[170 Pages Report] The global battery energy storage market size is projected to grow from USD 5.7 billion in 2020 to USD 7.3 billion by 2021, at a CAGR of 13.7% during the forecast period, in the realistic scenario. The growing need for continuous power from critical infrastructure sectors and the rising need to integrate renewable energy sources and rural electrification are factors that are projected to drive the growth of the battery energy storage market during the forecast period.
The utilities segment is expected to account for the largest share in the battery energy storage industry during the forecast period. According to the US EIA and NREL, utility-owned battery energy storage systems play a crucial role in the operations of current and future energy generation mix of a country. In addition to the system flexibility they provide, battery energy storage systems also offer reliable interconnections in neighboring power systems. The utility-owned segment is mainly driven by increasing financial incentives and regulatory supports from the governments globally.
The Asia Pacific region is projected to be the fastest growing market for battery energy storage during the forecast period. The market in Asia Pacific is expected to witness a sharp decline due to COVID-19 during the forecast period. The region is the largest market for battery energy storage and home to some of the fastest growing economies in the world. Asia Pacific also plans for electrification in remote areas, which are mostly off-grid in several countries. The governments of various countries in this region focus on minimizing the adverse effects of the energy sector on the environment. Some of the major battery energy storage system manufacturers based in Asia Pacific are Samsung SDI, LG Chem, Hitachi, Panasonic, and NEC Corporation.
Key vendors in the global battery energy storage market include ABB (Switzerland), LG Chem (South Korea), NEC (Japan), Panasonic(Japan), Samsung SDI (South Korea), AEG Power Solutions (Netherlands), General Electric (US), Hitachi (Japan), Siemens (Germany), Tesla (US), and Schneider Electric (France). These players have broad industry coverage and high operational and financial strength.
Base year considered
Value (USD Million)
Technology (Qualitative), Application and Region
North America, Europe, Asia Pacific, and RoW
ABB (Switzerland), LG Chem (South Korea), NEC (Japan), Panasonic (Japan), Samsung SDI (South Korea), AEG Power Solutions (Netherlands), General Electric (US), Hitachi (Japan), Siemens (Germany), Tesla (US), and Schneider Electric (France)
This research report categorizes the battery energy storage market based on application and region.
What is the impact of COVID-19 on upcoming utility-owned energy storage systems?
The outbreak of COVID-19 has impacted the utilities energy storage systems due to delays in production, especially in countries such as China and South Korea. This outbreak has affected the significant new projects, which lead to short-term delays until the later part of 2020 until early 2021. In US energy storage projects are expected to be delayed due to covid-19 outbreak in 2020
What is worst affected battery storage market segment?
COVID-19 has impacted the residential sector by affecting the individual economy, which will cause the market to slow down. The market is also impacted by the supply and demand restrictions of the residential battery storage systems in countries such as the US, Germany, China, and Australia. Another key impact is the battery equipment supply constraints due to reduced dollar value and decreased subsidies for residential sector energy storage projects.
What is impact on COVID-19 on Li-ion battery market?
COVID-19 has impacted the supply of lithium batteries and raw materials from the country from the start of January 2020. The global lithium production industry is expected to witness a further decline and more disruption in the supply chain if COVID-19 impact deepens in other key countries such as South Korea and Japan.
Which region is expected to dominate the energy storage market in short term?
Asia Pacific region is expected to dominate the market in all three segments namely, the residential, non-residential and utility. Increased renewable energy additions coupled with energy storage will primarily drive the market. China, India and Japan are expected to be the key drivers of the region.
What are the key energy storage companies that have been affected by COVID-19?
ABB, Panasonic, GE, Tesla, LG Chem, Siemens, and BYD are some of the major battery manufacturers in the world. The increasing number of COVID-19 cases have forced these companies to either shut down their complete operations or run their operations with 60% less production capacity. The companies are also diversifying their other business segments to maintain the overall profit. .
