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Energy Storage Market

Market Study on Energy Storage: Rising Popularity of Electric Vehicles and Shift Towards Renewable Energy Sources to Fuel Energy Storage Demand Globally!

Energy Storage Market by Type (Batteries, Pumped-Storage Hydroelectricity, Thermal Energy Storage, Flywheel Energy Storage)

Energy Storage Market Outlook (2023 to 2033)

The Global Energy Storage Market size is forecast to reach US$ 17.7 billion in 2023. Between 2023 and 2033 overall energy storage demand is set to rise at 15.8% CAGR. By the end of 2033, the worldwide market for energy storage will exceed a valuation of US$ 77 billion.

In 2022, the global energy storage industry reached a valuation of US$ 14.9 billion. Demand for energy storage equipment currently remains high in commercial & industrial applications. The target segment is forecast to thrive at about 15.6% CAGR from 2023 to 2033.

  • Ongoing renewable energy revolution is likely to boost the energy storage industry
  • Shift towards electric and hybrid vehicles will fuel energy storage demand
  • Rising popularity of lithium-ion batteries in renewable energy sector will boost sales
  • Surging demand for grid energy storage systems due to grid modernization will support market expansion
  • Increasing number of rural electrification projects to trigger sales in the global market
  • Ongoing technological advancements in energy storage systems will spur market development
  • Growing concerns regarding carbon emissions coupled with investments in sustainable energy sources will create growth prospects for the market
  • Increasing government initiatives and subsidies will foster market development
  • Rapid industrialization and urbanization will bode well for the global energy storage industry
  • Rising need for continuous energy supply is forecast to boost the global market
  • Increasing construction of pumped-storage hydroelectric dams will propel demand
  • High usage of thermal energy storage for air conditioning to generate lucrative revenues
  • Widening applications of battery energy storage systems (BESS) will stimulate market growth
  • Inclination towards using intelligent energy storage systems is likely to foster market expansion

Energy storage holds key to renewable transition. It is gaining immense traction worldwide and is believed to transform the electricity market. energy storage technologies are key for improving energy security,

Factors such as flexibility, falling prices of energy storage systems, and advances in novel technologies such as AI and predictive analytics are paving way for innovative storage business models.

The process of capturing energy produced at one time so that it can be utilized at a later time is known as energy storage. For this purpose, various systems or equipment are used.

Energy storage systems are the equipment that can store energy that can be later utilized as the need arises. These systems are widely utilized in the industrial, commercial, and residential sectors as means of power backup. Batteries or accumulators are among the most commonly used energy storage devices.

Energy storage plays a key role in meeting electricity demand worldwide. It helps utilities to reduce transmission and capacity costs. It involves converting energy from forms that are hard to store to more conveniently storable forms.

Energy storage technologies can provide both short-term energy storage and long-time storage. They can also be used for energy storage on small and large scales. For instance, for energy storage on a large scale within an electrical power grid, grid energy storage is used.

Because of the surge in energy demand across the economies, the market for energy storage is forecast to expand significantly during the assessment period.

Growing popularity of home energy storage due to rising importance of renewable energies such as photovoltaics will foster market development. Today, batteries such as Li-ion batteries and lead-acid batteries are used for home storage. Adoption of these batteries across residential sectors will create growth prospects.

Rising production and sales of electric vehicles is set to stimulate market development. This is because these electric vehicles use energy storage batteries.

Introduction of favorable government policies to promote clean energy adoption will boost the market. Various governments are putting efforts to develop and expand the renewable energy infrastructure.

For instance, in October 2021, the Government of India gave nod for the installation of 1000 MWh Battery Storage System as a pilot project.

The new project is a collaboration between the Ministry of Power and the Ministry of New and Renewable Energy. It is aimed at providing a roadmap for the installation of energy storage systems in the country.

Similarly, in 2022 to boost deployment and cut down costs of increasing long duration energy storage, Bipartisan Infrastructure Laws’ US$ 505 million initiative was launched by Biden Administration.

To accelerate deployment of energy storage technologies, recently, India and the USA launched a new task force under SCEP (Strategic Clean Energy partnership). Such initiatives and efforts will boost the global energy storage industry.

Attributes Key Insights
Energy Storage Market Estimated Value (2023) US$ 17.7 billion
Projected Market Size (2033) US$ 77 billion
Value-based CAGR (2023 to 2033) 15.8%
USA Market CAGR (2023 to 2033) 15.5%
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2018 to 2022 Energy Storage Sales Outlook Compared to Demand Forecast from 2023 to 2033

As per Persistence Market Research, the value of the energy storage market increased by around 19.8% CAGR from 2018 to 2022. Over the next ten years, the global demand for energy storage will increase at 15.8% CAGR. The worldwide market will create an absolute $ opportunity of US$ 59.3 billion during the forecast period.

