The battery energy storage system market has undergone exponential growth, expanding from $5.51 billion in 2023 to $6.99 billion in 2024, demonstrating a compound annual growth rate (CAGR) of 26.8% during the historic period. This growth is attributed to factors such as the integration of renewable energy, decreasing battery costs, achieving energy independence, government incentives, the proliferation of electric vehicles, and the implementation of demand response programs. Looking forward to 2028, the market is anticipated to experience continued exponential growth, reaching $17.14 billion at a CAGR of 25.1%. The forecasted expansion is associated with the expansion of renewable capacity, the adoption of decentralized energy systems, resilience planning, the transition to electric mobility, and compliance with energy storage mandates. Notable trends in this period encompass improvements in grid resilience and reliability, the adoption of energy management systems (EMS), the integration of hybrid energy storage systems, the development of microgrids, and ongoing innovation in battery technologies.
Major Driver In The Battery Energy Storage System Market
The ongoing renewable energy revolution is expected to propel the growth of battery energy storage system (BESS) market going forward. Renewable energy comes from natural resources that regenerate more quickly than they are depleted. Renewable energy is being used more frequently as it lowers emissions of pollutants and greenhouse gases that contribute to climate change. In BESS, energy is gathered from the electrical grid or renewable energy sources such as solar and wind and stored using battery storage technology. For instance, in December 2021, according to International Energy Agency, a France-based intergovernmental agency, global renewable electricity capacity is projected to increase by over 60% from 2020 to reach 4,800 GW by 2026, surpassing fossil fuels and nuclear power combined. Nearly 95% of the global power capacity growth by 2026 will come from renewables, with solar PV accounting for more than half, marking a 50% increase compared to 2015-2020. Therefore, the rising demand for clean and renewable energy is expected to drive the growth of the growth of the battery energy storage system market.
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Battery Energy Storage System Market Competitive Landscape
BYD Company Limited, TotalEnergies SE, Huawei Technologies Co. Ltd., Hitachi Ltd., Tesla Inc., General Electric Company, Siemens AG, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, LG Chem Ltd., Schneider Electric SE, Honeywell International Inc., ABB Ltd., Johnson Controls International plc, NEC Corporation, Toshiba Corporation, NextEra Energy Inc., Eaton Corporation plc, Edison International, Samsung SDI Co. Ltd., Vistra Energy Corp., AES Corporation, Aquion Energy, PPL Corporation, Sungrow Power Supply Co. Ltd., Enersys, Fluence Energy Inc., Amprius Technologies Inc., Sunverge Energy Inc., Envision Energy Inc.
Key Battery Energy Storage System Market Trend
Technological advancements are becoming increasingly popular in the battery energy storage system market. Companies are working on innovative solutions to enhance the efficiency of battery energy storage systems. For instance, in January 2022, Franklin Whole Home, a US-based cleantech company, introduced its integrated battery and control system utilizing artificial intelligence. The Franklin Home Power solution combines lithium iron phosphate with aGate smart control technology, which features adaptive learning algorithms to manage challenging load conditions effectively.
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Battery Energy Storage System Market Segmentation
The battery energy storage system market covered in this report is segmented –
1) By Storage System: Front-Of-The-Meter, Behind-The-Meter
2) By Connection Type: On-Grid, Off-Grid
3) By Battery Type: Lithium-Ion Batteries, Advanced Lead-Acid Batteries, Flow Batteries, Other Battery Types
4) By Application: Telecommunication, Data Center, Medical, Industrial, Marine, Other Applications
By Geography:The regions covered in the battery energy storage system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the battery energy storage system market in 2023.
The Battery Energy Storage System Global Market Report 2024 furnishes information about the global battery energy storage system market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
