Grid Scale Stationary Battery Storage Market Trends

Growth Drivers

• Rising Carbon Footprint Across the World – In the recent period, governments of different nations and regulatory bodies have been focusing on the adoption of energy-efficient technologies. Moreover, there has been a rising focus on achieving net-zero targets. Such initiatives and programs to curb the carbon footprint in the world are anticipated to bolster the installation of grid-scale battery energy storage systems since these systems are beneficial in accommodating high renewable energy share and further contribute to grid stability. As per the data released by the International Energy Agency (IEA), it has been stated that the global carbon dioxide (CO2) emission from energy combustion and industrial processes rose to 0.9% or 321 Mt in 2022 to a new all-time high of 36.8 Gt.
• Escalation in Need for Power Generation – Grid-scale stationary battery storage can bridge the demand and supply of power generation in the world. The energy stored in the grid-scale stationary battery storages could be used to supply an uninterrupted supply of power for a broad range of users and applications in numerous industries. This factor is estimated to drive the market expansion in the upcoming years. For instance, it has been forecasted that rising commercial activity and the growing global economy are projected to boost energy demand by approximately 15%. Moreover, with the development of the middle-class community in developing countries, the energy demand is expected to increase by around 35%.
• Rise in Research Spending – Growth in the global grid scale stationary battery storage market during the forecast period could be further attributed to increased investment in research and development activities to continuously find more viable solutions for the distributed control system which includes grid-scale stationary battery storage. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in 2019.
• Penetration of Smart Cities Across the World - Revenue generated from the smart cities projects, technologies, products, and services generated by startups was estimated to be about USD 40 billion in the year 2021. This number is further estimated to grow and reach approximately USD 100 billion by 2025.
• Increasing Demand for Renewable Energy Sources - According to the International Renewable Energy Agency, the most capacity expansion of any renewable energy source happened in 2020 when new solar PV capacity increased by almost 125 GW globally.

Challenges

• Increasing Awareness about Environmental Hazards – In spite of favorable market growth opportunities, the high utilization of lead-acid batteries is associated with potential environmental hazards. Moreover, the improper disposal of a single battery generates large tons of solid waste. Solid waste can have a worse environmental impact if not treated properly. Therefore, the negative impact on the environment is estimated to hamper the development of grid-scale stationary battery storages and subsequently pose a challenge to market growth during the forecast period.
• Requirement of Higher Initial Investment
• Rising Stringent Government Rules and Regulations