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2023

Lithium-Ion Battery Energy Storage System Market

Lithium-Ion Battery Energy Storage System Market Size, Share, Competitive Landscape and Trend Analysis Report by Connection Type, by Application : Global Opportunity Analysis and Industry Forecast, 2021-2031

SE : Electronic Systems and Devices

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Author's: Vaishnavi Shyamsundar Mate | Sonia Mutreja
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Global Lithium-Ion Battery Energy Storage System Market Research, 2031

The Global Lithium-ion Battery Energy Storage System Market was valued at $4.5 billion in 2021, and is projected to reach $17.1 billion by 2031, growing at a CAGR of 15% from 2022 to 2031.

A lithium-ion 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 later 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.

Global Lithium-Ion Battery Energy Storage System Market

Modern lithium-ion 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 end-users for both commercial and residential purposes. Commercial end-users include peak shaving, load shifting, emergency backup, and various grid services. Residential end-users include self-consumption, off-grid homes, and emergency backup.

The key lithium-ion battery energy storage system market leaders profiled in the report include Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd. These key players adopt several strategies such as new product launch and development, acquisition, partnership and collaboration and business expansion to increase the lithium-ion battery energy storage system market share during the forecast period.

Segment Overview

The global lithium-ion battery energy storage system market outlook is segmented into Connection Type and Application.

Lithium-Ion Battery Energy Storage System Market by Connection Type

By connection type, the market is classified into on grid and off grid connection.The lithium-ion battery energy storage system market trends 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, rapid penetration of lithium-ion batteries in renewable energy sector.

Lithium-Ion Battery Energy Storage System Market by Application

By application, it is divided into industrial, commercial, and residential.Moreover, the 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 lithium-ion battery energy storage system industry. However, the high capital expenditure required for installing lithium-ion battery energy storage systems is restraining the market growth. On the contrary, factors such as rapid increase in number of rural electrification projects worldwide, surge in need for continuous power supply especially for the growing number of data centers and decline in prices of lithium-ion batteries are expected to create huge opportunities for the adoption of lithium-ion battery energy storage system in near future.  

Lithium-Ion Battery Energy Storage System Market by Region

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries.   

Country-wise, the U.S. acquired a prime share in the lithium-ion battery energy storage system market in the North American region and is expected to grow at a significant CAGR during the forecast period of 2022-2031. The U.S., holds a dominant position in the lithium-ion battery energy storage system market, owing to the rise in investment by prime vendors to boost the lithium-ion battery energy storage system for consumer electronics and IT & telecom applications. 

In Europe, the UK, dominated the lithium-ion battery energy storage system market, in terms of revenue, in 2021 and is expected to follow the same trend during the forecast period. However, Germany is expected to emerge as the fastest-growing country in Europe's lithium-ion battery energy storage system with a notable CAGR, due to advancement in the automotive industry which drives the usage of microelectronics in the country and thus creates lucrative growth opportunities for the lithium-ion battery energy storage system market in Germany.  

In Asia-Pacific, China is expected to emerge as a significant market for the lithium-ion battery energy storage system industry, owing to new product developments and a significant rise in investment by prime players and government institutions. The well-established electronics industry in the Asia-Pacific region and the adoption of innovative technologies have given organizations in the region a competitive edge in the market.   

In the LAMEA region, the Middle East countries garner significant market share in 2021 due to the adoption of new technologies, digital transformation and connectivity are reshaping the future of the automotive and consumer electronics industry in the Middle East. Moreover, the Latin America region is expected to grow at a significant CAGR from 2022 to 2031, owing to shifts in artificial intelligence, industry 4.0, and smart technological changes in recent years, which is expected to reshape the growth of the lithium-ion battery energy storage system in the Latin America region. 

Top Impacting Factors

Significant factors impacting the growth of the lithium-ion battery energy storage system market include a rise in demand for lithium-ion batteries in lithium-ion battery energy storage system and increase in demand for grid energy storage systems owing to ongoing grid modernization. However, the high capital expenditure required for installing lithium-ion battery energy storage systems may hamper market growth. Furthermore, the surge in the number of rural electrification projects worldwide provides lucrative opportunities for market growth.   

