Global Smart Power Storage Systems Market - 2023-2030

Global Smart Power Storage Systems Market - 2023-2030

Global Smart Power Storage Systems Market reached US$ 11.1 billion in 2022 and is expected to reach US$ 23.5 billion by 2030 growing with a CAGR of 9.8% during the forecast period 2023-2030. Renewable energy sector development, beneficial government policies and programs for energy storage systems (ESS) and increased energy storage economics are all expected to have an impact on the energy storage market in the future years.

Asia-Pacific is estimated to account for more than one-third of the global smart power storage systems market by 2022. The strong demand for lithium-ion batteries in renewable energy projects is estimated to account for more than 35% of the market share in the region. Government regulations and attempts to ease technological implementation are driving growth.

For example, power capacity additions in India did not meet the Indian government's expectations. As a result, the government is working to promote the sector by incorporating various thermal and renewable initiatives. The installed renewable energy capacity (including large hydro) has grown from 76.37 GW in March 2014 to 167.75 GW in December 2022, a 2.20-fold increase.

Market Dynamics
Decline in Costs of Lithium-ion Batteries
The decreasing cost of lithium-ion batteries has accelerated the global implementation of smart power storage systems. With decreased costs, more energy storage projects can be economically viable, resulting in more installations in a variety of applications like renewable energy integration, grid stabilization, demand response and microgrid solutions.

The average cost of a lithium-ion battery is expected to reduce further, reaching roughly US$ 58/kWh by 2030, making it significantly more cost-competitive with other types of batteries. It is anticipated to lead to an increase in the usage of lithium-ion batteries in new and exciting industries, such as energy storage systems (ESS) for residential and commercial applications that are linked to renewables such as solar, wind or hydro.

Rising Government Initiatives
To manage climate change and minimize greenhouse gas emissions, governments are increasingly focusing on transitioning to low-carbon energy systems. Smart power storage systems play an important role in helping this energy transition by increasing renewable energy deployment, enhancing grid stability and decreasing dependency on fossil fuels. Demand for smart power storage systems is being driven by government programs such as renewable energy targets, carbon pricing mechanisms and clean energy incentives.

In May 2023, EVE Energy Co. Ltd. signed a MoU with Pemaju Kelang Lama Sdn. Bhd to build a develop a manufacturing facility in Malaysia. The factory will be developed in the state of Kedah. It will focus on developing cylindrical lithium-ion batteries for power tools and electric two-wheelers, as per a joint statement from the Malaysian Investment Development Authority (MIDA) and EVE.

Regulations and Safety Concerns
Regulatory frameworks and regulations have a significant impact on the energy storage market. However, obsolete regulations or a lack of specific initiatives aimed to energy storage can cause uncertainty and market entry challenges. Inconsistent grid connection, tariff and market access restrictions could hamper the development and deployment of smart power storage systems.

As smart power storage systems depend on large-scale batteries, safety concerns like battery chemistries, thermal runaway and fire dangers must be resolved. To guarantee the safe installation, operation and maintenance of smart power storage systems, strict safety laws and standards must be in place. The safety measures might increase the cost and difficulty of implementation.

COVID-19 Impact Analysis
Lockdowns and limits on commercial activity reduced overall energy demand in several places. It had an effect on the business of smart power storage systems since the requirement for energy storage to regulate peak demand and grid stability was temporarily decreased. The pandemic highlighted the significance of robust energy systems in essential industries such as healthcare.

It has raised awareness and demand for smart power storage systems as a means of improving energy security and ensuring a consistent power supply. According to the IEA, following the initial lockdown measures, the margin between coal and renewables in India significantly decreased, with renewables reaching just over 30% in mid-August. Beginning in early August, the country's electrical demand began to rebound, with greater levels than in 2019.

In September 2020, weather-corrected energy demand was 3.4% higher than in September 2019, owing to higher demand in the industrial and commercial sectors, as well as higher demand for irrigation, compared to 2019. In October 2020, the easing of limitations and a healthier economic environment resulted in power consumption that was more than 10% higher than in October 2019, in accordance with pre-COVID-19 averages.

AI Impact
AI is extremely effective at forecasting power generation and consumption and thus the price at a given point in time. It gets so by analyzing a variety of data sources, including years of historical electrical data and weather data - particularly hot or cold days necessitate more air conditioning or heating, which drives electricity consumption.

A battery energy storage system uses artificial intelligence to manage load during peak and off-peak hours based on the day, time, season or weather. The Evergen app, for example, utilizes AI to monitor weather forecasts and then determine how much energy should be conserved. Later, when the installed solar systems are unable to create enough energy, the system distributes the stored electricity.

Russia-Ukraine War Impact Analysis
The dispute between Russia and Ukraine has the potential to strain global relationships, possibly resulting in diplomatic tensions and trade disruptions. Trade obstacles, sanctions or changes in trade regulations can all have an effect on the supply chain and international trade of smart power storage system components and equipment, influencing market dynamics and pricing. In 2020, imports accounted for more than half of total energy available in the EU, with Russia serving as the primary supplier of fossil fuels to the EU.

Since mid-2021, energy prices have been fluctuating. Fuel prices in the EU have risen as a result of Russia's aggressive and unlawful assault against Ukraine, raising concerns about energy supply security. The decision by Russia to halt gas exports to some EU member nations contributed to the problem. Energy price increases and disruptions in energy supply are highest priority priorities for EU leaders and the Council.

Segment Analysis
The global smart power storage systems market is segmented based on technology, connection, application and region.

Growing Sustainability in Residential Sector
During the forecast period, the residential application is expected to hold around 1/3rd of the global smart power storage market. The active participation and acceptance of new measures by the government also contribute to the globl expansion of the residential power storage market. Due to a developing understanding of residential power storage equipment, many homeowners have been looking for practical and beneficial storage options that may assist them in making the best use of solar energy for power generation purposes.

Eaton and LG Electronics, a leader in home energy solutions, collaborated in 2022 to deliver flexible load control for renewable energy distribution applications. Eaton's intelligent power management technology, such as smart breakers and EV chargers, will be linked with LG's ThinQ Energy mobile app and LG energy management solutions to improve home load control.

Geographical Analysis
Rising Residential Energy Storage in Europe
Europe is anticipated to hold more than 1/4th of the global smart power storage systems market during the forecast period 2023-2030. According to a new SolarPower Europe (SPE) study, Germany held the top position in the European country rankings of home storage markets in 2021 and is likely maintain this position until 2026.

According to SPE, the German storage market's top position is primarily due to the fact that demand for systems for residential and commercial solar power generation is being driven by the increasing price of electricity, while 70% of newly installed photovoltaic systems are built together with a storage battery.

Furthermore, global energy firm RWE said in September 2022 that it would put a 72MW battery energy storage system (BESS) online by the end of 2022 in Werne, Germany. The two BESS units include 420 lithium-ion batteries with a combined power of 117 MW.

Competitive Landscape
The major global players include BYD Company Ltd., LG Energy Solutions Co. Ltd., Panasonic Corporation, Samsung SDI Co. Ltd., Tesla Inc., ABB Ltd., AEG Power Solutions, Delta Electronics Inc., General Electric and Hitachi.
Why Purchase the Report?
• To visualize the global smart power storage systems market segmentation based on technology, connection, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of smart power storage systems market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.
The global smart power storage systems market report would provide approximately 61 tables, 58 figures and 202 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies