The Global Battery Energy Storage System Market size is expected to reach $14.5 billion by 2027, rising at a market growth of 25.2% CAGR during the forecast period.
Energy is a fundamental requirement for conducting daily living activities in a variety of verticals, including residential, commercial, industrial, and many others. Various organizations and countries are always attempting to introduce innovative technologies in order to meet the fast-expanding electricity demands in various sectors. In addition, ever-increasing harmful greenhouse gas (GHG) emissions have prompted governments to implement low-carbon power generation technologies. As a result, one of the most rapidly emerging technologies is battery energy storage systems (BESS), which use various battery chemistries to store energy in order to meet the increased demand.
For their on- and off-grid flexibility, battery energy storage devices are used in a variety of power applications. Frequency control, peak shaving, voltage control in renewable integration, and energy shifting are some of the prominent areas driving product development in the battery energy storage systems industry. Additionally, a prominent trend driving market expansion is the increased usage of battery energy storage solutions in making on- and off-grid transitions in the renewable sector. Moreover, several business leaders have increased their focus in recent years on lowering non-renewable energy use and speeding up the global adoption of renewable energy.
These systems have grown their interests in solar energy startups that are on the cutting edge of technology. As a result, there has been a strong drive to incorporate solar energy into the total energy mix. Hence, given the cyclical nature of wind and solar energy, battery energy storage technologies are likely to play a revolutionary role. Wind and solar energy production have increased around the world to satisfy the demands of green energy. Additionally, with the increased usage of wind and solar energy for business and residential purposes, huge battery energy storage systems have become more popular.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Siemens AG, Honeywell International, Inc., Hitachi, Ltd., and General Electric (GE) Co. are the forerunners in the Battery Energy Storage System Market. Companies such as Panasonic Corporation, Toshiba Corporation, and Samsung SDI Co., Ltd are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include General Electric (GE) Co., Honeywell International, Inc., Panasonic Corporation, Hitachi, Ltd., Siemens AG, Johnson Controls International PLC, Toshiba Corporation, LG Energy Solutions Ltd., and Samsung SDI Co., Ltd.
Energy is a fundamental requirement for conducting daily living activities in a variety of verticals, including residential, commercial, industrial, and many others. Various organizations and countries are always attempting to introduce innovative technologies in order to meet the fast-expanding electricity demands in various sectors. In addition, ever-increasing harmful greenhouse gas (GHG) emissions have prompted governments to implement low-carbon power generation technologies. As a result, one of the most rapidly emerging technologies is battery energy storage systems (BESS), which use various battery chemistries to store energy in order to meet the increased demand.
For their on- and off-grid flexibility, battery energy storage devices are used in a variety of power applications. Frequency control, peak shaving, voltage control in renewable integration, and energy shifting are some of the prominent areas driving product development in the battery energy storage systems industry. Additionally, a prominent trend driving market expansion is the increased usage of battery energy storage solutions in making on- and off-grid transitions in the renewable sector. Moreover, several business leaders have increased their focus in recent years on lowering non-renewable energy use and speeding up the global adoption of renewable energy.
These systems have grown their interests in solar energy startups that are on the cutting edge of technology. As a result, there has been a strong drive to incorporate solar energy into the total energy mix. Hence, given the cyclical nature of wind and solar energy, battery energy storage technologies are likely to play a revolutionary role. Wind and solar energy production have increased around the world to satisfy the demands of green energy. Additionally, with the increased usage of wind and solar energy for business and residential purposes, huge battery energy storage systems have become more popular.