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Table Of Content
1.2 CONFIRMED CASES AND DEATHS BY GEOGRAPHY
2 COVID-19 IMPACT BATTERY ENERGY STORAGE ECOSYSTEM
2.1 VALUE CHAIN OF BATTERY ENERGY STORAGE INDUSTRY
2.2 IMPACT ON VALUE CHAIN
2.2.1 RAW MATERIALS/SUPPLIERS
2.2.2 BATTERY MANUFACTURER
2.2.3 POWER CONVERSION SUPPLIER
2.2.4 SOFTWARE SUPPLIER
2.2.5 ENERGY STORAGE SYSTEM SUPPLIER
2.2.6 ENERGY STORAGE INTEGRATOR
2.2.7 ENERGY STORAGE OPERATOR
2.3 MACROECONOMIC INDICATORS
220.127.116.11 GROWING NEED FOR CRITICAL INFRASTRUCTURE POWER REQUIREMENT
18.104.22.168 NEED TO INTEGRATE INCREASING RENEWABLE ENERGY SOURCES AND RURAL ELECTRIFICATION
22.214.171.124 GOVERNMENT FOCUS ON HEALTHCARE AND ECONOMIC REVIVAL
126.96.36.199 INTEGRATION AND DEPLOYMENT CHALLENGES
3 GROWTH OPPORTUNITES IN BATTERY ENERGY STORAGE MARKET
3.1 MOST ATTRACTIVE MARKET- IMPACT & OPPORTUNITES
3.1.1 UTILITY OWNED
3.2 WORST-AFFECTED MARKET- IMPACT & OPPORTUNITES
3.2.1 CUSTOMER OWNED
4 COMPETITIVE LANDSCAPE AND COVID-19 IMPACT
4.1 IMPACT ON BATTERY ENERGY STORAGE COMPANIES PORTFOLIO
4.2 WINNING STRATEGIES TO GAIN MARKET SHARE
4.2.1 SHORT TERM STRATEGIES
4.2.2 MID TERM STRATEGIES
4.2.3 LONG TERM STRATEGIES
5 CUSTOMER ANALYSIS
5.1 SHIFT IN LITHIUM-ION BATTERIES
5.1.1 DISRUTPTION IN THE INDUSTRY
5.1.2 IMPACT IN CUSTOMERS’ OUTPUT & STRATEGIES TO RESUME/IMPROVE PRODUCTION
5.1.3 NEW MARKET OPPORTUNITIES/GROWTH OPPORTUNITES
5.2 SHIFT IN LEAD ACID BATTERIES
5.2.1 DISRUTPTION IN THE INDUSTRY
5.2.2 IMPACT IN CUSTOMERS’ OUTPUT & STRATEGIES TO RESUME/IMPROVE PRODUCTION
5.2.3 NEW MARKET OPPORTUNITIES/GROWTH OPPORTUNITES
6 IMPACT OF COVID-19 IN BATTERY ENERGY STORAGE MARKET
6.1 BATTERY ENERGY STORAGE BY CONNECTION TYPE
6.1.1 ON-GRID CONNECTION
6.1.2 OFF-GRID CONNECTION
6.2 BATTERY ENERGY STORAGE BY OWNERSHIP
6.2.1 CUSTOMER OWNED
6.2.2 THIRD-PARTY OWNED
6.2.3 UTILITY OWNED
6.3 BATTERY ENERGY STORAGE BY APPLICATION
6.4.1 NORTH AMERICA
188.8.131.52 REST OF EUROPE
6.4.3 ASIA PACIFIC
184.108.40.206 SOUTH KOREA
220.127.116.11 REST OF ASIA PACIFIC
6.5.4 REST OF WORLD
18.104.22.168 SOUTH AMERICA
22.214.171.124 MIDDLE EAST
126.96.36.199 REST OF MIDDLE EAST & AFRICA
The study involved four major steps in estimating the size of the battery energy storage market. Exhaustive secondary research was done to collect information on the market, as well as the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
In the secondary research process, various sources were referred to, to identify and collect information for this study. These secondary sources included reports from the World Health Organisation (WHO), International Energy Agency (IEA), International Renewable Energy Agency (IRENA), and US Energy Storage Association. The secondary sources also included annual reports, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and databases.
Secondary research was mainly conducted to obtain key information about the industry’s supply chain, COVID-19 impact across the stakeholders of the supply chain, total pool of key players, market classification & segmentation according to the industry trends to the bottom-most level, and geographical markets. It was also used to obtain information about the key developments from a market-oriented perspective.
The battery energy storage market comprises several stakeholders in the supply chain, which include global and regional battery energy storage manufacturers, suppliers, power conversion suppliers, software suppliers, energy storage integrators, energy storage operators, and energy storage system suppliers. Primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, regional battery energy storage dealers, and manufacturers. The primary sources from the supply side include raw material suppliers, manufacturers of battery energy storage industry, research institutions involved in R&D, and key opinion leaders in the battery energy storage market.
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Both the top-down and bottom-up approaches were used to estimate and validate the total size of the battery energy storage market due to the COVID-19 impact. These approaches were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed to estimate the global battery energy storage market due to COVID-19 impact and arrive at the exact statistics for all segments and subsegments, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.