Battery Energy Storage System Global Market Report 2024

The battery energy storage system market size has grown exponentially in recent years. It will grow from $5.51 billion in 2023 to $6.99 billion in 2024 at a compound annual growth rate (CAGR) of 26.8%. Historical growth can be attributed to the integration of renewable energy, decreasing battery expenses, pursuit of energy independence, government incentives, the rise of electric vehicles, and the implementation of demand response programs.

The battery energy storage system market size is expected to see exponential growth in the next few years. It will grow to $17.14 billion in 2028 at a compound annual growth rate (CAGR) of 25.1%. Forecasted growth relies on expanding renewable capacity, decentralized energy systems, resilience planning, transitioning to electric mobility, and energy storage mandates. Major trends include grid resilience, energy management systems, hybrid energy storage, microgrid development, and battery technology innovations.

The ongoing revolution in renewable energy is poised to drive the expansion of the Battery Energy Storage System (BESS) market in the foreseeable future. Renewable energy, derived from rapidly regenerating natural resources, is gaining prominence due to its capacity to reduce emissions of pollutants and greenhouse gases, thereby mitigating climate change. Within the BESS framework, energy is harnessed from the electrical grid or renewable sources such as solar and wind, and it is subsequently stored using battery storage technology. As of December 2021, the International Energy Agency, a France-based intergovernmental agency, reported that global renewable electricity capacity is anticipated to witness a remarkable 60% increase from 2020, reaching 4,800 GW by 2026. This projection surpasses the combined capacity of fossil fuels and nuclear power. Notably, renewables are expected to contribute to approximately 95% of the global power capacity growth by 2026, with solar photovoltaics (PV) accounting for over half of this expansion, marking a 50% increase compared to the period from 2015 to 2020. The escalating demand for clean and renewable energy is identified as a key catalyst propelling the growth of the Battery Energy Storage System market. This trend underscores the pivotal role of BESS in supporting the integration and reliability of renewable energy sources within the broader energy landscape.

The anticipated surge in the adoption of electric vehicles (EVs) is poised to drive the expansion of the energy storage system market in the coming years. Electric vehicles, powered by electric motors and relying on energy stored in batteries or other storage devices, depend on Battery Energy Storage Systems (BESS) as the primary power source. These high-capacity batteries store electrical energy, typically obtained from charging stations or regenerative braking, and release it to the electric motor, eliminating the need for traditional internal combustion engines. This transition reduces reliance on fossil fuels and minimizes emissions. According to the Global Electric Vehicle Outlook report from the International Energy Agency (IEA) in May 2022, electric vehicle sales doubled in 2021 compared to 2020, reaching approximately 6.6 million units. Notably, the first quarter of 2022 witnessed a further increase, with 2 million electric cars sold globally. The accelerated adoption of electric vehicles stands as a key driver propelling the growth of the battery energy storage system market.

The battery energy storage system market is witnessing a prominent trend in the form of technological advancements, with major companies dedicating efforts to enhance the efficiency of these systems. In January 2022, Franklin Whole Home, a privately funded cleantech company based in the United States, introduced an innovative integrated battery and control system leveraging artificial intelligence technology. The Franklin Home Power solution stands out by combining lithium iron phosphate with aGate smart control technology, resulting in a distinctive and improved storage solution. The aGate control system incorporates adaptive learning algorithms, enabling it to effectively manage even the most complex load circumstances. This strategic focus on technological innovation reflects the commitment of major players to advance the capabilities of battery energy storage systems for greater efficiency and effectiveness in meeting evolving market demands.

Major players in the battery energy storage system market are actively engaged in developing innovative products, particularly integrated energy storage system solutions, as part of their strategy to gain a competitive advantage. Integrated Energy Storage Systems (ESS) represent comprehensive solutions that amalgamate diverse components and technologies into a unified system designed for the storage of electrical energy. Caterpillar Inc., a leading US-based engineering equipment manufacturing company, exemplifies this trend by introducing the Cat ESS suite - an integrated Energy Storage System solution. Launched to enhance competitiveness, the Cat ESS suite boasts scalable and modular designs catering to various energy system applications. These applications include generator set transient assist, grid integration and support, energy time-shifting, power stabilization, power factor correction, and renewable energy integration. The foundational unit of the suite is a standard 20-foot module equipped with lithium-ion batteries, Caterpillar's bi-directional inverter, and an isolation transformer. The Cat ESS suite is designed to offer customers grid stabilization and energy time-shifting technologies, ensuring scalability and support for site loads. This strategic move reflects major companies' commitment to introducing cutting-edge products that address a spectrum of energy storage needs and solidify their market position.

In February 2022, LG Energy Solution, a prominent South Korea-based battery company, successfully acquired NEC Energy Solutions for an undisclosed amount. This strategic acquisition provides LG Energy Solution with access to both the operational data and technology of NEC Energy Solutions. Consequently, the integration of these assets is expected to enhance system-level performance and reliability, facilitating easier monitoring and data collection from inverters and other Power Conversion System (PCS) components. NEC Energy Solutions, based in the US, is known for providing energy storage solutions and battery systems.

Major companies operating in the battery energy storage system market report are BYD Company Limited, TotalEnergies SE, Huawei Technologies Co. Ltd., Hitachi Ltd., Tesla Inc., General Electric Company, Siemens AG, Panasonic Corporation, Contemporary Amperex Technology Co. Limited, LG Chem Ltd., Schneider Electric SE, Honeywell International Inc., ABB Ltd., Johnson Controls International plc, NEC Corporation, Toshiba Corporation, NextEra Energy Inc., Eaton Corporation plc, Edison International, Samsung SDI Co. Ltd., Vistra Energy Corp., AES Corporation, Aquion Energy, PPL Corporation, Sungrow Power Supply Co. Ltd., Enersys, Fluence Energy Inc., Amprius Technologies Inc., Sunverge Energy Inc., Envision Energy Inc.

North America was the largest region in the battery energy storage system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the battery energy storage system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the battery energy storage system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of battery energy storage systems are front-of-the-meter and behind-the-meter setups. Front-of-the-meter systems are integrated into the electricity grid, aiding in the consistent management of energy flow. These systems can supply power to off-site locations. They can be connected to either on-grid or off-grid configurations and employ diverse battery types such as lithium-ion, advanced lead-acid, and flow batteries. Such systems find application in various sectors, including telecommunications, data centers, medical facilities, industrial settings, marine operations, among others.

The battery energy storage system market research report is one of a series of new reports that provides battery energy storage system market statistics, including battery energy storage system industry global market size, regional shares, competitors with a battery energy storage system market share, detailed battery energy storage system market segments, market trends and opportunities, and any further data you may need to thrive in the battery energy storage system industry. This battery energy storage system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The battery energy storage system market consists of sales of nickel metal hydride batteries, zinc bromine batteries and sodium-sulphur batteries. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.