Grid-Connected Energy Storage

Grid-Connected Energy Storage

Global Grid-Connected Energy Storage Market to Reach US$9.4 Billion by 2030

The global market for Grid-Connected Energy Storage estimated at US$2.3 Billion in the year 2023, is expected to reach US$9.4 Billion by 2030, growing at a CAGR of 21.9% over the analysis period 2023-2030. Lithium-Ion Battery-based Grid-Connected Energy Storage, one of the segments analyzed in the report, is expected to record a 21.2% CAGR and reach US$7.9 Billion by the end of the analysis period. Growth in the Lead Acid Battery-based Grid-Connected Energy Storage segment is estimated at 28.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$706.4 Million While China is Forecast to Grow at 17.7% CAGR

The Grid-Connected Energy Storage market in the U.S. is estimated at US$706.4 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.1 Billion by the year 2030 trailing a CAGR of 17.7% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.0% and 19.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.0% CAGR.

Global Grid-Connected Energy Storage Market - Key Trends and Drivers Summarized

Grid-connected energy storage systems (ESS) are becoming increasingly pivotal in the integration and stabilization of renewable energy sources within power grids. As the global shift towards renewables like wind and solar accelerates, the variability of these energy sources poses unique challenges, such as managing the inconsistency between peak demand times and renewable energy production. ESS are crucial for enabling renewable energy to function as reliable, baseload generation sources. These systems provide essential flexibility and resilience to the grid, which is critical in the face of climate change-induced extreme weather events and aging grid infrastructures. This flexibility is instrumental in allowing utilities to meet ambitious decarbonization goals effectively, particularly through legislative support such as the Inflation Reduction Act of 2022, which extends tax credits and introduces technology-neutral incentives for renewable energy projects.

The capacity of ESS to store excess energy during periods of low demand and release it during peak times is critical for balancing the supply and demand of energy, thereby enhancing grid reliability and efficiency. This capability addresses the so-called "duck curve" problem, where there is a mismatch between renewable energy production and peak demand times. Emerging business models like energy storage as a service (ESaaS) and capacity contracts are further expanding the potential applications of ESS. These models offer versatile solutions that can meet a broad range of grid needs, from reducing peak demand to facilitating smoother integration of renewable energy sources, thereby demonstrating the growing versatility and necessity of energy storage in contemporary energy systems.

The expansion of the grid-connected energy storage market is driven by several critical factors. Firstly, the increasing integration of intermittent renewable energy sources necessitates the use of ESS to ensure a constant and reliable energy supply. Technological advancements in ESS, such as improved battery efficiency, lifespan, and cost reductions, are making these systems more economically viable and attractive for widespread grid applications. Regulatory support through government policies, incentives, and mandates is also a significant driver, encouraging the adoption of ESS. Additionally, the growing demands for energy independence and enhanced grid stability, which ESS uniquely provides, are crucial for regions aiming to reduce reliance on external energy supplies and improve grid resilience. The ongoing global efforts towards decarbonization, heightened by the need to reduce carbon emissions and meet international climate goals, further bolster the deployment of ESS. Moreover, the increasing electrification of transportation and industrial sectors presents new challenges for grid management, where ESS plays a vital role in ensuring stability and managing the higher load demands. As urbanization continues and smart grid developments advance, the need for sophisticated energy solutions like ESS becomes more pronounced, highlighting their indispensable role in transitioning to a more sustainable, efficient, and resilient energy future.

Select Competitors (Total 23 Featured) -

• NEC Corporation
• LG Electronics Inc.
• Samsung SDI Co.,Ltd.
• Altairnano
• BYD Company Ltd.
• NGK Insulators, Ltd.
• Enerdel Inc.
• Ecoult
• Saft Groupe S.A.

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