Report Overview

India Energy Storage Market - Industry Trends & Forecast Report 2028

India Energy Storage Market is anticipated to grow at a CAGR of more than 10% during the forecast period of 2022-2028. The country’s growing renewable energy sector, favorable government policies and programs supporting energy storage systems (ESS), and improving energy storage economics are contributing to the growth of the Indian energy storage market. Additionally, the energy storage market in India have been boosted by government programs such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) phase 1 and 2.

Energy Storage: A Brief Overview

Energy storage is the process of capturing energy produced at one time and storing it for later use in order to reduce energy demand-supply imbalances. An accumulator, commonly known as a battery, serves as an energy storage device. Energy can take the form of radiation, chemical, gravitational potential, electrical potential, electricity, increased temperature, latent heat, and kinetic energy. Energy storage nowadays is becoming an imperative part of renewable energy. With the massive growth of renewable energy sources, energy storage can play a substantial role in renewable energy integration in India. It is beneficial for the entire supply chain due to enhanced electric power quality, dependability, and better grid stability.

Growth Drivers

Increase in the Demand for Renewable Energy Driving the Growth of India Energy Storage Market

In the current scenario, the population of India is developing an interest in renewable resources, such as energy storage systems, which offer the ability to store energy in a variety of forms. In India, the demand for energy storage systems is increasing due to a rise in pollution, which is detrimental to the environment. Energy storage system emits low levels of pollution, which is driving its demand across the country. Energy storage is integrated into the residential, industrial, and commercial sectors in order to maintain the energy supply during peak hours. According to the power ministry of India, the annual battery sales for power backup, such as inverters and telecom towers, amounted to nearly 18GWh in 2020. The factors above are expected to contribute to the growth of India energy storage market.

Supportive Policies by the Indian Government Pushing the Market Forward

Carbon reduction norms and government initiatives to boost electrification rates, especially in remote regions, have boosted the demand for energy storage devices. As carbon emission causes serious health problems that can even result in death, the government has introduced policies that are favourable to both the producer and the consumer. In India, the government plans to provide subsidies to consumers who chose electric vehicles over gasoline vehicles by 2030. To some extent, India's carbon intensity of its economy will be reduced by less than 45% in the upcoming years, contributing to the growth of the Indian storage market.

Restraints

High Installation Costs of Energy Storage Systems

Battery, flow battery, pumped-storage hydroelectricity (PSH), thermal energy storage (TES), flywheel energy storage (FES) and other energy storage technologies require high investments because of their high energy density and high performance. As batteries have a high energy density, a low self-discharge rate, and require little maintenance, they are costly. These batteries, however, are also used in electric vehicles (EVs) since they are lightweight, compact, and have a high capacity, making them very expensive. These are the key factors impeding the growth of the India energy storage market.

Impact of COVID-19 On India Energy Storage Market

The COVID-19 outbreak has had a negative impact on the energy industry supply chain, particularly in the areas of renewable energy and battery energy storage systems. The majority of the key components used in battery energy storage systems are manufactured in the Asia Pacific area, particularly in India. In India, various operations were shut down during COVID-19 due to the lack of available raw materials and experts in the market. As a result, it proved difficult to fulfil market demand. As a result, some companies shifted to new and other energy storage technologies, such as PHS, CAES, and flow battery solutions, to avoid further delays in project completions and prepare for such unforeseen situations.

India Energy Storage Market – By Technology Type

In terms of technology, the India energy storage market fragmented into Thermal Energy Storage (TES), Flywheel Energy Storage (FES), Batteries, Pumped-storage Hydroelectricity (PSH), and others. Among these, the pumped-storage hydroelectricity segment dominated the market in 2021 owing to the ongoing investments in upgrading energy infrastructure in India. On the other hand, the batteries segment is expected to witness a significant CAGR over the forecast period.

India Energy Storage Market – By Applications

In terms of application, the India energy storage system is classified into residential, commercial, and industrial segments. The residential application of energy storage systems is gaining importance because there is a growing need to avoid power blackouts caused by growing power demand from existing infrastructure. Business models for residential energy storage systems (RESS) are still in their infancy in most markets. On the other hand, residential customers are expected to play a more active role in altering their energy expenditure patterns by tracking their actual consumption in real-time.

