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Global Energy Storage Market Overview:
The Energy Storage Market size was valued at USD 31,413.43 Million in 2023. The energy storage industry is projected to grow from USD 39,411.29 Million in 2024 to USD 2,41,915.04 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 25.46% during the forecast period (2024 - 2032). The growing trend for continuous energy supply and the increasing popularity of renewable energy storage sources are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
July 2024: ABB announced a partnership with a major renewable energy provider to integrate its energy storage solutions with advanced renewable technologies.
Energy Storage Market Trends
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Rapidly rising energy consumption to boost the market growth
The global market is significantly driven by the rising popularity and adoption of electric vehicles across the globe. Growing concerns about environmental pollution due to automobiles are attributable to the rising demand for energy storage systems. Energy storage systems are equipment that stores various types of energy storage that can be utilized whenever needed. Commercial, industrial, and residential sectors demand energy storage systems.
The rising awareness about the production of renewable energy sources due to increasing energy requirements has fueled the expansion of the energy storage systems market. Rapid urbanization and industrialization have also increased the need for energy storage systems in developing economies.
Further, there is an increasing awareness of the harmful environmental impact of CO2 emissions and greenhouse gases all over the world. This has triggered a growing interest in renewable energy sources compared to conventional coal or fossil fuel sources. This trend is expected to stimulate the global energy storage systems market in the upcoming years.
The use of renewable energy sources supported by energy storage applications proves to be more economical and eco-friendly than traditional storage systems. Strict environmental regulations imposed by governments have encouraged the production of electric vehicles, as they create less pollution than fuel-powered vehicles. Electrically operated vehicles need energy storage units. All these factors have promoted the growth of the energy storage market revenue.
Additionally, the growing demand for renewable energy has witnessed tremendous growth over the forecast period. The demand for renewable energies has been increasing continuously due to an awareness of green energy storage. Alternative energy resources such as biomass, solar, wind, and tide energy market have huge potential in the coming years. The rising requirement for alternative energy in the residential sector is expected to have enhanced the energy storage market CAGR across the globe in recent years.
However, increasing consumer awareness of efficient energy consumption, combined with the demand for smart homes with operational load management, is expected to drive the industry's growth. Rising demand from electric utilities due to demand for distributed energy integration with the main grid may fuel the growth of energy storage industry over the forecast period.
Energy Storage Market Segment Insights:
Energy Storage Type Insights
The Energy Storage Market segmentation, based on type, includes mechanical, thermal, electro-chemical, and chemical. The electro-chemical segment held the majority share of 2021 the Energy Storage Market revenue. This is primarily owing to the increasing demand for liquid electronic materials for cleaning and polishing the internal parts of electronic devices. However, mechanical is the fastest-growing category over the forecast period due to the growing need for power, smart grids, cross-border transmission, and global initiatives for using non-conventional and renewable sources.
August 2021: new prototype technology for thermal energy storage was introduced by researchers at the National Renewable Energy Laboratory, US. This system uses silica sand as the storage medium. The cost-effective storage medium can be a new technology installed in small modular structures in many nations to supply heat and electricity.
Energy Storage End-User Insights
The Energy Storage Market data has been bifurcated by end-user into utility, commercial & industrial, and residential. The utility segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is attributed to an increase in investment toward building utility-scale power plants.
However, commercial & industrial is the fastest-growing category over the forecast period due to increased construction projects such as decentralized renewable power plants, rural electrification projects, and commercial buildings driving the market growth.
Figure 1: Energy Storage Market by End-User, 2024 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Energy Storage Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific energy storage market accounted for USD 0.88 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period.
This is attributed to the growing investments in the electrification of the rural regions, increased government investments in the adoption of sustainable energy sources, and increased government initiatives to incentivize the corporate sector to adopt renewable energy sources are the major factors that drive the growth of the energy storage systems market in the region. Moreover, China energy storage market held the largest market share, and the India energy storage market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Energy Storage Market Share by Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America energy storage market accounts for the second-largest market share due to increased awareness regarding the benefits of renewable energy sources, rising initiatives to reduce carbon footprint, and burgeoning demand for regular and efficient power supply is expected to drive the market growth in this region. Moreover, US energy storage market held the largest market share, and the Canada energy storage market was the fastest-growing market in the North America region.
The Europe energy storage market is anticipated to grow at the fastest CAGR from 2022 to 2030. This is due to the increased adoption of electric vehicles in the UK, and the presence of EV manufacturers has positively impacted the market growth in the region. Further, the Germany energy storage market held the largest market share, and the UK energy storage market was the fastest-growing market in the European region.
