< Key Hightlight >

The global battery energy storage system market size is expected to grow from USD 4.4 billion in 2022 to USD 15.1 billion by 2027, at a CAGR of 27.9%. The growth of this market is mainly driven by the increasing demand for grid energy storage systems owing to ongoing grid modernization, growing penetration of lithium-ion batteries in renewable energy sector, and rising trend of adopting low-carbon and less fossil fuel-based economy and ongoing renewable energy revolution. However, high capital expenditure required for installing battery energy storage systems is restraining the market growth.

"Lithium-ion batteries to dominate the battery energy storage system market in 2021”

The market for the lithium-ion batteries held the largest share in 2021 and is estimated to remain the same during the forecast period. The growth of this segment is attributed to the advantages of the battery such as high energy and power density, which leads to low standby losses and a high life expectancy of about 5–15 years with 98% efficiency. Also, lithium-ion-sulfur battery energy storage systems support frequency regulation, demand charge reduction, grid-buffering, and renewable integration, which are suitable for on-grid connections.

“On-grid connection type to hold the largest share of battery energy storage system market in 2021”

The on-grid segment holds the largest share of the battery energy storage system market in 2021 and is expected to hold significant CAGR during the forecast period. The on-grid connections exhibit lower upfront costs than the off-grid system, as the surplus energy is sent to the grid, which can be used later on a metered basis. The reduction in the energy bills for the customers relying on the utility grid for electricity is expected to drive the growth of the segment. The demand for grid modernization from renewable energy suppliers and new regulatory policies for the energy sector are also driving the growth of the on-grid battery energy storage system market for utilities.

“Utility application dominated the battery energy storage system market in 2021.”

The market for utilities application is dominant in 2021. The need to fulfill the requirement of peak electricity demands is the major factor contributing to the growth of the market for utility. The utility BESS provides power quality, frequency, and voltage control services in case of sudden fluctuation in the energy supply. The battery energy storage systems enable grid operators to save electricity when there is a surplus of renewable energy. The increasing demand for a reliable and efficient supply of electricity in most regions and the growing need for renewable energy are responsible for the high demand for battery energy storage systems in the utility sector.

“Market in APAC to grow at highest CAGR during the forecast period”

The market in APAC is expected to grow at the highest CAGR from 2022 to 2027. The region hold the largest share of battery energy storage system market in 2021. APAC is a hub for the battery energy storage system industry. APAC is expected to witness plans for electrification in remote areas, which are mostly off-grid in several countries. The use of residential energy storage technology will enable to increase access to electricity for these remote and island communities in the region. Energy storage investments are expected to increase substantially within the APAC region as the governments in growing economies are making new policies to improve the reliability and quality of the power distribution facilities to the residential customers. The governments of various countries in this region are focusing on minimizing the adverse effects of the energy sector on the environment. These factors lead to the growth in the deployment of battery energy storage systems in residential and public utility applications.

Breakdown of the profiles of primary participants: 

• By Company Type: Tier 1 - 52%, Tier 2 - 31%, and Tier 3 - 17% 

• By Designation: C-level Executives - 47%, Directors - 31%, and others - 22% 

• By Region: North America - 34%, Europe – 19%, APAC - 42%, and RoW - 5% 

Major players profiled in this report are as follows: BYD Company Limited (China), SAMSUNG SDI Co., Ltd. (South Korea), LG Energy Solutions Co., Ltd. (South Korea), and Panasonic Corporation (Japan), and others.

Research Coverage

In this report, the battery energy storage system market has been segmented based on storage system, element, battery type, connection type, ownership, energy capacity, application, and region. The battery energy storage system market based on storage system has been segmented into front-of-the-meter and behind-the-meter. Based on the element, the market has been segmented into battery and others. Based on battery types, the market has been segmented into lithium-ion batteries, lead-acid batteries, flow batteries, and others. Based on connection type, the market has been segmented into on-grid and off-grid. Based on the ownership, the market has been segmented into customer-owned, third-party owned, and utility-owned. Based on energy capacity, the market has been segmented into below 100 MWh, between 100 and 500 MWh, and above 500 MWh. Based on the application, the market has been segment into residential, commercial, and utility. The study also forecasts the size of the market in four main regions—North America, Europe, APAC, and RoW.

Key Benefits of Buying the Report: 

The report would help market leaders/new entrants in this market in the following ways:

  This report segments of the battery energy storage system market comprehensively and provides the closest approximation of the overall market size and subsegments that include storage system, element, battery type, connection type, ownership, energy capacity, application, and region.

  The report would help stakeholders understand the pulse of the market and provide them with information on key drivers, restraints, challenges, and opportunities pertaining to the battery energy storage system market.

  This report would help stakeholders understand their competitors better and gain more insights to enhance their position in the business. 

  The competitive landscape section includes the competitor ecosystem, as well as growth strategies such as product launches, partnership, contracts, and agreement carried out by major market players.