CAGR: 7.43% Current Market Size: USD 161.82 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
Global energy storage systems market is expected to grow from USD 161.82 billion in 2021 to USD 287.10 billion by 2029, at a CAGR of 7.43% during the Projection period 2022-2029. This growth of the energy storage systems market is significantly driven by the rising use of it in the commercial, residential and industrial settings. Energy storage systems can be used in multiple applications and are thus employed in different verticals. Rapid industrialization as well as urbanization is one of the key reasons for the growth of the energy storage systems market. Clean energy has become one of the most sought-after fuels nowadays. With the rise in the use of clean energy, the dependence on conventional fuels is reducing drastically.
Energy storage systems are those systems that are used for storing energy. The objective of the development of such a storage system is to utilize the store energy at some later time. Renewable energy is required to be stored in order to use it efficiently. There are various forms of energy available, including, gravitational, radiation, chemical, electrical energy, etc. There are plenty of technologies available in the energy market which are used for the distribution and transmission of stored energy. The use of these storage systems is even used for converting a form of energy to another form, through which it can be stored in an economical way. The market potential of the energy storage system is large enough in comparison to the conventional ones. Transportation and the power sector are two of the main sectors involved in the development of energy storage systems. The technology and cost of these energy storage systems highly depend on the way they perform in specific applications.
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Market Dynamics:
Drivers:
The increase in demand for energy storage can be attributed to the use of different forms of energy, among the end-user industries. There is the high number of energy storage systems deployed in multiple end-user industries. Solar and wind energies are two of the most used form of energy utilized in commercial applications. There are fluctuations in the storage of these energy due to different current levels, and thus the use of a flexible grid is in high demand. The installation of energy storage systems has provided an effective way for storing such energies.
Restraints:
Energy storage systems are costly to install, and many middle and small-scale users are unable to afford them. The energy storage systems have too many features, which makes them more expensive. In addition, the cost of upkeep is factored into the total cost. The total costs are influenced by the raw material prices components connected with the development of energy storage systems. Maintenance of energy storage systems is equally important, and it requires the deployment of funds from time to time.
Opportunities:
Several end-user industries are turning to renewable energy. The depletion of fossil fuels is worrying. Conventional fuels have been used in various end-user sectors for a long time. The increased consumption of oil has resulted in an increase in pollutants. However, the installation of rigorous rules has resulted in the usage of conventional fuels being constrained. As a result, newer, more environmentally friendly alternatives are widely used. According to the International Renewable Energy Agency, renewable energy should be produced at a particular cost.
Challenges
To be released on the market, energy storage systems must first pass severe requirements. This technology aids in the supply of hydrogen as a fuel, which can then be employed in power generating and transportation applications. Thus, in order to be proven safe for the relevant applications, energy storage systems must pass through many rounds of approval. Energy storage systems necessitate substantial research and development processes before they can be introduced to the market.
Segmentation Analysis:
The global energy storage systems market has been segmented based on technology, application, end-use, sales channel, and regions.
By Technology
The technology segment includes thermal energy storage, electro-chemical storage, and mechanical energy storage. The thermal energy storage further includes the lead acid battery, flow battery, lithium-ion battery, sodium sulfur battery, and others. The mechanical energy storage further includes flywheel energy storage, compressed air, and liquid air energy storage, and pumped hydro energy storage. The thermal energy storage segment led the energy storage systems market with a market share of around 41.08% in 2021. Mechanical energy has been one of the most used types of storage technology. These systems have the ability to store in an efficient manner as compared to other technologies. These system takes in consideration the gravitational and kinetic forces for storing the required volume of energy.
By Application
The application segment includes transportation and stationary power. The transportation segment led the energy storage systems market with a market share of around 65.11% in 2021. The use of energy storage systems is vital for transportation applications. Transportation requires a constant supply on energy in order to run efficiently. Development of electric vehicles is one of the key factor for the growth of energy storage systems in transportation application.
By End-use
The application segment includes residential, utilities, and commercial. The commercial segment led the energy storage systems market with a market share of around 45.19% in 2021. End-users in commercial production mostly use energy storage systems for saving themselves from productivity loss that arrives due to a shortage of supply. Commercial industries require a constant supply of energy in order to carry out day to day manufacturing activities.
By Sales Channel
The sales channel segment includes direct and indirect. The direct channel segment led the energy storage systems market with a market share of around 56.99% in 2021. Direct channels provide onsite services and after services as well, which is why it is preferred by most of the commercial and industrial utility consumers.
By Regional Analysis:
The regions analyzed for the energy storage systems market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. Asia Pacific region dominated the energy storage systems market and held the 34.10% share of the market revenue in 2021.
Global Energy Storage Systems Market- Country Analysis:
China is the largest energy storage systems market for across the globe, with an estimated market share of 26.90% across the Asia-Pacific region by 2022. There are many manufacturers in the country, and also, and there are multiple investments by concerned authorities. The increase in industrial activities is a key factor attracting investments for the energy storage systems market.
