Energy Storage Systems Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Energy Storage Systems Market Size accounted for USD 219.9 Billion in 2022 and is estimated to achieve a market size of USD 472.8 Billion by 2032 growing at a CAGR of 8.2% from 2023 to 2032.

Energy Storage Systems Market Highlights

• Global energy storage systems market revenue is poised to garner USD 472.8 billion by 2032 with a CAGR of 8.2% from 2023 to 2032
• Worldwide energy storage systems market demand was valued 211.4 GW in 2021 and will achieve over 399 GW by 2030
• According to our analysis, worldwide energy consumption rebounded with a 5% growth in 2021, after a 4.5% decline in 2020
• Energy consumption in major countries increased drastically in 2021 such as China (+5.2%), India (+4.7%), US (+4.7%), and EU (+4.5%)
• Asia-Pacific energy storage systems market value occupied around USD 103.3 billion in 2022
• North America energy storage systems market growth will record a CAGR of more than 9% from 2023 to 2032
• Among technology, the pumped hydro sub-segment generated more than USD 208.9 billion revenue in 2022
• Based on end-user, the utilities sub-segment generated around 87% market share in 2022
• Integration of renewable energy sources with energy storage technologies for grid stability and reliability is a popular energy storage systems market trend that fuels the industry demand

The global energy storage systems market is witnessing significant expansion driven by the escalating demand for electricity and energy worldwide. With industries and utilities striving to meet evolving energy needs, the market is rapidly growing and offering a diverse array of solutions. As demands for energy storage become more precise, innovations in cutting-edge materials and technologies are continually being developed, further enhancing the capabilities of energy storage systems. This surge in demand is not only due to the need for electricity but also stems from the increasing integration of renewable energy sources into the grid, which requires efficient energy storage solutions. As sustainability and grid stability take center stage in the transition to a more resilient energy future, the role of energy storage systems becomes increasingly crucial.

Global Energy Storage Systems Market Dynamics

Market Drivers

• Increasing demand for uninterrupted energy supply
• Rising trend of renewable energy sources
• Growing energy consumption throughout the world
• Budding development for variable energy sources

Market Restraints

• Lack of long-term energy storage
• High cost of battery energy storage technology
• Limited scalability of current energy storage solutions

Market Opportunities

• Surging demand for efficient and competitive energy sources
• Favorable government initiatives and subsidies
• Technological advancements leading to cost reductions and increased efficiency in energy storage systems

Energy Storage Systems Market Report Coverage

Energy Storage Systems Market Insights

Growing consumer mindfulness in regards to energy effectiveness in residential and commercial buildings is required to be a conspicuous factor driving the new development in energy storage systems market forecast period. Increasing prerequisite of persistent power supply and efficient grid and load management is foreseen to additionally fuel the development. Rising consumer awareness about effectual energy consumption paired with increasing need for smart homes with viable load management is anticipated to drive the demand. Rising demand from electric utilities, on account of increasing need for distributed energy integration with the main grid, is expected to drive the development over the energy storage systems industry forecast period.

Expanding acknowledgment of hybrid and electric vehicles couple with the government incentives offered for advancing EV innovation is anticipated to support development of electric vehicle and energy storage system industry. While battery services are yet to improve and outperform the gasoline fueling infrastructure, unstable costs of gas are relied upon to decidedly impact the demand for electric vehicles over the estimated period.

Governments over the globe are finding a way to put effectively in sustainable power innovations. Endeavors are being taken to utilize electrochemical storage for transportation purposes. Organizations including Tesla are producing cars, for example, Tesla Roadster, Model S, Model X, and Model 3 dependent on sustainable energy. These vehicles keep running on the electricity generated utilizing batteries and they have been generally acknowledged over the globe.

Energy Storage Systems Market Segmentation

The worldwide market for energy storage systems is split based on technology, application end-user, and geography.

Energy Storage Systems (ESS) Market By Technology

• Pumped Hydro
• Electro-Chemical
  • Lithium Ion Battery
  • Sodium Sulfur Battery
  • Lead Acid Battery
  • Flow Battery
  • Others
• Electro-Mechanical
  • Flywheel
  • Compressed Air Energy Storage
• Thermal
  • Water
  • Molten Salt
  • Phase Change Material
  • Others

According to our energy storage systems industry analysis, the pumped hydro storage sub-segment occupied more than 90% shares in 2022 and is expected to maintain this trend throughout the projected years. The increased global adoption of Pumped Hydro Storage technology is a major reason for this segment's dominance. Continuous investments in Asia-Pacific and North America to strengthen energy infrastructure and increase on-grid capacity are expected to boost the market. Long-term supply for Pumped Hydro Storage storage (PHS) in China and the United States is expected to be driven by favorable compliance regulations and soaring electricity consumption.

Energy Storage Systems (ESS) Market By Application

• Transportation
• Grid Management

Based on application, grid storage accounted for majority of the share in 2022. Grid storage systems are widely used to store energy on a large scale. Energy demand is high in the industrial sector, which drives the segment's growth. Furthermore, large-scale energy storage allows for continuous and efficient power supply. However, transportation sub-segment is likely to gain significant impetus during the forthcoming years owing to the rising popularity of electric vehicles across the globe.

Energy Storage Systems (ESS) Market By End-User

• Residential
• Non-Residential
• Utilities

As per our energy storage systems market forecast, the utilities sub-segment is expected to hold dominant market share throughout 2032. The market dominance is attributed to the global increase in demand for pumped hydro storage power generation. Furthermore, government initiatives to promote renewable energy generation are anticipated to drive market growth during the time period under consideration. Furthermore, an increase in global power consumption is expected to fuel market growth in the coming years.

Energy Storage Systems Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Energy Storage Systems Market Regional Analysis

In terms of energy storage systems market analysis, Asia-Pacific drove the worldwide market with a storage capacity exceeding surpassing 95 GW in 2021. Up and coming PHS projects are foreseen to help the area development over the estimate time frame. Rising power utilization has brought about the requirement for storage systems in China, Japan, and Southeast Asia. Growing requirement for energy the executives in utility-scale ventures and peak load requirement are relied upon to drive the need for different ESS, for example, batteries, CAES, and flywheel.

Spain, Switzerland, Germany, France, Italy, and Austria represented a storage capacity limit of over 6.6 GW in 2017. Be that as it may, the huge market entrance of existing hybrid and pure renewable energy technologies in Germany and U.K. is probably going to drive need in potential areas over these nations.

Energy Storage Systems Market Players

Some of the top energy storage systems companies offered in our report includes Altairnano, Ecoult, Electrovaya, GENERAL ELECTRIC, Langley Holdings plc, LG Chem, Maxwell Technologies, Inc., Saft, Showa Denko Materials Co., Ltd., Samsung SDI Co., Ltd., and The Furukawa Battery Co., Ltd.