Rising usage of energy storage systems in commercial, industrial, and residential applications is driving the global market. Increasing demand for energy worldwide will also play a key role in fueling energy storage demand.

Another key factor that will boost the energy storage industry is the rising adoption of electric vehicles. Various governments across the world are providing benefits such as subsidies to encourage adoption of electric vehicles.

As these electric vehicles rely on energy storage devices such as batteries, rise in their production and sales will create lucrative growth opportunities for energy storage device manufacturers.

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Which Region Holds Maximum Growth Potential for the Global Energy Storage Industry?

As per Persistence Market Research, Asia Pacific will remain the most lucrative energy storage market. Asia Pacific energy storage industry is set to reach US$ 8.9 billion in 2023. By the end of 2033, Asia Pacific market will cross a valuation of US$ 38 billion.

Asia Pacific is a prominent manufacturing hub in the world. Rapid population growth and industrialization in the region have significantly increased energy demand in recent years. This in turn is creating a conducive environment for the development of the energy storage industry.

China is a significant country in the region as it is the manufacturing hub for various industries. The rise in economic activities such as manufacturing has increased the demand for efficient power supply.

Moreover, growing investments in electrification and increasing adoption of renewable sources are likely to expand the market for energy storage in the region during the assessment period.

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Country-wise Insights:

What is the Growth Projection for the United States Energy Storage Market?

The United States of America energy storage market is set to reach US$ 13.1 billion in 2033. Between 2023 and 2033, the United States market will generate an absolute $ growth of US$ 10 billion. Total energy storage demand in the country grew at a CAGR of 16.3% from 2018 to 2022. For the next ten years, the United States of America market will exhibit a CAGR of 15.5%.

Rapid shift towards electric vehicles is a key factor driving the United States of America energy storage industry. In 2018, around 320,000 electric vehicles were sold in the United States. By the end of 2021, total electric vehicle sales reached about 550,000 units.

This increase in electric vehicle adoption is due to increased awareness of the negative effects of greenhouse gasses on the environment, as well as rising energy prices. Because electric vehicles use batteries to operate, the rapid adoption of electric vehicles will elevate demand for energy storage devices such as batteries.

Rapid transition towards renewable energy sources is another kay factor spurring energy storage demand in the United States of America. The United States government is taking various initiatives to boost the country’s renewable energy sector.

What is Driving Demand for Energy Storage in the United Kingdom?

The energy storage market in the United Kingdom is likely to reach US$ 2 billion by 2033. Total sales in the United Kingdom market grew at 14.8% CAGR between 2018 and 2022. From 2023 to 2033, energy storage demand in the country will rise at a CAGR of 14.1%.

The United Kingdom has emerged as a dominant country in terms of the adoption of electric vehicles. This is due to increasing awareness about the negative effects of fossil fuels on the environment. Similarly, increasing government incentives and initiatives are fuelling adoption of electric vehicles.

In 2018, around 60,000 electronic vehicles were sold in the country. It is predicted that the number of electric vehicles sold in 2023 will be around 680,000 units. The rapid adoption of electric vehicles in the country will elevate energy storage demand during the projection period.

Why is China Giving Tough Competition to Various Regional Energy Storage Markets?

China energy storage markets registered a CAGR of 22.1% from 2018 to 2022. For the next ten years, energy storage demand in China is forecast to rise at 17.4% CAGR. This will take total market valuation in the country to US$ 20.3 billion by 2033.

China is a prominent manufacturer of electric vehicles and is also a prominent country in terms of the number of electric vehicles sold in the world. In 2018, around 1.25 million electric vehicles were sold in China which increased to 3.5 million in the year 2021.

Growing adoption of electric vehicles in the country is due to the government’s push to become carbon-neutral by 2060. To meet this target, the government is providing various incentives to encourage the adoption of electric vehicles in the country.

With rising sales of electric vehicles, the market for energy storage in China will expand at a prolific CAGR through 2033.

Besides this, rising demand for energy storage devices from thriving residential sector will make China a dominant market for energy storage system manufacturers.

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Category-wise Insights

Which is the Most Sought-After Energy Storage Type Globally?

As per Persistence Market Research, batteries will remain the highly-sought after type. This is due to rising usage of batteries in residential, commercial, and industrial sectors. Batteries segment increased at a CAGR of 19.3% from 2018 to 2022. Over the next ten years, it will expand at 15.7% CAGR.

