According to an analysis by Future Market Insights, the battery energy storage systems market is expected to be valued at $44.86 billion in 2032, growing at 26% compound annual growth rate (CAGR) during the forecast period.
The market's expansion can be attributed to rising demand for grid energy storage systems due to ongoing grid modernization, increasing penetration of lithium-ion batteries in the renewable energy sector, and the rising trend of adopting a low-carbon, fossil-fuel-free economy, as well as the ongoing renewable energy revolution.
The most common renewable energy kinds stored in grids are solar and wind energy. However, the energy generation process is disrupted when the sun is obscured by clouds or by changing wind currents. Moreover, the significant financial investment necessary to build battery energy storage devices, on the other hand, is limiting industry expansion.
Such oscillations necessitate the deployment of flexible grid solutions for energy storage. Grid modernization is increasingly using battery energy storage technology.
However, utility application growth has been hampered by the abrupt breakout of a novel coronavirus. In 2021, there was a decrease in battery energy storage systems installed in various projects. In addition, the shutdown of manufacturing facilities throughout the world in the first and second quarters of 2020 contributes to the market's fall in growth in 2020.
Various governments around the world, particularly in developing countries, are attempting to develop distant places, like isolated rural areas, peri-urban areas, and small islands cut off from national grids. Bringing electrical power to rural and remote locations is known as rural electrification. Rural electrification can benefit from battery energy storage devices.
Due to the aforementioned contributors, the battery energy storage systems market is likely to rise to $15.1 billion by 2027.
- Lithium-ion batteries had the most significant market share in 2021, which is expected to continue throughout the projection period.
- In 2021, the on-grid category will hold the most significant share of the battery energy storage systems market, with a substantial CAGR projected over the forecast period. The segment's growth is likely to be fueled by lower energy bills for clients who rely on the utility system for electricity.
- From 2022 to 2027, the APAC market is predicted to develop at the fastest rate.