Global Battery Energy Storage System Market Thriving: Growing at a CAGR of 27.7% by 2027

Published | 30 September 2021

Global battery energy storage system market is growing at a high CAGR because of the increasing installation of solar power in the public and private spaces and growing demand for consistent voltage and constant power supply in various industries, such as telecom, data centers, oil and gas, etc.

A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global battery energy storage system market was worth USD 3.34 billion in 2020. The report estimates that the market will grow at a CAGR of 27.7%, with revenue of around USD 17.25 billion by 2027. Global battery energy storage system market growth is accelerating due to the increasing use of solar energy in the public and private sectors and the growing demand for reliable power supply and voltage in various industries such as telecom, data centers, and oil & gas. Furthermore, the increasing shift towards renewable energy sources because of the increasing hydroelectricity bill and rising awareness towards the carbon footprints is also contributing to the growth of the global battery energy storage system market. However, the high initial costs associated with installing solar panels and energy storage systems may act as a major impediment to market growth. However, the market is working hard to overcome this setback by offering low-cost lithium-ion batteries.

Growing Consumer-Owned Storage Systems Deriving the Global Battery Energy Storage System Market

The global battery energy storage system market is segmented into customer-owned, third-party-owned, and utility-owned based on ownership. The customer-owned segment accounts for the largest market share because of the increasing adoption of solar power in residential spaces in various countries. People are increasingly adopting solar power to cut their electricity bills. This trend has gained huge popularity, especially in emerging economies in India, which is likely to fuel the global battery energy storage system in the forecast period. The third-party-owned segment also covers a substantial share of the market. The increasing third-party power suppliers drive the growth of this segment in various regions.

Increasing Demand for BESS System in Residential Application Is Projected to Boost the Global Battery Energy Storage System Market

Based on applications, the global battery energy storage system market is segmented into residential, commercial, and utility segment. Among these, the utility segment accounts for the largest market share because of the growing demand for constant and consistent power supply in various industries. Battery energy storage systems are also fueling the growth of green power plants installed in public and commercial buildings because of their cost-effectiveness. However, the residential segment is projected to witness the highest CAGR during the forecast period with the increasing awareness towards efficient and renewable power supply and increasing cost of hydroelectricity.

The Battery Segment is Favoring the Growth of the Global Battery Energy Storage System Market

Based on elements, the global battery energy storage system market is segmented into the battery and other elements. The battery segment accounts for the largest market share as they are the primary source of power storage. However, demand for other elements is also prominent in the market. Other elements include certain hardware, such as monitoring and control systems and power conversion systems. The demand for this hardware is increasing at a high rate as they are used for better management of the batteries as battery management systems are crucial for preventing cells from overcharging.

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Global Battery Energy Storage System Market - Regional Insights

Geographically, the global battery energy storage system market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region dominates the market. However, North America and Europe also cover substantial shares in the market. The market is fueled by the expanding investment towards R&D activities in battery energy storage systems and the launch of cost-effective batteries and solar panels. Furthermore, high awareness regarding the significance of renewable resources is also driving the market growth in these regions.

Impact of COVID-19 on Global Battery Energy Storage System Market

The global battery energy storage systems market was severely hit by the sudden outbreak of the COVID-19 pandemic. The demand and adoption of these systems were halted with the lockdown imposed in various regions. The manufacturing and distribution of batteries were restrictive, due to which the market incurred severe losses during the COVID-19 period. However, the market is expected to recover in the post-COVID-19 period although it may take some time. The increasing awareness towards sustainable development which caught a pace during the COVID-19 period is expected to drive market growth.

Competitive Landscape

The leading players in the global battery energy storage system market are BYD Company Limited, Cellcube Energy Storage System Inc, Panasonic Corporation, Samsung SDI Co Ltd, LG Chem Ltd, Tesla Inc., Contemporary Amperex Technology Co. Limited, Panasonic Corporation, Sony Corp., ABB, Hoppecke Batteries Inc., Exide Technologies, General Electric, Enersys, AES Energy Storage, Hitachi, Mitsubishi, and other prominent players.

The market is highly fragmented and yet concentrated with the presence of leading industry giants such as Mitsubishi, Hitachi, Exide, etc. The market players are significantly investing in R&D activities to improve battery storage capacity. They are also significantly working on increasing their product penetration in the regional market with developed nations in focus. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., is also very prominent in this market.

Don’t miss the business opportunity of the global battery energy storage system market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global battery energy storage system market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global battery energy storage system market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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