Growing Need for Renewable Energy Integration Drives Grid-scale Battery Storage Demand

Grid-scale or utility-scale battery storage is one of the innovation choices that can improve power framework adaptability or stability. Grid-scale battery storage enables high levels of renewable energy integration for power system operators and utilities to store energy for power backup. Grid-scale battery systems are engineered to augment or replace generation, transmission, and distribution assets across the grid. Large-scale energy storage systems can make the grid more reliable and more flexible as they decouple energy services from a particular fuel source. Driven by technological advances, power facilities are being built with grid-scale battery storage systems that can hold sufficient renewable energy to power hundreds of thousands of homes. Thus, presence of grid-scale battery storage systems provides energy security during peak hours as well as backup power during power failure/breakdown.

Boom in Renewable Power Fuels Deployment Rate of Grid-scale Battery Storage

The year-on-year increase in grid integration of renewable power has boosted the demand for grid-scale battery storage. Modification of conventional grids to integrate with renewable energy followed by rising investments in stand-alone microgrids networks is expected boost the demand for energy storage batteries. Rising need for power system flexibility, coupled with the declining cost of energy storage batteries, has paved the way for energy storage batteries to play a key role in the power system in recent years. As the need for power system flexibility increases in line with the integration of wind and solar power with conventional power grids, more policymakers, regulators, and utilities are seeking development of policies to jump-start battery energy storage system (BESS) deployment.

Current applications of grid-scale batteries are peak shaving, load shifting, and renewable sources integration. Although grid-scale Battery market yet to mature, it is expected to grow exponentially over the next decade owing to the increase in renewable energy demand, government regulations and technological advancements. The environmental impact of conventional energy sources has led to a significant demand pull for renewable sources. By 2060, solar energy is expected to produce 60% of electricity globally. This shift towards renewable sources will lead to increased demand for grid-scale batteries as they are essential for negating fluctuating power in grids.

On the flipside, high initial costs, safety concerns, and low life cycle of batteries are strangling the market. Asia Pacific region Grid Scale Battery market is expected to exhibit the strongest growth rate because of rapid technological advancements taking place in Japan, and South Korea. Backed by respective governments, companies in both nations are creating safe, efficient, sustainable, economical, and high energy density batteries. Lithium ion-based batteries have high demand compared to other chemical-based batteries.

Lithium-ion Energy Storage Batteries Hold a Promising Future in Electric Utility Networks

Grid-/utility-scale battery can be deployed in several locations such as electricity transmission distribution networks near load centres and co-located with VRE generators. Lithium-ion battery dominates the global grid-scale battery storage market. Other energy storage batteries that are widely deployed in grid-scale networks include flow battery, lead acid battery, and sodium-based battery. The increasing share of lithium-ion batteries in storage capacity additions has been largely driven by the lithium costs further leading to a drop in Li-ion batteries, which has in turn been driven by the ramp-up in production to meet the growing demand for electric vehicles (EVs). Li-ion battery sales are prominent for EVs; however, grid-scale demand for lithium-ion battery follows behind EVs. Increasing penetration of lithium-ion battery is grid-scale application, particularly in developing economies, is expected to benefit the demand for grid-scale battery storage in the foreseeable future.

High Market Opportunity Abound in Asia Pacific

Asia Pacific remains the most attractive region for grid-scale battery storage market. High opportunities lie in Australian and Indian market, of which the former has several deployments of battery energy storage for large-scale grid applications. Since 2017, the Hornsdale Power Reserve, a 100 MW/129 MWh lithium-ion battery installation, the largest lithium-ion battery energy storage system (BESS) in the world, has been in operation in South Australia. In India, grid-scale storage is still at an introduction/early stage. The country is currently undergoing an energy transition, with an increased penetration of renewable power and high focus on grid integration of renewable power. In 2017, the Central Electricity Regulatory Commission released a staff paper on energy storage requirements for the Indian grid. A subsequent discussion paper in 2018 proposed a market mechanism for technology-agnostic ancillary services procurement. Once implemented, this mechanism is expected to create an appropriate regulatory framework for deploying grid-scale battery storage. Thus, India is expected to witness rampant deployment of grid-scale battery storage with higher renewable energy (RE) penetrations levels.

