U.S. Advanced Battery Energy Storage System Market Share, Size & Trend Analysis Report By Product (Lithium-ion Battery, Flow Battery), By Application, And Segment Forecasts, 2013 - 2024

Industry Insights

The U.S. advanced battery energy storage system market size was USD 172.5 million in 2015 and is expected to witness significant growth over the forecast period on account of rising emphasis on reducing dependency on fossil fuels and increasing the share of clean sources in the energy mix. The growing demand for time shifting, improved power quality, better grid network utilization, and emergency power supply for protection & control equipment is expected to drive the U.S. market over the forecast period.

The growing demand for lithium-ion batteries as an important battery energy storage product can be attributed to their high energy density, improved efficiency, and deep discharge cycle. In addition, rapid cost reduction owing to increased deployment and rising storage demand for variable renewable energy integration is expected to drive the market demand for U.S. advanced battery energy storage system market over the forecast period.

Advanced battery energy storage system finds its application in sectors including the transportation, grid storage, telecom, UPS, and forklifts. The growing use of batteries as an off-grid source of energy in the transportation sector where vehicles use a large amount of energy is likely to fuel the demand for advanced battery storage system over the forecast period.

The rising need for uninterruptible power supply in data centers and telecommunications to enhance the business productivity is expected to drive the market over the forecast period. The growing use of battery storage systems in industries to support equipment with the critical power supply in case of an emergency situation including grid failure and trips is expected to drive the U.S. advanced battery energy storage system market growth.

Various batteries including lithium-ion, advanced lead acid batteries, and flow batteries are used in the advanced battery energy storage systems. Lithium-ion battery prices have been declining significantly over the past few years owing to the increased deployment and rising application scope. This is expected to fuel the market growth over the forecast period. In addition, rising technological advancements in other battery technologies including flow batteries and advanced lead acid are expected to drive the market demand for advanced battery energy storage system over the forecast period.

Application insights

Transportation application dominated the market accounting for over 50% of the revenue in 2015. Utilization of advanced batteries in this sector can allow cost-effective and fuel-efficient method for powering the vehicles. In addition, the U.S. government spends about USD 1.00 billion per day on foreign oil in order to power trucks, cars, and planes. Utilization of advanced battery energy storage systems is likely to resolve the issue in a cost-effective manner.

Advanced battery energy storage system demand for grid storage in the U.S. is anticipated to witness significant growth on account of rising investment in renewable energy sources. The economy has been witnessing deployment of numerous wind and solar energy projects over the past years which are expected to augment demand over the forecast period. In addition, there is huge potential for growth in micro-grid development for military and disaster relief in the economy.

The demand for electric commercial vehicles has been driving growth of advanced battery energy storage systems in the economy over the past years. Extensive R&D is being conducted by various institutes in order to develop advanced battery technologies for the transportation sector, thereby propelling growth. However, declining commercial electric vehicle sales in the economy is expected to pose a challenge for growth over the forecast period.

Product insights

Lithium-ion advanced battery energy storage systems accounted for over 70% share in terms of revenue and are likely to witness considerable growth. Low space requirement and lightweight of these batteries are likely to propel its demand in a host of applications over the forecast period. Characteristics including fast charging compared to other batteries and long life is expected to augment demand. Moreover, rapidly declining prices of these batteries are expected to enhance utilization of the product over the next eight years.

Flow batteries are gaining importance on account of its long-term storage solution and ability to handle large currents. The rising Research & Development (R&D) investments in improving the flow battery chemistry are likely to fuel U.S. advanced battery energy storage system market demand over the forecast period.

Flow battery systems are anticipated to witness a CAGR of about 20% over the forecast period. The flow batteries are rechargeable batteries consisting of two chemicals dissolved in liquids and separated by a membrane. These batteries are instantaneously rechargeable by replacement of the electrolyte. Numerous types of flow batteries including redox, hybrid, and membrane-less batteries are available in the market. The capability to store energy in the form of the electrolyte has led to high rechargeability of these batteries and is likely to propel its growth. Moreover, extensive R&D on the development of vanadium-based and zinc-bromine based flow batteries is expected to have a positive impact on market growth.

U.S. advanced battery energy storage system market share insights

General Electric, Hitachi Ltd., Exide Technologies, AES Technologies, Samsung SDI, and EnerSys are some of the major market players in the U.S. advanced battery energy storage market. Advanced battery energy storage market is characterized by the presence of numerous players which has led to high level of competitive rivalry. The presence of companies with strong market foothold has led to the requirement of technological advancements in order to develop innovative products. The large market players have been trying to cater to a wide range of applications including grid storage, transportation, UPS, and telecom. Also, there is integration by companies including ABB, Samsung SDI, and GE, which allows the low cost of manufacturing and large productivity.

Diversification of product portfolio in order to expand customer base and entry into new application markets are the strategies being adopted by the market players. In April 2015, Europris, a Norwegian wholesaler, announced that the company is investing in lithium-ion batteries supplied by GNB Industrial Power, a division of Exide Technologies. In April 2014, EnerSys announced the introduction of Zero Battery Change (ZBC) Solution, a customized power management program for lift truck fleets.

Report Scope

Segments covered in the report

This report forecasts revenue and volume growth in the U.S. and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global U.S. Advanced Battery Energy Storage Systems market on the basis of product, application, and region.

• Product Outlook (Volume in MW; Revenue, USD Million, 2013 - 2024)

  • Lithium-ion Battery

  • Flow Battery

  • Other Batteries

• Application Outlook (Volume in MW; Revenue, USD Million, 2013 - 2024)

  • Transportation

  • Grid Storage

  • Uninterruptible Power Supply (UPS)

  • Telecom

  • Others