COVID-19 Impact Analysis
COVID-19 has had a huge impact on the global economy as well as all industries. Lockdowns have been established by governments around the world to curb the spread of the pandemic. In addition, people's livelihoods and quality of life were badly disrupted by the complete global lockdown in the early stages of the pandemic in several countries. As a result, there have been supply chain disruptions all across the world. A dramatic reduction in product demand has harmed the economies of the world. Due to the pandemic, which resulted in a shortage of raw materials, production across industries has been hampered. A drop in exports and supply chain disruptions are two main factors contributing to the output fall.Market driving Factors:
Large-scale grid modernization and growing rural electrification projects around the globe
The most common renewable energy kinds that are stored in grids are solar and wind energy. However, when the sun is obscured by clouds or by changing wind currents, the energy generation process is disrupted. Such fluctuations necessitate the use of flexible grid energy storage systems. Grid modernization is increasingly using battery energy storage technology. When the amount of electricity generated exceeds the amount of electricity required, these solutions assist grid operators in saving electricity. In addition, the implementation of these technologies increases the electrical supply systems' reliability and flexibility in terms of electric power generation, transmission, and distribution.The advent of innovative solutions and constant expansion in grid infrastructure
Various industry players are constantly attempting to launch fresh organic and inorganic expansion plans in order to improve their product acceptability around the world. Moreover, to preserve their position in the sector, several firms are introducing new and sophisticated battery energy storage systems units. For example, Tesvolt, a German storage system manufacturer, introduced the TS-I HV 80 battery in March 2021, which was designed to reduce load peaks and meet the expectations of commercial and industrial customers. Some of the key trends of the market are rapidly rising energy consumption in both emerging and developed countries, as well as increased steps to assure energy security.Marketing Restraining Factor:
Installation of battery energy storage devices necessitates a significant capital outlay
Because of the high energy density and higher performance given by battery energy storage technologies like lithium-ion batteries, flow batteries, and lead-acid batteries, increased installation investments are required. In addition, Lithium-ion batteries are more expensive than other types of batteries because they have a higher energy density, a lower rate of self-discharge, and need less maintenance. Lithium-ion batteries, on the other hand, are likely to become less expensive in the future. Because they are lightweight and compact, as well as having a huge capacity, these batteries are also employed in electric vehicles (EVs). Aside from that, the high initial investment cost necessary to manufacture flow batteries could be a major barrier for the market.Ownership Outlook
Based on Ownership, the market is segmented into Utility-Owned, Third-Party Owned, and Customer-Owned. The Customer-Owned segment obtained a promising revenue share of the Battery Energy Storage System Market in 2020. This is due to the increased desire among customers to incorporate new renewable systems to improve their grid independence and support peak energy demands. In addition, many companies are providing affordable systems to attract customers.Battery Type Outlook
Based on Battery Type, the market is segmented into Lithium-Ion Batteries, Advanced Lead-Acid Batteries, Flow Batteries, and Others. In 2020, the lithium-ion battery segment garnered the maximum revenue share of the Battery Energy Storage System Market. This is due to the advantages of the battery like high energy and power density, which leads to reduced standby losses and a long-life expectancy of roughly 5-15 years with 98 percent efficiency. In addition, the lithium-ion battery is also appropriate for on-grid connections and provides frequency management, demand charge reduction, grid-buffering, and renewable integration.Energy Capacity Outlook
Based on Energy Capacity, the market is segmented into Above 500 MWh, Between 100 to 500 MWh, and Below 100 MWh. In 2020, the Above 500 MWh segment captured the biggest revenue share of the Battery Energy Storage System Market. This is because of the rising number of governments initiatives to set up large capacities of energy storage systems. For example, NTPC Renewable Energy Limited has issued a request for proposals to construct interstate transmission system (ISTS) connected energy storage solutions with a total capacity of 500 MW and 3,000 MWh anywhere in India. Moreover, the renewable energy produced by NTPC REL from any of its projects is expected to be used to charge the energy storage system. NTPC REL is expected to use the energy storage facility to fulfill its round-the-clock renewable power needs during peak and off-peak hours on an on-demand basis.Connection type Outlook
Based on Connection type, the market is segmented into On-grid, and Off-grid. The Off-grid segment collected a significant revenue share of the Battery Energy Storage System Market in 2020. This is because Off-grid applications are well-suited to battery energy storage. In such circumstances, the possibilities are essentially endless including isolated mines, communication/industrial locations, or residential regions. Moreover, Off-grid renewable energy storage is mainly utilized for lighting and charging solutions, solar power-based home systems in rural areas, or roof-top solar applications in urban areas.Application Outlook
Based on Application, the market is segmented into Utility, Commercial, and Residential. In 2020, the Utility segment procured the maximum revenue share of the Battery Energy Storage System Market. The rising demand for battery energy storage systems in the utility sector is due to the growing demand for a dependable and efficient supply of electricity in most locations, as well as the expanding requirement for renewable energy. The requirement to fulfill peak electricity demands is a major driver of the utility sector's expansion. In the event of an unexpected fluctuation in the energy supply, the utility BESS offers power quality, frequency, and voltage control services. When there is an excess of renewable energy, grid operators can save electricity by using battery energy storage systems. Because of the technical advantages and declining costs of energy storage systems, demand for energy storage systems in the utility sector is likely to grow in the future.Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the APAC emerged as the leading region in the overall Battery Energy Storage System Market by acquiring the largest revenue share. This is because of the electrification plans for distant areas, which are primarily off-grid in various countries. Increased access to electricity for these isolated and island settlements in the region will be possible due to the deployment of domestic energy storage technology. As governments in developing economies implement new rules to enhance the reliability and quality of power distribution facilities to residential users, energy storage investments are likely to skyrocket in the APAC region. The governments of several countries in this region are concentrating their efforts on reducing the negative environmental effects of the energy sector.The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Siemens AG, Honeywell International, Inc., Hitachi, Ltd., and General Electric (GE) Co. are the forerunners in the Battery Energy Storage System Market. Companies such as Panasonic Corporation, Toshiba Corporation, and Samsung SDI Co., Ltd are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include General Electric (GE) Co., Honeywell International, Inc., Panasonic Corporation, Hitachi, Ltd., Siemens AG, Johnson Controls International PLC, Toshiba Corporation, LG Energy Solutions Ltd., and Samsung SDI Co., Ltd.
