Grid Scale Stationary Battery Storage Market Size By Battery (Lithium-Ion {Lithium Iron Phosphate (LFP), Nickel Manganese Cobalt (NMC)}, Sodium Sulphur, Lead Acid, Flow Battery), By Application (Frequency Regulation, Flexible Ramping, Black Start Services, Energy Shifting and Capacity Deferral, Transmission and Distribution Congestion Relief, Capacity Firming, Reduced RE Curtailment, Reduced Reliance on Diesel Gensets) COVID- 19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032

Industry Statistics

Grid Scale Stationary Battery Storage Market size exceeded USD 42 billion in 2022 and is projected to expand at more than 28% CAGR from 2023 to 2032.
 

Government bodies have been emphasizing the adoption of energy-efficient technologies and a joint focus on achieving net-zero targets. For example, at the 2022 United Nations COP27, the U.S. launched a Net-Zero Government Initiative, encouraging governments to reach net-zero emissions from national operations by 2050. Such federal decarbonization initiatives will bolster the installation of grid-scale battery energy storage systems since these systems can accommodate high renewable energy share and contribute to grid stability.
 

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Despite the favorable business environment, the usage of lead-acid batteries is associated with potential environmental hazards. The improper disposal of a single battery, for instance, could contaminate over 25 tons of municipal solid waste. These environmental impacts may hamper product development to some extent. Moreover, with the growing concerns about rising energy prices, the reliance on stationary power grid battery storage systems for clean energy will grow, especially in Europe.
 

Long service life & low costs to stimulate grid-scale flow battery storage system production

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Grid scale stationary battery storage market from the flow battery segment is set to register over 32% growth rate through 2032, on account of its low costs, long life span, and growing consumer dependence on energy storage systems. Unlike their lithium-ion counterparts, flow battery systems are low-risk for fire or explosion and are advantageous in terms of commercialization and safety recycling. Despite these safety features, the self-discharge rate is relatively high, leading to low efficiency and disruptions in manufacturing expansion. Easy customization and capacity attributes may, however, contribute to product consumption.
 

Increase in power outages to boost implementation of black start services in electric grids

In terms of application, the black start services segment is poised to record more than 2% share of the grid scale stationary battery storage market by 2032. The requirement for resilient power systems has increased owing to frequent power failures and electricity outages. In the U.S., for example, power outages have been escalating, given the aging energy infrastructure and extreme weather conditions. Since black start restoration services can power electric networks and generators without the use of external transmission lines, the rising instances of power outages will proliferate system adoption.
 

The frequency regulation application segment held over 80% of the grid scale stationary battery storage market share in 2022, considering the increasing acceptance of battery energy storage systems as a reliable option to improve frequency deviation in grid networks. These systems can be utilized to address energy or demand imbalances that change the frequency of power moving through transmission lines. The mounting penetration of renewable energy and the introduction of favorable market rules to improve access to batteries will hasten product development for frequency regulation applications.
 

Electrification & clean energy trends to fuel stationary battery storage unit expansion in APAC

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Asia Pacific grid scale stationary battery storage market value is anticipated to reach nearly USD 340 billion by 2032. The shifting preference from conventional power to clean energy sources to limit carbon dioxide emissions and the rapid electrification of rural areas are some prominent growth drivers. As a part of the transition to a low-carbon economy, the share of renewable energy must grow from 2% in 2020 to 18% by 2030 in Southeast Asia, as per the IEA. These factors will escalate the adoption of grid-scale energy storage systems since they play a crucial role in achieving net-zero targets in the region.
 

Strategic product range & business expansions to define the industry landscape

Top companies operating in the grid scale stationary battery storage market are Tesla, Exide Technologies, TOSHIBA CORPORATION, BYD, Panasonic Corporation, LG Chem Ltd., Siemens, Narada Power Source Co. Ltd., Lockheed Martin Corporation, JenaBatteries GmbH, CMBlu Energy AG, SCHMID Group, and Invinity Energy Systems, among others. These leaders are focusing on product range expansions and other strategies to increase their footprint in the global industry.
 

For instance, in May 2022, LG Energy Solution announced its plan to initiate lithium iron phosphate battery production for use in energy storage systems and electric vehicles. The company also targeted to further invest USD 1.7 billion to expand its lithium-ion battery cell facility in Michigan. This was intended to enable the company to establish a strong presence in the industry.
 

Impact of COVID-19 outbreak on grid scale stationary battery storage market trends

Despite continued economic disruptions and supply chain challenges, clean energy was the only energy source to gain massive acceptance throughout the COVID-19 pandemic. These positive renewable energy trends have, however, been impacted to some extent due to a decline in international financial flows. Furthermore, other COVID-19-induced restrictions including lockdown have slowed down universal energy access. These adverse effects may have hampered the development of grid-scale stationary battery storage systems to a certain extent during the pandemic. Despite these setbacks, the gradual resumption of renewable energy development projects and increasing demand for clean power may augment industry dynamics during the forecast period.
 

The grid scale stationary battery storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MW” & “USD Million” from 2019 to 2032 for the following segments:

Market Insights, By Battery

• Lithium-Ion
  • Lithium Iron Phosphate (LFP)
  • Nickel Manganese Cobalt (NMC)
  • Others
• Sodium Sulphur
• Lead Acid
• Flow Battery
• Others

Market Insights, By Application

• Frequency Regulation
• Flexible Ramping
• Black Start Services
• Energy Shifting & Capacity Deferral
• T&D Congestion Relief
• Capacity Firming
• Reduced RE Curtailment
• Reduced Reliance on Diesel Gensets

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
• CIS & Eurasia
  • Russia
  • Azerbaijan
  • Kazakhstan
  • Belarus
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
• Middle East & Africa
  • UAE
  • South Africa
  • Saudi Arabia
• Latin America
  • Mexico
  • Brazil
  • Argentina