India Energy Storage Market- Regional Insights

Based on regions, the India energy storage market is segmented into North India, East India, West India, and South India. India aims to have 275 GW of total wind and solar capacity, 72 GW of hydro, and 15 GW of nuclear by 2027. By 2027, renewable energy's share of installed capacity is expected to rise substantially. The Southern region of India is expected to continue its dominance in the energy storage market over the forecast period. The region consists of two main types of power grids, each with different characteristics and opportunities for energy storage systems. There are many highly developed companies in the energy storage market in the south of the country, including Beta Power, AutoGrid, and others with advanced grids.

The Northern region of the country is also witnessing rapid population growth and urbanization, which is increasing the demand for electricity. Due to the growing renewable sector, energy storage systems are expected to increasingly be used in this region to address the intermittency challenges in renewable power generation.

India Energy Storage Market- Competitive Landscape

The India energy storage is partially fragmented in nature due the presence of many small scale and large industries in India. The key players dominating India Energy storage market are TATA Powers, Sterling & Wilson Solar, Websol Energy Systems, Targray, StatconEnergiaa, Urja Solutions, Sungrow, Vyomaa Energy, Fluence, Axis Electrical Components Pvt. Limited, Optimal Power Synergy India Pvt. Ltd., Fitzer Incorporation, Solar Turbines, Nextracker, Inc., Inaccess, Bloom Energy, and other prominent players . To maintain their dominance in the market, the players invest in launching new products and services. Additionally, various strategies are employed by them, including strategic alliances, partnerships, and collaborations.

Recent Developments

• In January 2022: ReNew Power and Fluence, an Indian renewable energy firm, are forming a new joint venture to provide storage solutions across the country. With the Peak Power project and the 400MW Round-the-Clock (RTC) renewable power delivery project, Renew Power claims to have a head start in India's stationary energy storage space. The RTC renewable power delivery project is expected to be comprised of 900MW of wind and 400MW of solar distributed in the states of Karnataka, Maharashtra, and Rajasthan.

• In January 2022: The Karnataka government invited Elon Musk to set up a Tesla plant. Karnataka's minister for large and medium-scale industries, Mr. Murugesh Nirani requested Tesla and SpaceX CEO Elon Musk to set up car-manufacturing plants in the state.

Scope of the Report:

By Technology Type

• Batteries
• Pumped-storage Hydroelectricity (PSH)
• Thermal Energy Storage (TES)
• Flywheel Energy Storage (FES)
• Others

By Application

• Residential
• Commercial and Industrial

By Region

• South India
• North India
• East India
• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. India Energy Storage Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. India Energy Storage Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology Type
         1. Batteries
         2. Pumped-storage Hydroelectricity (PSH)
         3. Thermal Energy Storage (TES)
         4. Flywheel Energy Storage (FES)
         5. Others
      2. By Applications
         1. Residential
         2. Commercial and Industrial
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. North India Energy Storage Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology Type
      2. By Application
7. South India Energy Storage Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology Type
      2. By Application
8. East India Energy Storage Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology Type
      2. By Application
9. West India Energy Storage Market
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology Type
      2. By Application
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Merger, Acquisition, Partnership)

11. Impact of Covid-19 on India Energy Storage Market Industry
12. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
    1. TATA Powers
    2. Sterling and Wilson Solar
    3. Websol Energy Systems
    4. Targray
    5. Statcon Energiaa
    6. Urja Solutions
    7. Sungrow
    8. Vyomaa Energy
    9. Fluence
    10. Axis Electrical Components Pvt. Limited
    11. Optimal Power Synergy India Pvt. Ltd.
    12. Fitzer Incorporation
    13. Solar Turbines
    14. Nextracker, Inc.
    15. Inaccess
    16. Bloom Energy
    17. Other Prominent Players.
13. Key Strategic Recommendations

List of Figures

List of Tables