Lithium-Ion Solar Energy Storage Market - By Capacity (≤ 50 kW, 51 to 250 kW, 251 to 500 kW, 501 to 1,000 kW, 1001 to 2500 kW, 2,501 to 5,000 kW, 5,001 to 10,000 kW, > 10,000 kW), By Installation (On-Grid, Off-Grid), By Application & Forecast, 2024

Lithium-Ion Solar Energy Storage Market - By Capacity (≤ 50 kW, 51 to 250 kW, 251 to 500 kW, 501 to 1,000 kW, 1001 to 2500 kW, 2,501 to 5,000 kW, 5,001 to 10,000 kW, > 10,000 kW), By Installation (On-Grid, Off-Grid), By Application & Forecast, 2024 - 2034

Lithium-Ion Solar Energy Storage Market size is poised to grow at 15.2% CAGR from 2024 to 2034 driven by the rapid development of microgrids across the world. Microgrid deployment, especially in remote areas and regions with unreliable power infrastructure is making way for efficient energy storage solutions. Lithium-ion batteries play a pivotal role in microgrid development for offering reliable and scalable energy storage solutions for decentralized power systems. These batteries also facilitate energy independence, grid resilience, and integration of renewable energy sources into microgrid networks.

Furthermore, the ongoing R&D efforts are leading to continuous improvements in lithium-ion battery technology for increasing energy density, efficiency, and overall performance. For instance, in September 2023, a leading manufacturer of ESS and lithium-ion batteries, Hithium unveiled ESS 2.0, its new 5MWh system that fits into a typical 20-foot container. The rising demand for resilient and sustainable energy solutions in off-grid locations is also likely to boost the market growth.

The industry is segmented into installation, capacity, application, and region.

In terms of installation, the on-grid lithium-ion solar energy storage industry is anticipated to gain significant traction between 2024 and 2034. This is owing to the growing importance of grid-connected solar energy systems to power infrastructure. On-grid installations offer benefits, such as grid stability, peak-load management, and improved energy reliability. Governments worldwide are emphasizing on-grid solutions to efficiently meet the rising energy demands. Additionally, advancements in smart grid technologies are enabling the seamless integration of solar energy into existing power grids, further promoting the adoption of sustainable and grid-friendly energy storage solutions.

Based on application, the lithium-ion solar energy storage market from the commercial & industrial segment is projected to witness high demand between 2024 and 2032 with several industries prioritizing sustainability and seeking energy cost reduction solutions. Lithium-ion batteries cater to the unique energy needs of commercial and industrial facilities by providing efficient energy storage for enabling peak shaving and ensuring stable power supply. With the growing emphasis on corporate social responsibility (CSR), several businesses are increasingly adopting solar energy storage solutions to reduce carbon footprints and enhance energy resilience. Additionally, the cost-effectiveness, scalability, and reliability offered by lithium-ion batteries will further contribute to their growing preference in commercial and industrial applications.

Regionally, the Asia Pacific lithium-ion solar energy storage industry held a sizable revenue share in 2023 and is set to depict robust growth through 2024-2034 driven by the increasing demand for sustainable energy solutions. Rapid urbanization coupled with the growing awareness of environmental issues is fueling the adoption of solar energy systems. Rising advancements in lithium-ion battery technology coupled with the supportive policies and incentives implemented by multiple governments to promote clean energy will accelerate the regional market growth.