Global Battery Energy Storage Market to Reach $17.5 Billion by 2028: Rapid Adoption of Battery Energy Storage Systems in Rural Electrification Projects Worldwide Presents Opportunities

DUBLIN, July 10, 2023 /PRNewswire/ -- The "Battery Energy Storage Market by Element, Battery Type (Lithium-ion, Advanced Lead Acid, Flow), Connection Type (On-Grid and Off-Grid), Ownership (Customer Owned, Third-Party Owned, Utility Owned), Energy Capacity - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.

The battery energy storage system market is estimated to be worth USD 5.4 billion in 2023 and is projected to reach USD 17.5 billion by 2028, at a CAGR of 26.4% during the forecast period.

Lithium-ion batteries to dominate the battery energy storage system market in 2022.

In 2022, lithium-ion batteries emerged as the dominant force in the battery energy storage market. Their exceptional qualities and wide availability contribute to their success. Lithium-ion batteries offer high energy density, efficiency, and performance, making them a dependable and efficient solution for energy storage.

They also boast a long cycle life, guaranteeing durability and longevity for various energy storage applications. Moreover, their decreasing costs, well-established manufacturing infrastructure, and mature technology have solidified their position as the preferred choice for energy storage projects.

On-grid connection type to hold the largest share of the battery energy storage system market in 2022.

The on-grid connection allows battery energy storage systems to seamlessly integrate with the existing electrical grid infrastructure, providing numerous benefits.

These systems can support grid stability and reliability by regulating frequency, voltage, and power quality, ensuring a consistent and uninterrupted power supply. On-grid connected battery energy storage systems also have the flexibility to participate in grid services and ancillary markets, such as frequency regulation and peak shaving, enabling additional revenue generation opportunities.

Moreover, the on-grid connection allows for the efficient management of surplus energy, which can be fed back to the grid, reducing energy bills for customers, and enhancing overall grid efficiency.

Asia Pacific is anticipated to contribute the largest share of the market during the forecast period.

Asia Pacific consists of some of the fastest-growing economies - such as China, Japan, and India. The region is witnessing rapid industrialization, urbanization, and economic growth, leading to an increased demand for reliable and sustainable energy solutions. Governments in countries like China, Japan, and South Korea have implemented supportive policies and incentives to promote the adoption of energy storage technologies, driving market growth.

Additionally, Asia Pacific is home to some of the world's largest battery manufacturers, benefiting from established supply chains, economies of scale, and technological expertise. The region has also been at the forefront of renewable energy deployment, particularly in solar and wind power, and battery energy storage systems are essential for grid integration and energy balancing.

Premium Insights

• Growing Demand for Continuous Power Supply and Rising Adoption of Battery Energy Storage Systems for Electrification in Rural Areas to Drive Market
• Lithium-Ion Batteries Segment Held Largest Share in 2022
• Above 500 Mwh Energy Capacity Segment to Dominate Market During Forecast Period
• Utility to be Largest Application Segment of Market in 2023
• Market in India to Register Highest CAGR During Forecast Period

Market Dynamics

Drivers

• Accelerated Deployment of Grid Energy Storage Systems in Ongoing Grid Modernization Projects
• Adoption of Lithium-Ion Batteries in the Renewable Energy Sector
• Renewable Energy Revolution and Transition Toward Low Carbon-Based Economy

Restraints

• High Cost of Installing Battery Energy Storage Systems

Opportunities

• Rapid Adoption of Battery Energy Storage Systems in Rural Electrification Projects Worldwide
• Increased Demand for Continuous Power Supply from Data Centers
• Reduction in Price of Lithium-Ion Batteries

Challenges

• Difficulties Pertaining to Installation of Battery Energy Storage Systems in Remote and Isolated Locations
• Overheating of Lithium-Ion Batteries due to Abnormal Discharges and Short Circuits
• Aging of Lithium-Ion Batteries due to Complex Chemical Reactions Between Electrodes and Electrolytes     

Case Study Analysis

• General Electric to Deliver Battery Energy Storage Systems to Convergent
• Adoption of Battery Energy Storage Systems by Utility Provider Company
• Deployment of Microgrid Battery Energy Storage Systems for Rural Electrification in Nigeria
• Deployment of Off-Grid Battery Energy Storage Systems for Renewable Energy Project
• ABB to Install Battery Energy Storage Systems in the Philippines

Companies Mentioned

• ABB
• AEG Power Solutions
• BYD Company Limited
• Delta Electronics Inc.
• East Penn Manufacturing Company
• Enerdel, Inc.
• Exergonix
• General Electric
• Hitachi, Ltd.
• Honeywell International, Inc.
• Johnson Controls
• LG Energy Solutions Co., Ltd.
• NEC Corporation
• Nextera Energy, Inc.
• NGK Insulators, Ltd.
• Panasonic Corporation
• Parker Hannifin Corp
• Primus Power
• Samsung Sdi Co., Ltd.
• Siemens Ag
• Solaredge
• Tesla, Inc.
• The AES Corporation
• Toshiba Corporation
• Trinabess

For more information about this report visit https://www.researchandmarkets.com/r/8cslgt

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