Advanced Energy Storage Systems Market Size & Share 2015 - 2022
Market Size by Technology (Compressed Air, Flywheel, Molten Salt, Batteries, Thermal), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast.
Report ID: GMI104
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Published Date: March 2016
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Report Format: PDF
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Authors:
Ankit Gupta, Abhishek Chopra
Advanced Energy Storage Systems Market Size
Advanced Energy Storage Systems Market size in 2014 was valued over 3.5 GW with CAGR of over 15% up to 2022.
Growing implementation of energy efficiency measures coupled with soaring energy demand will stimulate the global advanced energy storage systems market. Increasing focus toward enhancing the cost competitiveness of the power grid by ensuring high stability coupled with widespread adoption of clean energy sources will augment the advanced ESS market share. In addition, declining battery costs and increasing energy density are some of the other eminent factors favoring product deployment over forecast timeline.
Ability to promptly absorb and inject energy to effectively help with grid management, by simultaneously reducing infrastructure costs will drive the demand for the large-scale advanced battery systems. Furthermore, less emission, portable, and no immediate environmental impacts are some prominent features that will further boost the installation over the forecast period. In 2017, Tesla developed and installed the world’s largest Li-ion technology comprising Tesla Powerpack batteries across South Australia’s Hornsdale province. The installation of the system across the facility saved over USD 40 million in the first year of its installation alone thereby stabilizing and balancing the region’s unreliable grid.
Ongoing investment aimed toward the renovation & expansion of existing and development of new distribution networks coupled with rising electricity usage will enhance the global market growth. For instance, as per the U.S. Department of Energy, in 2016, the U.S. utilities invested USD 3.4 billion in smart grid technologies at the distribution level. In addition, the growing demand for continuous and reliable energy supply will further augment the industry outlook.
Advanced Energy Storage Systems Market Analysis
Compressed air advanced energy storage systems market size is anticipated to expand over 14% by 2022. Growing investments toward wind and solar energy resources to meet the peak power demand has fueled the technology penetration. Furthermore, government reforms to encourage the adoption of sustainable power generation technologies with growing integration of energy storage systems will further enhance the industry outlook.
Ongoing efforts toward power optimization across energy intensive industries coupled with increasing electricity prices will drive the battery advanced ESS industry growth. For instance, the European Energy Research Alliance initiated the SP1 program which focuses on the entire value chain from materials to integration of the energy storage technology. This in turn improves the performance, power and energy density while maintaining high level of safety.
Flywheel advanced energy storage systems market is anticipated to witness substantial growth by 2022. Long life, low maintenance, and high efficiency are some prominent features that will drive the product installation over other available alternatives. In addition, major industry players are aggressively investing in intensive research and development activities to increase technology penetration for emerging grid storage systems which stimulate the business outlook.
The U.S. advanced energy storage systems market is set to surpass USD 2 billion by 2022. Growing investments to shift the dependency from conventional to unconventional clean energy sources will stimulate the technology adoption. Reductions in battery prices are making energy storage a competitive alternative to other traditional solutions across the region. Rising penetration of large utility aided projects will further compliment the industry outlook over the forecast period. In 2018, Pacific Gas & Electric Company (PG&E) requested California Public Utilities Commission (CPUC) for the approval of four cost-efficient energy storage projects with total capacity of almost 567 MW.
Increasing R&D investments to develop effective low-cost sustainable products will up surge the Europe market size. Manufacturer’s focus to prepare a smart electric ecosystem in line of favoring the energy transition will further accelerate the regional industry growth over the forecast timeframe. In 2018, Groupe Renault launched the “Advanced Battery Storage” program with an aim to develop the largest stationary ESS using EV batteries. The systems tends to enable the grid integration of clean energies across various sites in France and Germany.
Latin America advanced energy storage systems market is set to witness growth over 15% by 2022. Rising measure toward limiting the carbon footprint along with soaring investment in clean energy sector will rise the deployment of these products. In addition, Stringent government regulation on account to curb the carbon emission will further boost the market share in the coming years.
Advanced Energy Storage Systems Market Share
Eminent players across the advanced energy storage systems industry comprises
Players across the ecosystems are focused more towards the development of new and innovative cost-effective products with high efficiency index. Further strengthening the sales and distribution channel is at the top priority for the manufacturers.
Advanced Energy Storage Systems Industry Background
Advanced energy storage systems capture the energy at one time which can be used later. It performs conversion of different forms of energy, which is difficult to store in the economically storable forms. For instance, Flywheel ESS work by driving the rotor at significant speed. In addition, advanced FES have rotors made up of extreme carbon compounds, suspended by magnetic bearings which rotates at the speed ranging from 20,000-50,000 rpm across a vacuum enclosure. Advanced ESS technology allows grid operators to complete the flow of energy resources more efficiently thereby decreasing the need for additional power plants.
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →