India Energy Storage Market Witnessing Robust Growth: Projected to Grow at Double Digits through 2028

Indias energy storage market is showing promising growth due to the growing investments in renewable energy sector and the implementation of energy storage systems (ESS) schemes. Read on to know more about the trends and factors driving the growth of the market

According to a recent study conducted by the strategic consulting and market research firmReport Ocean, the India Energy Storage Market is anticipated to grow at a CAGR of over 10% during the forecast period 2022-2028. Due to the rise in population, urbanization and industrialization in the country, the increasing energy storage demand is likely to drive the India energy storage systems market. There are several industries and plants in India that use energy storage systems during times of power shortage. Many cities in the country face frequent power cuts during the day, which hinders the workflow. BESS (Battery Energy Storage Systems) is ideal for these purposes because they are able to deliver energy when there is a shortage, allowing the process to run smoothly. The India energy storage market is also driven by the need to fulfill electricity requirements during the peak hours of the day when energy storage systems are used as backup power. In response to power outages during peak hours, many people are turning to energy storage, which serves as a backup energy source and reduces their energy costs. The factors mentioned above are driving the demand for energy storage systems.

Increasing Demand for Electrical Energy to Propel Market Growth

The increasing demand for energy in developing and developed economies is anticipated to drive the India energy storage market growth. According to a report published by the National Energy Agency (NEA), energy demand is expected to increase by 50% by 2050. Some big industries are now taking initiatives to get into the market due to the Indian government's favorable policies, allowing less restriction and more growth. For instance, in 2019, Tata Power, AES Corporation, and Mitsubishi Corporation inaugurated India's first grid-scale battery-based energy storage system in Rohini, Delhi. AES and Mitsubishi Corporation own the 10 megawatts (MW) grid-connected system. Batteries can store and transfer energy in milliseconds, reducing grid instability and allowing more energy to be captured and delivered on-demand. Due to the aforementioned factors, India's energy storage market is expected to grow during the forecast period.

Stringent Carbon Reduction Norms Promoting India Energy Storage Market Growth

Increasing demand for energy storage systems is primarily driven by rapid population growth across nations and new initiatives to boost electrification rates, especially in remote regions of India. Carbon dioxide is a by-product of the combustion of fuel and is a serious pollutant that can cause serious health problems such as respiratory disorders, headaches, etc. India is expected to decrease its carbon emission by less than 45% by 2028. Therefore, the introduction of some favorable policies by the Indian government for low carbon emission technologies will likely increase the market size.

Impact of COVID-19 On India Energy Storage Market

The COVID-19 pandemic has had a negative impact on India energy storage market. There has been an unprecedented loss across several economies as a result of the pandemic. Cross-border trade of raw materials used in energy storage devices manufacturing was severely impeded by the sudden lockdown across the nations. As a result, some critical battery parts were unavailable in the manufacturing facilities. Consequently, several companies were put under financial strain, and the market shrank significantly as a result of the pandemic. As a result of the lockdowns in different parts of the world, there has been a drastic reduction in the number of professionals working in the factories, which resulted in the decline of energy storage device manufacturing. As a result, companies have switched to new and other energy storage technologies, like PHS, CAES, and flow battery solutions, to avoid further project delays and be prepared for such scenarios in the future.

South India Dominates India Energy Storage Market

Based on regions, the India Energy Storage Market is categorized into South India, North India, East India, West India. The Southern region of India is expected to continue its dominance in the energy storage market over the forecast period. The south region of India has various organized players in the energy storage market, such as TATA Powers, Beta Power, AutoGrid, and others. In contrast, other parts of India are still developing fundamental infrastructure and have unreliable or limited power grids.

India Energy Storage Market - Competitive Landscape

The key players in the India Energy Storage market are as TATA Powers, Sterling & Wilson Solar, Websol Energy Systems, Targray, StatconEnergiaa, Urja Solutions, Sungrow, Vyomaa Energy, Fluence, Axis Electrical Components Pvt. Limited, Optimal Power Synergy India Pvt. Ltd., Fitzer Incorporation, Solar Turbines, Nextracker, Inc., Inaccess, Bloom Energy, and other prominent players.