Advanced Battery Energy Storage System Market Trends [2031]
Advanced Battery Energy Storage System Market Trends [2031]
Segments - Advanced Battery Energy Storage System Market by Type (Lead Acid, Flow Batteries, Lithium ion, and Others), Connection Type (Off Grid and On Grid), Application (Behind the Meter and Front of the Meter), Ownership (Utility Owned, Third-party Owned, Customer Owned, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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| Report ID :EP-5945
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Report Description
Advanced Battery Energy Storage System Market Outlook 2031
The global advanced battery energy storage system market size was valued at USD 12.7 billion in 2022 and is likely to reach USD 51.9 billion by 2031, expanding at a CAGR of 20.3% during 2022 – 2031. The growth of the market is attributed to the increasing demand for advanced batteries in stabilizing electricity grids by smoothing out fluctuations in supply and need.
Increasing investment in renewable solutions is resulting in growing utilization of advanced battery energy storage systems, which further boosts the market. These storage systems handle a high amount of excess it when needed ensuring a constant and reliable power supply.
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According to the report published by the International Energy Agency on May 25, 2023, the worldwide investment in renewable energy sources is expected to rise to around USD 1.7 trillion in 2023.
Advanced battery energy storage systems are designed to store electrical energy for later use. They work by storing excess electricity typically generated from renewable sources, including solar or wind power, and then releasing it when the electricity demand is high.
These systems consist of high-capacity batteries that store and discharge electricity efficiently. Additionally, they help in grid stabilization by balancing the supply and demand of electricity, thereby improving the reliability and resilience of the electrical grid.
The COVID-19 pandemic hampered the market. The pandemic disrupted global supply chains, affecting the production and deployment of battery systems. Manufacturing facilities faced shutdowns, transportation of components was delayed, and labor shortages occurred causing delays and increasing costs. These disruptions had a direct impact on the ability of the industry to meet the demand.
Artificial Intelligence (AI) Impact on Advanced Battery Energy Storage System Market
Emergence of artificial intelligence is expected to propel the market in the coming years. AI is being used to optimize the management of energy storage of batteries to maximize their lifespan and efficiency. Additionally, AI-driven predictive maintenance helps detect potential issues with battery components before they lead to costly breakdowns and ensures the longevity of the systems.
Advanced Battery Energy Storage System Market Dynamics
Major Drivers
Surging demand for sodium-sulfur batteries is expected to drive the advanced battery energy storage system market during the forecast period. These batteries are utilized for their efficiency, reliability, and wide applicability, from electric vehicles to consumer electronics. Moreover, the rising production of advanced battery energy storage solutions, including lithium ion batteries to cater to the increasing demand, is further boosting the market.
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As per the report published on October 09, 2023, the worldwide production capacity of Lithium ion batteries is projected to increase significantly from almost 300 gigawatt-hours in 2018 to over two terawatt-hours in 2028.
Existing Restraints
High upfront costs of implementing advanced battery energy storage systems are expected to hinder the market in the coming years. These include the cost of the batteries themselves, installation, and associated infrastructure.
Moreover, advanced batteries have limitations related to their lifespan, charge-discharge cycles, and operating conditions that further decrease their utilization in various industries.
Emerging Opportunities
Ongoing research and development activities in battery technology are expected to create favorable opportunities for the players competing in the market during the forecast period. Manufacturers are focusing on improving the chemistries of solid-state batteries and flow batteries for enhanced performance, safety, and sustainability in energy storage. Furthermore, the need for a reliable and safe battery backup power source in residential areas is further boosting the market.
Scope of the Advanced Battery Energy Storage System Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes |
Details |
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Report Title |
Advanced Battery Energy Storage System Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Type (Lead Acid, Flow Batteries, Lithium ion, and Others), Connection Type (Off Grid and On Grid), Application (Behind the Meter and Front of the Meter), and Ownership (Utility Owned, Third-party Owned, Customer Owned, and Others) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
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Key Players Covered in the Report |
ABB; Black & Veatch Holding Company; BYD Company Ltd; ENERSYS; EVE Energy Co., Ltd; Fluence; General Electric; Kokam Battery; LG Energy Solution; Narada Asia Pacific Pte Ltd; Nissan Motor Co., Ltd.; Samsung; Siemens; Tata Power; Tesla; and TotalEnergies |
Advanced Battery Energy Storage System Market Segment Insights
Type Analysis
Based on type, the advanced battery energy storage system market is divided into lead acid, flow batteries, lithium ion, and others. The lithium ion segment is expected to hold a major market revenue share during the forecast period, due to its durability and long cycle life.
