The Battery Energy Storage System Market Size is valued at USD 6.41 Bn in 2023 and is predicted to reach USD 39.43 Bn by the year 2031 at an 25.8% CAGR during the forecast period for 2024-2031.
Battery Energy Storage System (BESS) is emerging rapidly into the key player's list in the global energy landscape. The technology of BESS uses batteries to store electrical energy to dispense it later. Energy from sources like solar power and wind can fluctuate greatly, from very high to very low. To manage this, BESS is crucial for capturing and storing this energy, ensuring it's available when needed. Through the action of releasing stored energy in periods of high demand and low production, BESS improves grid reliability and supports the integration of renewables into the power supply. Its applications range from stabilizing electricity grids to peak shaving, backup power, supporting microgrids, and energy arbitrage—storing energy when prices are low and selling it back to the grid when prices increase.
The growth of the BESS market is primarily attributed to an increasing demand for renewable energy sources. As countries strive toward ambitious climate goals and look to reduce greenhouse gas emissions, efficient energy storage solutions are crucial in tackling the performance variance of renewables. This not only helps countries achieve energy independence but also boosts the resilience and sustainability of global power systems, putting BESS at the cornerstone for future energy infrastructure.
Competitive Landscape
Some of the Key Players in Battery Energy Storage System Market:
- BYD Company Ltd.
- LG Energy Solution
- Panasonic Corporation
- Samsung SDI Co., Ltd.
- Tesla
- ABB
- Delta Electronics, Inc.
- Ge Vernova
- Hitachi Energy Ltd.
- Honeywell International, Inc.
- Johnson Controls
- NGK Insulators Ltd.
- Siemens
- Toshiba Corporation
- AB Volvo
- Other Prominent Players
- AEG
- East Penn Manufacturing Company
- ESS Tech, Inc.
- Kore Power Inc.
- Primus Power Solutions
- Saft
- Solaredge
- The AES Corporation
- Trinasolar
- VRB Energy
Market Segmentation:
The battery energy storage system market is segmented by battery, connection type, ownership, energy capacity, application. By battery the market is segmented into lithium-ion batteries, advanced lead-acid batteries, flow batteries, others, by connection type market is categorized into on-grid, off-grid. By ownership the market is categorized into customer-owned, third-party owned, utility-owned. By energy capacity the market is categorized into below 100 MWh, between 100 to 500 MWh, above 500 MWh. By application the market is segmented into residential, commercial, utility.
Lithium-Ion Batteries Segment is Expected to Drive the Battery Energy Storage System Market
Major contributors to the growth in the BESS market have been associated with Lithium-ion batteries, which are efficient in performance, high in energy density, and cost-effective. These batteries can store relatively large quantities of energy within a tight space-the key reason why they are readily applicable for the stabilization of electric grids and in adding to renewable energy. With advanced technology, the cost of the Lithium-ion battery continues to reduce, thus constantly increasing their role within energy storage systems. They can also significantly contribute towards the support of renewable energy as they can store leftover power generated during peak times for later usage. The growing demand for electric vehicles also propels the expansion of BESS on a further basis as adoption by way of EV is increasing the need for related energy storage solutions.
On-grid is Growing at the Highest Rate in the Battery Energy Storage System Market.
The on-grid market for the BESS is likely to expand rapidly, led by its enabling capability to support the integration of renewable resources, declining costs, supportive government policies, and utility-scale applications. Indeed, with an increasing use of solar and wind-based renewables as prime resources, an on-grid BESS becomes ever more essential in charging surplus energy generated and releasing it at times of peak demand, ensuring grid stability. Increased economies of scale have lowered the prices of lithium-ion batteries, and it becomes relatively easy for utilities and enterprises to invest in such systems. In addition, with good policies, such as government subsidies and tax incentives, there will be investment in this area. Furthermore, on-grid BESS is suitable for utility-scale applications because they provide means to meet the increasing demands for electricity while improving infrastructure for renewable energy integration.
Regionally, Asia-Pacific Led the Battery Energy Storage System Market.
The Asia-Pacific region happens to lead the Battery Energy Storage System (BESS) market due to rapid urbanization, population growth, government-friendly policies, technological progress, and robust investment in renewable energy. Economies such as China and India are fast-developing nations who concentrate on upgrading energy infrastructure in support of growing demand. Renewable energy and energy storage are encouraged by favorable policies by governments aiming at improving the power distribution system and ensuring electricity is extended to the most remote areas. Advances in lithium-ion battery technology are making BESS more efficient and cost-effective. Therefore, the region is receiving encouraging investments. This region has made significant investments in solar and wind energy and BESS is essential for storing and integrating renewable energy into the grid.
Battery Energy Storage System Market Report Scope
Report Attribute |
Specifications |
Market Size Value In 2023 |
USD 6.41 Bn |
Revenue Forecast In 2031 |
USD 39.43 Bn |
Growth Rate CAGR |
CAGR of 25.8% from 2024 to 2031 |
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
Historic Year |
2019 to 2023 |
Forecast Year |
2024-2031 |
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
Segments Covered |
By Battery, Connection Type, Ownership, Energy Capacity, Application and By Region |
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South Korea; Southeast Asia |
Competitive Landscape |
BYD Company Ltd., LG Energy Solution, Panasonic Corporation, Samsung SDI Co., Ltd., Tesla, ABB, Delta Electronics, Inc., GE Vernova, Hitachi Energy Ltd., Honeywell International, Inc., Johnson Controls, NGK Insulators, Ltd., Siemens, Toshiba Corporation, AB Volvo |
Customization Scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Geographic competitive landscape. |
Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |