying 20 GW of behind the meter and grid-scale storage in the country by 2030.Similarly, in July 2021, the Chinese government announced its plan to install more than 30 GW of energy storage in the country by the year 2025. This is expected to increase the country’s capacity by eight times when compared to 2021.

Global Stationary Energy Storage Market Opportunities:

The stationary energy storage market is a highly lucrative market that offers significant opportunities for players in the energy sector. As the global economy continues to improve, stationary battery storage is an ideal solution for storing energy to meet growing demand. In fact, it is projected that the global stationary energy storage market will grow to 370 GW by 2030.

Growing penetration of electric vehicle is expected to provide additional market opportunities for growth over the forecast period. Lithium-ion battery is widely used in electric vehicle. Lithium-ion is a good option for commercial and utility applications because it has a long shelf life and can be recharged quickly. It can also be used to support electric vehicle charging and solar arrays.

Global Stationary Energy Storage Market Trends:

Decreasing cost of batteries is expected to be a trend

According to the World Bank Li-ion battery pack's price has decreased by 87% to $156/kWh since 2010. By 2024, it is anticipated that the price will be close to $100/kWh. Moreover, according to the International Renewable Energy Agency (IREA), flow batteries, which are currently under development, might have a two-third reduction in total installed cost by 2030, high-temperature batteries by 56%-60%; flywheels by 35%, and compressed air energy storage by 17%.

Advancements in Digital Technologies

The advent of various technologies such as blockchain, artificial intelligence (AI), and predictive analytics is expected to act as trend for the SES market. The growth of new business models that combine customer-sited storage to provide various services to grid operators, utilities, and electrical users such as residential or commercial and industrial (C&I) are possibly the most thrilling developments among solution suppliers.

Global Stationary Energy Storage Market Restraints:

Safety issues associated with batteries to restrict market growth

Some of the hazards associated with the usage of batteries are fire, toxicity, and high voltage risk. - The most common problem with the use of lithium-ion batteries is a fire hazard and as energy storage uses more battery cells per string, it can raise the voltage levels and puts employees at risk.

High capital cost to hamper market growth

The disadvantages of stationary energy storage include their high capital cost, risks of energy loss and short service life. In addition, they are difficult to standardize and require complex maintenance. Despite these limitations, stationary energy storage is an important technology that will continue to be developed and deployed in the future as more and more countries embrace a path to net-zero energy

Figure 2. Global Stationary Energy Storage Market, By Application, 2022

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Global Stationary Energy Storage Market Segmentation:

The global stationary energy storage market report is segmented into application, product, and region

Based on Application, the market is segmented into Front of the Meter (FTM) or Grid Application and Behind the Meter. Out of which, Front of the Meter (FTM) or Grid Application is expected to dominate the global market over the forecast period. SES can store and discharge energy in the form of electricity when required.

Behind the Meter segment is also expected to witness significant growth in the near future and this is owing to the growing demand from residential, industrial, and commercial premises.

Based on Product, the market is segmented into Lithium-ion (Li-ion) Battery, Lead Acid, Flow Battery, and Sodium Sulfur. Out of which, Lithium-ion (Li-ion) is expected to dominate the global market over the forecast period. Lithium-ion batteries are the most widely deployed and popular stationary storage solution. The benefits of this technology are their relatively low cost and high energy density. They are also durable and can provide power for several hours.

Lead Acid battery segment is also expected to witness significant growth in the near future. Lead acid batteries are less expensive and currently, have mature market.

Global Stationary Energy Storage Market: Key Developments

In September 2022, Contemporary Amperex Technology Co., Limited announced the new battery production base in Luoyang, Henan Province, China, with a planned area of 113 hectares and a total investment reaching $1.94 billion (14 billion yuan). The plant is expected to help in the expansion of customer reach in the regional market.

In July 2022, Durapower Group launched the DP Omni Battery Pack. These compact, integrated battery packs have a recharge period of under an hour and use high-energy, patented Lithium- Nickel-Manganese-Cobalt-Oxide (NMC) battery cells to achieve pack energy densities above 160 Wh/kg. Additionally, it is made to be future proof so that it can be conveniently upgraded to new battery chemistries and cell designs in the future. This would enable it to be used in energy storage solution (ESS) applications in the future

In November 2021, Duracell entered into partnership with Power Center+ to bring the Duracell Power Center product portfolio of Home Energy Storage solutions to North America and the Caribbean.

In March 2022, Tesla announced that it is establishing new energy storage system production plants in Queensland. In order to provide Queenslanders with more reliable, affordable, and clean electricity, publicly owned generator CS Energy would therefore build a grid-scale battery near Chinchilla. The Tesla Megapack-based battery, which will serve as part of CS Energy's energy center at Kogan Creek, will have a capacity of 100 megawatts and 200 megawatt hours.

In September 2021, in collaboration with project developer Harmony Energy, Fotowatio Renewable Ventures announced that they would deploy Tesla batteries for the "biggest" energy storage facility in the U.K., which will be located in Essex.

Global Stationary Energy Storage Market: Key Companies Insights

The global stationary energy storage market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global stationary energy storage market are Tesla, Duracell Power Center, Durapower Group, Contemporary Amperex Technology Co., Limited (CATL), and Toshiba Corporation

*Definition: Stationary energy storage is an effective way to provide backup power to critical industrial, commercial, and residential applications during outages and emergency situations. It can also help to reduce electricity consumption, especially during peak times.