The global grid-scale battery storage market size is expected to reach USD 15.04 billion by 2027 registering a CAGR of 24.4%, according to a new report by Grand View Research, Inc. An increase in the number of grid infrastructure, government initiatives, and investments to develop battery technologies and its storage capacity will propel the overall demand.
Increasing awareness among consumers, expanded deployment, utility sectors, technological advancements, and a push from various governments to adopt clean power energy generated by renewable sources are few factors that drive the demand for grid-scale battery storage across the globe. The market in North America accounted for around 21.09% of the global share in 2020.
Asia Pacific is anticipated to register the fastest CAGR from 2020 to 2027 owing to rapid urbanization, transmission & distribution system, increasing industrialization, and subsidies provided by the government for grid-scale battery storage capacity, mainly in the developing countries of India, China, and Singapore.
Considerable developments and investments in renewable energy projects are driving down the cost of lithium-ion batteries, thus increasing the demand for grid-scale storage batteries. The expansions in the grid-scale battery storage are being determined by upgradation of infrastructures, with favorable regulation, and improving system costs. However, exploring of new geographical markets and help in opening of the need for energy storage systems will spur the market development.
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The product demand is driven by factors, such as need to integrate the energy produced from renewable sources including solar photovoltaic and wind power, and also to improve stability, reliability, and resiliency of the grid. The market is evolving as one of the potential solutions to intensify the system flexibility, owed to their exceptional abilities to hold, absorb quickly, and then re-inject electricity.
Grid-scale Battery Storage Market Report Highlights
The Lithium-ion battery type segment accounted for 84.09% of the global revenue share in 2020
Other battery types include Sodium sulphur batteries, flow batteries. These batteries are expected to gain market share during the forecast period
Asia Pacific region is projected to expand at the highest CAGR during the forecast period. China is expected to account for the maximum share in the regional market, in terms of revenue
North America is likely to display a moderate growth rate during the projected period
In the U.S., increasing demand for lithium-ion batteries as an essential battery storage product can be attributed to their highly improved efficiency, energy density, and deep discharge cycle. In addition, a rapid cost decrease owing to growing storage demand and increased deployment demand for a renewable source of energy integration is projected to drive the market over the forecast period.
However, Increasing awareness among consumers regarding effective energy consumption coupled with rising demand to save extra energy produced at the grid location with effective load supervision is expected to play a key role in driving the demand. Also, ascending demand from grids, on account of rising need for distributed energy integration with the grid, is likely to propel the market growth over the forecast period.
The outbreak of COVID-19 pandemic has hindered the market growth as supply chains for the battery industry was negatively impacted since the majority of vendors involved in battery market are located in Asia Pacific region and China, the largest manufacturer and leading supplier of components across the globe, was the first affected country.
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Li-ion battery type accounted for the largest market share of more than 84% in 2020 and is likely to register the fastest CAGR over the forecast period. These batteries are widely used across several applications due to technological innovations and improved manufacturing capacity, also these products have registered a steep price decline in the last 6 years, and prices are projected to decline further. Market participants are emphasizing on R&D to develop advanced products to gain a competitive edge. The companies with strong market foot-hold have led to the advancements in the field of battery manufacturing and storage to develop innovative products. Also, there is integration by companies including ABB, GE, and Samsung SDI, which allows low-cost manufacturing with increased productivity. Broadening of product portfolio to increase base into new application markets is one of the leading approaches being implemented by the market players. Some of the prominent players in the grid-scale battery storage market include:
NGK Insulators Ltd.
BYD Co. Ltd.
Sumitomo Electric Industries, Ltd.
Samsung SDI Co. Ltd.
GS Yuasa Corp.
LG Chem Ltd.
Mitsubishi Electric Corp.
Grand View Research has segmented the global grid-scale battery storage market on the basis of type, application:
Grid-scale Battery Storage Type Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)
Grid-scale Battery Storage Application Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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