Advanced Energy Storage Systems Global Market Opportunities and Strategies to 2033

This report describes and explains the advanced energy storage systems market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global advanced energy storage systems market reached a value of nearly $18.4 billion in 2023, having grown at a compound annual growth rate (CAGR) of 6.6% since 2018. The market is expected to grow from $18.4 billion in 2023 to $27.9 billion in 2028 at a rate of 8.7%. The market is then expected to grow at a CAGR of 10.4% from 2028 and reach $45.7 billion in 2033.

Growth in the historic period resulted from the increase in investments in renewable energy, aging grid infrastructure, increasing energy demand and consumption and growing population growth and urbanization. Factors that negatively affected growth in the historic period was lack of standardization.

Going forward, increasing demand for electric vehicles, rising infrastructure investment, coupled with government initiatives and funding and growing residential sector will drive the growth. Factor that could hinder the growth of the advanced energy storage systems market in the future include high initial investment costs.

The advanced energy storage systems market is segmented by technology into electrochemical storage, electromechanical storage and other technologies. The electromechanical storage market was the largest segment of the advanced energy storage systems market segmented by technology, accounting for 68.9% or $12.7 billion of the total in 2023. Going forward, the electrochemical storage segment is expected to be the fastest growing segment in the advanced energy storage systems market segmented by technology, at a CAGR of 9.8% during 2023-2028.

The advanced energy storage systems market is segmented by application into transportation, grid storage and other applications. The grid storage market was the largest segment of the advanced energy storage systems market segmented by application, accounting for 52.1% or $9.6 billion of the total in 2023. Going forward, the transportation segment is expected to be the fastest growing segment in the advanced energy storage systems market segmented by application, at a CAGR of 9.5% during 2023-2028.

The advanced energy storage systems market is segmented by end-user into residential and non-residential. The non-residential market was the largest segment of the advanced energy storage systems market segmented by end-user, accounting for 82.6% or $15.2 billion of the total in 2023. Going forward, the residential segment is expected to be the fastest growing segment in the advanced energy storage systems market segmented by end-user, at a CAGR of 8.3% during 2023-2028.

North America was the largest region in the advanced energy storage systems market, accounting for 40.3% or $7.4 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the advanced energy storage systems market will be Asia Pacific and North America where growth will be at CAGRs of 10% and 9.3% respectively. These will be followed by Western Europe and Eastern Europe where the markets are expected to grow at CAGRs of 7.9% and 73% respectively.

The global advanced energy storage systems market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 22.9% of the total market in 2022. Tesla, Inc. was the largest competitor with 6.1% share of the market, followed by LG Electronics with 3.1%, ABB Ltd. with 2.7%, General Electric Company with 2.6%, Samsung SDI Co., Ltd with 2%, Siemens AG with 1.7%, Hitachi, Ltd. with 1.6%, Panasonic Corporation with 1.2%, Schneider Electric with 1% and GS Yuasa Corporation with 0.9%.

The top opportunities in the advanced energy storage systems market segmented by technology will arise in the electromechanical storage segment, which will gain $6.1 billion of global annual sales by 2028. The top opportunities in the advanced energy storage systems market segmented by application will arise in the grid storage segment, which will gain $4.8 billion of global annual sales by 2028. The top opportunities in the advanced energy storage systems market segmented by end-user will arise in the non-residential segment, which will gain $7.9 billion of global annual sales by 2028. The advanced energy storage systems market size will gain the most in the USA at $3.9 billion.

Market-trend-based strategies for the advanced energy storage systems market include development of integrated energy storage systems for unified storage, introduction of battery-based energy storage systems to store surplus energy, integration of artificial intelligence (AI) in energy storage systems to improve efficiency and focus on use 0f advanced materials to optimize energy storage.

Player-adopted strategies in the advanced energy storage systems market include focus on strengthening business capabilities through new product launches, strengthening business operations through new product developments and strategic partnerships and strengthening operational capabilities through securing new contracts.

To take advantage of the opportunities, the analyst recommends the advanced energy storage systems to focus on integrated energy storage solutions, focus on battery-based energy storage systems, focus on AI-integrated energy storage solutions, focus on advanced materials integration, focus on electrochemical and electromechanical storage segments, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on tailored solutions for end-users and focus on non-residential segment.