Battery Energy Storage Systems Market (By Application: Telecommunication, Data Center, Medical, Industrial, Marine; By Battery Type) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global battery energy storage systems market was valued at USD 3.75 billion in 2021 and it is predicted to surpass around USD 44.66 billion by 2030 with a CAGR of 31.69% from 2022 to 2030.

Report Highlights

• The data center application segment held a market share of 37.65% in 2021 and is expected to ascend with a prominent CAGR over the forecast period. 
• Lithium-ion batteries accounted for the largest revenue share of 55.7% of the market. 
• The market in Asia Pacific occupied a significant revenue share of 42.9% in 2021. 

Rising deployment of renewable energy sources such as solar and wind are resulting in increased adoption of storage systems owing to the grid reliability offered by the technology. It provides constant power supply to the grid and compensates for intermittent nature of renewable power supply.

The systems are widely used in industries including medical, marine, telecommunication, production, energy, and information technology. With increasing requirement of efficient grid management, constant load management, and continuous power supply, the market is expected to witness significant growth over the forecast period.

The manufacturers supply batteries both through direct supply and third-party supply agreements to the manufacturers in the industry. The manufacturers assemble different batteries depending on the requirements of the end-use industries. The system manages the power quality, aids time shifting, and improves grid efficiency.

Industry participants are focusing on largely commercializing flywheel storage as it is more economical than batteries. The main reasons for this are the long service life and low maintenance costs of the flywheel compared, which compensates for the higher purchase costs at the beginning of the installation. While flywheel storage normally has the same lifespan as the UPS technology, batteries have to be replaced several times during the lifespan of a UPS.

Scope of The Report

Application Insights 

The data center application segment held a market share of 37.65% in 2021 and is expected to ascend with a prominent CAGR over the forecast period. Uninterruptible power supply is of utmost importance in data centers. The losses incurred due to power failure are huge. In the U.S. alone, around USD 50.0 billion are annually lost due to power failures and related problems.

Irregularities such as energy dips and spikes can adversely affect the equipment at data centers, resulting in losses. A line-interactive UPS system can also act as a filter that refines power that comes into the UPS, adjusting the output so that the internal systems receive a consistent and uninterrupted supply.

Replacement of diesel generators by highly efficient batteries in the telecom industry is expected to augment the growth of the market for battery energy storage systems. Market players in telecom industry have contracts with battery energy storage systems manufacturers, thereby facilitating continuous and cost-effective power supply. Rising number of telecom subscriptions has resulted in growth of telecom tower installations, which is expected to positively influence the battery energy storage systems market.

Others segment is expected to witness a significant CAGR of 28.4% over the forecast period. Growth of renewable energy with the deployment of numerous wind and solar energy projects over the past years is expected to augment product demand over the forecast period. In addition, there is a huge potential for growth in micro-grid development for military and disaster relief in the economy. In addition, rapid development in grid storage infrastructure and supportive government regulations are likely to have a positive impact on the growth of the market for battery energy storage systems.

Battery Type Insights

Lithium-ion batteries accounted for the largest revenue share of 55.7% of the market. Demand for lithium-ion batteries for energy storage systems is projected to subsequently increase owing to its low weight, low cost, and limited coverage area. Moreover, growing infrastructural spending from residential industrial and commercial sectors will bolster the lithium-ion battery energy storage systems market growth in the coming years.

Key Li-ion battery manufacturers include Toshiba Corporation, Panasonic Corporation, Hitachi Chemical Co., Ltd., GS Yuasa International Ltd., Samsung SDI Co., Ltd., LG Chem Power (LGCPI), and China BAK Battery Co., Ltd. Lithium-ion battery finds application in battery forklift trucks, automatic guided vehicles, wind and photovoltaic power storage, backup power source, and UPS.

Lead-acid battery occupies the second-largest revenue share in the market for a battery energy storage systems. The lead-acid batteries are relatively cheaper as compared to other batteries and are easily manufactured with relatively low technology equipment, which in turn will drive system growth in the near future. However, the emergence of alternative battery technology such as Li-ion and volatile raw material prices are expected to hamper the growth of the segment over the next seven years.

Flywheel battery technology is expected to witness the fastest growth on account of continuous uninterrupted power supply to the grid along with the instant response, frequency regulation, and quality improvement in terms of electricity. Flywheel batteries are more economical than other battery solutions. The main reasons for this are the long service life and low maintenance costs of the flywheel compared to the battery, which compensates for the higher purchase costs at the beginning of the installation.

Regional Insights

The market in Asia Pacific occupied a significant revenue share of 42.9% in 2021. Rapid population growth has led to increased power demand across developing economies. Grid operators are deploying battery energy storage systems to prevent power outages and enhance grid flexibility over a period of the next seven years.

Growing penetration of renewable energy along with rising demand for distributed power generation across several Asia Pacific economies are further expected to intensify the regional market growth. Surplus renewable energy is stored in the battery systems and is used later for local power generation and grid power supply in times of peak demand.

In addition, countries in the Asia-Pacific region such as China, Japan, India, South Korea, Australia, and others are showcasing rapid population growth and urbanization, which tends to increase the electricity demand. Hence, uninterrupted power supply demand is increasing which augments the growth of battery energy storage market in the region during the forecast period.

China emerged as the largest country in the Asia-Pacific region in terms of deployment of battery energy storage in 2021. China battery energy storage market will grow in size due to lower technology costs and increased technological advancement. The unit price of lithium batteries has halved in recent years as compared to industry benchmarks and will continue to follow the trend in future. In addition, manufacturing economies of scale, combined with innovative business cases, will drive industry growth.

North America occupies the second-largest share in the market for battery energy storage systems, with the U.S. being the major contributor to regional growth. Owing to the growing number of utilities and corporations, energy storage has been cornerstone of all energy planning in the U.S., and safety of these energy storage systems is among the top priorities of industry leaders. The explosion at an Arizona Public Service facility propelled the need for standardized safety regulations for storage technology of energy storage system integration and monitoring.

The New York Fire Department (NYFD), issued regulations for the deployment of stationary energy storage systems in New York City (NYC). It will be the first municipality in a dense urban area to examine, study, and determine how energy storage can be placed and used in a city. These regulations will eventually influence the market for battery energy storage systems and provide insight into the direction of the industry over the coming years.

North American countries such as U.S. and Canada have advanced energy markets consisting of well-developed schemes for power generation, capacity, transmission, auxiliary services, as well as pollutant emissions trading permits and renewable energy credits. Hence, U.S. and Canada are a major contributor for the revenue generation of battery energy storage market in North America.

Key Players

• ABB
• LG Chem Ltd.
• Panasonic Corporation
• Samsung SDI
• BYD Company Limited
• Contemporary Amperex Technology Co. Limited
• Exide Technologies
• General Electric
• Enersys
• Nissan
• AES Energy Storage
• Hoppecke Batteries Inc.
• Tesla

Market Segmentation

• By Application Outlook

• Telecommunication
• Data Center
• Medical
• Industrial
• Marine
• Others
• By Battery Type Outlook
• Flywheel battery
• Lead acid battery
• Lithium-ion Battery
• Others
• By Regional Outlook
• North America

• The U.S.
• Canada
• Mexico
• Europe
• Germany
• Russia
• France
• The U.K.
• Asia Pacific
• China
• India
• Japan
• Australia
• Central & South America
• Brazil
• Argentina
• Middle East & Africa
• Saudi Arabia
• UAE