According to the analysis, the battery energy storage system market size is expected to be USD 64.92 billion in 2032, with a CAGR of 27.9% during the forecast period.
The expansion of the global energy storage market can be attributed to continued grid modernization, increasing penetration of lithium-ion batteries in the renewable energy sector, trend towards adoption of a low-carbon, fossil-free economy, growing demand for grid-scale energy storage systems, and The ongoing renewable energy revolution.
The most common renewable energy sources that battery storage systems store on the grid are solar and wind. However, when there is insufficient sunlight or wind, its power generation process is interrupted. Also, on the other hand, the large financial investments required to build battery energy storage systems are limiting the expansion of the energy storage industry.
As a result, grid operators need to deploy flexible grid solutions for energy storage systems, and modern grids increasingly use battery storage technology.
However, the sudden outbreak of the Covid-19 pandemic has hampered the growth of energy storage deployments. In 2021, there will be fewer battery storage systems installed around the world. In addition, the closure of global manufacturing facilities in the first and second quarters of 2020 resulted in a decline in the growth rate of the energy storage market in 2020.
Some countries are working on developing remote areas, such as remote rural and peri-urban areas and islands cut off from the grid. While bringing electricity to rural and remote areas is called rural electrification, achieving rural electrification can benefit from battery energy storage systems.
Due to the factors mentioned above, the global battery energy storage systems market size is likely to increase to USD 15.1 billion by 2027.
According to data analysis:
• Lithium-ion batteries held the most significant market share in 2021 and are expected to continue throughout the forecast period.
• Grid-connected energy storage systems will account for the largest share of the battery energy storage systems market in 2021 and are expected to grow at a high CAGR during the forecast period. Lower energy bills for customers who rely on the power system for power are likely to drive growth in the segment.
• In 2021, the utility application market will grow rapidly. The need to meet peak electricity demand is a fundamental factor driving the growth of the utility sector.
• From 2022 to 2027, the Asia Pacific market is expected to grow at the fastest rate. The region will hold the largest share of the battery energy storage systems market by 2021.
The global battery market is dominated by companies such as BYD Co., Ltd. (China), Samsung SDI Co., Ltd. (South Korea), LG Energy Solutions Co., Ltd. (South Korea), and Panasonic Corporation (Japan).
Significant investments by key players can positively contribute to the battery energy storage systems market.
