Energy Storage Market Size, Share, Growth, And Industry Analysis by Type (Lithium Ion Technology, Lead Acid Technology, Sodium Chemistry Technology, Flow Vanadium Technology, Flow Zinc Technology & Others) by Application (Residential, Commercial, Utility) and Regional Forecast to 2028

Updated On: 15 May 2023

Report Overview

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The global energy storage market size was USD 2437.4 million in 2022. As per our research, the market is expected to reach USD 5350.1 million in 2028, exhibiting a CAGR of 14.0 % during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with energy storage market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

The energy storage market refers to the market for technologies and services that enable the storage of energy for later use. Energy storage technologies are becoming increasingly important as the world transitions to a more sustainable energy system, with a greater focus on renewable energy sources such as wind and solar. The energy storage market includes a variety of technologies, including batteries, pumped hydro storage, flywheels, compressed air energy storage, and thermal energy storage. The market is expected to grow rapidly in the coming years, driven by increasing demand for renewable energy, growing concerns about climate change, and improvements in energy storage technologies.

The energy storage market size is growing rapidly due to several factors, including the increasing demand for renewable energy sources such as wind and solar power. Renewable energy sources are becoming more prevalent as countries and companies look to reduce their carbon footprint and meet climate change targets. However, renewable energy sources are intermittent, meaning that they are not always available when needed, and energy storage technologies can help address this issue. Additionally, the demand for energy storage technologies is increasing as energy grids become more decentralized, with more power generation happening at the consumer or community level. This creates a need for energy storage solutions to balance the supply and demand of energy within local grids.

COVID-19 Impact: The Pandemic Had A Tremendous Influence On The Market, Posing Both Obstacles And Possibilities For Businesses In This Sector

The COVID-19 pandemic has had both positive and negative impacts on the energy storage market. On the positive side, the pandemic has increased awareness of the need for resilient and reliable energy systems, as well as the importance of decarbonizing the economy. This has led to increased interest and investment in renewable energy and energy storage technologies. Furthermore, the pandemic has highlighted the importance of energy storage technologies in enabling greater use of renewable energy sources, particularly in areas with weak or unstable grid infrastructure. In this sense, the pandemic has underscored the role of energy storage technologies in building more resilient and sustainable energy systems.

However, the pandemic has also had some negative impacts on the energy storage market. Supply chains have been disrupted, leading to delays in the production and delivery of energy storage technologies. Additionally, some energy storage projects have been delayed or cancelled due to the economic uncertainty caused by the pandemic. Furthermore, the pandemic has led to a decline in demand for energy due to reduced economic activity, which has resulted in a decline in electricity prices. This has made it more challenging for energy storage projects to generate revenue, particularly those that rely on arbitrage opportunities (buying energy when prices are low and selling it when prices are high) to generate income. 

Latest Trends

"The Increasing Use Of Software And Digital Technologies To Enhance The Functionality And Effectiveness Of Energy Storage Systems Is One Trend In The Market For Energy Storage"

This includes the use of artificial intelligence (AI), machine learning, and data analytics to optimize energy storage operations and improve the accuracy of energy forecasting. A number of new products and technologies related to this trend are being launched. For example, energy storage software platforms that use AI and machine learning to optimize energy storage operations and maximize revenue are becoming increasingly popular. These platforms can monitor energy prices, weather conditions, and other variables in real-time to make data-driven decisions about when to charge and discharge energy storage systems. Another emerging technology is blockchain, which can be used to create transparent and secure energy markets and enable peer-to-peer energy trading. Blockchain-based energy storage systems allow consumers to buy and sell energy from each other directly, without going through a traditional utility or energy supplier.

Leading players in the energy storage market are investing heavily in software and digital technologies to stay ahead of the competition. For example, Tesla has developed a sophisticated energy management system that uses AI and machine learning to optimize the performance of its energy storage products. Similarly, Siemens has developed a cloud-based energy storage platform that uses real-time data to optimize energy storage operations and improve the accuracy of energy forecasting. In addition to established players, a number of startups are also entering the market with innovative software and digital technologies. For example, Kiwi Power is a UK-based startup that uses machine learning and data analytics to optimize the performance of energy storage systems and enable more efficient energy trading. 

SEGMENTATION

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• By type

Depending on energy storage given are types: Lithium Ion Technology, Lead Acid Technology, Sodium Chemistry Technology, Flow Vanadium Technology, Flow Zinc Technology & Others. The Lithium Ion Technology type will capture the maximum market share through 2028.

• By Application

The market is divided into Residential, Commercial, Utility based on application. The global energy storage market  players in cover segment like Residential will dominate the market share during 2022-2028.