The UK is one of the key nations in the European market, aiming high penetration of grid-scale battery through a pipeline of over 16 GW of projects with the potential for deployment over the next few years. The US dominates the North American market and the Federal Electricity Regulatory Commission (FERC) Order 755 has mandated a separate compensation structure for fast-acting resources such as batteries than that for slower acting conventional resources. This incentivised use of battery storage systems is likely to provide frequency regulation, which has already been adopted by various system operators in the country. This has spurred the demand for grid-scale batteries, thereby pushing the demand for grid-scale battery storage. Increasing investments in renewable power sector, followed by sustainable micro grids, are expected to witness rise in energy storage batteries in electric utility networks across the globe. This is likely to benefit the demand for grid-scale battery storage in the near future.

Global Grid-scale Battery Storage Market: Competitive Landscape

Key players in the grid-scale battery storage market include Hitachi, Ltd., Tesla Inc., Panasonic Corporation, LG Chem, BYD Company Ltd., Mitsubishi Electric Corporation, GS Yuasa Corporation, SAMSUNG SDI CO., LTD., GE, and Toshiba Corporation. Tesla Inc. has commissioned the world’s largest Li-ion battery storage capacity of 100 MW / 129 MWh at the 315 MW Hornsdale Wind Farm in South Australia to provide contingency reserves and frequency regulation services to the South Australia grid. In April, 2021, Hitachi ABB Power Grids signed a collaboration agreement on battery energy storage for renewable energy projects in the Americas, with Atlas Renewable Energy.

Regional Classification of the Global Grid-scale Battery Storage Market is Listed Below:

North America

U.S.
Canada

Europe

Germany
France
Spain
U.K.
Italy
Russia
Rest of Europe

Asia Pacific

China
Japan
India
Southeast Asia
Rest of Asia Pacific

Latin America

Brazil
Mexico
Rest of Latin America

Middle East and Africa

GCC
South Africa
Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Grid-scale Battery Storage Market

Grid-scale Battery Storage Market by Product/Technology/Grade, Application/End-user, and Region
Executive Summary (Opportunity Analysis and Key Trends)
Historical Market Size and Estimates, Value, 2019 - 2022
Market Value at Regional and Country Level, 2023 - 2030
Market Dynamics and Economic Overview
Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies
Regional and Product/Grade/Application/End-user Price Trends Analysis
Value Chain and Five Force’s Analysis
Regional/Sub-region/Country Market Size and Trend Analysis
Company Market Share Analysis and Key Player Profiles

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1. Executive Summary
1.1. Global Grid-scale Battery Storage Market Snapshot
1.2. Key Market Trends
1.3. Future Projections
1.4. Analyst Recommendations

2. Market Overview
2.1. Market Definitions and Segmentations
2.2. Market Dynamics
2.2.1. Drivers
2.2.1.1. Driver 1
  2.2.1.2. Driver 2
  2.2.1.3. Driver 3
  2.2.2. Restraints
  2.2.2.1. Restraint 1
  2.2.2.2. Restraint 2
  2.2.3. Market Opportunities Matrix
2.3. Value Chain Analysis
2.4. Porter’s Five Forces Analysis
2.5. Covid-19 Impact Analysis
  2.5.1. Supply
  2.5.2. Demand
2.6. Government Regulations
2.7. Technology Landscape
2.8. Upcoming Products
2.9. Electric Vehicles Market, 2019 - 2030
2.10. Economic Analysis
2.11. PESTLE Analysis

3. Installation Statistics, 2019 - 2022
3.1. Regional Installation Statistics
  3.1.1. North America
  3.1.2. Europe
  3.1.3. Asia Pacific
  3.1.4. Latin America
  3.1.5. Middle East & Africa

4. Price Trends Analysis and Future Projects, 2019 - 2030
4.1. Key Highlights
4.2. Prominent Factors Affecting Prices
4.3. By Type
4.4. By Region

