Global Battery Energy Storage System Market

Global Battery Energy Storage System Market, By Element (Battery, Other Elements), By Battery Type (Lithium-Ion Batteries, Lead-Acid Batteries, Flow Batteries, Others), By Application (Residential, Commercial, Utility), By Connection Type (On-Grid Connection, Off-Grid Connection), By Ownership (Customer-Owned, Third-Party-Owned, Utility-Owned), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: September 2021
  • Report ID: BWC21110
  • Available Format: PDF
  • Page: 194

Report Overview

Global battery energy storage system market is thriving due to the growing move toward renewable energy sources such as wind and solar energy and thriving industries such as telecommunications, industrial, and healthcare, which are driving the need for continuous power supply.

Global Battery Energy Storage System Market- Industry Trends & Forecast Report 2027

Global battery energy storage system market was worth USD 3.34 billion in 2020 and is further projected to reach USD 17.25 billion by the year 2027, growing at a CAGR of 27.7% in the forecast period. The growth of the global battery energy storage system market is attributable to the increasing reliance on renewable energy sources like wind and solar energy and the flourishing industries, such as telecom, industrial, healthcare, etc., which is propelling the demand for continuous power supply.

Battery Energy Storage System Market

Source: BlueWeave Consulting

Global Battery Energy Storage System Market- Overview

Battery energy storage systems are devices that store electrical energy from sources such as solar energy or wind energy and transfer it as and when required. These systems are prominently used in renewable energy sources like solar or wind as it stores the energy and delivers it according to the customer’s needs. Battery energy storage systems work by converting the DC energy produced by solar or wind panels and storing it as AC for later use.

Global Battery Energy Storage System Market Forecast and Trends

Growth Drivers

Rising Shift Towards Renewable Energy Sources

The growing shift from hydroelectricity to renewable energy sources such as solar power or wind energy is significantly propelling the growth of the global battery energy storage systems market. Battery energy storage systems store the excess solar energy from the PV system for nighttime use or other purposes. The government and private entities, especially in emerging economies, are significantly investing in the installation of solar energy panels at the residential and commercial spaces, which is expected to boost the demand for battery energy storage systems during the forecast period.

Introduction of Battery Energy Storage Systems with Controlled Prices

The manufacturers are significantly focusing on overcoming the barrier of the high cost of battery energy storage systems by innovating their technologies and launching cost-effective components. Battery manufacturers are investing in the development of low-cost lithium-ion batteries, which is expected to drive the global battery energy storage systems market. The average energy capacity cost of utility energy battery storage has already significantly decreased from USD 2,152 per kilowatt-hour (kWh) in 2015 to USD 625/kWh. The decreasing price is emerging as a major growth factor for the global battery energy storage systems market.

Restraints

High Investment Involved in the Installation of Battery Energy Storage System

The battery energy storage systems involve advanced technologies and expensive components which makes the installation of these systems a highly expensive process. These systems include batteries, monitoring and control systems, power conversion systems, and other components that are exceedingly expensive when the cost of technicians and other human resources is factored in—the cost of batteries rises in tandem with their capacity and energy density. The expensive initial investment is therefore, a major impediment to the global battery energy storage system market's growth.

Impact of COVID-19 on Global Battery Energy Storage System Market

The global battery energy storage systems market was severely hit by the sudden outbreak of the COVID-19 pandemic. The demand and adoption of these systems were halted with the nationwide lockdowns imposed in various regions. Battery manufacturing and distribution were restricted, causing the battery energy storage systems market to suffer significant losses during the COVID-19 period. Furthermore, the decline in people's purchasing power and the shift from infrastructure development to healthcare development negatively impacted the global battery energy storage system industry.

Global Battery Energy Storage System Market - By Battery Type

Based on battery types, the global battery energy storage system market is segmented into lithium-ion batteries, lead-acid batteries, flow batteries, and others. Lithium-ion batteries have the largest market share due to their low weight and size and their high capacity to store energy. Due to high demand, BESS manufacturers are increasingly focusing on expanding their production capacity and research and development activities towards lithium-ion batteries. Lead-acid batteries, however, also account for a sizeable share of the market due to their relative affordability.

