Battery energy storage systems are designed to facilitate the transitioning to different ways of generating and distributing electricity as and when required. The demand for battery energy storage systems have increased over the past few years, owing to rising use of batteries in electric vehicles such as battery electric vehicles and plug-in hybrid electric vehicles. Among all battery types, lithium-ion batteries are used at a large scale since they provide high energy and are light in weight as compared to others. Thus, the growing market for electric vehicles and rising demand for lithium-ion technology is driving the global market for battery energy storage systems.
Driving Factors & Challenges
The global market for battery energy storage system is achieving a stellar growth mainly due to the following reasons:
- Growing electric vehicle market
- Increased demand for grid-connected solutions
- Huge demand for lithium-ion technology in various applications
- Increasing government support
Apart from these, large requirements for storage in data centers and scope for liquid metal battery technology is likely to offer good growth opportunities in this market. However, need for higher capital investments is expected to hamper the growth of this market. Moreover, island and off-grid battery energy storage is a major challenge faced by the leading players involved in this market.
Know the Market
The worldwide battery energy storage system market is projected to be valued at USD 6.81 Billion by 2022, growing at a CAGR of 37.0% during the forecast period from 2016-2022. Based on regions, Asia-Pacific is expected to hold a large market share over the forecast period, growing at a high CAGR between 2016 and 2022, owing to the growing number of installations of battery energy storage system in various countries of this region. Moreover, increased interest from the residential sector to make use of renewable resources and growing government support is also likely to propel the market growth.
Based on application, the transportation sector is expected to be the biggest market for battery energy storage system due to the growing implementation of batteries in battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). However, the residential sector is expected to grow at a high CAGR over the forecast period. Among battery types, lithium-ion batteries have the largest market, as of now, and are likely to continue leading the market in the coming years as well.
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Research Scope
The global market for battery energy storage system has been analyzed and forecasted by splitting the market into following segments and sub-segments:
- Battery Type: Lithium-Ion Batteries, Advanced Lead-Acid Batteries, Flow Batteries, Sodium-Sulfur (NAS) Batteries, Others
- Connection Type: On-Grid, Off-Grid
- Ownership: Customer-owned, Utility-owned, Third-Party-owned
- Revenue Source: Hardware, Software & Services
- Application: Residential, Non-Residential, Utility, Transportation, Others
- Geography: Americas, Europe, Asia-Pacific, RoW
ABB Ltd. (Switzerland), AEG Power Solutions (The Netherland), General Electric Co. (U.S.), Hitachi ltd (Japan), LG Chem. (South Korea), NEC Corporation (Japan), Panasonic Corporation (Japan), Samsung SDI Co., ltd. (South Korea), Siemens AG (Germany), and Tesla Motors Ltd. (U.S.) among others are the key players operating in the global market for battery energy storage system.