Competitive Analysis

Competitive analysis and profiles of the major global lithium-ion battery energy storage system market players that have been provided in the report include Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd. The global lithium-ion battery energy storage system market is highly competitive, owing to the strong presence of existing vendors. Vendors of the lithium-ion battery energy storage system market with extensive technical and financial resources are expected to gain a competitive advantage over their competitors because they can cater to market demands. The competitive environment in this market is expected to increase as technological innovations, product extensions, and different strategies adopted by key vendors increase.  

Key Developments/ Strategies

Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd. are the key players of the lithium-ion battery energy storage system market. Top market players have adopted various strategies, such as acquisition, agreement, business development, business expansion, collaboration, product launch, innovation, and product expansion to expand their foothold in the lithium-ion battery energy storage system market. 

  • In February 2022, LG Energy Solution acquired NEC Energy Solutions; a grid battery integrator based in the U.S. to expand its Energy Storage System (ESS) business offerings. The battery manufacturer has fully acquired shares of NEC Energy Solutions from its parent, NEC Corporation (NEC; TSE:6701), headquartered in Japan. With the deal, LGES will establish a corporation under a new name, LG Energy Solution Vertech. Inc.  
  • In November 2021, Hitachi Energy launched improved and new versions of its power store battery energy storage system (BESS) products, alongside other new and updated products and services in its grid edge solutions portfolio. 
  • In October 2021, Honeywell launched a new flow battery technology that works with renewable generation sources such as wind and solar to meet the demand for sustainable energy storage. The new flow battery uses a safe and non-flammable electrolyte that converts chemical energy to electricity in order to store energy for later use while meeting the environmental, longevity, and safety objectives of utilities.  

Key Benefits For Stakeholders

  • This study comprises analytical depiction of the lithium-ion battery energy storage system market size along with the current trends and future estimations to depict the imminent investment pockets. 
  • The overall lithium-ion battery energy storage system market analysis is determined to understand the profitable trends to gain a stronger foothold. 
  • The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis. 
  • The lithium-ion battery energy storage system market forecast is quantitatively analyzed from 2022 to 2031 to benchmark the financial competency. 
  • The Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the lithium-ion battery energy storage system market
  • The report includes the share of key vendors and market trends.

Lithium-Ion Battery Energy Storage System Market Report Highlights

Aspects Details
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Market Size By 2031

USD 17.1 billion

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Growth Rate

CAGR of 15%

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Forecast period

2021 - 2031

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Report Pages

324

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By Connection Type
  • On-grid
  • Off-grid
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By Application
  • Industrial
  • Residential
  • Commercial
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin Amercia, Middle East, Africa)
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Key Market Players

Jakson Group, Panasonic Corporation, Honeywell International Inc., Toshiba Corporation, ABB Ltd., Hitachi Ltd., Samsung Electronics Co Ltd, LG Electronics Inc., Siemens AG, Parker Hannifin Corporation

Analyst Review

The lithium-ion battery energy storage system market is expected to leverage high potential for the on-grid and off-grid battery energy storage system during the forecast period. Owing to the strong presence of existing vendors. Battery energy storage system vendors, 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 an increase in technological innovations, product extensions, and different strategies adopted by key vendors.  

The 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.   

Key lithium-ion battery energy storage system market leaders profiled in the report include Toshiba Corporation, Parker Hannifin Corporation, Jakson Group, Siemens AG, Hitachi Ltd., Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, Panasonic Corporation, and ABB Ltd.   

Author Name(s) : Vaishnavi Shyamsundar Mate | Sonia Mutreja
Frequently Asked Questions?

Asia-Pacific is the largest regional market for global lithium-ion battery energy storage system.

Industrial generated the largest revenue in 2021 during the forecast period.

The key trends lithium-ion battery energy storage system include increase in demand for renewable energy sources along with rise in concerns among the governments of several nations about the adverse effects climate change and a rapid shift toward low carbon energy generation.

The lithium-ion battery energy storage system market was valued at $4,468.30 million in 2021.

Toshiba Corporation, Jakson Group, Siemens AG, Honeywell International Inc., LG Electronics Inc., Samsung Electronics Co Ltd, and Panasonic Corporation are the top companies to hold the market share in global lithium-ion battery energy storage system market.

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Lithium-Ion Battery Energy Storage System Market

Global Opportunity Analysis and Industry Forecast, 2021-2031