Partnerships, Collaborations and Agreements:
- Jan 2022: Honeywell signed an agreement with FREYR Battery, a company that aims to offer industrial-scale clean battery solutions to cut down global emissions. Following this, the FREYR is expected to harness Honeywell's prominent technology offerings, including integrated automation, field instrumentation, and security integration solutions in their manufacturing process. Under the agreement, the two companies is expected to offer smart energy storage solutions to fulfill the requirement for various commercial and industrial customers alike.
- Dec 2021: Siemens signed an agreement with LG Energy Solution, a leading global battery maker announced Tuesday. The partnership is expected to explore the domain of battery manufacturing, especially the digitization of the production process. Under this agreement, LGES is expected to be able to deploy smart battery manufacturing processes at its factories with next-generation techniques. The first line of collaboration between the two companies is expected to take place at Ultium Cells in Tennessee, which is a joint venture between LG Energy Solution and General Motors.
- Oct 2021: LG Energy Solution signed an agreement with Stellantis, a multinational automotive manufacturing corporation, to form a joint venture to develop battery cells and modules for North America. Moreover, the two companies is expected to set up a new battery manufacturing facility that is expected to assist help power Stellantis' objective of realizing above 40% of its sales in the U.S. comprised of electrified vehicles.
- Sep 2021: LG Energy Solution signed an agreement with RWE Renewables, one of the world's leading renewables companies. Under this agreement, the two entities is expected to offer an integrated battery energy storage system (BESS) for two of RWE's upcoming projects with co-located solar PV facilities in the U.S. Following the agreement, RWE Renewables aimed to fulfill its two crucial solar plus storage projects as it continues to expand our renewable offerings, bring down costs and make clean energy more cost-effective in the U.S.
- Jul 2021: Siemens signed an agreement with Zukunftsenergie Nordostbayern, a German grid network operator. Under this agreement, the two entities aimed to work towards the turnkey construction of a 100-megawatt battery storage unit in the German town. The plant, which has a storage capacity of 200-megawatt hours, is expected to be used to use excess renewable energy to cover power grid demand peaks. The 5,000 square meter energy storage system can provide electricity to 20,000 typical families.
- May 2021: Hitachi ABB Power Grids teamed up with Atlas Renewable Energy, an operating renewable energy company that develops, builds, and operates solar and wind projects. Following the partnership, the two companies is expected to together design and commercialize Battery Energy Storage Systems (BESS) for Atlas' renewable projects.
- Nov 2020: Panasonic signed a preliminary agreement with Equinor and Hydro, both of them are prominent strong global players. Following this agreement, the two entities is expected to develop a battery business in Northern Europe. Following the agreement, Panasonic's expertise in lithium-ion batteries is expected to be integrated with the deep industry experience of Equinor and Hydro, both strong global players, to potentially pave the way for a robust and sustainable battery business in Norway. This agreement is expected to streamline the development of a reliable and sustainable battery business in Norway.
Acquisitions and Mergers:
- Dec 2021: Siemens took over KACO's new strength, a maker of electricity-related energy electronics. This acquisition is expected to help Siemens profits is expected to get entry into ultra-modern generation, simultaneously as KACO's new electricity is expected to benefit from the resources needed to scale up.
- Oct 2021: Samsung formed a joint venture with Stellantis, a multinational automotive manufacturing corporation. Through this joint venture, the two companies is expected to develop battery cells and modules for North America. The battery plants is expected to supply Stellantis assembly plants in the United States, Canada, and Mexico with batteries for use in advanced electric vehicles ranging from plug-in hybrids to full battery electric vehicles sold under the Stellantis name.
- Sep 2021: LG Energy Solution took over NEC Energy Solutions, the NEC Corporation subsidiary focused on energy storage. This acquisition is expected to help LG Energy Solution to become a prominent ESS solution provider, involved in services from battery installation to full system solutions. Following the acquisition, LG Energy Solution aimed to improve its presence in the North American ESS market.
- Jul 2020: Hitachi Japan took over a majority stake in ABB Hitachi Power Grids. This acquisition is expected to help Hitachi to become one of the biggest worldwide grid equipment and service providers, substantially increasing its access to the utility segment in all regions.
