Lithium-ion batteries are widely used in the battery energy storage system market. Battery maintenance is minimal with lithium-ion. There is no memory, and the battery doesn't need to cycle on a timetable. The growth of the lithium-ion battery energy storage system market is majorly driven by an increase in demand for renewable energy sources along with rise in concerns among the governments of several nations about the adverse effects climate change. A rapid shift toward low carbon energy generation is witnessed round the globe which plays a vital role in fueling the growth of the lithium-ion battery energy storage system market.
However, the high capital expenditure required for installing lithium-ion battery energy storage systems is acting as a prime restraint of the battery energy storage system market. On the contrary, rise in number of rural electrification projects worldwide is anticipated to provide lucrative opportunities for the lithium-ion battery energy storage systems industry during the forecast period.
The lithium-ion battery energy storage system market is segmented based on connection type, application, and region. The connection type segment is bifurcated on grid and off grid. By application, the market is further divided into commercial, industrial, and residential.
Region wise, the lithium-ion battery energy storage system market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia, Netherlands, Belgium, Poland, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Malaysia, Thailand, Philippines, Indonesia, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
The key players operating in the lithium-ion battery energy storage system market include, Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd.
However, the high capital expenditure required for installing lithium-ion battery energy storage systems is acting as a prime restraint of the battery energy storage system market. On the contrary, rise in number of rural electrification projects worldwide is anticipated to provide lucrative opportunities for the lithium-ion battery energy storage systems industry during the forecast period.
The lithium-ion battery energy storage system market is segmented based on connection type, application, and region. The connection type segment is bifurcated on grid and off grid. By application, the market is further divided into commercial, industrial, and residential.
Region wise, the lithium-ion battery energy storage system market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia, Netherlands, Belgium, Poland, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Malaysia, Thailand, Philippines, Indonesia, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
The key players operating in the lithium-ion battery energy storage system market include, Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global lithium-ion battery energy storage system market analysis from 2021 to 2031 to identify the prevailing global lithium-ion battery energy storage system market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the global lithium-ion battery energy storage system market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global global lithium-ion battery energy storage system market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Connection Type
- On-grid
- Off-grid
By Application
- Industrial
- Residential
- Commercial
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin Amercia
- Middle East
- Africa
Key Market Players
- Toshiba Corporation
- Parker Hannifin Corporation
- Jakson Group
- Siemens AG
- Hitachi Ltd.
- Honeywell International Inc.
- LG Electronics Inc.
- Samsung Electronics Co Ltd
- Panasonic Corporation
- ABB Ltd.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: GLOBAL LITHIUM-ION BATTERY ENERGY STORAGE SYSTEM MARKET, BY CONNECTION TYPE
CHAPTER 5: GLOBAL LITHIUM-ION BATTERY ENERGY STORAGE SYSTEM MARKET, BY APPLICATION
CHAPTER 6: GLOBAL LITHIUM-ION BATTERY ENERGY STORAGE SYSTEM MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report titled, “Global Lithium-Ion Battery Energy Storage System Market," the global lithium-ion battery energy storage system market was valued at $4.5 billion in 2021, and is estimated to reach $17.1 billion by 2031, growing at a CAGR of 15% from 2022 to 2031.Lithium-Ion (Li-Ion) batteries are advanced battery technology that uses Lithium-Ion as the primary component of its electrochemistry. During the discharge cycle, lithium atoms in the anode are ionized and stripped of electrons. Lithium-ion and lead-acid batteries are the energy storage systems that are currently gaining the most popularity. However, the installation costs for all of these are the highest. Despite the higher cost, the product has a good return on investment. This is because these systems have a higher energy density and are more efficient. Additionally, they self-discharge at a minimal rate and require little upkeep.
Lithium-ion batteries had the largest sales share in the battery market. Demand for lithium-ion batteries for energy storage systems is expected to grow due to their light weight, low cost, and limited coverage area. Moreover, increasing infrastructure investment from the private, industrial and commercial sectors will support the growth of the lithium-ion battery energy storage system market in the coming years.
The flexibility and dependability of the grid in terms of power generation, transmission, and distribution are enhanced when battery energy storage systems enable electricity providers to save excess power for later use. In addition, over the coming years, the demand for uninterrupted power is anticipated to increase exponentially as a result of population growth, infrastructure development, and rapid industrialization.
The market for lithium-ion battery energy storage systems is seeing significant expansion as a result of the dramatic price drop in lithium-ion batteries. Because lithium is one of the world's lightest elements. Additionally, lithium-ion batteries provide higher operating voltages than other products due to the use of non-aqueous electrolytes. The high cost of lithium-ion batteries was the only thing holding back the market's expansion. Manufacturers, on the other hand, have lowered the price to a level that is within reach of most consumers thanks to new technologies and developments.
Over the past decade, more than 70% of the cost of lithium-ion batteries has come from the manufacturing process. For instance, the price of a lithium-ion battery pack in 2021 was USD 132/kWh, a decrease of 6% from the previous year. In terms of cost, performance, cycle life, and technological readiness, lithium-ion batteries are currently the best options. When compared to other battery technologies that are currently available, this factor contributed to its use for energy storage. In order to further reduce costs and improve the energy density of lithium-ion batteries, research is being carried out. The surge in demand for renewable energy sources is fueling the demand for global battery energy storage system market. Further, high demand for the lithium-ion technology in the renewable energy industry ,growing demand for grid-connected solutions, and reducing prices of lithium-ion batteries are the factors enhancing the growth of global battery energy storage system market.
The lithium-ion battery energy storage system market analysis is based on connection type, application, and region. By connection type, the market is classified into on grid and off grid connection. By application, it is divided into industrial, commercial, and residential. Region-wise, the lithium-ion battery energy storage system market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, and the rest of Europe), Asia-Pacific China, Japan, India, South Korea, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific, specifically the China region, remains a significant participant in the global lithium-ion battery energy storage system industry. Major organizations and government institutions in the country are intensely putting resources into this industry.
The key players profiled in the lithium-ion battery energy storage system market study includes Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd. The players in the market have been actively engaged in the adoption of various strategies such as acquisition, product launch, and expansion to remain competitive and gain an advantage over the competitors in the market.
Key Market Insights
- In 2021, on the basis of connection type, the on-grid segment was the highest revenue contributor to the market, with $2,600.6 million in 2021, and is estimated to reach $10,402.6 million by 2031, with a CAGR of 15.54%.
- In 2021, on the basis of application, the industrial segment was the highest revenue contributor to the market, with $2,435.8 million in 2021, and is estimated to reach $9,791.8 million by 2031, with a CAGR of 15.6%.
- In 2021, based on region, Asia-Pacific was the highest revenue contributor, accounting for $2,079.1 million in 2021, and is estimated to reach $8,645.4 million by 2031, with a CAGR of 15.98%.
Companies Mentioned
- Toshiba Corporation
- Parker Hannifin Corporation
- Jakson Group
- Siemens AG
- Hitachi Ltd.
- Honeywell International Inc.
- LG Electronics Inc.
- Samsung Electronics Co Ltd
- Panasonic Corporation
- ABB Ltd.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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