Energy Storage Systems Market Size to Reach USD 472.8 Billion by 2032 growing at 8.2% CAGR - Exclusive Report by Acumen Research and Consulting

Author: Acumen Research and Consulting

Energy Storage Systems Market size valued at USD 219.9 Billion in 2022 is on a trajectory to exceed USD 472.8 Billion by 2032, signaling a robust CAGR of 8.2%

The energy storage systems market has grown and evolved significantly, owing to the growing need for effective energy management, renewable energy integration, and stable power supply. In recent years, there has been a global rise in the implementation of energy storage technologies, driven by increased awareness of environmental sustainability and the shift to sustainable energy. The market comprises a wide range of technologies, including batteries, pumped hydro storage, flywheels, and compressed air energy storage, which serve a variety of applications such as grid stability, peak load control, and backup power.

One of the primary drivers of the energy storage systems market is the increased emphasis on renewable energy integration. As governments attempt to lower their carbon footprint and meet renewable energy objectives, energy storage plays an important role in overcoming the intermittent nature of sources such as solar and wind. Furthermore, advances in energy storage technology, together with falling costs, are making these solutions more economically viable, encouraging wider usage in the residential, commercial, and industrial sectors. The industry is likely to grow further as governments throughout the world subsidize energy storage projects and utilities recognize the value of these systems in building a more robust and sustainable electricity grid.

The increasing acceptance of hybrid and electric vehicles, coupled with government incentives offered to advance EV technology, is anticipated to support the growth of the electric vehicle and energy storage system industry. While battery services are yet to improve and outperform the gasoline fueling infrastructure, the volatile costs of gas are expected to positively impact the demand for electric vehicles over the estimated period.

Energy Storage Systems Market Value

Energy Storage Systems Market Statistics

  • The global energy storage systems market, which generated a revenue of USD 219.9 billion in 2022, is poised for significant expansion, projecting a robust CAGR surpassing 8.2% from 2023 to 2032
  • Asia-Pacific emerged as the market leader in 2022, commanding a substantial 39% market share
  • North America is expected to showcase impressive growth, with a projected CAGR of 9% from 2023 to 2032
  • Pumped hydro asserted its dominance, holding a substantial 95% market share within the technology segment in 2022
  • The pumped hydro technology segment achieved notable revenue, reaching USD 191.3 billion in 2022
  • A discernible energy storage systems market trend is the increasing adoption of behind-the-meter (BTM) energy storage solutions

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Energy Storage Systems Market Dynamics

Increasing Demand for Uninterrupted Energy Supply Fuels the Energy Storage Systems Market Value

The increased reliance on electricity for numerous elements of contemporary life has led to an increase in the need for uninterrupted energy supply. In both the home and commercial sectors, there is a growing recognition of the importance of a consistent and dependable power supply to support critical tasks. Businesses, particularly those that rely on electronic systems and data centers, understand the potential financial losses and operational interruptions that come with power outages. As a result, there is an increasing demand for strong energy storage solutions and backup power systems that can smoothly take over during grid outages, assuring continuous operations and data integrity.

Furthermore, the move to renewable energy sources, such as solar and wind, has highlighted the significance of a consistent energy supply. Because these sources are inherently intermittent, the integration of energy storage devices is critical to storing extra energy created during peak production periods and delivering it when renewable power is low or non-existent. The goal for energy independence and resilience in the face of external variables such as natural catastrophes or grid weaknesses drives the demand for solutions that ensure continuous power supply. This trend is redefining the energy environment, with an emphasis on increasing dependability and maintaining a steady supply of power to suit the changing requirements of a digitally connected and energy-dependent society.

Surging Demand for Efficient and Competitive Energy Sources Offers Significant Energy Storage Systems Market Opportunity

The growing need for efficient and affordable energy sources creates a considerable potential for the energy storage system industry. As the worldwide focus on sustainability grows, there is a greater need for energy storage systems that can help integrate renewable energy sources into the power grid. Renewable energy sources, such as solar and wind, are inherently intermittent, therefore energy storage devices play an important role in grid stabilization by holding extra energy during periods of high output and releasing it during periods of low or no generation. The demand for effective energy storage to supplement renewable sources sets the industry for significant development.

Furthermore, the growing competitiveness of energy storage technologies creates good circumstances for industry development. Advancements in battery technology, lower prices, and increased energy density are making energy storage options more economically viable. This competitiveness not only draws investments, but also promotes greater use in a variety of sectors, including residential, commercial, and industrial. The potential of energy storage systems to improve grid stability, supply backup power during outages, and optimize energy use is in line with the changing energy landscape's expectations. As governments, organizations, and consumers seek cleaner and more dependable energy solutions, the energy storage systems market is set to seize the opportunity, driving innovation and long-term growth.

Energy Storage Systems Market Segmentation

The global market for energy storage systems has been segmented into technology, application end-user, and region.

  • Technology segment is split into pumped hydro, electro-chemical (flow battery, lithium ion battery, lead acid battery, sodium sulfur battery, and others), electro-mechanical (flywheel and compressed air energy storage), thermal (molten salt, water, phase change material, and others)
  • Application segment is sub-segmented into transportation and grid management
  • End-user segment includes residential, non-residential, and utilities
  • The energy storage systems market is regionally segmented into Latin America, Europe, North America, Asia-Pacific, and the Middle East and Africa

Energy Storage Systems Market Regional Outlook

The Asia-Pacific region led the global market in storage capacity, reaching 81 GW in 2017, primarily driven by pumped hydro storage (PHS) initiatives. Upcoming PHS projects are expected to contribute to the region's development throughout the specified timeframe. In China, Japan, and Southeast Asia, the rising power usage has necessitated the deployment of various energy storage systems (ESS), including batteries, compressed air energy storage (CAES), and flywheels, to meet the growing energy demand from utility-scale initiatives and peak load requirements.

Spain, Switzerland, Germany, France, Italy, and Austria collectively represented a storage capacity exceeding 6.6 GW in 2017. However, the substantial market penetration of existing hybrid and pure renewable energy technologies in Germany and the U.K. is likely to drive demand in potential areas within these nations.

North America boasts a significant number of PHS facilities compared to other ESS technologies. The market is expected to experience significant growth soon due to a substantial number of planned electrochemical facilities. Increasing initiatives in research and development (R&D) projects, coupled with stringent regulations concerning environmental emissions from fossil-fueled power generation, are anticipated to further fuel market growth.

Thermal energy storage has been a prominent sector for government interests in the Americas. The Chilean government, for instance, has extended tax credits for installing solar thermal systems in buildings until the end of 2020. The rising need to reduce pollution and provide citizens with a healthy living environment, clean drinking water, a green atmosphere, and fresh air to achieve a sustainable future is likely to drive the market over the forecast period.

Energy Storage Systems Market Players

Energy storage systems companies profiled in the report include Ecoult, Altairnano, Electrovaya, Langley Holdings plc, GENERAL ELECTRIC, LG Chem, Inc., Saft, Maxwell Technologies, Showa Denko Materials Co., Ltd., The Furukawa Battery Co., Ltd., and Samsung SDI Co., Ltd.

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Mr. Frank Wilson

Acumen Research and Consulting

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