Global Battery Energy Storage Systems Market Report 2022 – Rising Trend of Adopting Low-Carbon and Less Fossil Fuel-based Economy and Ongoing Renewable Energy Revolution – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Global Battery Energy Storage Systems Market with COVID-19 Impact Analysis by Storage System, Element, Battery Type (Lithium-Ion, Flow Batteries), Connection Type (On-Grid, Off-Grid), Ownership, Energy Capacity, Application, and Geography – Forecast to 2027” report has been added to ResearchAndMarkets.com’s offering.

The global battery energy storage systems market is expected to grow from USD 4.4 billion in 2022 to USD 15.1 billion by 2027, at a CAGR of 27.9%.

The growth of this market is mainly driven by the increasing demand for grid energy storage systems owing to ongoing grid modernization, growing penetration of lithium-ion batteries in renewable energy sector, and rising trend of adopting low-carbon and less fossil fuel-based economy and ongoing renewable energy revolution. However, high capital expenditure required for installing battery energy storage systems is restraining the market growth.

Lithium-ion batteries to dominate the battery energy storage system market in 2021

The market for the lithium-ion batteries held the largest share in 2021 and is estimated to remain the same during the forecast period.

The growth of this segment is attributed to the advantages of the battery such as high energy and power density, which leads to low standby losses and a high life expectancy of about 5-15 years with 98% efficiency. Also, lithium-ion-sulfur battery energy storage systems support frequency regulation, demand charge reduction, grid-buffering, and renewable integration, which are suitable for on-grid connections.

On-grid connection type to hold the largest share of battery energy storage system market in 2021

The on-grid segment holds the largest share of the battery energy storage system market in 2021 and is expected to hold significant CAGR during the forecast period.

The on-grid connections exhibit lower upfront costs than the off-grid system, as the surplus energy is sent to the grid, which can be used later on a metered basis. The reduction in the energy bills for the customers relying on the utility grid for electricity is expected to drive the growth of the segment. The demand for grid modernization from renewable energy suppliers and new regulatory policies for the energy sector are also driving the growth of the on-grid battery energy storage system market for utilities.

Utility application dominated the battery energy storage system market in 2021

The market for utilities application is dominant in 2021. The need to fulfill the requirement of peak electricity demands is the major factor contributing to the growth of the market for utility.

The utility BESS provides power quality, frequency, and voltage control services in case of sudden fluctuation in the energy supply. The battery energy storage systems enable grid operators to save electricity when there is a surplus of renewable energy. The increasing demand for a reliable and efficient supply of electricity in most regions and the growing need for renewable energy are responsible for the high demand for battery energy storage systems in the utility sector.

Market in APAC to grow at highest CAGR during the forecast period

The market in APAC is expected to grow at the highest CAGR from 2022 to 2027. The region hold the largest share of battery energy storage system market in 2021.

APAC is a hub for the battery energy storage system industry. APAC is expected to witness plans for electrification in remote areas, which are mostly off-grid in several countries. The use of residential energy storage technology will enable to increase access to electricity for these remote and island communities in the region.

Energy storage investments are expected to increase substantially within the APAC region as the governments in growing economies are making new policies to improve the reliability and quality of the power distribution facilities to the residential customers. The governments of various countries in this region are focusing on minimizing the adverse effects of the energy sector on the environment. These factors lead to the growth in the deployment of battery energy storage systems in residential and public utility applications.

Competitive Landscape

Major players profiled in this report are as follows: BYD Company Limited (China), SAMSUNG SDI Co. Ltd. (South Korea), LG Energy Solutions Co. Ltd. (South Korea), and Panasonic Corporation (Japan), and others.

Premium Insights

• Increasing Number of Projects, Which Require Battery Energy Storage Systems is Likely to Create Lucrative Opportunities for Battery Energy Storage System Market in APAC
• Battery Energy Storage System Market for Lithium-Ion Batteries to Hold Largest Size in 2027
• Above 500 MWh Energy Capacity Segment to Dominate Battery Energy Storage System Market During Forecast Period
• Utility Application of Battery Energy Storage System Market to Witness Highest Rate During Forecast Period
• APAC to Hold Largest Size of Battery Energy Storage System Market in 2027

Market Dynamics

Drivers

• Increasing Demand for Grid Energy Storage Systems Owing to Ongoing Grid Modernization
• Growing Penetration of Lithium-Ion Batteries in Renewable Energy Sector
• Rising Trend of Adopting Low-Carbon and Less Fossil Fuel-based Economy and Ongoing Renewable Energy Revolution

Restraints

• High Capital Expenditure Required for Installing Battery Energy Storage Systems

Opportunities

• Surge in Number of Rural Electrification Projects Worldwide
• Increase in Need for Continuous Power Supply Attributed to Rising Number of Datacenters
• Decline in Prices of Lithium-Ion Batteries

Challenges

• Complexities in Installing Battery Energy Storage Systems at Islands or in Remote Areas
• Overheating of Lithium-Ion Batteries
• Aging of Lithium-Ion Batteries

Value Chain Analysis

• Ecosystem
• Trends/Disruptions Impacting Customer’s Business

Porter’s Five Forces Analysis

Case Study Analysis

• General Electric to Deliver Battery Energy Storage Systems to Convergent in California
• Adoption of Battery Energy Storage Systems by Utility Provider Company
• Deployment of Microgrid Battery Energy Storage Systems for Rural Electrification in Nigeria
• Deployment of Off-Grid Battery Energy Storage Systems for Renewable Energy Project
• ABB to Install Battery Energy Storage Systems in Philippines

Technology Analysis

• Sodium-Sulfur Battery
• Cobalt-Free Battery
• Metal-Air Battery
• Liquid Metal Battery
• Potassium Metal Battery
• Zinc Manganese Battery
• Lithium-Sulfur Battery
• Lithium Metal Battery

Company Profiles

• ABB
• AEG Power Solutions
• BYD Company Limited
• Delta Electronics Inc.
• East Penn Manufacturing Company
• Enerdel, Inc.
• Exergonix
• General Electric
• Hitachi, Ltd.
• Honeywell International, Inc.
• Johnson Controls
• Kokam
• LG Energy Solutions Co. Ltd.
• NEC Corporation
• Nextera Energy, Inc.
• NGK Insulators, Ltd.
• Panasonic Corporation
• Parker Hannifin Corp.
• Primus Power
• Samsung SDI Co. Ltd.
• Siemens AG
• Tesla, Inc.
• The AES Corporation
• Toshiba Corporation
• Trinabess

For more information about this report visit https://www.researchandmarkets.com/r/jncl7a

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