5. Global Grid-scale Battery Storage Market Outlook, 2019 - 2030
5.1. Global Grid-scale Battery Storage Market Outlook, by Battery Type, Capacity (MW) and Value (US$ Mn), 2019 - 2030
  5.1.1. Key Highlights
  5.1.1.1. Lead-acid
  5.1.1.2. Lithium-ion
  5.1.1.3. Flow Batteries
  5.1.1.4. Metal Air Batteries
  5.1.1.5. Zinc-based Batteries
  5.1.1.6. Sodium Batteries
  5.1.1.7. Misc.
  5.1.2. BPS Analysis/Market Attractiveness Analysis
5.2. Global Grid-scale Battery Storage Market Outlook, by Vehicle Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  5.2.1. Key Highlights
  5.2.1.1. Electric Vehicles
  5.2.1.2. UPS
  5.2.1.3. RE Integration
  5.2.1.4. Micro grid
  5.2.1.5. Telecom
  5.2.1.6. Misc.
  5.2.2. BPS Analysis/Market Attractiveness Analysis
5.3. Global Grid-scale Battery Storage Market Outlook, by Region, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  5.3.1. Key Highlights
  5.3.1.1. North America
  5.3.1.2. Europe
  5.3.1.3. Asia Pacific
  5.3.1.4. Latin America
  5.3.1.5. Middle East & Africa
  5.3.2. BPS Analysis/Market Attractiveness Analysis

6. North America Grid-scale Battery Storage Market Outlook, 2019 - 2030
6.1. North America Grid-scale Battery Storage Market Outlook, by Battery Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  6.1.1. Key Highlights
  6.1.1.1. Lead-acid
  6.1.1.2. Lithium-ion
  6.1.1.3. Flow Batteries
  6.1.1.4. Metal Air Batteries
  6.1.1.5. Zinc-based Batteries
  6.1.1.6. Sodium Batteries
  6.1.1.7. Misc.
  6.1.2. BPS Analysis/Market Attractiveness Analysis
6.2. North America Grid-scale Battery Storage Market Outlook, by Vehicle Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  6.2.1. Key Highlights
  6.2.1.1. Electric Vehicles
  6.2.1.2. UPS
  6.2.1.3. RE Integration
  6.2.1.4. Micro grid
  6.2.1.5. Telecom
  6.2.1.6. Misc.
  6.2.2. BPS Analysis/Market Attractiveness Analysis
6.3. North America Grid-scale Battery Storage Market Outlook, by Country, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  6.3.1. Key Highlights
  6.3.1.1. U.S.
  6.3.1.2. Canada
  6.3.2. BPS Analysis/Market Attractiveness Analysis

7. Europe Grid-scale Battery Storage Market Outlook, 2019 - 2030
7.1. Europe Grid-scale Battery Storage Market Outlook, by Battery Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  7.1.1. Key Highlights
  7.1.1.1. Lead-acid
  7.1.1.2. Lithium-ion
  7.1.1.3. Flow Batteries
  7.1.1.4. Metal Air Batteries
  7.1.1.5. Zinc-based Batteries
  7.1.1.6. Sodium Batteries
  7.1.1.7. Misc.
  7.1.2. BPS Analysis/Market Attractiveness Analysis
7.2. Europe Grid-scale Battery Storage Market Outlook, by Vehicle Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  7.2.1. Key Highlights
  7.2.1.1. Electric Vehicles
  7.2.1.2. UPS
  7.2.1.3. RE Integration
  7.2.1.4. Micro grid
  7.2.1.5. Telecom
  7.2.1.6. Misc.
7.3. Europe Grid-scale Battery Storage Market Outlook, by Country, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  7.3.1. Key Highlights
  7.3.1.1. Germany
  7.3.1.2. France
  7.3.1.3. U.K.
  7.3.1.4. Italy
  7.3.1.5. Spain
  7.3.1.6. Turkey
  7.3.1.7. Russia
  7.3.1.8. Rest of Europe
  7.3.2. BPS Analysis/Market Attractiveness Analysis

8. Asia Pacific Grid-scale Battery Storage Market Outlook, 2019 - 2030
8.1. Asia Pacific Grid-scale Battery Storage Market Outlook, by Battery Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  8.1.1. Key Highlights
  8.1.1.1. Lead-acid
  8.1.1.2. Lithium-ion
  8.1.1.3. Flow Batteries
  8.1.1.4. Metal Air Batteries
  8.1.1.5. Zinc-based Batteries
  8.1.1.6. Sodium Batteries
  8.1.1.7. Misc.
  8.1.2. BPS Analysis/Market Attractiveness Analysis
8.2. Asia Pacific Grid-scale Battery Storage Market Outlook, by Vehicle Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  8.2.1. Key Highlights
  8.2.1.1. Electric Vehicles
  8.2.1.2. UPS
  8.2.1.3. RE Integration
  8.2.1.4. Micro grid
  8.2.1.5. Telecom
  8.2.1.6. Misc.
8.3. Asia Pacific Grid-scale Battery Storage Market Outlook, by Country, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  8.3.1. Key Highlights
  8.3.1.1. China
  8.3.1.2. Japan
  8.3.1.3. South Korea
  8.3.1.4. India
  8.3.1.5. Southeast Asia
  8.3.1.6. Australia
  8.3.1.7. Rest of Asia Pacific
  8.3.2. BPS Analysis/Market Attractiveness Analysis