In the Europe region, Germany is the largest market shareholder in the energy storage systems market, with an estimated market share of around 33.01% by the end of 2022. The rising popularity of hybrid and electric vehicles is anticipated to drive the market growth of energy storage systems in Germany.
Key Industry Players Analysis:
To increase their market position in the global energy storage systems business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Report Metrics
Report Scope |
Information |
Study Period |
2018-2029 |
Base Year |
2021 |
Projection Period |
2022-2029 |
Market Share Unit |
USD Billion |
Segments Covered |
Technology, Application, End-users and Sales Channel |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle-East and Africa |
Major Players |
Ecoult, Altairnano, GENERAL ELECTRIC, Electrovaya, Langley Holdings Plc, Maxwell Technologies, Inc., LG Chem, Saft, Beacon Power, LLC, Convergent Energy and Power Inc., BYD Company Ltd., ABB Ltd., Greensmith Energy Management Systems, Seeo, Inc., S&C Electric Company, Schneider Electric, SMA Solar Technology AG, Eos Energy Storage, Exide Industries Ltd., Showa Denko Materials Co., Ltd., The Furukawa Battery Co., Ltd, Cummins Inc, PlugPower Inc. among others |
Scope of the Report
Global Energy Storage Systems Market by Technology:
Global Energy Storage Systems Market by Application:
Global Energy Storage Systems Market by End-use:
Global Energy Storage Systems Market by Sales Channel:
Global Energy Storage Systems Market by Region:
Global energy storage systems market was valued USD 161.82 billion in 2021.
Rising demand for use of renewable energy in place of conventional energy, is primarily driving the growth of the energy storage systems market. Energy storage systems provides numerous advantages to the industries, which attracts a lot of end-users.
Manufacturers in the energy storage systems market are using advanced production technologies to incorporate better results, and performance of the whole process. In addition, the rising number of investments will contribute to demand for the energy storage systems.
Leading market players active in the global energy storage systems market are Ecoult, Altairnano, General Electric, Electrovaya, Langley Holdings Plc, Maxwell Technologies, Inc., LG Chem, Saft, Beacon Power, LLC, Convergent Energy and Power Inc., BYD Company Ltd., ABB Ltd., Greensmith Energy Management Systems, Seeo, Inc., S&C Electric Company, Schneider Electric, SMA Solar Technology AG, Eos Energy Storage, Exide Industries Ltd., Showa Denko Materials Co., Ltd., The Furukawa Battery Co., Ltd, Cummins Inc, PlugPower Inc. among others.
Political Factors- To be released on the market, energy storage systems must first pass severe requirements. This technology aids in the supply of hydrogen as a fuel, which can then be employed in power generating and transportation applications. Thus, in order to be proven safe for the relevant applications, energy storage systems must pass through many rounds of approval. Energy storage systems necessitate substantial research and development processes before they can be introduced to the market.
Economical Factors- Energy storage systems are costly to install, and many middle and small-scale users are unable to afford them. The energy storage systems have too many features, which makes them more expensive. In addition, the cost of upkeep is factored into the total cost. The total costs are influenced by the raw material prices components connected with the development of energy storage systems. Maintenance of energy storage systems is equally important, and it requires the deployment of funds from time to time.
Social Factor- The presence of manufacturers and end-users’ industries have led to rise in demand for the energy storage systems. The countries such as Japan, China, and India are the major end-users of energy storage systems. The region invests hugely in the renewable energy sector, and thus the number of energy storing projects is rising tremendously. Further, the presence of data centres, in the regional countries have increased the supply of product.
Technological Factors- Mechanical energy is one of the most used storage technologies. These systems can store efficiently as compared to other technologies. This system considers the gravitational and kinetic forces for storing the required volume of energy. The thermal energy storage further includes the lead acid battery, flow battery, lithium-ion battery, sodium-sulfur battery, and others. The mechanical energy storage includes flywheel energy storage, compressed air, and liquid air energy storage, and pumped hydro energy storage.
Environmental Factors- Several end-user industries are turning to renewable energy. The depletion of fossil fuels is worrying. Conventional fuels have been used in various end-user sectors for a long time. The increased consumption of oil has resulted in an increase in pollutants. However, the installation of rigorous rules has resulted in the usage of conventional fuels being constrained. As a result, newer, more environmentally friendly alternatives are widely used. According to the International Renewable Energy Agency, renewable energy should be produced at a particular cost.
Legal Factors- The Danish Energy Agency is responsible for implementing the European legislation in the Danish legislation. As in the rest of EU, also in Denmark the electricity market has been liberalized and is now increasingly interconnected to the other European electricity markets. However, the electric network (and its operation) is a natural monopoly that is not subject to competition. The Danish Energy Agency develops the framework for the prices that the TSO and DSOs can charge consumers for the transport of electricity, as well as the requirements to be fulfilled by TSO and DSOs. This framework is meant to ensure low-price electricity for the consumers, in addition to robust network infrastructure. Besides, the Danish Energy Regulatory Authority is responsible for the financial regulation of the TSO and DSOs.
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