Grid-Side Energy Storage Market Size, Share, Growth, and Industry Analysis, By Type (Square Battery, Cylindrical Battery, Soft Pack Battery and others), By Application (Peak-to-valley Arbitrage, Stored Energy, Peak Shaving and Frequency Modulation and others), Regional Insights, and Forecast To 2032

Updated On: 22 April 2024

REPORT OVERVIEW

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The global grid-side energy storage market size was USD 2215 million in 2022. As per our research, the market is expected to reach USD 3560.1 million in 2028, exhibiting a CAGR of 8.2% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the 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.

Grid-side energy storage (also known as large-scale energy storage) is a group of technologies for storing energy on a large scale within an electrical power system. When electricity is plentiful and inexpensive (especially from intermittent power sources such as wind power, tidal power, and solar power) or demand is low, electrical energy is stored and later returned to the grid when demand is high and electricity prices are higher.

Energy storage advancements have enabled economically feasible projects to store energy during peak production and release it at peak demand, as well as for usage when output suddenly drops, allowing slower reacting resources to be brought online. Green hydrogen, which is produced by electrolysis of water using electricity supplied by renewables or sources with low carbon emissions, is a more cost-effective method of long-term renewable energy storage than pumped-storage hydroelectricity or batteries.

COVID-19 Impact: Market Distortion Factors Affected the Market Negatively

The COVID-19 pandemic had an influence on the grid-side energy storage market, both positively and negatively. On the plus side, demand for power storage has surged as a result of changes in electricity consumption behaviour caused by the epidemic. There are also drawbacks, such as supply chain interruptions caused by manufacturing shutdowns and shipping delays, which resulted in shortages of raw materials and components required for the production of batteries and other grid-side energy storage devices. Aside from that, projects have been delayed or cancelled because to the economic uncertainties induced by the epidemic, as well as difficulty in obtaining finance and regulatory permission.

LATEST TRENDS

"Grid Modernization Activities To Stimulate Market Expansion"

Battery storage development and grid modernisation activities are intricately connected. Battery storage devices can assist modernise the electric grid by allowing more renewable energy sources to be integrated, enhancing grid dependability, and boosting resiliency. Battery storage devices can assist to manage the intermittent nature of distributed energy resources (DERs) such as solar panels and wind turbines by storing extra energy during periods of low demand and releasing it during periods of high demand. Furthermore, battery storage devices can assist to increase grid resiliency by supplying backup power during outages or crises. This is particularly true in locations vulnerable to natural catastrophes or other interruptions. Thus, the process of grid modernization is a major trend that is creating opportunity for the industry to flourish. The market's overall expansion is primarily the result of these recent changes.

SEGMENTATION

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• By Type

The market is divided into categories based on type, Square Battery, Cylindrical Battery, Soft Pack Battery and others.

• By Application

The market is divided into Peak-to-valley Arbitrage, Stored Energy, Peak Shaving and Frequency Modulation and other categories based on application.

DRIVING FACTORS

"Increased Investments in renewable energy sources that Boosts the Market"

Increased investment in renewable energy sources is driving the demand for grid-side energy storage. Because renewable energy sources like wind and solar power are intermittent and unpredictable, including them into the electrical system can create power supply irregularities. Grid-side storage batteries can assist balance power supply and demand by storing surplus energy generated during peak hours and releasing it during low production periods. As more money is spent in renewable energy sources, the need for grid-side energy storage batteries is expected to rise. Because these batteries provide the required energy storage to facilitate the integration of intermittent renewable energy sources into the grid, they are critical for a seamless transition to a renewable energy future. As a result, the market will benefit from growth and increased investments in renewable energy sources. It will help the power and energy sector flourish and accelerate the Grid-Side Energy Storage market growth.

"Growing Demand for electric vehicles is expanding to support market expansion"

The increasing popularity of electric vehicles (EVs) is predicted to increase interest in grid-side energy storage. This is because broad EV adoption would demand a considerable increase in the quantity of power generated and supplied to charging stations and residences. Renewable energy sources, such as solar and wind power, are intermittent and cannot constantly fulfil peak electrical demand. Grid-based energy storage is used in this case. It may store extra electricity generated during off-peak hours and release it during peak hours, guaranteeing a consistent and dependable power supply. Together, these elements are encouraging market expansion, which is raising business revenues. As a result, the market will grow owing to the growing demand for electric vehicles.

RESTRAINING FACTORS

"High Cost of the product Will Prevent Market Expansion"

Grid-side energy storage must considerably expand to meet the Net Zero Scenario. While battery costs have dropped considerably in recent years as electric car manufacturing has increased, market upheavals and competition from electric vehicle producers have resulted in rising costs for key minerals needed in battery production, most notably lithium. It is now clear that additional cost reductions are dependent not just on technological progress, but also on battery material pricing. This will be a significant impediment to market growth during the forecast period. This could be a significant issue limiting market growth. If this issue is resolved, the market will immediately begin to grow.

REGIONAL INSIGHTS

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"North America to dominate the global market owing to rising Industrial development "

Since this area is the largest user of the product, the market for grid-side energy storage in North America has profited from the region's expanding industrial development and several driving factors that have boosted the potential sectors. The increasing demand for products in the Peak-to-valley Arbitrage, Stored Energy, Peak Shaving and Frequency Modulation and other industries is one of the important factors driving the Grid-Side Energy Storage Market Share. Rapid urbanisation trends will further strengthen the market as a whole.

KEY INDUSTRY PLAYERS

"Leading Manufacturers to Boost Product Demand"

The analysis covers data on market participants and their positions within the industry. Through appropriate research, mergers, technological development, expanding production facilities, and collaboration, data is being gathered and made available. Information on manufacturers, regions, types, applications, sales channels, distributors, traders, dealers, research findings, and more is provided in the study on materials.

List of Market Players Profiled

• SDI (U.S.)
• LG Chem (South Korea)
• Panasonic (Japan)
• BYD (China)
• Narada Power (China)
• Guangzhou Great Power (China)
• CATL (China)

REPORT COVERAGE

The study goes into great detail about market segmentation by type and application. The study examines a broad range of participants, including existing and potential market leaders. A considerable market expansion is anticipated as a result of several important factors. In order to provide market insights, the research additionally analyses elements that are probably to boost grid-side energy storage market share. The report makes forecasts for market expansion during the projected time period. The objective of the regional study is to explain why one region dominates the worldwide market. There are a lot of issues that have all been carefully considered that prevent the industry from growing. The research also contains a market strategic analysis. It includes thorough market information.