Report Overview

Increasing integration of renewable energy, government initiatives promoting the deployment of energy storage systems, a spurring demand for reliable power supply in remote areas, growth in the adoption of EVs, and the need for grid stability and peak demand management are propelling the growth of India Battery Energy Storage Systems (BEES) Market during the forecast period between 2023 and 2029.

India Battery Energy Storage Systems (BESS) Market – Trends & Forecast Report, 2029

The India battery energy storage systems (BESS) market size is expected to grow at a CAGR of 11.05% during the forecast period between 2023 and 2029. The India battery energy storage systems (BESS) market is witnessing significant growth and evolving trends. The increasing demand for renewable energy integration, grid stability, and power quality improvement is driving the adoption of BESS in India. The government's emphasis on clean energy, coupled with supportive policies and incentives, is fostering market growth. The integration of battery storage with solar and wind projects is gaining traction, enabling better utilization of renewable energy and addressing intermittency issues. Also, the rise of electric vehicles is creating opportunities for BESS deployment in charging infrastructure and vehicle-to-grid applications. Overall, the India battery energy storage systems (BESS) market is poised for substantial expansion during the forecast period.

India Battery Energy Storage Systems (BESS) Market - Overview

Battery Energy Storage Systems (BESS) are advanced electrical systems that store electrical energy in rechargeable batteries for later use. These systems play a crucial role in managing the fluctuating supply and demand of electricity in power grids. BESS can store excess electricity during periods of low demand or high renewable energy generation and release it when demand exceeds supply or renewable generation is low. They are capable of rapidly responding to changes in the grid, providing frequency regulation and grid stability services. Battery Energy Storage Systems are versatile, scalable, and environmentally friendly solutions that help optimize the integration of renewable energy sources and enhance grid reliability and resilience.

Growth Drivers

Booming Renewable Energy Sector Fueling Growth of India BESS Market

In India, the growing focus on renewable energy sources has emerged as a significant growth driver for the battery energy storage systems (BESS) market. With the government's ambitious plans to increase the share of renewables in the energy mix, there is a pressing need for efficient energy storage solutions. BESSs play a crucial role in stabilizing the intermittent nature of renewable energy sources like solar and wind power. These systems ensure a consistent and reliable power supply, enabling grid stability and reducing reliance on fossil fuels. The increasing adoption of BESS in India is driven by the nation's commitment to sustainable energy practices and its desire to achieve energy security and reduce greenhouse gas emissions.

Restraints

Policy Roadblocks May Impede Growth of India BESS Market

India battery energy storage systems (BESS) market faces significant challenges due to policy roadblocks. Despite the country's increasing focus on renewable energy sources, the absence of clear and consistent regulatory frameworks has created uncertainty among investors and developers. Inadequate policies surrounding grid integration, pricing mechanisms, and technology standards have deterred the widespread adoption of BESS. Also, the lack of financial incentives and limited access to project financing have further constrained market expansion. To unlock the full potential of energy storage technologies and foster a thriving market, the Indian government needs to prioritize policy reforms that promote a favorable business environment and incentivize investments in battery energy storage systems.

Impact of COVID-19 on India Battery Energy Storage Systems (BESS) Market

The COVID-19 pandemic significantly impacted the India battery energy storage systems (BESS) market. On the one hand, the lockdown measures and disruptions in supply chains caused delays in project execution and installations, leading to a temporary slowdown in the market. On the other hand, the pandemic highlighted the importance of resilient and reliable energy infrastructure, increasing the focus on energy storage solutions. As the country aims to strengthen its renewable energy sector and improve grid stability, BESS has emerged as a key enabler. The market witnessed a gradual recovery as restrictions eased, with renewed interest from both government and private entities in deploying battery storage systems for energy management and grid integration.