Global Battery Energy Storage System Market - By Connection Type

Based on connection types, the global battery energy storage system market is segmented into on-grid connection and off-grid connection. The off-grid segment holds the largest market share and is projected to witness significant growth in the forecast period. This segment is mainly driven by the high prominence of behind-the-meter units, especially in developing countries. However, the on-grid connection segment is also likely to witness the highest CAGR during the forecast period because of the declining cost of the utilities.

Global Battery Energy Storage System Market - Regional Insights

Geographically, the global battery energy storage system market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region dominates the market with the expanding utilization of renewable energy in countries with flourishing manufacturing countries, such as Japan and South Korea. China and India also hold great potential with the surging demand for battery energy storage systems because of the increasing renewable energy application in the residential as well as commercial spaces. On the other hand, North America and Europe also cover substantial shares in the market.

Regional Insights

Source: BlueWeave Consulting

Competitive Landscape

The leading players in the global battery energy storage system market are BYD Company Limited, Cellcube Energy Storage System Inc, Panasonic Corporation, Samsung SDI Co Ltd, LG Chem Ltd, Tesla Inc., Contemporary Amperex Technology Co. Limited, Panasonic Corporation, Sony Corp., ABB, Hoppecke Batteries Inc., Exide Technologies, General Electric, Enersys, AES Energy Storage, Hitachi, Mitsubishi, and other prominent players.

The market is highly fragmented and yet concentrated, with the presence of leading industry giants such as Mitsubishi, Hitachi, Exide, etc. The players significantly invest in R&D activities to improve the battery storage capacity. They are significantly working on increasing their product penetration in the regional market with developed nations in focus. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., is also very prominent in this market.

Recent Developments

  • In September 2021, RWE Renewables, a US-based renewable energy company, announced its partnership with LG Energy Solution, a South Korean eco-friendly energy solutions provider, to provide an integrated battery energy storage system (BESS) for two of RWE ‘s upcoming projects with co-located solar PV facilities in the US.
  • In September 2021, Schnitzer Steel Industries, Inc., a US-based steel manufacturing and scrap metal recycling company announced to have selected PowerFlex, a US-based renewable energy company, to design, build, and operate a 1,600 KW Battery Energy Storage System.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia

Product Service/Segmentation

By Element, By Battery Type, By Application, By Connection Type, By Ownership, By Region

Key Players

BYD Company Limited, Cellcube Energy Storage System Inc, Panasonic Corporation, Samsung SDI Co Ltd, LG Chem Ltd, Tesla Inc., Contemporary Amperex Technology Co. Limited, Panasonic Corporation, Sony Corp., ABB, Hoppecke Batteries Inc., Exide Technologies, General Electric, Enersys, AES Energy Storage, Hitachi, Mitsubishi, and other prominent players.

 

By Element

  • Battery
  • Other Elements
  1. Hardware
  2. Others

By Battery Type

  • Lithium-Ion Batteries
  • Lead-Acid Batteries
  • Flow Batteries
  • Others
  1. Sodium–Based Batteries
  2. Nickel–Cadmium Battery
  3. Nickel-Metal Hydride Battery
  4. Nickel–Iron Battery

By Application

  • Residential
  • Commercial
  • Utility

By Connection Type

  • On-Grid Connection
  • Off-Grid Connection

By Ownership

  • Customer-Owned
  • Third-Party-Owned
  • Utility-Owned

By Region

  • North America
  • Europe
  • Asia-Pacific (APAC)
  • Latin America (LATAM)
  • Middle-East & Africa (MEA)

Frequently Asked Questions:

Ans: The global battery energy storage system market reached USD 3.34 billion in 2020.
Ans: The major factors driving the growth of the global battery energy storage system market are the rising shift towards renewable energy sources and introduction of battery energy storage systems with controlled prices.
Ans: The key players in the global battery energy storage system market are: BYD Company Limited, Cellcube Energy Storage System Inc, Panasonic Corporation, Samsung SDI Co Ltd, LG Chem Ltd, Tesla Inc., Contemporary Amperex Technology Co. Limited, Panasonic Corporation, Sony Corp., ABB, Hoppecke Batteries Inc., Exide Technologies, General Electric, Enersys, AES Energy Storage, Hitachi, Mitsubishi, and other prominent players.
Ans: The utility segment accounted for the largest share in the global battery energy storage system market.
Ans: Asia-Pacific holds the largest share in the global battery energy storage system market.