Batteries are essential in today's world. They are cost-effective and eco-friendly and have a wide range of uses. For instance, batteries find applications in automobiles and consumer electronics. Homeowners and businesses are focusing on using batteries for backup power and capturing excess energy.

Demand is especially rising for batteries such as lithium-ion batteries. The lithium-ion battery is a significant type of battery that is widely used in various industries. Generally, these batteries are used in electronics. However, in recent years they have been used in electric vehicles.

Rising production and sales of electric vehicles will boost growth of the target segment. In 2021, around 11.3 million electric vehicles were in use. By 2025, the number of electric vehicles worldwide is set to reach around 145 million. This robust increase in electric vehicles will elevate demand for batteries.

On the other hand, thermal energy storage, flywheel energy storage, and pumped hydroelectricity energy storage (PHES) or pumped-storage hydroelectricity (PSH) segments will also exhibit healthy growth.

Which Application Will Lucrative Growth Prospects for Energy Storage Industry?

Based on application, the global market is categorized into residential and commercial & industrial segments. Among these, commercial & industrial segment will generate the most revenue generation opportunities.

From 2018 to 2022, commercial & industrial segment expanded at a CAGR of 18.9%. For the next ten years, the target segment will rise at 15.6% CAGR. This is due to rising adoption of energy storage systems in various industrial and commercial applications.

Competitive Landscape:

Leading energy storage system manufacturers include GS Yuasa Corporation, BYD Co. Ltd, Tesla Inc., UniEnergy Technologies, LLC, Clarios, Contemporary Amperex Technology Co. Limited, AES Corporation, Voith GmbH, General Electric Company, and Sulzer Ltd.

Key players are investing heavily in research and development to develop better types of storage systems. They are also indulging in partnerships, mergers, and acquisitions to increase their market share.

Recent Developments:

  • In 2022, a majority share in Green Highland Renewables was aquired by Voith GmbH & Co. KGaA. This enhances the company’s presence in the maintenance, operation, and development of hydropower facilities, therefore expanding its footprint.
  • In 2020, Siemens Energy partnered with Energy Nest, a Norwegian technology company that supplies thermal energy storage systems. The partnership will help companies to provide standardized and modularized thermal energy storage systems to their customers.

Scope of the Report:

Attribute Details
Current Market Size (2023) US$ 17.7 billion
Projected Market Size (2033) US$ 77 billion
Anticipated Growth Rate (2023 to 2023) 15.8% CAGR
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis
  • US$ Million for Value
  • MT for Volume
Key Regions Covered
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • The Middle East & Africa
Key Countries Covered
  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Nordic
  • Russia
  • Poland
  • China
  • India
  • Thailand
  • Indonesia
  • Australia and New Zealand
  • Japan
  • GCC countries
  • North Africa
  • South Africa
  • Others
Key Segments Covered
  • Type
  • Application
  • Region
Key Companies Profiled
  • GS Yuasa Corporation
  • Contemporary Amperex Technology Co. Limited
  • BYD Co. Ltd
  • UniEnergy Technologies, LLC
  • Clarios
  • Tesla Inc.
  • AES Corporation
  • General Electric Company
  • Sulzer Ltd.
  • Voith GmbH
Report Coverage
  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • Drivers Restraints Opportunity Trends Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Global Energy Storage Market Segmentation:

By Type:

  • Batteries
  • Pumped-Storage Hydroelectricity
  • Thermal Energy Storage
  • Flywheel Energy Storage

By Application:

  • Residential
  • Commercial and Industrial

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

- Companies Covered in This Report -

  • GS Yuasa Corporation
  • Contemporary Amperex Technology Co. Limited
  • BYD Co. Ltd
  • UniEnergy Technologies, LLC
  • Clarios
  • Tesla Inc.
  • AES Corporation
  • General Electric Company
  • Sulzer Ltd.
  • Voith GmbH

- Frequently Asked Questions -

The global market reached US$ 14.9 billion in 2022.

The global energy storage market size is set to reach around US$ 17.7 billion in 2023.

By 2033, the worldwide energy storage industry will reach a valuation of US$ 77 billion.

The worldwide market for energy storage exhibited a CAGR of 19.8% from 2018 to 2022.

Global energy storage demand is set to rise at 15.8% CAGR from 2023 to 2033.

Commercial & industrial application segment will generate significant revenues through 2033.

Energy storage demand across Japan and Korea will rise at 16.1% and 16.3% CAGRs respectively.

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