Distributed Energy Storage System Market Analysis

Application (Transportation, Grid Storage, Renewable Energy Storage)

The global distributed energy storage system market is segmented and analyzed for demand and supply by application into transportation, grid storage, renewable energy storage, and others. Out of these four types of segments, the transportation segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the massive surge in the adoption of electric mobility in the form of e-bikes, cars, and so on throughout the world, along with the rising spending for eco-friendly vehicles. Based on the International Energy Agency's Global EV Outlook 2020 report, 2.1 million electric cars were sold worldwide in 2019. In addition to this, the government's venture to encourage the adoption of EVs to save the environment by lowering vehicle pollution levels is creating a huge demand for batteries, particularly lithium-ion batteries, which have a high energy density, high storage capabilities, an increased life cycle, low maintenance, and cost-effectiveness. This, in turn, has a beneficial impact on the demand for distributed energy storage technology for transportation, thus propelling the segment growth further throughout the forecast period.

Battery (Nickel-Cadmium, Lead Acid, Lithium-Ion)

The global distributed energy storage system market is also segmented and analyzed for demand and supply by the battery into nickel-cadmium, lead acid, lithium-ion, and others. The lithium-ion segment is expected to garner a significant share among these four segments. Several advantages associated with lithium-ion batteries such as high charging level, extreme power density, high voltage, and so on are propelling the demand for these batteries. Moreover, lithium-ion batteries are highly utilized in electric vehicles as their high energy efficiency is also a major factor that is anticipated to spur segment growth in the coming years. For instance, globally around USD 47,140 million in revenue was generated by lithium-ion battery sales in 2021, and that amount is expected to further increase to nearly USD 167,848 million by 2030. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.

Our in-depth analysis of the global market includes the following segments: