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Energy Storage Systems Market worth over $1.5 Tn by 2032

  • Published Date: January 17, 2023

Energy Storage Systems Market size is set to surpass USD 1.5 trillion by 2032, according to a new research report by Global Market Insights Inc.

The report reveals that the ongoing climate crisis and increasing commitment toward net-zero carbon emissions will stimulate renewable energy storage system development. The European Union, for example, has planned a 57% emission reduction by 2030, a 2% increase from its previous goal. Since energy storage can help unlock clean energy potential, government initiatives to accelerate decarbonization will boost the usage of efficient power backup systems. However, the growing awareness about brain and kidney damage due to lead acid exposure may hinder battery energy storage system demand to some extent.

Rising emphasis on uninterrupted power supply to fuel electro-chemical energy storage system use

Energy storage systems market from the electro-chemical technology segment is poised to register over 27% CAGR through 2032. Electro-chemical energy storage or battery systems have become significant options for integrating solar and wind energy into power grids, providing a constant and reliable power supply. To accommodate power grid instability and build a robust power infrastructure, grid code requirements have been enforced. The report claims that these initiatives, alongside the introduction of favorable policies to ensure uninterrupted electricity supply, will augment electrochemical or battery energy storage system adoption.

Increasing power outages to fuel energy storage system development for black start applications

The black start applications are expected to account for more than 4% share of the energy storage systems market by 2032, considering the increased reliance on renewable technologies. In May 2022, Alfen, an energy solutions integrator, unveiled a 12-MW battery energy storage system with black start functionality for a wind farm in Finland. Such innovations, alongside the mounting instances of power outages, will promote the usage of storage systems with black start capabilities to restore energy supply to substations and power plants during blackouts.

Browse key industry insights spread across 620 pages with 970 market data tables & 44 figures & charts from the report, “Energy Storage Systems Market Size By Technology (Pumped Hydro, Electro-Chemical {Lithium Ion Battery, Sodium Sulphur Battery, Lead Acid Battery, Flow Battery, Others}, Electro-Mechanical {Flywheel, Compressed Air Energy Storage}, Thermal {Water, Molten Salt, Phase Change Material, Others}), By Application (Electric Energy Time Shift, Electric Supply Capacity, Black Start, Renewables Capacity Firming, Frequency Regulation, Other), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:

Mounting demand for power & climate-friendly housing drives need for energy storage in Europe

Europe energy storage systems market size is expected to witness more than 9% growth rate between 2023 and 2032, on account of the rising energy prices and the strong focus on climate-friendly house construction. Citing an instance, in December 2022, the European Investment Bank and the City of Stockholm inked a USD 238.6 million loan agreement to support energy-efficient building development in the Swedish capital. The report says that such developments, along with an increase in electricity demand, will proliferate the demand for efficient building technologies such as energy storage systems in the region.

Product manufacturing expansion strategies to foster industry outlook

The strategic landscape of the energy storage systems market comprises companies such as Absaroka Energy, LLC, Nevada Hydro Corporation, Burns & McDonnell, CALMAC, Hitachi Energy Ltd., A123 Systems, LLC, Johnson Controls, Furukawa Battery Co., Ltd., ABB, Jena Batteries GmbH, Lockheed Martin Corporation, Siemens, LG Energy Solutions, Toshiba Corporation, Exide Technologies, and General Electric, among others. These firms are incorporating strategies such as product range and business expansions to strengthen their presence in the global industry.

For instance, in January 2022, TotalEnergies unveiled a 61-MW of battery energy storage system plant in Dunkirk, France. The company also announced two BESS systems under development, anticipated to be completed by 2022 end, to elevate the company’s storage capacity to 129-MW. This initiative was meant to allow the company to establish a strong presence in the industry over the forthcoming years.

Authors: Ankit Gupta, Vinayak Shukla