Global Grid Connected Battery Energy Storage market was valued at US$ 1,234.1 Million in 2022 and is expected to reach US$ 8,236.3 Million by 2030, exhibiting a CAGR of 26.8% during the forecast period (2023-2030).
According to Grid Connected Battery Energy Storage Market Report, By segmented into battery type, end-users type, and region. Based on Battery type, the market is segmented into lithium-ion battery and lead acid battery, Based on End User, the market is segmented into residential and industrial, Utilities, Others. Based on region, the market is segmented into North America, Europe, Latin America Asia Pacific, Middle east and Africa.
Grid energy storage, also called large-scale energy storage, is a collection of methods that are used for energy storage on a large scale within an electrical power grid. Electrical energy is stored when electricity is plentiful and inexpensive (especially from intermittent power sources such as renewable electricity from wind power, tidal power, and solar power) or when demand is low, and later returned to the grid when demand is high, and electricity prices tend to be higher.
An electrical grid is a network that provides electricity from electricity production plant to consumer. The battery storage provides flexibility for end user application such as solar power and wind power. The grid storage is classified as either front of the meter (FOM) storage and behind the meter (BTM) storage. The front of the meter is for community energy storage, utility application, and others, and behind the meter storage is for both residential and commercial application.
Global Grid Connected Battery Energy Storage Market– Drivers
Rising Renewable Energy Usage and Investment
Increasing investment in renewable energy is expected to drive the market growth. Countries invest heavily in renewable energy sources to generate electricity and this is expected to increase demand for distributed energy storage technology.
In April 2021, ACEN, energy firm under the Ayala Group, announced its investment plan for the development of wind, solar, and battery energy storage system (BESS) projects, in order to expand its renewable energy portfolio. ACEN had invested in BESS through its renewable energy laboratory in Bataan, Mariveles, where various technologies in solar and battery energy storage systems were tested. Increasing investments in renewable energy and its high usage rate is expected to drive the market growth.
Global Movement toward Renewables
Broad support for renewable energy and emissions reduction is boosting adoption of battery storage solutions. This is especially apparent within the corporate and public sectors. For instance, India and U.S., in October 7, 2022, announced the launch of a new energy task force to support large-scale integration of renewable energy to support the clean energy transition. For Instance, in July 2022, The public sector undertakings (PSUs) of the Indian government invested in commercial scale implementation of battery energy storage systems along with Solar PV Projects.
Global Grid Connected Battery Energy Storage Market– Opportunities
Rural electrification is the process of making electrical power accessible in rural or remote areas. Battery energy storage systems are effective for rural electrification. It requires a reliable and uninterrupted power supply from renewable and conventional sources of energy that increases the overall system efficiency, and ensures economic savings across the system life cycle. The installation of battery energy storage systems in rural areas would act as a solution to serve the businesses and local communities with a reliable and safe power supply.
Global Grid Connected Battery Energy Storage Market – Restraints
Lack of Standardization
Participants in early stage markets often contend with diverse technical requirements as well as varied processes and policies. Battery suppliers are no exception, making lack of standardization a roadblock to further deployment.
Global Grid Connected Battery Energy Storage Market– Trends
Increasing Usage of Behind-The-Meter Energy Storage Systems
Behind-The-Meter Energy Storage Systems that are installed on the customer side of the meter are gaining popularity. Customers can use these systems to control their energy use, lower their energy costs, and supply backup power during grid outages.
Increasing focus on the software and control systems that oversee battery energy storage systems is expected to drive the market growth. Energy storage systems depend on these systems to operate reliably and effectively, and businesses are investing in the development of software and control systems to increase the efficiency of their systems.
Technological advancements is a key trend in the grid connected battery energy storage market. Major companies operating in the market are focused on technological advancements to make the battery energy storage system more efficient.
Global Grid Connected Battery Energy Storage Market- COVID-19 Impact Analysis:
The outbreak of the COVID-19 pandemic led to a global economic downturn. Several countries imposed strict lockdowns to contain the infection, resulting in a temporary closure of manufacturing facilities and disrupted supply chains & production schedules. Industries were negatively impacted due to the disruption of supply chains and workforce limitations caused by the nationwide lockdowns. Closure of factories and trade restrictions also added to the existing challenges, severely impacting various industries. Manufacturing plants were shut down, affecting production and leading to a significant demand-supply gap.
Global manufacturing industries witnessed acute labor shortages, suspension & cancellation of projects, and disrupted supply & logistics. The battery energy storage system market also witnessed a decline in its installation in various projects in 2021. Besides, the shutdown of manufacturing facilities globally was responsible for the decline in the market's growth in 2020. A significant reduction in the demand for home battery storage products impacted the global economy. Due to the low availability of raw materials, manufacturing across industries was impeded. However, various governments set significant targets to move the green wave brought about by the interferences of industrial processes leaning toward the industry landscape. Moreover, supportive economic stimulus packages combined with the persistent endeavors of industry players are set to boost the interest in battery energy storage systems units. For instance, in August 2020, Hitachi ABB Power Grids Ltd. (Switzerland) partnered with Zenobē Energy Limited., (U.K.), a leading owner and operator of battery energy storage systems, to provide advanced traction power solutions for the U.K. railroads. The association plans to manufacture a 25 kilovolt (KV) rail traction power system framework to convey yield by converting power from batteries and providing continuous power supply to trains.
Global Grid Connected Battery Energy Storage Market: Competitive Landscape
The grid connected battery energy storage system market is fragmented. Some of the major players in the market (in no particular order) are NGK Insulators Ltd, BYD Company, NEC Corporation, Samsung SDI Co., LG Electronics Inc., Xtreme Power, Saft Groupe S.A., AES Energy Storage, Alevo, Delco, Altair Nanotechnologies Inc., EnerDel, GNB Corporation, Ecoult, and Powertree Services Inc.
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Key Takeaways:
Global Grid Connected Battery Energy Storage Market was valued at US$ 1,234.1 Million in 2022 and is estimated to reach US$ 8,236.3 Million by 2030 exhibiting a CAGR of 26.8% between 2023 and 2030.
Global Grid Connected Battery Energy Storage Market- Recent Developments
- In January 2022, Franklin Whole Home, a U.S.-based cleantech company, launched its integrated battery and control system based on artificial intelligence technology. Franklin Home Power solution provide unique form of enhanced storage by combining its lithium iron phosphate with aGate smart control technology. The aGate control system includes adaptive learning algorithms, and thus, enabling it to handle even the most challenging load circumstances successfully.
- In February 2022, LG Energy Solution, a South Korea-based battery company, acquired NEC Energy Solutions, U.S.-based company that provides energy storage solutions and battery systems . Through the acquisition, LG Energy Solution, will have access to both the operational data and the technology of NEC Energy Solutions. As a result, system-level performance and reliability will be enhanced, and inverters and other PCS components will be easier to monitor and collect data.
- In June 2022, Toyota Motor Corporation launched the O-Uchi Kyuden System, a residential battery product. the company launched a rated output of 5.5 kWh and a rated capacity of 8.7 kWh battery storage system. It uses the company’s electric vehicle battery technology. When connected to a photovoltaic rooftop system, the system can power a home day and night. Initially, the company aimed to sell the storage system in Japan.
