The global advanced energy storage systems market was valued at USD 79.21 billion in 2023 and is anticipated to grow with a healthy growth rate of more than 7.93% over the forecast period 2024-2032. Advanced energy storage systems are critical components in the energy landscape, offering solutions to store energy efficiently and effectively. These systems are pivotal in managing energy supply and demand, optimizing energy use, and ensuring stability and reliability in power systems. The market for advanced energy storage systems is driven by several key factors including increasing investments in renewable energy, a growing electric vehicle industry, and evolving government policies aimed at enhancing energy efficiency.
Increased investment in renewable energy sources is one of the major drivers of market growth. As the global demand for clean and sustainable energy sources rises, the need for efficient energy storage solutions becomes more pressing. Renewable energy sources like solar and wind power are intermittent, which creates a need for reliable energy storage systems to ensure a steady energy supply. For instance, the International Energy Agency (IA) reported that global investments in the electricity sector reached over USD 820 billion in 2021, with a significant portion directed towards renewable energy projects. Such investments highlight the critical role of advanced energy storage systems in supporting the renewable energy infrastructure. Additionally, the market is bolstered by the rapid growth of the electric vehicle (EV) industry. The increasing adoption of EVs requires advanced battery storage solutions to support their operation and enhance their efficiency. The transportation segment, driven by the use of lithium-ion batteries in EVs, dominated the market in 2023 and is expected to continue its growth trajectory.
Technological advancements in energy storage systems, such as the integration of software for better control, monitoring, and forecasting, are also propelling market growth. For example, Honeywell introduced a battery energy storage system (BESS) platform in June 2021, incorporating advanced features for improved performance. However, the market faces challenges such as the preference for glass-lined reactors over glass reactors due to their superior strength and durability at higher temperatures. Additionally, the delicate nature of glass reactors compared to reactors made from materials like stainless steel poses concerns regarding maintenance costs.
Geographically, North America is expected to lead the global advanced energy storage systems market, driven by technological advancements, research initiatives, and government support for renewable energy. Europe follows, with substantial growth driven by the increased production of power from renewable sources and the rising demand for electric vehicles. The Asia-Pacific region is anticipated to experience the fastest growth during the forecast period, fueled by increasing power demand in developing nations and supportive government policies promoting low-carbon energy sources.
Major market players included in this report are:
AES Corporation (US)
Tesla, Inc. (US)
GENERAL ELECTRIC (US)
ABB (Switzerland)
Saft (France)
LG Chem (South Korea)
Siemens AG (Germany)
Panasonic Corporation (Japan)
Electrovaya (Canada)
Hitachi, Ltd. (Japan)
The detailed segments and sub-segment of the market are explained below:
By Application:
Grid Storage
Transportation
Others
By Technology:
Mechanical
Thermal
Electro Chemical
Others
By Storage Type:
Batteries
Flywheels
Compressed Air Storage
Pumped Hydro-Power
Others
By Region: North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
Middle East & Africa
Saudi Arabia
South Africa
RoMEA
Years considered for the study are as follows:
Historical year - 2022
Base year - 2023
Forecast period - 2024 to 2032
Key Takeaways:
Market Estimates & Forecast for 10 years from 2022 to 2032.
Annualized revenues and regional level analysis for each market segment.
Detailed analysis of geographical landscape with Country level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of competitive structure of the market.
Demand side and supply side analysis of the market.