They withstand a large number of charge-discharge cycles, making them a reliable choice for energy storage systems. Additionally, these batteries have a proven track record for safety and performance, which further boosts their demand.
Connection Type Analysis
On the basis of connection type, the market is classified as off grid and on grid. The on grid segment is anticipated to register robust growth during the forecast period, as they seamlessly integrated into the existing electrical grid, allowing for efficient energy management.
They store excess energy when it is abundant and release it when needed, contributing to grid stability and reliability. This compatibility with the grid infrastructure propels the demand for the on-grid systems especially for utility-scale energy storage projects and large-scale deployments.
Application Analysis
In terms of application, the advanced battery energy storage system market is fragmented into behind the meter and front of the meter. The behind the meter segment is expected to hold a key market share during the projected period, as this type of installation allows consumers to reduce their energy costs.
Behind the meter systems store excess electricity during off-peak hours, when energy prices are low, and discharge it during peak-demand times, when electricity rates are high. This load-shifting capability translates into substantial cost savings for residential, commercial, and industrial users.
Ownership Analysis
Based on ownership, the market is divided into utility owned, third-party owned, customer owned, and others. The utility owned segment is expected to expand at a significant CAGR during the forecast period, owing to their ability to provide a stable and reliable power supply to homes and businesses. Advanced battery energy storage systems enable utilities to optimize smart grid network operations.
Utilities are increasingly incorporating renewable energy sources, including wind and solar. Advanced batteries store large amounts of renewable energy and ensure its availability when needed, making the integration of clean energy sources reliable.
Regional Outlook
In terms of region, the global advanced battery energy storage system market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market, due to the surge in electric vehicle adoption.
The growth of the EV market relies on advanced battery technology for vehicle power and charging infrastructure. This increases the demand for advanced battery energy storage systems that are used for EV charging, grid stabilization, and renewable energy support.
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According to the report published by the International Energy Agency on July 11, 2023, approximately 2.3 million electric cars are being sold during the first quarter of 2023, about 25% more than in the same period in the previous year.
The market in Asia Pacific is anticipated to expand at a rapid pace in the coming years, due to the rapid economic growth leading to an increase in energy consumption. Advanced battery energy storage systems are majorly used for ensuring a stable and reliable power supply.
Many countries in the Asia Pacific are actively expanding their renewable energy capacity, which further boosts demand for advanced battery solutions. For instance, as per the report published on February 27, 2023, the investment in renewable energy in Asia Pacific totaled USD 48.2 billion.
Segments
The global advanced battery energy storage system market has been segmented on the basis of
Type
- Lead Acid
- Flow Batteries
- Lithium ion
- Others
Connection Type
- Off Grid
- On Grid
Application
- Behind the Meter
- Front of the Meter
Ownership
- Utility Owned
- Third-party Owned
- Customer Owned
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- ABB
- Black & Veatch Holding Company
- BYD Company Ltd
- ENERSYS
- EVE Energy Co., Ltd
- Fluence
- General Electric
- Kokam Battery
- LG Energy Solution
- Narada Asia Pacific Pte Ltd
- Nissan Motor Co., Ltd.
- Samsung
- Siemens
- Tata Power
- Tesla
- TotalEnergies
Competitive Landscape
Key players competing in the global advanced battery energy storage system market are ABB; Black & Veatch Holding Company; BYD Company Ltd; ENERSYS; EVE Energy Co., Ltd; Fluence; General Electric; Kokam Battery; LG Energy Solution; Narada Asia Pacific Pte Ltd; Nissan Motor Co., Ltd.; Samsung; Siemens; Tata Power; Tesla; and TotalEnergies
These enterprises are expanding their market share by implementing various strategies, such as forming strategic partnerships, pursuing mergers & acquisitions, streamlining production costs, introducing innovative product lines, and integrating cutting-edge technologies.
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On June 7, 2022, General Electric, which is a multinational manufacturer of equipment, solutions, and services in the energy sector, has recently announced that it is going to increase its manufacturing capacity for battery and solar energy storage electronics systems. The goal is to triple the capacity by the end of 2022, reaching nine GW per annum. The decision to expand the capacity is based on the strong growth in backlog over the past few months and a robust demand outlook.