Driving Factors

"The Growing Need For Renewable Energy Sources Is One Of The Main Factors Influencing The Energy Storage Industry"

As countries and companies worldwide seek to reduce their carbon footprint and meet climate change targets, the use of renewable energy sources such as wind and solar power is becoming more widespread. However, renewable energy sources are inherently intermittent, meaning that they are not always available when needed. This is where energy storage technologies come in. Energy storage systems can help to address the intermittency of renewable energy sources by storing excess energy generated during periods of high production and releasing it during periods of high demand. This can help to balance the supply and demand of energy within local grids, making renewable energy sources more reliable and viable as a primary source of power. Furthermore, the increasing adoption of renewable energy sources is also driving demand for energy storage systems by creating a need for energy storage solutions to manage the integration of renewable energy into existing energy grids. As more renewable energy sources are added to the grid, energy storage systems can help to balance the load and prevent overloading of the grid. Overall, the increasing demand for renewable energy sources is a major driving factor in the energy storage market growth, as energy storage technologies play a crucial role in enabling the integration and optimization of renewable energy sources within energy grids.

"The Growing Need For Energy Security And Stability Is Another Factor Boosting The Market For Energy Storage"

Another driving factor of the energy storage market growth is the increasing need for energy security and reliability. With the growing demand for electricity in industries, households, and transportation, there is a need for reliable and secure energy systems that can provide uninterrupted power supply. Energy storage systems play a crucial role in ensuring energy security and reliability by providing backup power during power outages and blackouts. This is particularly important for critical infrastructure such as hospitals, data centers, and military facilities, which require uninterrupted power supply for their operations. Energy storage systems can also help to reduce the strain on the grid during peak demand periods, helping to prevent blackouts and brownouts. In addition, energy storage systems can help to enable the transition to a decentralized energy system, where energy is produced and consumed locally. This can help to reduce the dependence on large centralized power plants and long-distance transmission lines, which can be vulnerable to disruptions and failures.

Restraining Factors

"The High Initial Cost Of Energy Storage Systems Is One Of The Main Challenges Limiting The Market For Energy Storage"

One of the key restraining factors in the energy storage market growth is the high initial cost of energy storage systems. Energy storage technologies such as batteries can be expensive to manufacture and install, particularly on a large scale. This high initial cost can make energy storage systems less economically viable than traditional fossil fuel-based energy sources in the short term. Furthermore, while the cost of energy storage systems has decreased in recent years, it still remains relatively high compared to other energy sources. This can make it difficult for energy storage systems to compete with traditional energy sources on a cost basis.

In addition, regulatory and policy barriers can also act as a restraining factor in the energy storage market. For example, in some jurisdictions, regulations and policies may favor traditional energy sources over renewable energy and energy storage systems. This can limit the uptake of energy storage systems and slow down their deployment. Moreover, the lack of standardization and interoperability among different energy storage systems can also pose a challenge for the market. This can create compatibility issues between different systems, limiting their flexibility and scalability. It can also increase the complexity of system design and integration, leading to higher costs and longer deployment times.

Regional Insights

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"Asia Pacific Region Is Predicted To Be In The Lead When It Comes To The Development And Uptake Of Energy Storage Technologies"

The Asia Pacific region is home to some of the world's largest energy consumers and is experiencing rapid urbanization and industrialization, driving up the demand for reliable and sustainable energy sources. The region is also home to several countries, including China, Japan, South Korea, and India, that have set ambitious renewable energy targets and are investing heavily in renewable energy and energy storage technologies to achieve those targets. In addition, the region has a strong manufacturing base and is home to several leading players in the energy storage market share. This has led to the development of advanced energy storage technologies and a robust supply chain, making energy storage systems more affordable and accessible in the region. Moreover, the Asia Pacific region has favorable government policies and regulations that support the adoption of renewable energy and energy storage systems. For example, China has announced several initiatives to promote renewable energy and energy storage, including the implementation of a national subsidy program for energy storage systems. Similarly, India has set a target of installing 175 GW of renewable energy by 2022, which is expected to drive the adoption of energy storage systems in the country.

North America is considered to be the second-leading region in the energy storage market after the Asia Pacific region. The market in North America is expected to grow significantly in the coming years due to the increasing demand for clean energy and government support for renewable energy and energy storage systems. The United States is the largest energy storage market share holder in North America, accounting for the majority of the region's market share. The country has been investing heavily in renewable energy and energy storage technologies to reduce its carbon footprint and meet its energy demands. In addition, several states in the United States have implemented policies and regulations that support the deployment of energy storage systems, such as California's mandate that requires the state's utilities to procure 1.3 GW of energy storage by 2024. Canada is also a significant market for energy storage systems in North America. The country has set a goal of reaching net-zero emissions by 2050 and has been investing in renewable energy and energy storage technologies to achieve this goal. In addition, the Canadian government has implemented several policies and regulations that support the adoption of energy storage systems, such as the federal government's investment in a CAD 30 million energy storage project in Ontario. Furthermore, the market in North America is driven by the presence of several leading players in the energy storage market. These companies are investing in research and development to develop advanced energy storage technologies and are partnering with utilities and energy service providers to deploy energy storage systems at scale.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Duke Energy (U.S)
• E.ON (Germany)
• East Penn Manufacturing (U.S)
• EDF Renewable Energy (U.S)
• Fluence Energy (U.S)
• GE Power (U.S)
• Invenergy (U.S)
• LG Chem(South Korea)
• Tesla (U.S)
• ABB (Switzerland)
• Johnson Controls (Ireland)
• SolarEdge (Israel)
• EnerVault (U.S)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.