9. Latin America Grid-scale Battery Storage Market Outlook, 2019 - 2030
9.1. Latin America Grid-scale Battery Storage Market Outlook, by Battery Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  9.1.1. Key Highlights
  9.1.1.1. Lead-acid
  9.1.1.2. Lithium-ion
  9.1.1.3. Flow Batteries
  9.1.1.4. Metal Air Batteries
  9.1.1.5. Zinc-based Batteries
  9.1.1.6. Sodium Batteries
  9.1.1.7. Misc.
  9.1.2. BPS Analysis/Market Attractiveness Analysis
9.2. Latin America Grid-scale Battery Storage Market Outlook, by Vehicle Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  9.2.1. Key Highlights
  9.2.1.1. Electric Vehicles
  9.2.1.2. UPS
  9.2.1.3. RE Integration
  9.2.1.4. Micro grid
  9.2.1.5. Telecom
  9.2.1.6. Misc.
9.3. Latin America Grid-scale Battery Storage Market Outlook, by Country, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  9.3.1. Key Highlights
  9.3.1.1. Brazil
  9.3.1.2. Mexico
  9.3.1.3. Rest of Latin America
  9.3.2. BPS Analysis/Market Attractiveness Analysis

10. Middle East & Africa Grid-scale Battery Storage Market Outlook, 2019 - 2030
10.1. Middle East & Africa Grid-scale Battery Storage Market Outlook, by Battery Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  10.1.1. Key Highlights
  10.1.1.1. Lead-acid
  10.1.1.2. Lithium-ion
  10.1.1.3. Flow Batteries
  10.1.1.4. Metal Air Batteries
  10.1.1.5. Zinc-based Batteries
  10.1.1.6. Sodium Batteries
  10.1.1.7. Misc.
  10.1.2. BPS Analysis/Market Attractiveness Analysis
10.2. Middle East & Africa Grid-scale Battery Storage Market Outlook, by Vehicle Type, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  10.2.1. Key Highlights
  10.2.1.1. Electric Vehicles
  10.2.1.2. UPS
  10.2.1.3. RE Integration
  10.2.1.4. Micro grid
  10.2.1.5. Telecom
  10.2.1.6. Misc.
  10.2.2. BPS Analysis/Market Attractiveness Analysis
10.3. Middle East & Africa Grid-scale Battery Storage Market Outlook, by Country, Capacity (GWh) and Value (US$ Mn), 2019 - 2030
  10.3.1. Key Highlights
  10.3.1.1. GCC
  10.3.1.2. South Africa
  10.3.1.3. Rest of Middle East & Africa
  10.3.2. BPS Analysis/Market Attractiveness Analysis

11. Competitive Landscape
11.1. Company Market Share Analysis, 2021
11.2. Competitive Dashboard
11.3. Product vs Application Heatmap
11.4. Company Profiles
  11.4.1. Contemporary Amperex Technology Co., Limited (CATL)
  11.4.1.1. Company Overview
  11.4.1.2. Product Portfolio
  11.4.1.3. Financial Overview
  11.4.1.4. Business Strategies and Development
  11.4.2. NGK Insulators Ltd.
  11.4.3. BYD Co. Ltd.
  11.4.4. Sumitomo Electric Industries, Ltd.
  11.4.5. Samsung SDI Co. Ltd.
  11.4.6. General Electric
  11.4.7. GS Yuasa Corp.
  11.4.8. LG Chem Ltd.
  11.4.9. Exide
  11.4.10. Panasonic Corp.
  11.4.11. ABB Group
  11.4.12. FB Battery
  11.4.13. Fluence Energy
  11.4.14. Trojan

12. Appendix
12.1. Research Methodology
12.2. Report Assumptions
12.3. Acronyms and Abbreviations

Grid-scale Battery Storage Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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