Advanced Energy Storage System Market

Advanced Energy Storage System Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Advanced Energy Storage System Market grew at a CAGR of 9.2% between 2017-2021 and is estimated to be US$ 17,659.3Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 11.3% and is expected to reach a valuation of US$ 51,514.0Mn by 2032 end.

An equipment or collection of appliances known as an Advanced Energy Storage System (ESS) transforms and stores electrical energy from power systems to be used when needed. Utilizing and managing electrical energy effectively can result in a reliable electricity supply and lower costs.

A private power station and an ESS, such as a wind or solar energy generation system, can provide the electricity needed for a personal power network that is operational around the clock.

Market Dynamic

INCREASING RENEWABLE ENERGY INVESTMENTS

Energy regulations are being updated in developed and developing nations to include a sizeable share of a generation coming from renewable energy sources like wind and solar. Investments in renewable energy are rising due to financial incentives provided by the government and related returns, which are anticipated to expand the AESS industry.

Nearly 173 nations had set provincial, state, or international renewable energy targets by the end of 2015. By the end of 2015, 146 countries had policies to support renewable energy use. Several nations held auctions to deploy renewable energy sources in a planned but economical way. According to the International Renewable Energy Agency (IRENA), more countries had such auctions in 2016 than in 2005, when only six were.

HIGH CAPITAL INVESTMENTS

Due to their high energy density and enhanced performance advantages, energy storage technologies, including lithium-ion batteries, flow batteries, and sodium sulfur (NAS) batteries, require higher capital for production than other technologies. The cost of technology is anticipated to be high for the first two or three years of lithium’s developing and evolving applications in electric vehicles and grid storage; however, the cost will reduce as lithium becomes more widely used.

With rated power, technology’s overall cost likewise rises. Customers who use captive power systems and residential customers, among others, are restricted from using these technologies due to the high capital costs associated with AESS installations.

GRID EXPANSION AND INVESTMENT IN THE MODERN INFRASTRUCTURE

The infrastructure in developing nations like India and China has to be updated, and the grid needs to be expanded. There is a need to provide energy to the estimated 30% of the fast-expanding worldwide population who do not have it.

In addition, the Sustainable Energy for All initiative (SE4All) of the United Nations estimates that by 2030, an investment of about USD 45 billion will be needed to ensure that everyone has access to modern electric power. The grid will be strengthened against various threats, such as natural disasters, thanks to advanced energy storage, which will also make it easier to deploy new and existing resources.

Market Segments Covered in Report

By Application:

• Transportation
• Grid Storage

By End-User:

• Residential
• Non-Residential

By Technology:

• Electrochemical
• Mechanical
• Thermal Storage

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

How is the transportation segment expected to dominate the CHP market during the forecast period?

The highest market share is anticipated to belong to the transportation sector. Lithium-ion battery deployment in the market for electric vehicles is the main factor fueling this segment’s growth. Additionally, there are chances for growth due to grid expansion and investments in modern infrastructure in developing nations.

Why is the electrochemical segment expected to have the highest market share during the forecast period?

During the projected period, the segment for electrochemistry is anticipated to develop at the fastest rate. The market for advanced energy storage systems was dominated by the lithium-ion subsegment of the electrochemical segment, and it is expected to continue to lead the market during the forecast period. Furthermore, it is anticipated that technological developments and the expanding use of lithium-ion batteries will lead to economies of scale, which would cut the cost of this technology and promote the market’s expansion.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With a market share of 54.0%, the Asia Pacific region is predicted to have the fastest growth rate for advanced energy storage systems. The demand for advanced energy storage systems in this region is being driven by an increase in the use of renewable energy resources for power generation, particularly in China, South Korea, and India, as well as an increase in the number of electric vehicles.

Competition Analysis

Leading businesses now face stiffer competition as the global Advanced Energy Storage System market grows. Companies in the industry are working to offer a wider range of products and solutions and implementing strategic techniques to expand further to maintain their leading positions.

The key developments in the Global Advanced Energy Storage System Market:

• In February 2017, ABB introduced a cutting-edge microgrid that combines battery and flywheel-based storage technologies to evaluate the scalability and enhance the power stability for almost 300,000 people in Anchorage, Alaska, USA.
• In December 2016, with premier storage inverter Dynapower, leading battery storage manufacturer Samsung SDI Co., Ltd. of South Korea, is creating an all-in-one storage solution for commercial and industrial customers. This action will eliminate intermediaries, reduce installation costs, and promote wider adoption of behind-the-meter batteries.

A list of some of the key suppliers present in the market are:

• ABB Ltd.
• LG Chem, Ltd.
• General Electric Company
• Samsung SDI Co ltd.
• GS Yuasa Corporation
• Siemens Ltd.
• Panasonic Corporation
• CALMAC
• Tesla Inc.
• Toshiba Corporation

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.