Energy Storage Market

The global energy storage system market was valued at USD 20,138.31 million in 2021 and is expected to reach a value of USD 153,663.41 million by 2030 with a CAGR of 25.46%. In terms of volume, the global market was sized at 27.05 GW in 2021 and is projected to reach 167.49 GW at a CAGR of 22.71% during the review period. The growth of the global energy storage system market is primarily driven by increasing demand for grid energy storage systems owing to ongoing grid modernization, the technological advancements in the energy storage systems and the rapid scale-up of energy storage is critical to meet flexibility needs in a decarbonized electricity system.

Grid modernization is the process of increasing the efficiency and resilience of the electricity infrastructure. It comprises a lot of changes, such as the inclusion of new technologies, new forms of power generation and distribution, the installation of smart meters, grid infrastructure upgrades, the incorporation of renewable energy sources, and others. Low-cost energy storage solutions will provide the flexibility necessary by the electric grid to react to changing and expanding electricity needs, ensuring that electricity is available when and where it is needed. As a result of continuing grid modernization, increased demand for grid energy storage systems may boost market expansion. Also, the technological advancements in the energy storage systems might drive the growth in the energy storage system market in the forecast period. Furthermore, the rapid scale-up of energy storage is critical to meet flexibility needs in a decarbonized electricity system might propel the growth in the global energy storage system market.

Additionally, the installation of battery energy storage systems in a factory or any other essential location necessitates large capital investments, limiting market growth in the forecast period. And the various governments supporting storage deployment through targets, subsidies, regulatory reforms and R&D support and the surge in rural electrification projects worldwide might boost the growth in the energy storage systems in the forecast period.

As per Wantstats analysis, the global energy storage system market has been segmented based on technology, application, end-user, and region. Based on technology, the global market has been divided into pumped hydro storage, battery energy storage, compressed air energy storage, and flywheel energy storage. The pumped hydro storage segment dominated the global market, accounting for 86.96% of the share in 2021. It was followed by the battery energy storage segment estimated to reach USD 15,208.87 million by 2030 growing at a CAGR of 26.81%.

Based on application, the global market has been divided into stationary, and transportation. The transportation segment dominated the global market, accounting for 69.48% of the share in 2021. It was followed by the stationary segment estimated to reach USD 45,129.96 million by 2030 growing at a CAGR of 24.92%.

Based on end-user, the global market has been segmented into residential, non-residential, and utilities. The utilities segment accounted for 46.60% of the global market share in 2021 and is projected to register a CAGR of 25.65% during the forecast period. It was followed by the residential segment estimated to reach USD 69,332.68 million by 2030 growing at a CAGR of 25.65%.

The Asia Pacific market held a share of 39.35% of the global market owing to the easy availability of raw materials as well as increasing demand from the end-users such as utilities, and residential. North America accounted for the second largest with a market share of 29.32% and valued at USD 5,903.61 million the growth is attributed to the growing grid modernization activities in US.