Energy Storage Systems Global Market Report 2024

The global energy storage systems market has grown strongly in recent years. It will grow from $234.26 billion in 2023 to $255.37 billion in 2024 at a compound annual growth rate (CAGR) of 9.0%. Historical growth can be attributed to enhancements in grid flexibility and demand response, amplified demand for remote power solutions, the broadening of microgrid networks, cost reductions through economies of scale, and ongoing efficiency improvements.

The global energy storage systems market is expected to see strong growth in the next few years. It will grow to $357.44 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The anticipated growth in the forecast period is driven by market expansion and global demand, a rising need for demand response and energy management solutions, the emphasis on circular economy principles and sustainability, and the adoption of hybrid energy systems. Key trends expected during this period encompass the integration of renewable energy sources, advancements in battery technologies, initiatives for grid modernization, the electrification of transportation systems, and the development of decentralized energy systems.

The burgeoning demand for electric vehicles is anticipated to be a driving force behind the growth of the energy storage systems market. These vehicles, powered by rechargeable batteries, depend on energy storage systems to manage energy requirements, enhance grid reliability, and maintain renewable energy reserves. For instance, the International Renewable Energy Agency forecasts a substantial increase in electric vehicles, estimating 200 million electric cars, along with 10 million electric buses and light-duty vehicles worldwide by 2030. This surge in electric vehicle adoption contributes significantly to the expanding market for energy storage systems.

The increasing adoption of renewable energy sources is poised to further boost the energy storage systems market. These systems play a crucial role in capturing and utilizing intermittent energy from renewable sources, ensuring consistent and reliable power supply. For example, according to the International Energy Agency, renewables are projected to constitute nearly 95% of the global power capacity growth by 2026, with solar photovoltaics making up more than half of this expansion. This adoption of renewable energy significantly contributes to the growth of the energy storage systems market.

Technological advancements represent a key trend driving the energy storage systems market. Leading companies in this sector are actively pursuing innovative technologies to fortify their positions. For instance, Danfoss India introduced a battery-based energy storage system that utilizes Danfoss's sustainable drives technology to store surplus energy efficiently. Comprising a Danfoss 250 kW Power Conversion System (PCS), a 270 Kwph SARA battery, and an Energy Management System (EMS) with grid-scale technology, this versatile, reliable, scalable, and cost-effective solution is engineered to store excess generated energy.

Major companies in the energy storage systems market are introducing comprehensive platforms like Battery Energy Storage System (BESS) Platforms to cater to the escalating need for precise energy management. These platforms integrate asset monitoring, distributed energy resource management, and analytics. For instance, Honeywell launched its BESS Platform in June 2021, combining asset monitoring and energy management features. The platform optimizes energy usage, enhances grid stability, reduces supply costs, and supports sustainability objectives across commercial, industrial, and utility sectors. It ensures performance-based guarantees from Honeywell, delivering cost predictability, improved uptime, and reduced reliance on non-renewable power sources during generator failures.

In February 2022, LG Energy Solution, a prominent South Korea-based manufacturer of storage batteries, completed the acquisition of NEC Energy Solutions, with the financial details undisclosed. This strategic move positions LG Energy Solution to offer comprehensive, fully integrated energy storage systems. By merging NEC Energy Solutions' expertise with its own capabilities, LG aims to provide end-to-end solutions encompassing installation, maintenance, and operational support, ultimately enhancing product performance. NEC Energy Solutions, headquartered in the US, specializes in delivering energy storage systems. LG's acquisition of NEC Energy Solutions strengthens its position in the market, enabling the provision of holistic solutions and reinforcing its commitment to advancing energy storage technology and services for improved performance and reliability.

Major companies operating in the energy storage systems market report are Schneider Electric SE, SMA Solar Technology AG, Exide Industries Limited, SK energy Co. Ltd., Autobat SACI, Enerbrax Acumuladores Ltd., Eguana Technologies, Ionotec Ltd., Tata Power Company Limited, BYD Company Ltd., ABB Limited, Beacon Power LLC, Convergent Energy + Power, S&C Electric Company, General Electric Company, LG Chem Ltd., Samsung Electronics Co. Ltd., Panasonic Corporation, Tesla Inc., Hitachi Chemical, GS Yuasa Corporation, Japan Power Engineering & Consulting Inc., Toshiba Corporation, Sinohydro Corporation Limited, Voith GmbH, Genex Power Limited, Alstom SA, Schluchseewerk AG, East Penn Manufacturing Inc., and Showa Denko Materials Co. Ltd.

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

The primary technologies employed in energy storage systems encompass pumped hydro storage, battery energy storage, compressed air energy storage, and flywheel energy storage. Pumped hydro storage, for instance, involves two reservoirs at different elevations that enable power generation as water moves between them, passing through a turbine. Energy storage systems find application across various sectors, including stationary and transportation domains. They are utilized by a range of end-user industries, spanning residential, non-residential, and utility sectors, contributing significantly to efficient energy utilization and management.

This report provides energy storage systems market statistics, including energy storage systems industry global market size, regional shares, competitors with a energy storage systems market share, detailed energy storage systems market segments, market trends and opportunities, and any further data you may need to thrive in the energy storage systems industry. This energy storage systems 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 energy storage system (ESS)market consists of sales of electro chemical, thermal storage and mechanical energy storage systems. 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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