Off-grid Energy Storage System Market Size & Trends | 2031

Report Description

Off-grid Energy Storage System Market Outlook

The global off-grid energy storage system market size was estimated at USD 7,362.6 Million in 2021 and is anticipated to reach around USD 13,853.0 Million by 2030, expanding at a CAGR of 7.7 % during the forecast period, 2022-2030.

Off-grid power systems provide electricity to machinery or equipment in the absence of utility power. Typically, these systems are designed and located in isolated residences, cabins, fishing huts, and remote telecommunication towers. An off-grid solar energy system is designed to function independently without a grid system. The system relies on energy production collected by solar panels, generators, or hydroelectric systems, which is then collected and stored in batteries.

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The power is then supplied with energy stored by batteries to desired places. Off-grid energy systems are available in various sizes, ranging from a small system that supplies power to individual devices, such as cell-phone, to a comparatively large system that provides electricity for homes, schools, and large entities. These systems are purposely designed for providing benefits to remote or rural areas, where it is comparatively expensive for users to connect to the main grid.

Macro-economic Factors

Government Policies and Regulations

Government policies and regulations significantly impact the off-grid energy storage system market. For instance, governments of many developing countries are taking initiatives to support and encourage the adoption of renewable energy and energy storage systems to reduce greenhouse gas emissions.

The need to reduce greenhouse gas emissions has catalyzed the rapid growth of renewable energy globally, which in turn boosts the off-grid energy storage system market. Additionally, China and India are pursuing energy storage programs to support their electric energy needs and bridge the gap between the available generation and customer demand.

Advancement In Technology

Technology advancement refers to the continuous improvement, innovation, and progress of technology in different fields, such as manufacturing, communication, transportation, and healthcare. Technological advances, such as improvements in battery technology and the development of new energy storage materials, have a significant impact on the off-grid energy storage system.

The University of Illinois at Chicago in 2019, discovered a battery technology that is set to revolutionize off-grid battery technology. In 2019, a team of researchers demonstrates the design of the first lithium-carbon dioxide battery. It marked a major advancement in the development of lithium-carbon dioxide batteries, advancing efficient and effective off-grid storage systems, and offering high-efficiency, eco-friendly battery storage mechanisms.

Economic Development

Economic development refers to the sustained improvement in the economic well-being of society. An improvement in a nation's wealth and quality of living is referred to as economic development. Improved productivity, high literacy rates, and better wages are some examples of economic development. The economic development of countries increases energy consumption, which, in turn, increases the demand for reliable, affordable, and sustainable energy storage systems.

Off-grid Energy Storage System Market Dynamics

Market Driver

Supportive Government Policies and Initiatives

Governments around the world are implementing policies and initiatives to promote or support the use of renewable energy and energy storage, which, in turn, drives the off-grid energy storage system market. Increasing adoption of renewable energy sources, such as solar and wind power, is driving the market, as these sources require a reliable power supply from energy storage systems.

India Smart Grid Forum (ISGF) has developed an Energy Storage System Roadmap for India for the period, 2019 to 2032. The Government of India targeted 40 GW of rooftop solar capacity in 2022. Moreover, according to the Department of Energy (DOE), the US planned to install 177 GW of energy storage systems at the grid level, from which 95% is pumped to hydro storage plants.

Rising Use of Renewable Energy Sources

Fossil fuels are burnt to generate electricity, and a large amount of greenhouse gases (GHG) are released into the atmosphere. Governments across globe are concentrating on sustainable and renewable energy sources, such as solar, biomass, and wind that aid in lowering GHG emissions.

This is leading to the diversification of energy sources, with renewables comprising a growing portion of the global energy balance. The global energy balance has altered as a result of new regulatory policies drafted by the government on the use of renewable energy sources around the globe. These factors are anticipated to boost the market during the forecast period.

Increasing Demand for Power Supply

The remote and rural areas have limited access to a power supply, which is decreasing the living standard of people in these areas. In rural areas, solar-powered home systems, lighting and charging systems, or rooftop solar applications are the main applications of off-grid renewable energy storage.

Off-grid energy storage systems are becoming increasingly popular as a way to provide a consistent and reliable power supply in remote areas. These storage systems provide electricity to remote locations, outdoor power, homes, hospitals, and banks in a consistent way to prevent disruptions in daily operations.

Market Restraint

A well-defined off-grid energy storage system requires the installation and replacement of components, such as batteries, regularly. The high installation cost of off-grid energy storage systems is a significant challenge for the market players.

The high installation cost of off-grid energy storage systems is attributed to several factors, such as the high cost of batteries or other energy storage technologies. Additionally, the requirement for skilled technicians in installation is expensive. Thus, the overall cost of the system increases, due to maintenance costs. This is restraining the market.

Market Opportunity

A remote area in a country, which is not connected to the main power source, faces an issue with a reliable power supply. Off-grid energy storage systems provide increased access to electricity for those households and communities that are not connected to the main power grid.

This offers lucrative opportunities for the market players and helps them expand their business in rural and remote areas. This helps to improve the quality of life and support economic development in remote areas.

Scope of Off-grid Energy Storage System Market Report   

The report on the Global Off-grid Energy Storage System Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Off-grid Energy Storage System Market Segmental Outlook

Based on type, the global off-grid energy storage system market is segmented into lithium-ion batteries, lead-acid batteries, and others. The lithium-ion battery segment is expected to hold a considerable share of the market during the forecast period, owing to the increasing adoption of lithium-ion batteries in the off-grid energy storage system.

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Based on Application, the segment is divided into industrial UPS, family backup power, unattended equipment, and others. The family backup power segment is expected to hold a significant share of the market during the forecast period, owing to the increasing urbanization and industrialization that has increased mass manufacturing of off-grid family backup power systems.

Based on the sales channel, the global off-grid energy storage system is bifurcated into manufacturer/distributor/service provider and aftermarket. The aftermarket segment holds a significant share of the market in 2021 and is projected to expand at a significant CAGR during the forecast period, due to the increasing demand for aftermarket services for off-grid energy storage systems.

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Regional Outlook

Based on region, the global off-grid energy storage system market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in North America is projected to expand at a significant CAGR during the forecast period, due to increasing investment in energy storage systems. According to data published by the Department of Energy in 2021, nearly USD 27 million was invested in battery storage systems.

The market in Asia Pacific is expected to expand at a rapid pace during the forecast period, as developing countries such as China and India are focusing on electrification plans for remote areas and providing access to uninterrupted power supply in such areas.

For instance, Energies in 2020, used renewable energy storage batteries such as lithium-ion, and lead-acid battery technologies for the electrification of remote areas in India. This has improved access to electricity in rural areas at an affordable rate.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Off-grid Energy Storage System Market
• Historical, Current and Projected Market Size in terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Off-grid Energy Storage System Market Performance