Grid-Scale Battery Market

Grid-Scale Battery Market

Growth Factors of Grid-Scale Battery Market

The grid-scale battery market size was valued at USD 10.07 billion in 2023, and the market is now projected to grow from USD 12.78 billion in 2024 to USD 48.71 billion by 2032, exhibiting a CAGR of 18.20% during the forecast period of 2024-2032.

The global COVID-19 outbreak influenced large-scale disruptions in 2020, grid-scale battery demand exceeded expectations. The International Energy Agency also stated that there was more annual storage capacity in 2020 and 2021. The grid-scale battery during this period due to increased energy storage advancements influenced by the pandemic. Thus, the grid-scale battery market growth position demonstrated its significance in the power industry.

The grid-scale battery market share remains relevant to integrating renewable energy by enhancing power system flexibility and retirement of mid-size natural gas power plants. Battery systems up to around 200 MW allow renewable to displace traditional energy sources more efficiently. This technology retains renewable energy production on certain occasions when the demand is low and makes it available at other times when required. This increases the feasibility and importance of renewable energy. Integrated into the grid, the battery storage is useful in demand-response programs, enabling improved energy utilization.

Moreover, molten salt batteries are emerging as the next potential type of storage system that is even better than lithium-ion batteries for the grid-scale system. The advantages of including their high sustainability, less reliance on critical materials and use frequency is comparatively lesser than the lithium-ion battery. Hence, lower energy density does not deter the sodium batteries due to their larger radius and lower redox potential. These sources of thermal storage represent potential opportunities for the battery market as follows. The change is due to increasing demand for green energy alternatives.

Comprehensive Analysis of Grid-Scale Battery Market

The grid-scale battery market and power & energy industry are rising due to its market segmentation. This market expansion effectively provides detailed regional assessments considering the dominant supply and demand forces that impact the power industry. These segmentations are methodically segregated by battery chemistry, by ownership and by applications. The battery chemistry includes, Lead-acid, Sodium-based, Redox Flow, Lithium-ion and Others. The ownership includes, Third-party Owned and Utility Owned. The application includs, Renewables, Peak Shifting, Ancillary Services, Backup Power and Others.

North America leads the grid-scale battery market, driven by favourable government policies, tax incentives and strong investments in renewable energy. Public and private sector funding is fueling the region's growth in battery storage. These initiatives support the deployment of clean energy technologies. The region's commitment to renewable energy adoption further boosts the market. This environment fosters ongoing expansion in the battery sector.

The key industry players in the market play a crucial role in the power & energy industry assuring industrial prospectus growth and setting market standards. These players include, Samsung SDI CO., LTD. (South Korea), NGK Insulators, LTD. (Japan), BYD Company Ltd (China), General Electric (U.S.), Redflow Limited (Australia), Ambri Incorporated (U.S.), VRB Energy (Canada), 24M Technologies, Inc. (U.S.), Lockheed Martin Corporation (U.S.), FZSONICK SA (Switzerland) and KORE Power, Inc. (U.S.). These market players provide a level-playing competitive landscape.

In September 2022, NGK Insulators connected a huge sodium-sulfur (NAS) Battery Energy Storage Station to a previous LNG terminal in Japan. Toho Gas, a utility company providing services to 54 cities across three prefectures in central Japan, has ordered the 11.4 MW/69.6 MWh NAS system to be installed at the Tsu LNG Station in Mie Prefecture. The system is expected to be completed by FY2025.

Segmentation Table

Global Grid-Scale Battery Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Growth Rate CAGR of 18.20% from 2024 to 2032

Historical Period 2019-2022

Unit Value (USD Billion)

Segmentation By Battery Chemistry, Ownership, Application, and Region

By Battery Chemistry

• Lead-acid
• Sodium-based
• Redox Flow
• Lithium-ion
• Others

By Ownership

• Third-party Owned
• Utility Owned

By Application

Renewables

• Peak Shifting
• Ancillary Services
• Backup Power
• Others

By Region

North America (By Battery Chemistry, Ownership, Application, Country)

• U.S.
• Canada
• Europe (By Battery Chemistry, Ownership, Application, Country)
• U.K.
• Germany
• Italy
• Rest of Europe
• Asia Pacific (By Battery Chemistry, Ownership, Application, Country)
• China
• Japan
• Australia
• South Korea
• Rest of Asia Pacific
• Rest of the World (By Battery Chemistry, Ownership, Application)

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