Product Launches and Product Expansions:
- Jan 2022: Toshiba Corporation introduced a unique 20Ah-HP rechargeable lithium-ion battery cell that provides high energy and high power, thereby expanding its SCiB product offering with the. The cell is suited for high-power applications and scenarios where battery cells must suppress heat and function constantly, such as quick charging of commercial vehicles, regenerative power systems for rolling stock, and industrial equipment. The cell is the same size as Toshiba's current 20Ah product, making it simple for current customers to upgrade to the enhanced input and output power while keeping the same module pack. The cell is currently available for purchase all around the world.
- Nov 2021: Panasonic rolled out the EverVolt 2.0., the new development in its robust solar energy portfolio of Total Home Energy Solution offerings. The new EverVolt 2.0 has a continuous power output of 7.6 kW off-grid and 9.6 kW on-grid, which is enough to power a typical household load, and two energy storage capacities of 17.1 kWh and 25.65 kWh (usable capacity) per system. The system can work with both new and current solar energy systems because it may be AC and DC connected.
- Oct 2021: Honeywell unveiled a new flow battery technology that works with renewable generation sources like wind and solar to fulfill the demand for sustainable energy storage. The novel flow battery employs a non-flammable, safe electrolyte to convert chemical energy to electricity and store it for later use, all while achieving utility goals for environmental, longevity, and safety. Honeywell's innovative technology gives utilities more flexibility and a longer lifespan. The battery stores energy that can be utilized when wind and solar are not available, during power outages, or when power grids are overburdened. It has the ability to store and discharge electricity for up to 12 hours, far longer than lithium-ion batteries, which can only discharge for 4 hours.
- Sep 2021: LG Energy Solutions introduced modular all-in-one battery energy storage system (BESS) units for the utility-scale and commercial & industrial (C&I) markets. In addition, the new AiON Energy Storage System (AiON ESS) devices come in two variants. Both the Power and Energy Series systems can operate from 220 VDC to 1350 VDC, have thermal control and HVAC, and can be expanded with new enclosures that will be provided without string inverters.
- Jun 2021: Honeywell introduced Battery Energy Storage System (BESS) Platform, which combines Honeywell asset monitoring, supervisory control, distributed energy resource management, and analytics functionality. Through this launch, the company aimed to allow companies to precisely forecast and enhance their overall energy usage. The platform is well-suited for multiple commercial and industrial companies, independent power producers, and utilities. The BESS Platform is powered by Honeywell performance-based guarantees, which include predictable and consistent costs along with improved
- Feb 2021: Johnson Controls introduced a lithium-ion risk prevention system engineered to offer early-warning detection of battery failure in lithium-ion energy storage systems. Off-gas monitoring and early intervention are combined with classic fire detection and suppression technologies in this three-step risk prevention system.
- Nov 2020: Toshiba rolled out a prototype for a new type of rechargeable lithium-ion battery that utilizes water as the aqueous electrolyte. In addition, this novel battery contains no volatile organic solvents, enabling it to operate at temperatures as low as -30°C and demonstrating a low danger of fire over lengthy periods of time. It also has a long charge and discharge cycle life of 2,000, allowing it to be used in a variety of large-capacity energy storage applications.
Scope of the Study
Market Segments Covered in the Report:
By Ownership
- Utility-Owned
- Third-Party Owned
- Customer-Owned
By Battery Type
- Lithium-Ion Batteries
- Advanced Lead-Acid Batteries
- Flow Batteries
- Others
By Energy Capacity
- Above 500 MWh
- Between 100 to 500 MWh
- Below 100 MWh
By Connection type
- On-grid
- Off-grid
By Application
- Utility
- Commercial
- Residential
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- General Electric (GE) Co.
- Honeywell International, Inc.
- Panasonic Corporation
- Hitachi, Ltd.
- Siemens AG
- Johnson Controls International PLC
- Toshiba Corporation
- LG Energy Solutions Ltd.
- Samsung SDI Co., Ltd.
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Competition Analysis - Global
Chapter 4. Global Battery Energy Storage System Market by Ownership
Chapter 5. Global Battery Energy Storage System Market by Battery Type
Chapter 6. Global Battery Energy Storage System Market by Energy Capacity
Chapter 7. Global Battery Energy Storage System Market by Connection Type
Chapter 8. Global Battery Energy Storage System Market by Application
Chapter 9. Global Battery Energy Storage System Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- General Electric (GE) Co.
- Honeywell International, Inc.
- Panasonic Corporation
- Hitachi, Ltd.
- Siemens AG
- Johnson Controls International PLC
- Toshiba Corporation
- LG Energy Solutions Ltd.
- Samsung SDI Co., Ltd.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 323 |
| Published | March 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 3512.8 Billion |
| Forecasted Market Value ( USD | $ 14491.74 Billion |
| Compound Annual Growth Rate | 22.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 9 |
