Energy Storage Systems Market Forecasts to 2030 – Global Analysis By Component (Energy Management Systems (EMS), Inverters, Battery Management Systems (BMS), Power Conversion Systems (PCS) and Other Components), Capacity, Technology, Application and By Ge

Energy Storage Systems Market Forecasts to 2030 – Global Analysis By Component (Energy Management Systems (EMS), Inverters, Battery Management Systems (BMS), Power Conversion Systems (PCS) and Other Components), Capacity, Technology, Application and By Geography


According to Stratistics MRC, the Global Energy Storage Systems Market is accounted for $264.05 billion in 2024 and is expected to reach $475.50 billion by 2030 growing at a CAGR of 10.3% during the forecast period. Energy Storage Systems (ESS) refers to a range of technologies and methods designed to capture, store, and manage energy for later use. As they regulate intermittency and provide a steady supply of energy, these systems are essential to the integration of renewable energy sources like wind and solar power. The industry offers a range of technologies for use in commercial, industrial, and residential settings, such as batteries, pumped hydro storage, and thermal storage.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), in 2018, investments in renewable power production technologies, dominated by solar and wind energy, totaled USD 64.2 billion in the United States.

Market Dynamics:

Driver:

Growing adoption of renewable energy

Energy Storage Systems (ESS) are in high demand due to the growing use of renewable energy sources like solar and wind power. Energy storage systems (ESS) are crucial for storing extra energy during peak production periods and releasing it during periods of low production or high demand since the output of these intermittent energy sources might fluctuate. This contributes to grid balancing and guarantees a consistent and sustainable supply of energy. In addition, ESS can be used to minimize greenhouse gas emissions and lessen dependency on fossil fuels, which makes them an essential part of the shift to cleaner energy sources in the future.

Restraint:

High initial investment costs

High initial investment prices provide a major hurdle for the Energy Storage Systems (ESS) market. This covers the price of installing batteries as well as power conversion, battery management, and facility infrastructure. System control, balance of plant, building, and commissioning are additional expenses. The initial expenses associated with energy storage systems may impede their extensive implementation, particularly in developing nations where funding resources are scarce.

Opportunity:

Declining costs of battery technology

Battery technology is becoming more affordable, which is driving growth in the market for Energy Storage Systems (ESS). Batteries are getting cheaper as a result of increased manufacturing efficiency and the realization of economies of scale, which makes energy storage systems like pumped hydro storage more competitive and more affordable. Because of this, utilities, companies, and homeowners find ESS to be more appealing for off-grid power supply, peak load management, and grid stabilization.

Threat:

Lack of standardization

Lack of standardization in several areas presents difficulties for the Energy Storage Systems (ESS) sector. Evaluating systems is challenging for both suppliers and customers due to the absence of standard definitions, metrics, and testing procedures. Issues with integration and vendor lock-in arise from open communication protocols across vendors. Complicating matters include local safety, environmental, and grid code laws. Reducing soft costs, enhancing interoperability, and hastening the global adoption of energy storage technologies all depend on closing these standardized gaps.

Covid-19 Impact

The COVID-19 epidemic caused supply chain disruptions, production and installation delays, and other significant effects on the energy storage systems market. Investment and project development slowed as a result of lockdowns and restrictions, especially in the residential and commercial sectors. However, because of the pandemic's increased demand for energy storage due to rising domestic energy consumption, the transition to renewable energy sources was also accelerated. Restoring grid resilience and incorporating more sustainable energy practices are top priorities as economies rebound, setting up the industry for future expansion.

The energy management systems (EMS) segment is expected to be the largest during the forecast period

The energy management systems (EMS) segment is projected to account for the largest market share during the projection period. As the need for environmentally friendly energy solutions increases, EMS makes it possible to monitor and control energy output and consumption in real time, improving grid stability. These systems enable demand response and load balancing, enabling users to modify energy consumption in accordance with availability. Furthermore, as energy networks are becoming more complicated, enhanced analytics and reporting skills are required, which means that energy storage applications need to use EMS in order to maximize efficiency and minimize reliance on fossil fuels.

The grid energy storage segment is expected to have the highest CAGR during the forecast period

During the projection period, the grid energy storage segment is expected to grow at the highest CAGR, due to the growing need for a dependable and resilient power supply. The increasing prevalence of renewable energy sources such as solar and wind power emphasizes the urgent need for efficient energy storage technologies to mitigate their intermittency. The market is further driven by regulatory support and incentives for clean energy programs, which also make it easier to integrate different energy sources and increase the overall stability and efficiency of the grid.

