Ancillary Services for Battery Energy Storage Systems Market Research Report Information by Type (Frequency Regulation (and Balancing), Congestion relief, Voltage support, Power smoothing, Peak shaving, Backup Power, Solar Plus Storage , Grid Reliability

Ancillary Services for Battery Energy Storage Systems Market Research Report Information by Type (Frequency Regulation (and Balancing), Congestion relief, Voltage support, Power smoothing, Peak shaving, Backup Power, Solar Plus Storage , Grid Reliability & Microgrid Capability, Others) By Battery Energy Storage System Type (Lead acid, Lithium-ion, Flow batteries, Nickel-based batteries, Sodium-Sulphur and Zinc-Bromide) By End-Use (Residential, Commercial, Industrial and Utilities), and By Region Industry Forecast to 2032

In 2023, the market for ancillary services for battery energy storage systems was estimated to be worth $1,597.0 million USD. The business for ancillary services for battery energy storage systems is expected to increase at a compound annual growth rate (CAGR) of 14.63% between 2024 and 2032, from an estimated USD 1,763.9 million in 2024 to USD 5,258.7 million by 2032.

For the next two years, the Energy Information Administration predicts that wind and solar energy will contribute considerably to the nation's electricity generation. The United States' solar power generation is expected to expand by 75% from 163 billion kilowatt-hours (kWh) in 2024 to 286 billion kWh in 2025, primarily due to an increase in solar projects. Furthermore, because of the emphasis on using renewable energy sources, it is anticipated that the amount of wind energy used will increase. The increasing demand for energy means that wind energy will grow by 11%, from 430 billion kWh in 2024 to 476 billion kWh in 2025. The total amount of electricity produced in the United States in 2024 was 4,017 billion kilowatt-hours (kWh).

Biomass, geothermal, wind, solar, and hydropower were the sources of 22%, or 874 billion kWh, of generation last year, according to projections. In 2021 and 2023, respectively, the yearly generation of renewable electricity eclipsed that of nuclear power for the first time. They predict that the generation of coal electricity will decrease by 18% from 665 billion kWh in 2024 to 548 billion kWh in 2025, in contrast to the increasing generation from renewable sources. Like last year, natural gas is predicted to generate over 1,700 billion kWh of energy annually in 2024 and 2025, making it the main source of electricity generation in the United States.

Market Segment Analysis: Battery Energy Storage Systems' Ancillary Services Frequency regulation (and balancing), congestion relief, voltage support, power smoothing, peak shaving, backup power, solar plus storage, grid reliability & microgrid capability, and others are the market segments depending on type.
The market is divided into lead acid, lithium-ion, flow batteries, nickel-based, sodium-sulfur, and zinc-bromide categories based on the kind of battery energy storage system.
Residential, Commercial, Industrial, and Utilities are the market segments depending on end-use.

Regional Perspectives

Ancillary Services for Battery Energy Storage Systems: North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America make up the market's regional segments. The market for battery energy storage system ancillary services in Asia Pacific currently has the largest market share and is anticipated to generate a sizable portion of revenue over the course of the forecast period.

The Asia Pacific market for auxiliary services, such battery energy storage systems (BESS), is expanding quickly due to a number of factors. The region's ongoing development and urbanization are placing a rising demand on dependable and effective electrical infrastructure.

Furthermore, the integration of renewable energy sources and the deployment of BESS to maintain grid stability are being driven by the aggressive climate targets and the expanding usage of renewable energy sources. Leading the way in BESS deployment are nations like Australia, China, Japan, South Korea, and South Africa, which have made large investments in energy storage and grid upgrade initiatives.

Principal Players

Nidec Industrial Solutions, ESS Inc., EDF Energy, Powin Energy, Saft, Mitsubishi Heavy Industries, Ltd., Honeywell International, Inc., LG Energy Solution Ltd., NextEra Energy, and Doosan GridTech are some of the major companies in the Ancillary Services for Battery Energy Storage Systems Market.