The battery energy storage system market is expected to grow from USD 1.98 billion in 2018 to reach USD 8.54 billion by 2023, at a CAGR of 33.9% between 2018 and 2023.
The major drivers for the growth of the market include the increasing demand for grid-connected solutions, high demand for the lithium-ion technology in the renewable energy industry, and declining prices of lithium-ion batteries. However, the factors such as the installation of battery energy storage systems in remote locations pose a challenge for the players in the market.
The battery energy storage system market for flow batteries is expected to grow at the highest CAGR between 2018 and 2023. The redox, hybrid, and membrane-less batteries are the different classes of flow batteries. A new generation of redox (i.e., reduction-oxidation) flow batteries in battery energy storage system are much better suited for medium- and large-scale applications where heavy use, long-term cycling, durability, and safety are paramount. These factors contribute to the growth of the battery energy storage system market for flow batteries.
The customer-owned battery energy storage system help reduce the electricity cost, as used electricity is charged under the time-of-use (TOU) tariff. There are 3 periods for TOU pricing: peak, shoulder, and off-peak. Commonly, prices are highest in peak times and lowest in off-peak times. Through the adoption of battery energy storage systems, the customers can easily reduce their energy spendings (electricity cost and annual investment cost) under the TOU tariff. Battery energy storage systems also help solve the over-voltage issues by controlling the fluctuation of voltage and frequency.
North America is expected to hold the largest share of the battery energy storage system market between 2018 and 2023. The growth of the North American market is attributed to high demand for these systems from the utility and residential sectors in this region. The increasing number of projects related to utility and residential applications in North America is further expected to drive the market in the coming years. Few non-profit organizations organize various conferences and exhibitions to support the implementation of battery energy storage systems.
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Growth Opportunities in Battery Energy Storage System Market 4.2 Battery Energy Storage System Market, By Battery Type 4.3 Battery Energy Storage System Market, By Ownership 4.4 Battery Energy Storage System Market, By Connection Type 4.5 Battery Energy Storage System Market, By Application 4.6 Battery Energy Storage System Market in APAC, By Application & Country 4.7 Battery Energy Storage System Market, By Geography
5 Market Overview 5.1 Introduction 5.1.1 Drivers 5.1.1.1 Increasing Demand for Grid-Connected Solutions 5.1.1.2 High Demand for the Lithium-Ion Technology in the Renewable Energy Industry 5.1.1.3 Declining Prices of Lithium-Ion Batteries 5.1.2 Restraints 5.1.2.1 High Capital Investment Required for the Deployment 5.1.2.2 Lack of the Availability of Vendors and Project Financing 5.1.3 Opportunities 5.1.3.1 Increasing Focus on Rural Electrification Worldwide 5.1.3.2 Development of Molten-Salt Battery Technology 5.1.3.3 Large Storage Requirements in Datacenters 5.1.3.4 Efforts Taken By Governments Around the World to Reduce Carbon Emissions By Mandating on Fuel Economy 5.1.4 Challenge 5.1.4.1 Installation of Battery Energy Storage Systems in Remote Locations
6 Industry Trends 6.1 Introduction 6.2 Value Chain Analysis 6.3 Standards & Regulations for Battery Energy Storage System 6.4 Software & Services in Battery Energy Storage System 6.4.1 Services 6.5 List of Installed Battery Energy Storage System Projects in 2017
7 Battery Energy Storage System Market, By Element 7.1 Introduction 7.2 Battery 7.3 Hardware 7.4 Other Elements
8 Battery Energy Storage System Market, By Battery Type 8.1 Introduction 8.2 Lithium-Ion Batteries 8.3 Sodium-Sulfur Batteries 8.4 Advanced Lead-Acid Batteries 8.5 Flow Batteries 8.6 Others 8.6.1 Nickel-Cadmium Battery 8.6.2 Nickel Metal Hydride Battery 8.6.3 Nickel-Iron Battery
9 Battery Energy Storage System Market, By Connection Type 9.1 Introduction 9.2 On-Grid Connection 9.3 Off-Grid Connection
10 Battery Energy Storage System Market, By Ownership 10.1 Introduction 10.2 Customer Owned 10.3 Third-Party Owned 10.4 Utility Owned
11 Battery Energy Storage System Market, By Application 11.1 Introduction 11.1.1 Residential 11.1.2 Non-Residential 11.1.3 Utilities 11.1.4 Other Applications
14 Company Profiles 14.1 Introduction 14.2 Key Players 14.2.1 ABB 14.2.2 LG Chem 14.2.3 NEC 14.2.4 Panasonic 14.2.5 Samsung SDI 14.2.6 AEG Power Solutions 14.2.7 General Electric 14.2.8 Hitachi 14.2.9 Siemens AG 14.2.10 Tesla 14.3 Other Key Players 14.3.1 The Aes Corporation 14.3.2 Alevo Group 14.3.3 Exergonix 14.3.4 Corvus Energy 14.3.5 East Penn Manufacturing 14.3.6 Enerdel 14.3.7 Mitsubishi Heavy Industries (MHI) Group 14.3.8 NGK Insulators 14.3.9 Toshiba Infrastructure Systems & Solutions 14.3.10 Trinabess