India Battery Energy Storage Systems (BESS) Market

Segmental Coverage

India Battery Energy Storage Systems (BESS) Market – By Battery Type

On the basis of battery type, India battery energy storage systems (BESS) market is divided into Lithium ion, Lead Acid, and Flow Batteries segments. The Lithium ion segment is the largest in terms of market share. Lithium ion batteries have gained significant popularity, due to their high energy density, longer lifespan, and rapid charging capabilities. They are widely used in various applications, including renewable energy integration, grid stabilization, and electric vehicles. The growing demand for sustainable energy solutions and the government's emphasis on clean energy policies have contributed to the dominance of lithium ion batteries in the Indian market.

India Battery Energy Storage Systems (BESS) Market – By Connection Type

On the basis of connection type, India battery energy storage systems (BESS) market is split into On-Grid and Off-Grid segments. The on-grid segment dominates the battery energy storage system market by connection type. As surplus energy is sent to the grid and can be used later on a metered basis, on-grid connections have lower upfront costs than off-grid systems. The reduction in energy bills for clients who rely on the utility grid for electricity is predicted to drive the segment's growth. Demand for grid modernization from renewable energy sources, as well as new energy regulatory rules, are driving the expansion of the on-grid battery energy storage system market for utilities.

India Battery Energy Storage Systems (BESS) Market – By Application

On the basis of application, India battery energy storage systems (BESS) market is divided into Front of the Meter (FTM) and Behind the Meter (BTM) segments. The FTM refers to energy storage systems that are directly connected to the grid and are typically used for utility-scale projects. These systems are employed to enhance grid stability, enable renewable energy integration, and provide ancillary services. On the other hand, BTM applications involve energy storage systems installed at the consumer's premises, such as commercial and industrial facilities or residential buildings. BTM systems offer benefits like load management, peak shaving, backup power, and reduced electricity bills. While both FTM and BTM segments contribute to the growth of the Indian battery energy storage systems (BESS) market, FTM projects tend to dominate due to their larger scale and grid-supporting capabilities.

India Battery Energy Storage Systems (BESS) Market – By End User

On the basis of end user, India battery energy storage systems (BESS) market is divided into Commercial, Industrial, and Residential segments. Each segment represents a specific sector where battery energy storage systems are utilized. The commercial segment encompasses businesses, offices, shopping complexes, and other commercial establishments that require energy storage solutions to meet their power demands and enhance their energy management capabilities. The industrial segment comprises various industries, factories, manufacturing plants, and warehouses that utilize battery energy storage systems to optimize their energy consumption, manage peak loads, and ensure uninterrupted operations. The residential segment includes households and residential buildings that benefit from battery energy storage systems to store excess renewable energy, enhance grid independence, and provide backup power during outages.

India Battery Energy Storage Systems (BESS) Market – By Region

The in-depth research report covers the India battery energy storage systems (BESS) market in four major regions: North India, South India, East India, and West India. It is worth noting that India as a whole has been experiencing significant growth in the battery energy storage systems (BESS) market, driven by the country's increasing focus on renewable energy integration, grid stabilization, and electrification initiatives. Each region has its unique characteristics and opportunities, contributing to the overall development of the India battery energy storage systems (BESS) market.

Competitive Landscape

Major players in the India battery energy storage systems (BESS) market include Samsung SDI, BYD Company Limited, Contemporary Amperex Technology Co. Limited, Exide Technologies, General Electric, Enersys, Nissan, AES Energy Storage, Hoppecke Batteries Inc., and Tesla. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In December 2021 - LG Energy Solutions Co, Ltd signed a Memorandum of Understanding (MoU) with Siemens AG for collaboration in the field of battery manufacturing, particularly the digitization of the production process. Through the strategic collaboration, LG Energy Solutions Co., Ltd, implemented smart battery manufacturing processes at its factories with advanced techniques.

Scope of the Report

By Battery Type

• Lithium Ion

• Lead Acid

• Flow Batteries

• Others

By Connection Type

• On Grid

• Off Grid

By Application

• Front of the Meter

• Behind the Meter

By End User

• Commercial

• Industrial

• Residential

By Region

• North India

• South India

• East India

• West India