Grid Scale Battery Market Trends
Growth Drivers
- Rapid Urbanization and Industrial Growth Across the World – The increasing number of industries across the world with urbanization and digitalization are estimated to drive market growth in the coming years. The economic standards of many countries are rising day by day with increasing disposable income of people expected to drive the market growth as per the market analysis. The increasing migration of people from rural populations for job opportunities is rising urbanization. As per the estimations, more than 50% of the population across the world i.e., more than 4 billion people lived in the cities as of 2022.
- Growing Investments in Renewable Energy Worldwide – The investment in renewable energy technologies in the United States is estimated to reach about USD 60 billion in the year 2019.
- Declining Costs of Grid-Scale Battery Across the World – The price of lithium-ion battery cells was decreased by more than 95% in the last three decades since 1991. The price of a battery with a capacity of one kilowatt per hour was more than USD 7000 and decreased to USD 180 in the year 2018 globally.
- Rising Need for Electricity and Power Storage Plants – The residential and commercial energy demand across the world is estimated to increase by over 10% by the end of 2050.
Challenges
- High Demand-Supply Mismatch of Raw Materials for the Battery
- Challenges Faced in the Recycling of Batteries
- Side Effects Caused by using Batteries on the Population – The increasing use of batteries may cause health complications such as bronchial irritation, cough, headache, reduced mental ability, muscle cramps, numbness, itching of the skin, and burns, and are harmful to the eyes and skin. These are the side effects that are estimated to hamper the market growth in the coming years.
Grid Scale Battery 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.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
31.9% |
|
Base Year Market Size (2024) |
USD 8.61 billion |
|
Forecast Year Market Size (2037) |
USD 324.98 billion |
|
Regional Scope |
|