Region with largest share:

The Asia Pacific region is projected to account for the largest market share during the forecast period, due to the growing need for the integration of renewable energy sources and a steady supply of electricity. Growth in the market is also accelerated by encouraging government initiatives and regulations that improve energy security and sustainability. The region becomes a major factor in the global energy transition as a result of the trend towards electrification in distant areas, which also presents prospects for the deployment of energy storage systems.

Region with highest CAGR:

Over the forecasted timeframe, the North America region is anticipated to exhibit the highest CAGR, owing to increasing demand for grid resilience and modernization, the quick uptake of renewable energy sources, and encouraging government incentives and regulations. The growing popularity of electric vehicles and the requirement for dependable backup power also contribute to the market's growth. Constant developments in battery technologies, including as flow and lithium-ion batteries, improve system economics and efficiency, increasing the availability and desirability of energy storage systems in the North American market.

Key players in the market

Some of the key players profiled in the Energy Storage Systems Market include LG Chem, Siemens Energy, Samsung SDI, Fluence, Hitachi ABB Power Grids, GE Renewable Energy, VRB Energy, Eve Energy Co. Ltd., ABB, Kokam, Tesla, Panasonic, AES Corporation, Enphase Energy, TotalEnergies, Vivint Solar, GE Vernova, Northvolt, Tata Power and Larsen & Toubro (L&T).

Key Developments:

In August 2023, Fluence Energy launched a new storage platform aimed at improving efficiency in integrating renewable energy sources into the grid.

In June 2023, LG Chem announced the construction of a new production facility in the U.S. to expand its lithium-ion battery output.

In April 2023, Tesla launched the Megapack, a large-scale battery designed for commercial use to provide enhanced energy storage capacity and stability.

In May 2020, Northvolt introduced the Voltpack Mobile System, a lithium-ion battery energy storage solution designed as a zero-emission alternative to diesel generators, applicable for powering remote grids and supporting EV charging.

Components Covered:
• Energy Management Systems (EMS)
• Inverters
• Battery Management Systems (BMS)
• Power Conversion Systems (PCS)
• Other Components

Capacities Covered:
• Large Scale (Above 10 MW)
• Medium Scale (1 MW – 10 MW)
• Small Scale (Up to 1 MW)

Technologies Covered:
• Lithium-Ion Batteries
• Lead-Acid Batteries
• Flow Batteries
• Sodium-Sulfur Batteries
• Nickel-Cadmium Batteries
• Flywheel Energy Storage
• Pumped Hydro Storage
• Compressed Air Energy Storage (CAES)
• Thermal Energy Storage

Applications Covered:
• Grid Energy Storage
• Renewable Energy Integration
• Electric Vehicles (EVs)
• Commercial & Industrial Applications
• Residential Energy Storage
• Telecommunications
• Transportation and Heavy Industries
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
Market share assessments for the regional and country-level segments
Strategic recommendations for the new entrants
Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
Strategic recommendations in key business segments based on the market estimations
Competitive landscaping mapping the key common trends
Company profiling with detailed strategies, financials, and recent developments
Supply chain trends mapping the latest technological advancements


