Energy Storage Systems Market Synopsis

Energy Storage Systems Market Size Was Valued at USD 44.62 Bn. in 2023, and is Projected to Reach USD 140.25 Bn. by 2032, Growing at a CAGR of 13.57% From 2024-2032.

Energy Storage Systems is a process of converting the electrical energy to another storable form and then converting the stored energy to electricity during the time of need., Energy storage systems can effectively mitigate the intermittencies introduced by the RESs, thus improving the power quality and reliability. Furthermore, they can also store the excess energy generated by the RESs, therefore, reducing energy spillage.

• In recent times, electric vehicles (EVs) are becoming very promising source of transportation, whose main source power is EES, i.e., batteries. EES also has many utility scale applications such as peak shaving, load levelling, providing back?up power, uninterrupted power supply (UPS), etc. In recent times, many countries have started utilizing the multiple applications and facilities that EES has to offer by building large scale storage systems. Therefore, it is an ideal time to review and summarize the recently conducted research works on this field, which will aid further research and proliferate the implementation and deployment of EES in practical applications.
• Global concerns about the climate and the environment, the world is opting for renewable energy sources (RESs), such as wind and solar. However, RESs suffer from the discredit of intermittency, for which energy storage systems (ESSs) are gaining popularity worldwide. Surplus energy obtained from RESs can be stored in several ways, and later utilized during periods of intermittencies or shortages. The idea of storing excess energy is not new, and numerous researches have been conducted to adorn this idea with innovations and improvements.
• Energy storage systems increase energy safety by reducing dependence on centralized power generation and enabling distributed energy resources. By storing energy locally, communities, businesses, and individuals can mitigate the impact of grid outages, price fluctuations, and supply disruptions, thereby improving resilience and self-reliance.

Energy Storage Systems Market Trend Analysis

Rising Demand for Renewable Energy Integration

• Solar and wind energy are unreliable sources of power. Energy storage systems assist in handling fluctuations by storing surplus energy during high production periods and releasing it as required. This guarantees a stable energy source, increasing the reliability and feasibility of renewable energy. The variability of renewable energy can cause grid instability when integrated. Energy storage systems offer services such as frequency regulation and spinning reserves to support grid stability and reliability. This assists in balancing the fluctuations of renewable energy and maintaining grid stability when there is a high level of renewable energy use.
• Energy storage systems help to decrease peak demand on the grid by releasing stored energy during peak hours, which reduces the necessity for additional generation capacity and decreases energy expenses. Energy storage systems allow for the storage and delivery of renewable energy as required, increasing the integration of renewables in the energy combination. By addressing the issue of unpredictability, they enable greater use of renewable sources while maintaining the reliability of energy supply, speeding up the transition to sustainable, low-emission energy.
• Energy storage is essential for decentralized energy systems and microgrids that make use of renewable sources. It allows them to operate independently of the main grid, providing reliable electricity to isolated regions. The storage system stores extra energy to improve dependability. Innovations in energy storage technology are being driven by the growing need for renewable energy, resulting in improved battery efficiency and lifespan, which in turn make storage solutions more affordable and widely available as economies of scale are realized.

Opportunity

Grid Modernization and Infrastructure Development

• Updating the grid involves enhancing infrastructure to better withstand challenges such as weather events, cyber-attacks, and equipment malfunctions. Energy storage systems are able to offer backup power, which guarantees ongoing service for critical infrastructure, businesses, and residences. The process of grid modernization includes the integration of distributed energy resources (DERs) like solar panels, wind turbines, and small-scale hydro systems. Energy storage systems assist in handling their fluctuation by storing extra energy for future usage, enhancing grid stability and dependability.
• The modern grid infrastructure is improved through advanced technologies such as smart meters, sensors, and real-time data analytics, which help with monitoring and management. Incorporating energy storage systems can improve energy usage, decrease peak demand, and boost grid efficiency to save costs. Increased adoption of electric vehicles needs additional charging infrastructure and expanded grid capacity. Energy storage systems save energy in times when demand is low to be used during times of high demand for charging purposes. This helps alleviate grid congestion and the requirement for expensive enhancements.
• Energy storage systems may be a more cost-efficient option than upgrading the grid. Utilities can utilize storage to handle load and offer capacity, cutting costs and optimizing current infrastructure rather than constructing new power plants. It is crucial to improve the grid in order to support increased use of renewable energy and to enhance infrastructure development. Energy storage is essential for handling the variability of renewable energy and aiding its incorporation into the grid to promote cleaner energy and achieve regulatory objectives. Current grids are becoming more adaptable and distributed, allowing for localized generation and usage of energy. Energy storage systems are essential for helping microgrids and community initiatives, improving grid resilience and energy management within communities.

Energy Storage Systems Market Segment Analysis:

Energy Storage Systems Market is segmented on the basis of Technology Type, End-User, and Region.

