Battery energy storage system market is expected to grow at a significant CAGR between 2018 and 2023
The battery energy storage system market is expected to grow from USD 1.98 billion in 2018 to reach USD 8.54 billion by 2023, at a CAGR of 33.9% between 2018 and 2023. The major drivers for the growth of the market include the increasing demand for gridconnected solutions, high demand for the lithiumion technology in the renewable energy industry, and declining prices of lithiumion batteries. However, the factors such as the installation of battery energy storage systems in remote locations pose a challenge for the players in the market.
Market for flow batteries is expected to grow at the highest CAGR between 2018 and 2023
The battery energy storage system market for flow batteries is expected to grow at the highest CAGR between 2018 and 2023. The redox, hybrid, and membraneless batteries are the different classes of flow batteries. A new generation of redox i.e., reductionoxidation flow batteries in battery energy storage system are much better suited for medium and largescale applications where heavy use, longterm cycling, durability, and safety are paramount. These factors contribute to the growth of the battery energy storage system market for flow batteries.
Market for customerowned battery energy storage systems is expected to grow at the highest CAGR between 2018 and 2023
The customerowned battery energy storage system help reduce the electricity cost, as used electricity is charged under the timeofuse TOU tariff. There are 3 periods for TOU pricing: peak, shoulder, and offpeak. Commonly, prices are highest in peak times and lowest in offpeak times. Through the adoption of battery energy storage systems, the customers can easily reduce their energy spendings electricity cost and annual investment cost under the TOU tariff. Battery energy storage systems also help solve the overvoltage issues by controlling the fluctuation of voltage and frequency.
North America to hold the largest share of the global battery energy storage system market during the forecast period
North America is expected to hold the largest share of the battery energy storage system market between 2018 and 2023. The growth of the North American market is attributed to high demand for these systems from the utility and residential sectors in this region. The increasing number of projects related to utility and residential applications in North America is further expected to drive the market in the coming years. Few nonprofit organizations organize various conferences and exhibitions to support the implementation of battery energy storage systems. For instance, ees North America and Intersolar North America support the battery energy storage system market by providing solutions through exhibitions and international conferences. The US and Canada are the chief contributors to the growth of the battery energy storage system market in North America.
Breakdown of the profiles of primary participants for the report has been given below:
By Company Type: Tier 1 = 46%, Tier 2 = 31%, and Tier 3 = 23%
By Designation: CLevel Executives = 42%, Directors = 37%, and Others = 21%
By Region: North America = 49%, Europe= 24%, APAC = 21%, and RoW = 6%
The key players operating in the battery energy storage system market are ABB Switzerland, LG Chem South Korea, NEC Japan, Panasonic Japan, Samsung SDI South Korea, AEG Power Solutions Netherlands, General Electric US, Hitachi Japan, Siemens Germany, and Tesla US.
Research Coverage
The research report analyzes the battery energy storage system market on the basis of element, battery type, ownership, connection type, application, and geography. Based on element, the battery energy storage system market has been classified into battery, hardware, and other elements. The market has been segmented on the basis of battery type into lithiumion batteries, advanced leadacid batteries, flow batteries, sodiumsulfur batteries, and others. Based on connection type, the market has been segmented into ongrid connection and offgrid connection. Based on ownership, the battery energy storage system market has been classified into customer owned, utility owned, and thirdparty owned systems. Based on application, the battery energy storage system market has been classified into residential, nonresidential, utilities, and other applications. The report covers the market segmented into 4 major regionsNorth America, Europe, APAC, and RoW.
Key Benefits of Buying the Report:
Illustrative segmentation, analysis, and forecast of the market based on element, battery type, ownership, connection type, application, and geography have been conducted to give an overall view of the battery energy storage system market.
Major drivers, restraints, opportunities, and challenges pertaining to the battery energy storage system market have been detailed in this report.
The report includes a detailed competitive landscape, along with the profiles of key market players.