Energy Storage Systems Market Size, Share & Trends Analysis Report By Technology (Pumped Hydro, Electrochemical Storage, Electromechanical Storage, Thermal Storage), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global energy storage systems market demand was valued at 202.02 GW in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.6% from 2021 to 2028. Factors, such as growing demand for efficient and competitive energy resources, increasing development for variable energy sources, and rising battery demand are anticipated to fuel the demand for energy storage systems.

With the increasing requirements of efficient grid management, constant load management, and continuous power supply, the market is expected to witness significant growth over the forecast period. Furthermore, clean and renewable energy is an affordable alternative to fossil fuel-based electricity. Its use can help curb the overdependence on fossil fuels, reduce greenhouse gas emissions and subsequently air pollution, and diversify the power supply.

Governments across the globe are taking steps to invest actively in Renewable Energy Technologies (RET). Efforts are being taken to use thermal energy for transportation purposes. Companies including Tesla are manufacturing automobiles such as Tesla Roadster, Model S, Model X, and Model 3 based on sustainable energy. These vehicles run on electricity generated using batteries and have been widely accepted across the globe.

Variable energy is fluctuating by nature due to frequent climate changes. Wind and solar power generation cannot be controlled like geothermal, biomass, and hydroelectricity. However, wind and solar are sources of clean energy and release no emissions into the atmosphere, as a result of which governments across North America, Europe, and Asia Pacific are taking initiatives to utilize them efficiently.

Furthermore, increasing acceptance of electric and hybrid vehicles coupled with government incentives offered for promoting EV technology is projected to boost the growth of electric car as well as battery industries. While battery service networks are yet to improve and surpass the gasoline fueling infrastructure, volatile gasoline prices are expected to positively influence the demand for electric vehicles over the forecast period.

Technology Insights

The pumped hydro technology segment dominated the market and accounted for more than 90.0% of the total market share, in terms of storage volume, in 2020. The segment is expected to be driven by ongoing investments towards upgrading energy infrastructure and enhancing on-grid capacity in Asia Pacific and North America. Favorable compliance standards coupled with surging power consumption in China and the U.S. are expected to drive pumped hydro storage (PHS) demand over the long term.

The electrochemical storage segment is expected to witness a CAGR of over 10.0% over the forecast period. Countries such as the U.K., the U.S., and India are expected to drive the electrochemical storage demand over the next few years. Countries in Middle East and Africa and Central and South America are expected to drive thermal storage demand over the long term.

The Thermal Energy Storage (TES) systems allow surplus thermal energy, generated from various technologies, to be collected and stored for use later. Various types of TES systems include latent, sensible, and thermochemical. Different forms of storage medium used in sensible heat storage include bricks, sand, water, rock beds, air, and concrete.

Region Insights

Asia Pacific was the largest segment in 2020 and accounted for more than 45.0% of the overall market share, owing to the presence of fast-growing economies such as China and India. As this region is prone to frequent power cuts, energy storage systems are of utmost importance in applications such as UPS and data centers. The advantages of advanced energy storage systems including cost-effectiveness, eco-friendly nature, and reliability have driven the ESS market in this region.

The authorities concerned with energy storage in the aforementioned European countries have opted for battery energy storage systems in order to increase the utilization of renewable energy sources and reduce dependency on fossil fuels. The increasing popularity of electric vehicles in countries including Germany and France is expected to boost the growth of the energy storage systems market over the long-term.

Central & South America is an upcoming region for investments in automotive, energy, and biochemical industries. Key countries in the region include Brazil, Argentina, Peru, Colombia, and Chile. Argentina is expected to witness a large-scale slowdown in energy investment as the country is expected to recover from its existing recession over the next few years.

Key Companies & Market Share Insights

The key companies operating in the market are more concentrated on working on advanced technology-based products due to the rising demand for energy storage systems in the grid-connected sector. The primary product strategies in the market have become competitive on account of grid parity and other power generating sources. The operational strategies for the energy storage sector are closely tied to the system integrators, manufacturers, and project originators sharing the operational and maintenance parts of most large-scale and commercial projects. Energy storage system companies are mostly integrated across the manufacturing and distribution stages of the value chain, where the key players showcase the expertise to develop the most cost-effective and reliable O&M service solution. Some of the prominent players in the energy storage systems market include:

• GENERAL ELECTRIC

• LG Chem

• Langley Holdings Plc

• Altairnano

• Electrovaya

• Showa Denko Materials, Co. Ltd.

• Maxwell Technologies, Inc.

• Saft

• THE FURUKAWA BATTERY CO., LTD.

• Ecoult

• Kokam

• Fluence

• Samsung SDI Co., Ltd.

Energy Storage Systems Market Report Scope

Segments Covered in the Report

This report forecasts volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global energy storage systems market report based on technology and region:

• Technology Outlook (Volume, MW, 2017 - 2028)

  • Pumped Hydro

  • Electrochemical Storage

  • Electromechanical Storage

  • Thermal Storage

• Regional Outlook (Volume, MW, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  •  Europe

    • France

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Argentina

  • Middle East & Africa

    • South Africa