Energy Storage Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the energy storage market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the energy storage industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the global energy storage industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The energy storage market major player such as ABB Ltd., BYD Company Ltd., General Electric, Hitachi Ltd., Schneider Electric SE, Panasonic Corporation, UCAP Power, Evapco, Inc., EOS Energy Enterprises Inc., Siemens AG are working to expand the market demand by investing in research and development activities.
Siemens Energy AG operates as a renewable energy company. The Company offers power generation and transmission, technical consultancy, and operation and maintenance services. Siemens Energy serves customers worldwide. Siemens Energy's 67 percent stake in Siemens Gamesa renewable energy makes it a global market leader in renewable energies. In June 2020, Siemens Energy signed a long-term partnership with the Norwegian technology organization EnergyNest. The start-up delivers thermal energy storage techniques. The partnership aims to offer modularized and standardized thermal energy storage systems for industrial customers.
Also, The Voith Group is a German manufacturer of machines for the paper and pulp industry, technical equipment for hydropower plants and drive and braking systems. The family-owned enterprise, which operates worldwide and has its headquarters in Heidenheim a der Brenz, was founded in 1867. In January 2022, Voith GmbH & Co. KGaA acquired a huge amount of shares in Green Highland Renewables. This deal was intended to enhance Voith's footprint in the maintenance, operation, and development of hydropower facilities, enabling the company to establish a strong presence in the industry.
Key Companies in the Energy Storage market includes
- ABB Ltd.
- BYD Company Ltd.
- General Electric
- Hitachi Ltd.
- Schneider Electric SE
- Panasonic Corporation
- UCAP Power
- Evapco, Inc.
- EOS Energy Enterprises Inc.
- Siemens AG
Energy Storage Industry Developments
February 2023: Gore Street Capital acquires 200MW battery storage project in California, UK-listed Gore Street Energy Storage Fund has acquired its first asset in California, a 200MW/400MWh battery energy storage system project from developer Avantus. The two-hour duration project, called Big Rock, is in Imperial County which borders Mexico and will provide power on the electricity market operated the California ISO, or CAISO. The construction-ready project is scheduled to get a grid connection in the second half of 2024 and will start commercial operations shortly after. Battery cell supply agreements and engineering, procurement and construction (EPC) contracts have been secured.
February 2023: India’s Ministry of Power issues guidelines for pumped hydro energy storage, Recognising that pumped hydro energy storage (PHES) could be a key foundation technology for India’s renewable energy ambitions, the government Ministry of Power has issued guidelines for its adoption. Pumped hydro can be deployed at large-scale as a key aspect of India’s transition to increased shares of renewable energy and is a domestically available, proven and safe technology, the Ministry of Power wrote in its guidelines, published last week. With the country shifting to deploy 450GW of new solar PV and wind capacity by 2030 under its policy targets – and around a third of the way there today – PHES could supply long-duration energy storage (LDES) to India’s grid network, the ministry said.
February 2023: UK’s ZenobÄ“ Energy gets US$285 million financing, starts 300MW BESS project in Scotland, The announcement comes shortly after the UK energy storage and e-mobility specialist secured a £235 million (US$284.8 million) long-term debt facility from five banks. The project, which will be situated between the cities of Aberdeen and Inverness, will be the first in the world to deliver stability services using a transmission connected battery, the firm said.
This is a key milestone in the company’s ambition to deliver 1GW of battery energy storage in Scotland. Once fully operational, the battery asset will have a capacity of 300MW/600MWh. The first phase will see 200MW developed and is set to go live in the summer of 2024. The second phase will develop an additional 100MW and is scheduled to go live in 2026. The project will enable further uptake of renewable power in the region and facilitate offshore wind farms at Viking and Beatrice. Wärtsilä, H&MV, SMA Solar Technology AG and GE Grid Solutions have been selected as key suppliers for the project.
October 2021: the Central Government of India has given the go-ahead to invite the expression of interest (EOI) for installing a 1000 MWh Battery Energy Storage System as a pilot project. This is the joint effort of the Ministry of New and Renewable energy storage and the Ministry of Power, who has been working on this to provide a road map for the installation of the energy storage system in the country.
August 2020: Greenko Energies Pvt Ltd. has signed an MOU with NTPC Limited for various renewable energy projects. Greenko is setting up 40 GWh of hydro-storage projects in six Indian States.
Energy Storage Market Segmentation:
Energy Storage By Technology Outlook
- Pumped Hydro Storage
- Battery Energy Storage
- Compressed Air Energy Storage
- Flywheel Energy Storage
Battery Technology Type Outlook
- Mechanical
- Thermal
- Electro-Chemical
- Chemical
Energy Storage End-User Outlook
- Utility
- Commercial & Industrial
- Residential
Energy Storage Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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