The "Global Battery Energy Storage System Market with COVID-19 Impact Analysis by Element (Battery, Others), Battery Type (Lithium-Ion, Flow Batteries), Connection Type (On-Grid, Off-Grid), Ownership, Energy Capacity, Application, and Geography - Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The global battery energy storage system market size is expected to grow at a CAGR of 32.8% from 2020 to 2025, reaching USD 12.1 billion by 2025 from USD 2.9 billion in 2020.
Lithium-ion energy storage systems allow increased energy storage, thereby enabling low-cost wind and solar energy to enter grids. This, in turn, reduces the carbon dioxide emissions and lowers the overall power costs. Various players in the market are working toward improving the performance of lithium-ion batteries that makes them an attractive option for stationary energy storage applications. Cells or batteries embedded in battery energy storage systems play an important role in deciding the service life of these systems. LG Chem (South Korea), Panasonic (Japan), and Samsung SDI (South Korea) are some companies providing lithium-ion batteries and using them in their battery energy storage systems. The declining price of lithium-ion batteries is anticipated to act as an opportunity for energy storage system providers. This, in turn, is expected to contribute to the production of battery energy storage systems enabled with lithium-ion batteries.
Battery energy storage system market to be driven by on-grid connection system during the forecast period
The on-grid connection type segment is expected to hold a significant share of the battery energy storage system industry during the forecast period. The on-grid connections exhibit lower upfront costs than the off-grid system, as the surplus energy is sent to the grid, which can be used later on a meter basis. The reduction in the energy bills for the customers relying on the utility grid for electricity is expected to drive the growth of the segment. The demand for grid modernization from renewable energies suppliers and new regulatory policies for the energy sector are driving the growth of the on-grid battery energy storage system market for utilities.
Utility-owned segment to grow at significant CAGR during the forecast period
The ability of the utility-owned battery energy storage systems to manage large energy requirements during peak hours is increasing their adoption. The customers of utility-owned battery energy storage systems need to pay monthly fees based on the power usage. The utility-owned energy storage companies invest in energy storage to overcome the high cost of electrical T&D by fulfilling the growing demand for electricity. According to the Energy Storage Association, in the US, the utility based-battery storage installed capacity grew by 221 MW in 2016. This shows the high dependence of the customers on the utility-owned battery storage systems for their energy requirements.
Battery energy storage system market in APAC to witness the highest growth rate in the coming years
The battery energy storage system industry in APAC is expected to grow at the highest CAGR from 2020 to 2025. The governments of various countries in this region focus on minimizing the adverse effects of the energy sector on the environment. These factors lead to the growth in the deployment of battery energy storage systems in residential and public utility applications. Some of the major battery energy storage system manufacturers based in APAC are Samsung SDI, LG Chem, Hitachi, Toshiba, TrinaBESS, NGK INSULATORS, LTD., Delta Electronics, Inc., Panasonic, and NEC Corporation.
Surging Requirement of Continuous Power Supply from Critical Infrastructures in Wake of COVID-19
Increasing Demand for Grid Energy Storage Systems Owing to Ongoing Grid Modernization
Growing Adoption of Lithium-Ion Batteries in Renewable Energy Sector Owing to Their Low Costs and Improved Performance
Prevailing Trend of Adopting Low-Carbon and Less Fossil Fuel-Based Economy and Ongoing Renewable Energy Revolution
High Capital Expenditure Required for Installation of Battery Energy Storage Systems
Surge in Number of Rural Electrification Projects Worldwide
Requirement of Continuous Power Supply in Datacenters
Ongoing Disruptions in Supply Chain of Energy Generation Industry and Delay in ESS Projects Caused by COVID-19
Increasing Complexity in Terms of Installation of Battery Energy Storage Systems at Islands or in Remote Areas
Overheating and Aging of Lithium-Ion Batteries
AEG Power Solutions
Delta Electronics, Inc.
East Penn Manufacturing Company
NGK Insulators, Ltd.
The AES Corporation
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