The global battery energy storage system market was valued at $8.4 billion in 2021, and is projected to reach $51.7 billion by 2031, growing at a CAGR of 20.1% from 2022 to 2031.
A battery energy storage system is an electrochemical device that charges or collects energy from the grid or a power plant and then discharges that energy at a later time to provide electricity or other grid services when needed. Battery storage is an important technology that can enhance power system flexibility and enable high levels of renewable energy integration. Modern battery energy storage systems usually include a built-in inverter and computerized control systems that make them simple to install, largely maintenance-free and do not require any effort or expertise from the user. Battery energy storage systems have a wide range of applications for both commercial and residential purposes. Commercial applications include peak shaving, load shifting, emergency backup, and various grid services. Residential applications include self-consumption, off-grid homes and emergency backup.
The battery energy storage system market is segmented into Battery Type, Connection type and Application.
By battery type, the market is divided into lithium ion, lead acid, flow batteries and others. The lithium ion segment was the highest revenue contributor to the market.
The connection type segment is bifurcated on grid and off grid. The on grid segment was the highest revenue contributor to the market.
By application, the market is analyzed across front of the meter and behind the meter. The behind the meter segment was the highest revenue contributor to the market.
Region wise, the measurement and testing market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, Russia, Netherlands, Belgium, Poland, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Malaysia, Thailand, Philippines, Indonesia, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
The battery energy storage system market size is expected to witness notable growth during the forecast period, owing to the rise in demand for grid energy storage systems for ongoing grid modernization, and rapid penetration of lithium-ion batteries in renewable energy sector. Moreover, rise in trend of adopting low-carbon and less fossil fuel-based economy and ongoing renewable energy revolution are expected to fuel the growth of the battery energy storage system industry.
However, high capital expenditure required for installing battery energy storage systems is restraining the market growth. On the contrary, rapid increase in number of rural electrification projects worldwide, surge in need for continuous power supply attributed to rise in number of data centers and decline in prices of lithium-ion batteries are expected to create huge opportunities for the adoption of battery energy storage system in near future.
Significant factors that impact the growth of battery energy storage system market share include increasing demand for grid energy storage systems owing to ongoing grid modernization. Moreover, rapid shift toward low carbon energy generation is expected to drive the market opportunity. However, high capital expenditure required for installing battery energy storage systems might hamper the growth of the market. On the contrary, surge in number of rural electrification projects worldwide is offering potential opportunity for the battery energy storage system market growth during the forecast period.
The key players profiled in this report include as EnerSys, BYD Company Limited, EVE Energy Co., Ltd., Siemens AG, LG Energy Solutions Co., Ltd., Kokam, Narada Asia Pacific Pte. Ltd., ABB Ltd., Tesla, Fluence Energy, Inc., General Electric, TotalEnergies, Tata Power Company Limited, Samsung SDI Co., Ltd., Nissan Motor Co., Ltd., VRB Energy and Black & Veatch Holding Company. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaborations to enhance their market penetration.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the battery energy storage system market analysis from 2021 to 2031 to identify the prevailing battery energy storage system market opportunity.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the battery energy storage system market overview assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global battery energy storage system market trends, key players, market segments, application areas, battery energy storage system market forecast and market growth strategies.
Battery Energy Storage System Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 51.7 billion |
 Growth Rate | CAGR of 20.1% |
 Forecast period | 2021 - 2031 |
 Report Pages | 344 |
 By Battery Type |
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 By Connection type |
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 By Application |
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 By Region |
|
 Key Market Players | Tesla, Enersys, Kokam, Siemens Energy, NARADA ASIA PACIFIC PTE. LTD., LG Energy Solutions Co., Ltd., TATA POWER COMPANY LIMITED, SAMSUNG SDI Co., Ltd., GE, Fluence Corporation, NISSAN MOTOR CO., LTD., Black & Veatch Holding Company, byd company limited, EVE Energy Co., Ltd., ABB, TOTALENERGIES, VRB Energy |
Analyst Review
The battery energy storage system industry has enormous development potential across industrial, commercial and residential sectors. Furthermore, the contribution to the market is predicted to grow considerably in coming years. In addition, rise in demand for low carbon energy generation across the industrial and commercial sectors is projected to drive the growth of the measurement and test market in the coming years.
The battery energy storage system market are highly competitive, owing to strong presence of existing vendors. Battery energy storage system vendors, are investing substantially in R&D and skilled workforce, are anticipated to gain a competitive edge over their rivals. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
Surge in demand for battery energy storage systems in rural areas around the world for reliable energy supply is driving the need for enhanced measurement and test equipment. Moreover, major economies, such as the U.S., China, the UK, and Japan plan to develop and deploy advanced battery energy storage systems across various sectors.
The key players profiled in the report include battery energy storage system market players, such as EnerSys, BYD Company Limited, EVE Energy Co., Ltd., Siemens AG, LG Energy Solutions Co., Ltd., Kokam, Narada Asia Pacific Pte. Ltd., ABB Ltd., Tesla, Fluence Energy, Inc., General Electric, TotalEnergies, Tata Power Company Limited, Samsung SDI Co., Ltd., Nissan Motor Co., Ltd., VRB Energy and Black & Veatch Holding Company.
The major application of Battery Energy Storage System is in the industrial sector.
Asia-Pacific region is expected to be the largest regional market for Battery Energy Storage System.
The market size of Battery Energy Storage System Market is estimated to be $8,360.0 million in 2021.
The top companies to hold the market share in Battery Energy Storage System are ABB Ltd., Tesla, Fluence Energy, Inc., General Electric, Tata Power Company Limited and others.
The Battery Energy Storage System Market is expected to grow at a CAGR of 20.08% during the forecast period.
The Battery Energy Storage System Market is expected to grow at a CAGR of 20.08% during the forecast period.
The top companies to hold the market share in Battery Energy Storage System are ABB Ltd., Tesla, Fluence Energy, Inc., General Electric, Tata Power Company Limited and others.
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