Table Of Content
1. Executive Summary2. Assumptions and Acronyms Used
3. Research Methodology
4. Advanced Battery Energy Storage System Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Advanced Battery Energy Storage System Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Advanced Battery Energy Storage System Market - Supply Chain
4.5. Global Advanced Battery Energy Storage System Market Forecast
4.5.1. Advanced Battery Energy Storage System Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Advanced Battery Energy Storage System Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Advanced Battery Energy Storage System Market Absolute $ Opportunity
5. Global Advanced Battery Energy Storage System Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Advanced Battery Energy Storage System Market Size and Volume Forecast by Types
5.3.1. Lead Acid
5.3.2. Flow Batteries
5.3.3. Lithium ion
5.3.4. Others
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Advanced Battery Energy Storage System Market Analysis and Forecast by Applications
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Applications
6.2.2. Y-o-Y Growth Projections by Applications
6.3. Advanced Battery Energy Storage System Market Size and Volume Forecast by Applications
6.3.1. Behind the Meter
6.3.2. Front of the Meter
6.4. Absolute $ Opportunity Assessment by Applications
6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Advanced Battery Energy Storage System Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Advanced Battery Energy Storage System Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Advanced Battery Energy Storage System Demand Share Forecast, 2019-2026
8. North America Advanced Battery Energy Storage System Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Advanced Battery Energy Storage System Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Advanced Battery Energy Storage System Market Size and Volume Forecast by Types
8.4.1. Lead Acid
8.4.2. Flow Batteries
8.4.3. Lithium ion
8.4.4. Others
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Advanced Battery Energy Storage System Market Size and Volume Forecast by Applications
8.7.1. Behind the Meter
8.7.2. Front of the Meter
8.8. Basis Point Share (BPS) Analysis by Applications
8.9. Y-o-Y Growth Projections by Applications
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Advanced Battery Energy Storage System Demand Share Forecast, 2019-2026
9. Latin America Advanced Battery Energy Storage System Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Advanced Battery Energy Storage System Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Advanced Battery Energy Storage System Market Size and Volume Forecast by Types
9.4.1. Lead Acid
9.4.2. Flow Batteries
9.4.3. Lithium ion
9.4.4. Others
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Advanced Battery Energy Storage System Market Size and Volume Forecast by Applications
9.7.1. Behind the Meter
9.7.2. Front of the Meter
9.8. Basis Point Share (BPS) Analysis by Applications
9.9. Y-o-Y Growth Projections by Applications
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Advanced Battery Energy Storage System Demand Share Forecast, 2019-2026
10. Europe Advanced Battery Energy Storage System Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Advanced Battery Energy Storage System Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Advanced Battery Energy Storage System Market Size and Volume Forecast by Types
10.4.1. Lead Acid
10.4.2. Flow Batteries
10.4.3. Lithium ion
10.4.4. Others
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Advanced Battery Energy Storage System Market Size and Volume Forecast by Applications
10.7.1. Behind the Meter
10.7.2. Front of the Meter
10.8. Basis Point Share (BPS) Analysis by Applications
10.9. Y-o-Y Growth Projections by Applications
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Advanced Battery Energy Storage System Demand Share Forecast, 2019-2026
11. Asia Pacific Advanced Battery Energy Storage System Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Advanced Battery Energy Storage System Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Advanced Battery Energy Storage System Market Size and Volume Forecast by Types
11.4.1. Lead Acid
11.4.2. Flow Batteries
11.4.3. Lithium ion
11.4.4. Others
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Advanced Battery Energy Storage System Market Size and Volume Forecast by Applications
11.7.1. Behind the Meter
11.7.2. Front of the Meter
11.8. Basis Point Share (BPS) Analysis by Applications
11.9. Y-o-Y Growth Projections by Applications
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Advanced Battery Energy Storage System Demand Share Forecast, 2019-2026
12. Middle East & Africa Advanced Battery Energy Storage System Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Advanced Battery Energy Storage System Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Advanced Battery Energy Storage System Market Size and Volume Forecast by Types
12.4.1. Lead Acid
12.4.2. Flow Batteries
12.4.3. Lithium ion
12.4.4. Others
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Advanced Battery Energy Storage System Market Size and Volume Forecast by Applications
12.7.1. Behind the Meter
12.7.2. Front of the Meter
12.8. Basis Point Share (BPS) Analysis by Applications
12.9. Y-o-Y Growth Projections by Applications
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Advanced Battery Energy Storage System Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Advanced Battery Energy Storage System Market: Market Share Analysis
13.2. Advanced Battery Energy Storage System Distributors and Customers
13.3. Advanced Battery Energy Storage System Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. ABB
13.4.2. Black & Veatch Holding Company
13.4.3. BYD Company Ltd
13.4.4. ENERSYS
13.4.5. EVE Energy Co., Ltd
13.4.6. Fluence
13.4.7. General Electric
13.4.8. Kokam Battery
13.4.9. LG Energy Solution
13.4.10. Narada Asia Pacific Pte Ltd
13.4.11. Nissan Motor Co., Ltd.
13.4.12. Samsung
13.4.13. Siemens
13.4.14. Tata Power
13.4.15. Tesla
13.4.16. TotalEnergies
Methodology
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