1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 Application Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Energy Storage Systems Market, By Component
5.1 Introduction
5.2 Energy Management Systems (EMS)
5.3 Inverters
5.4 Battery Management Systems (BMS)
5.5 Power Conversion Systems (PCS)
5.6 Other Components
6 Global Energy Storage Systems Market, By Capacity
6.1 Introduction
6.2 Large Scale (Above 10 MW)
6.3 Medium Scale (1 MW – 10 MW)
6.4 Small Scale (Up to 1 MW)
7 Global Energy Storage Systems Market, By Technology
7.1 Introduction
7.2 Lithium-Ion Batteries
7.3 Lead-Acid Batteries
7.4 Flow Batteries
7.5 Sodium-Sulfur Batteries
7.6 Nickel-Cadmium Batteries
7.7 Flywheel Energy Storage
7.8 Pumped Hydro Storage
7.9 Compressed Air Energy Storage (CAES)
7.10 Thermal Energy Storage
8 Global Energy Storage Systems Market, By Application
8.1 Introduction
8.2 Grid Energy Storage
8.3 Renewable Energy Integration
8.4 Electric Vehicles (EVs)
8.5 Commercial & Industrial Applications
8.6 Residential Energy Storage
8.7 Telecommunications
8.8 Transportation and Heavy Industries
8.9 Other Applications
9 Global Energy Storage Systems Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 LG Chem
11.2 Siemens Energy
11.3 Samsung SDI
11.4 Fluence
11.5 Hitachi ABB Power Grids
11.6 GE Renewable Energy
11.7 VRB Energy
11.8 Eve Energy Co. Ltd.
11.9 ABB
11.10 Kokam
11.11 Tesla
11.12 Panasonic
11.13 AES Corporation
11.14 Enphase Energy
11.15 TotalEnergies
11.16 Vivint Solar
11.17 GE Vernova
11.18 Northvolt
11.19 Tata Power
11.20 Larsen & Toubro (L&T)
List of Tables
Table 1 Global Energy Storage Systems Market Outlook, By Region (2022-2030) ($MN)
Table 2 Global Energy Storage Systems Market Outlook, By Component (2022-2030) ($MN)
Table 3 Global Energy Storage Systems Market Outlook, By Energy Management Systems (EMS) (2022-2030) ($MN)
Table 4 Global Energy Storage Systems Market Outlook, By Inverters (2022-2030) ($MN)
Table 5 Global Energy Storage Systems Market Outlook, By Battery Management Systems (BMS) (2022-2030) ($MN)
Table 6 Global Energy Storage Systems Market Outlook, By Power Conversion Systems (PCS) (2022-2030) ($MN)
Table 7 Global Energy Storage Systems Market Outlook, By Other Components (2022-2030) ($MN)
Table 8 Global Energy Storage Systems Market Outlook, By Capacity (2022-2030) ($MN)
Table 9 Global Energy Storage Systems Market Outlook, By Large Scale (Above 10 MW) (2022-2030) ($MN)
Table 10 Global Energy Storage Systems Market Outlook, By Medium Scale (1 MW – 10 MW) (2022-2030) ($MN)
Table 11 Global Energy Storage Systems Market Outlook, By Small Scale (Up to 1 MW) (2022-2030) ($MN)
Table 12 Global Energy Storage Systems Market Outlook, By Technology (2022-2030) ($MN)
Table 13 Global Energy Storage Systems Market Outlook, By Lithium-Ion Batteries (2022-2030) ($MN)
Table 14 Global Energy Storage Systems Market Outlook, By Lead-Acid Batteries (2022-2030) ($MN)
Table 15 Global Energy Storage Systems Market Outlook, By Flow Batteries (2022-2030) ($MN)
Table 16 Global Energy Storage Systems Market Outlook, By Sodium-Sulfur Batteries (2022-2030) ($MN)
Table 17 Global Energy Storage Systems Market Outlook, By Nickel-Cadmium Batteries (2022-2030) ($MN)
Table 18 Global Energy Storage Systems Market Outlook, By Flywheel Energy Storage (2022-2030) ($MN)
Table 19 Global Energy Storage Systems Market Outlook, By Pumped Hydro Storage (2022-2030) ($MN)
Table 20 Global Energy Storage Systems Market Outlook, By Compressed Air Energy Storage (CAES) (2022-2030) ($MN)
Table 21 Global Energy Storage Systems Market Outlook, By Thermal Energy Storage (2022-2030) ($MN)
Table 22 Global Energy Storage Systems Market Outlook, By Application (2022-2030) ($MN)
Table 23 Global Energy Storage Systems Market Outlook, By Grid Energy Storage (2022-2030) ($MN)
Table 24 Global Energy Storage Systems Market Outlook, By Renewable Energy Integration (2022-2030) ($MN)
Table 25 Global Energy Storage Systems Market Outlook, By Electric Vehicles (EVs) (2022-2030) ($MN)
Table 26 Global Energy Storage Systems Market Outlook, By Commercial & Industrial Applications (2022-2030) ($MN)
Table 27 Global Energy Storage Systems Market Outlook, By Residential Energy Storage (2022-2030) ($MN)
Table 28 Global Energy Storage Systems Market Outlook, By Telecommunications (2022-2030) ($MN)
Table 29 Global Energy Storage Systems Market Outlook, By Transportation and Heavy Industries (2022-2030) ($MN)
Table 30 Global Energy Storage Systems Market Outlook, By Other Applications (2022-2030) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings