Battery Energy Storage Market Trends
Growth Drivers
- Reduced Emissions - Battery energy storage systems contribute to reduced greenhouse gas emissions by enabling greater integration of renewable energy sources and reducing the need for fossil fuel-based peaking power plants. To meet the goal of reducing greenhouse gas emissions by 55% by 2030, batteries are the fastest-growing storage technology.
- Government Policies - Many governments around the world are implementing policies and incentives to promote the transition to clean energy sources and reduce greenhouse gas emissions. Battery energy storage is often a key component of these initiatives, further driving market growth
- Technological Advancements- The developments in battery technology are leading to improvements in energy density, cycle life, security, and cost-effectiveness. As batteries become more efficient and affordable, adopting energy storage systems is likely to accelerate the market for battery energy storage. In research conducted by our analysts, over the next five years, capacity for energy storage worldwide is expected to grow by 55 % and reach 260 GW in 2026.
Challenges
- High Cost of Integration -Battery energy storage systems can be expensive to install, with the cost of batteries being a significant portion of the overall system cost. While costs have been decreasing over the years, further reductions are needed to make these systems more economically viable, especially for large-scale applications
- Limited Energy Density
- Lack of Standardization
Battery Energy Storage Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years. CLICK TO DOWNLOAD SAMPLE REPORT
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
12.2% |
|
Base Year Market Size (2024) |
USD 20.36 billion |
|
Forecast Year Market Size (2037) |
USD 83.36 billion |
|
Regional Scope |
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