Advanced Energy Storage Systems Global Market Report 2024

Advanced energy storage systems refer to sophisticated devices designed to convert electrical energy from power systems and store it for later use, enabling efficient management of electrical energy. This stored energy can be utilized for various applications, including the production of semiconductors, data storage devices, solar cells, and electricity.

The main technologies employed in advanced energy storage systems include pumped hydro storage, electrochemical storage, electromechanical storage, and thermal storage. Electrochemical energy storage encompasses a variety of secondary batteries that use electrochemical oxidation-reduction reactions to convert the chemical energy in their active materials into electric energy. Batteries are manufactured in different sizes for diverse applications. Advanced energy storage systems find applications in transportation, grid storage, and various other areas, serving both residential and non-residential purposes.

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

The advanced energy storage systems market size has grown strongly in recent years. It will grow from $17.97 billion in 2023 to $19.25 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth observed during the historical period can be attributed to factors such as an increase in investments in renewable energy, grid modernization efforts, government incentives and regulations promoting energy storage, growth in the electric vehicle market, and a rise in overall electricity consumption.

The advanced energy storage systems market size is expected to see strong growth in the next few years. It will grow to $25.39 billion in 2028 at a compound annual growth rate (CAGR) of 7.2%. The projected growth in the forecast period can be attributed to climate change and emission reduction goals, the increasing demand for renewable energy sources, the rise of microgrid and on-grid technologies infrastructure, investments in modern infrastructure, and a growing need for energy reliability. Noteworthy trends expected in this forecast period encompass the development of enhanced battery technologies, the implementation of hybrid energy storage systems, the emergence of virtual power plants (VPPs), the utilization of energy management software, and the exploration of second-life batteries within the advanced energy storage systems industry.

The surge in investments in renewable energy is expected to drive the expansion of the advanced energy storage systems market. Renewable energy sources, sought for their non-polluting nature and renewable properties, have witnessed substantial investments from both governmental bodies and private sectors globally. These investments are driven by the benefits of curbing pollution and preserving natural resources. Such escalating investments are anticipated to create a notable demand for advanced energy storage systems, crucial for the storage and management of generated energy, ensuring supply as per varying needs. Notably, estimates by the International Energy Agency (IEA) predicted a 5% increase in global power sector investment, surpassing $820 billion in 2021, with renewables leading new power generation investment by accounting for 70% of the $530 billion spent on fresh power generation capacity. The rest was directed towards grids and storage. With each dollar spent on wind and solar photovoltaic (PV) deployment now generating four times the electricity compared to a decade ago, owing to rapid technological advancements and cost reductions, the escalating investments in renewable energy are poised to fuel the growth of the advanced energy storage systems market.

The burgeoning demand for electric vehicles is set to catalyze the advancement of the advanced energy storage systems market. Electric vehicles (EVs), powered by one or more electric motors using electricity as the primary energy source, rely on advanced energy storage systems primarily in the form of lithium-ion batteries or other sophisticated battery technologies. These systems store electrical energy, propelling the vehicle's electric motor, and offer the high energy density necessary for substantial driving range. Notably, in July 2023, sales of electric vehicles nearly doubled to 6.6 million in 2021 compared to the previous year, escalating the total number of electric vehicles on the roads to 16.5 million, as per the International Energy Agency's findings. Consequently, the amplified demand for electric vehicles is steering the growth of the advanced energy storage systems market.

Technological advancements stand as a prominent trend propelling the evolution of the advanced energy storage systems market. Market leaders are concentrating on integrating cutting-edge technologies, particularly software, into these systems. Such integration enhances controls, monitoring, and forecasting capabilities, thereby optimizing energy use. Companies providing these advanced systems are positioned to gain a competitive advantage in the market. For instance, in June 2021, Honeywell, a US-based global advanced-technology firm, introduced its battery energy storage system (BESS) platform technology, integrating controls, monitoring, and forecasting capabilities. Designed for large commercial and industrial (C&I) users, independent power producers (IPPs), and utilities, this platform offers asset monitoring, distributed energy resource management, supervisory control, and analytics capabilities. This integration enables the forecasting and optimization of energy use, facilitated by software integration, positioning Honeywell as a significant player in the field.

Major players within the advanced energy storage systems market are driving innovation by introducing new products like Gridstack Pro to enhance their profitability in the industry. Gridstack Pro stands as a state-of-the-art energy storage solution tailored for the upcoming generation of utility-scale projects. For instance, in October 2023, Fluence Energy, a US-based electric services company, unveiled Gridstack Pro. This product facilitates the swifter completion of energy storage projects, enabling quicker revenue generation due to its capability to manage the largest and most intricate utility-scale projects worldwide.

In May 2022, Bhago Mobility Solutions Private Limited, an Indian green energy company under Modern Automotive Limited, an Indian Next-Gen Technology Startup, acquired an undisclosed stake in Pastiche Energy Solutions (P) Ltd. This strategic stake acquisition aims to leverage the combined expertise of both companies to establish a footprint in advanced energy storage and green mobility. The collaboration focuses on producing solid-state batteries, lithium batteries, and related products for diverse applications such as energy storage, electric mobility, defense, among others. Notably, Pastiche Energy Solutions (P) Ltd is an Indian manufacturer specializing in batteries designed for advanced energy storage solutions.

Major companies operating in the advanced energy storage systems market include ABB Ltd., LG Chem Ltd., Samsung SDI Co. Ltd., General Electric Company, Tesla Inc., GS Yuasa Corporation, Siemens AG, Panasonic Corporation, Caledonian MacBrayne Ltd., Toshiba Corporation, NextEra Energy Inc., sonnen GmbH, AES Corporation, EDF Renewables SA, Schneider Electric SE, Maxwell Corporation, LyondellBasell Industries N.V., INEOS Group AG, SAFT S.A., Green Charge Networks LLC, S&C Electric Company, BYD Company Limited, Hitachi Chemical Co. Ltd., NEC Energy Solutions Inc., Enphase Energy Inc., Sunverge Energy Inc., Renewable Energy Systems, Eversource Energy, DTE Energy Co., NV Energy Inc., Advanced Energy Industries Inc., Alevo Group SA, Stem Inc., Aquion Energy Inc.

Asia-Pacific was the largest region in the advanced energy storage system market in 2023. The regions covered in advanced energy storage systems market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the advanced energy storage systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The advanced energy storage system market consists of sales of mechanical storage systems, hydrogen energy storage systems, advanced chemistry batteries, flow batteries, and capacitors. 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.


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