The global battery energy storage systems market size was valued at USD 3.4 billion in 2019 and is projected to witness a compound annual growth rate (CAGR) of 27.2% over the forecast period. Rising demand for reliable and continuous power supply from end-use sectors such as industrial, telecom, data centers, marine, and medical are expected to strengthen the market over the forecast period.
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Battery energy storage systems help the electricity suppliers to save excess power for later use, thereby improving the grid flexibility and reliability in terms of power generation, transmission, and distribution. Moreover, demand for uninterrupted power is expected to grow exponentially owing to continuous population growth, infrastructure development, and rapid industrialization over the coming years.
In the U.S., the market is projected to witness prominent growth on account of an increasing number of battery energy storage system manufacturers across the country. For instance, U.S. based electric services company NextEra Energy has integrated a 10-MW capacity battery storage with a large scale solar power plant, providing clean energy through a solar-plus-storage facility.
The data center application segment held a market share of 37.3% in 2019 and is expected to ascend with a prominent CAGR over the forecast period. Uninterruptible power supply is of utmost importance in data centers. The losses incurred due to power failure are huge. In the U.S. alone, around USD 50.0 billion are annually lost due to power failures and related problems.
Irregularities such as energy dips and spikes can adversely affect the equipment at data centers, resulting in losses. A line-interactive UPS system can also act as a filter that refines power that comes into the UPS, adjusting the output so that the internal systems receive a consistent and uninterrupted supply.
Battery Type Insights
Lithium-ion batteries accounted for the largest revenue share of 55.0% of the market. Demand for lithium-ion batteries for energy storage systems is projected to subsequently increase owing to its low weight, low cost, and limited coverage area. Moreover, growing infrastructural spending from residential industrial and commercial sectors will bolster the lithium-ion battery energy storage systems market growth in the coming years.
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The market in Asia Pacific occupied a significant revenue share of 41.9% in 2019. Rapid population growth has led to increased power demand across developing economies. Grid operators are deploying battery energy storage systems to prevent power outages and enhance grid flexibility over a period of the next seven years.
Growing penetration of renewable energy along with rising demand for distributed power generation across several Asia Pacific economies are further expected to intensify the regional market growth. Surplus renewable energy is stored in the battery systems and is used later for local power generation and grid power supply in times of peak demand.
Key Companies & Market Share Insights
Key companies are indulging in organic and inorganic growth strategies to enhance their foothold in the market through diversification of their product offerings. Some of the prominent players in the battery energy storage systems market include:
- LG Chem Ltd.
- Panasonic Corporation
- Samsung SDI
- BYD Company Limited
- Contemporary Amperex Technology Co. Limited
- Exide Technologies
- General Electric
- AES Energy Storage
- Hoppecke Batteries Inc.