By Technology Type, Mechanical Storage Segment Is Expected to Dominate the Market During the Forecast Period

• Mechanical energy is one of the oldest forms of energy that humankind has been using for diverse uses. An advantage of mechanical energy is that it can be stored easily and for long periods of time. It is very flexible in the sense that it can be easily converted into and from other energy forms. Mechanical energy can appear as potential energy or kinetic energy. Pressurized gas and forced spring are two variations of potential energy, whereas kinetic energy can be stored within motion of a body. Three forms of mechanical storage systems the pumped hydro storage and compressed air energy storage systems store potential energy, whereas flywheel energy storage system stores kinetic energy
• In mechanical storage, pumped hydro storage (PHS) is one of the most popular storage techniques due to its simplicity and large storage capacity in the range of 1 to 3000 MW. It is the largest electric storage with a capacity of 125 GW, which is 96% of the world’s electric storage capacity and 3% of the world’s generation capacity. PHS is a mature and robust technology with high efficiency of 76–85%, low capital cost per unit energy, long storage period, practically unlimited life cycle, and a very long life of 50 years. They are particularly used in stationary applications such as load levelling and peak shaving.
• Pumped hydro storage power plants provide for more than 95% of the world’s current electrical storage capacity. In pumped hydro storage systems, two water reservoirs at different heights are utilized to pump water during off-peak hours (charging), and as needed, water flows downstream from the top pool to the lower reservoir, driving a turbine that produces electricity (discharging). The pump hydrogen storage is an adaptation of the conventional hydroelectric power plant but working in reverse. In the conventional hydroelectric power plant, water is stored in a reservoir and is released to a turbine to convert the gravitational potential energy of the water into electrical energy.

By Application, Utilities Segment Held the Largest Share In 2023

• Energy storage systems such as batteries are needed by utilities to keep the grid stable and ensure a steady flow of electricity. These systems are able to quickly adjust to changes in supply and demand, which is essential for handling fluctuations in renewable energy. By avoiding power failures, they support the stability of grid frequency and voltage levels. Energy storage assists utilities in managing peak demand by discharging stored energy, which eliminates the need for expensive Peaker plants. This cost effectiveness not only reduces expenses but also improves grid control and decreases fees for customers.
• Integrating renewable energy involves adding solar and wind, which are variable sources, to the grid. Energy storage, such as lithium-ion batteries, plays a vital role in balancing unpredictable renewable energy generation and maximizing energy usage efficiency. Utility companies purchase low-cost electricity during off-peak hours, store it, and then sell or use it during peak times, enhancing economic efficiency through energy trading.
• Grid services such as frequency regulation, voltage control, and backup power are essential for ensuring the overall well-being of the grid. Regulatory authorities assist energy companies in integrating renewable energy and storage options, promoting investment in the industry. In times of crisis, energy storage systems offer dependable backup, enhancing the resilience of energy infrastructure. Utilities take the lead in researching and developing energy storage, working with technology partners to improve grid operations using advanced storage technologies.

Energy Storage Systems Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• The Asia Pacific region is in the early stages of a transformational energy transition that requires progressive, widespread switching from fossil fuels to variable renewable energy sources such as wind and solar power. The growth in installed and planned renewable energy generation capacity has driven developers and utilities to evaluate energy storage as a potential solution to intermittency challenges for grid operation and stability and provided investors with increasingly attractive opportunities and projects.
• The fast growth of cities and economies in countries such as China, India, and South Korea has boosted the need for dependable energy, prompting the adoption of effective energy storage systems to ensure grid stability. The area is shifting towards solar and wind energy for sustainable power sources. Energy storage systems are crucial for controlling intermittent sources and enabling efficient integration into the grid. Asian governments provide measures like policies, subsidies, and incentives to promote the adoption of renewable energy and energy storage. China is distinguished as a significant investor in battery installations, providing strong backing for the industry.
• Major battery manufacturers in Asia-Pacific, such as China, South Korea, and Japan, are leading in driving cost reduction, innovation, and technological progress in battery storage systems. Region has surge in energy storage projects, attracting significant investments. Perpetual research and development in energy storage technology and battery compositions establish the region as a top player in the industry. Countries in the Asia-Pacific region is participating in global climate initiatives by establishing ambitious targets for achieving carbon neutrality. Energy storage is essential to meet goals and encourage the use of environmentally friendly solutions.

Energy Storage Systems Market Active Players

• Tesla, Inc. (USA)
• LG Chem Ltd. (South Korea)
• Panasonic Corporation (Japan)
• BYD Company Limited (China)
• Samsung SDI Co., Ltd. (South Korea)
• Hitachi, Ltd. (Japan)
• ABB Ltd. (Switzerland)
• General Electric Company (USA)
• Siemens AG (Germany)
• AES Corporation (USA)
• Fluence Energy, LLC (USA)
• NEC Corporation (Japan)
• Saft Groupe S.A. (France)
• Eaton Corporation plc (Ireland)
• Mitsubishi Electric Corporation (Japan)
• Johnson Controls International plc (Ireland)
• Enel X (Italy)
• Ormat Technologies, Inc. (USA)
• Toshiba Corporation (Japan)
• Northvolt AB (Sweden)
• Bloom Energy Corporation (USA)
• Sunrun Inc. (USA)
• Nidec Corporation (Japan)
• Leclanché SA (Switzerland)
• Doosan Heavy Industries & Construction Co., Ltd