Advanced Energy Storage Systems Market Size, Forecast [2031]

Report Description

The advanced energy storage systems market size was around USD 17.44 Billion in 2022 and is projected to reach USD 37.88 Billion by 2031, expanding at a CAGR of 9% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing electric vehicles market and rising investments in renewable energy.

An advanced energy storage system (ESS) is a device or collection of devices that transform electrical energy from power systems and store it to be used as needed in the future. A steady supply of electricity and cheaper prices can be obtained by efficiently utilizing and managing electrical energy. Electricity for a private power network that is operational 24/7 can be provided by a private power plant and an ESS such as a wind or solar energy generation system.

Get Free Sample Report

Advanced Energy Storage (AES) system operates by collecting the energy that is needed at one moment and storing it to be utilized later. Utilizing advanced energy storage techniques, electricity is transformed into a different type of energy that may be stored and transformed back into useful electricity as needed. Grids can be used to store power and move it using advanced energy storage.

COVID-19 Impact on Advanced Energy Storage Systems Market

The advanced energy storage systems market was affected negatively during the COVID-19 pandemic across the globe. The pandemic resulted in lockdown, social distancing policies, travel restrictions, and other regulations as a measure of control worldwide. The advanced energy storage systems plants were shut down, which disrupted the global supply chain. With the lockdown, work from home, and social distancing policies. This affected the advanced energy storage systems market negatively. The lifting of lockdown, canceling of social distancing policies, and slack in other pandemic-related restrictions are expected to drive the advanced energy storage systems market in the coming years.

Advanced Energy Storage Systems Market Dynamics

The market research report on the global advanced energy storage systems market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2023 to 2031.

Get Free Sample Report

Drivers: Rising investments in renewable energy

The energy policies of both developed and developing nations are being updated to include a significant share of the generation sourced from renewable energy sources like wind and solar. Investments in renewable energy are rising as a result of financial incentives from the government and related returns, which are anticipated to enhance the advanced energy storage system industry. By the end of 2018, around 146 countries had policies supporting renewable energy. To implement renewable energy sources in a planned but economical way, many nations held auctions. Nowadays, renewable energy sources are the top option for developing, modernizing, and enhancing electricity grids globally. Currently, the costs of geothermal, hydropower, biomass, and onshore wind are comparable to those of power plants driven by gas, oil, and coal.

Restraints: High cost of initial investment

Energy storage technologies including lithium-ion batteries, flow batteries, and sodium sulfur (NaS) batteries require high capital for production than other technologies due to their features such as enhanced performance and high energy density. Lithium is a costly metal, which raises the cost of battery production. The cost of technology is anticipated to be high during the first two or three years of lithium's new and evolving usage in electric vehicles and grid storage; with increased acceptance, the cost is projected to reduce. Technology cost increases with increased rated power.

Opportunities: Growing investment in modern infrastructure and grid expansion

Modernization of the deteriorating infrastructure and grid expansion is necessary for developing nations such as China and India. Currently, there is a need to provide electricity to an estimated 30% of the fast-expanding worldwide population. In addition, with the Sustainable Energy for All (SE4All) program, an investment of about USD 45 billion is needed to ensure that everyone has access to contemporary electric power in the United Nations. These investments are anticipated to have a significant impact due to advanced energy storage, which is estimated to protect the system from various risks including natural disasters and enable better deployment of both new and existing resources.

Scope of Advanced Energy Storage Systems Market Report

The report on the global advanced energy storage systems market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Advanced Energy Storage Systems Market Segment Insights

The pumped hydro segment accounts for a key market share

Based on technologies, the market is segregated into thermal storage, flywheel storage, battery storage, electro chemical, and pumped hydro. The pumped hydro segment accounted for a key market share in 2021. The primary purpose of the advanced pumped hydro systems segment is to produce power at various heights by pumping water between two reservoirs at various elevations. PHS offers excellent stability, power balance, and the ability to swiftly recover from large electrical loads. These devices offer transmission grid ancillary benefits and enhanced power storage in various locations. Pumped hydro advanced systems currently make up more than 90% of total capacity and further emphasis on the development of facilities with high potential is anticipated to have a significant impact on the market. Modern batteries now provide enhanced power and are more reliable than ever before because of material and technological improvements that have also reduced costs and expanded the market.

The electro chemical segment is expected to hold a key market share during the forecast period. Increasing deployment and technological advancement of lithium-ion batteries are projected to increase the economies of scale.

The transportation segment is anticipated to grow at a rapid pace

On the basis of applications, the market is fragmented into microgrid, off-grid, on-grid, transportation, and others. The transportation segment is anticipated to grow at a rapid pace during the projected period. Growth of the segment is attributed to rising infrastructure investments in emerging economies, growing grid expansion, and increasing implementation of lithium-ion batteries in electric vehicles.

Get Free Sample Report

Asia Pacific dominated the market

Based on regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market in 2021 and is projected to continue its dominance during the forecast period. Increasing spending on infrastructure from commercial, industrial, and residential sectors in developing nations such as Indonesia and China are estimated to boost the market in the region. A significant increase in capacity as a result of rising energy demand is projected to drive the market.

North America to hold a substantial market share in the coming years. Growth of the market in the region is attributed to rising government funding. Rising grid-scale projects as a result of improved peak demand management are anticipated to boost the market. Growing use of electric vehicles and strict government laws to reduce pollution levels in countries such as France and Germany are anticipated to propel the market during the forecast period. The US held around 80% of the total market share of North America. Growth of the market is attributed to the increasing adoption of new technologies coupled with the presence of key market players in the region.

Get Free Sample Report