Distributed Energy Storage System Market Size

Distributed Energy Storage System Market size was valued at USD 5.45 Billion in 2023 and is anticipated to cross USD 16.5 Billion by the end of 2036, expanding at more than 8.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of distributed energy storage system is estimated at USD 5.89 Billion. The growth of the market can be attributed to the increasing demand for electricity throughout the world, coupled with the integration of advanced technologies with energy storage. According to the data from the International Energy Agency (IEA), the global electricity demand was estimated to increase by over 1,000 TWh in 2021. Further, increasing implementation of battery energy storage across the energy distribution infrastructure is also forecasted to assist the market growth over the projected time frame.

In addition to these, factors that are believed to fuel the market growth of distributed energy storage systems include the radically proliferating need for transportation of stored energy, backed by the growing import and export of various forms of energy across the globe, is also anticipated to drive the market growth during the forecast period. A report by the IEA stated that North America imported 76,293 GWh of electricity in 2019, while Europe imported 459,952 GWh of electricity and the Asia Pacific region imported 77,868 GWh of electricity in the same year. Additionally, the rapidly rising ratio of industrialization throughout the world is also predicted to present the potential for market expansion over the projected period.