Energy Storage Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region

The global energy storage market is poised for significant growth, with forecasts indicating a substantial rise from its 2024 valuation of US$ 21 billion to exceeding US$ 70 billion by the end of 2031. Key drivers propelling this expansion include the ongoing renewable energy revolution, the increasing shift towards electric and hybrid vehicles, and the rising popularity of lithium-ion batteries in the renewable energy sector.

Factors Driving Growth

The global energy storage industry is experiencing significant growth driven by various factors. The ongoing renewable energy revolution, coupled with the shift towards electric and hybrid vehicles, is fueling demand for energy storage solutions. Lithium-ion batteries are gaining popularity in the renewable energy sector, while grid modernization initiatives are driving the need for grid energy storage systems.

Increasing rural electrification projects and advancements in energy storage technologies are further supporting market expansion. Government initiatives, subsidies, and investments in sustainable energy sources are creating growth opportunities, particularly in the context of rapid industrialization and urbanization. The rising demand for continuous energy supply and the construction of pumped-storage hydroelectric dams are also driving market growth.

Moreover, the high usage of thermal energy storage for air conditioning and the widening applications of battery energy storage systems (BESS) are stimulating market growth. Additionally, the inclination towards using intelligent energy storage systems and the adoption of innovative storage business models facilitated by advancements in technologies like AI and predictive analytics are fostering market expansion.

Overall, energy storage technologies play a crucial role in facilitating the transition to renewable energy and improving energy security globally, with increasing demand across residential, commercial, and industrial sectors.

Regional Insights

United States:

The United States energy storage market is expected to witness substantial growth by 2031. Over the next decade, it is anticipated to reach significant milestones driven primarily by the rapid shift towards electric vehicles and the increasing adoption of renewable energy sources. Electric vehicle sales have been on the rise, contributing to a heightened demand for energy storage devices like batteries.

United Kingdom:

The United Kingdom's energy storage market is projected to reach a notable valuation by 2031. The country has been actively embracing electric vehicles, motivated by environmental concerns and government incentives. This trend is expected to continue, further propelling the demand for energy storage solutions in the UK.

China:

China poses formidable competition to other regional energy storage markets, boasting impressive growth rates. The nation's commitment to carbon neutrality by 2060 has spurred significant initiatives, including incentives for electric vehicle adoption. With a thriving electric vehicle market and increasing demand from the residential sector, China is set to dominate the energy storage landscape in the coming years.

Category-wise Insights

Most Sought-After Energy Storage Type Globally:

Batteries continue to dominate as the most sought-after energy storage type globally. Their popularity stems from their versatile applications across residential, commercial, and industrial sectors. With a significant growth trajectory, especially for lithium-ion batteries, driven by increasing demand from electric vehicles and the need for backup power solutions, batteries are anticipated to maintain their prominence in the energy storage market. Additionally, other energy storage types such as thermal energy storage, flywheel energy storage, and pumped hydroelectricity energy storage (PHES) are also expected to experience healthy growth.

Lucrative Growth Prospects for Energy Storage Industry:

Among the various applications, the commercial & industrial segment emerges as the most lucrative for the energy storage industry. This segment has witnessed substantial growth and is poised for further expansion due to the increasing adoption of energy storage systems across diverse industrial and commercial applications. The rising demand for energy storage solutions in these sectors underscores the significant revenue generation opportunities within the commercial & industrial segment.

Competitive Analysis

Leading energy storage system manufacturers are investing heavily in research and development to enhance storage technologies. Strategic initiatives such as partnerships, mergers, and acquisitions are also being pursued to strengthen market presence and increase market share.

Key Companies Profiled

• GS Yuasa Corporation
• Contemporary Amperex Technology Co. Limited
• BYD Co. Ltd
• UniEnergy Technologies, LLC
• Clarios
• Tesla Inc.
• AES Corporation
• General Electric Company
• Sulzer Ltd.
• Voith GmbH

Global Energy Storage Market Segmentation:

By Type:

• Batteries
• Pumped-Storage Hydroelectricity
• Thermal Energy Storage
• Flywheel Energy Storage

By Application:

• Residential
• Commercial and Industrial

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

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