Energy Storage Systems Market Overview
The global energy storage systems market had a demand was 222.79 GW in 2022 and is anticipated to be 512.41 GW by 2030, growing at a compound annual growth rate (CAGR) of 11.6% between 2023 and 2030. Rising demand for cost-effective and efficient energy resources will be expected to fuel market growth in the years to come.
Clean & renewable energy is an affordable alternative to fossil fuel-based electricity. Its use can help curb the overdependence on fossil fuels, reduce greenhouse gas emissions & subsequently air pollution, and diversify the power supply.
Rise in the number of data centers and intensely increased competition in a wide range of industries such as IT and banking is anticipated to boost the demand. Further, an altered lifestyle amongst consumers and the increase in power outages are expected to drive the utilization rate in the household sector.
Energy storage systems (ESS) in the U.S. stood at 27.57 GW in 2022 and will grow to 67.01 GW by 2030. Growth in the market is projected to be at a CAGR of 12.4% during the forecast period. The energy storage industry in the U.S. will be influenced by increasing electrical applications and the use of stringent energy efficiency measures.
Technology Insights
Based on technology, the global market is segmented into (Pumped Storage, Electrochemical Storage, Electromechanical Storage, Thermal Storage). The segment of pumped hydro technology led the market and held over 94.59% of the overall market share, based on the volume of storage, in 2022.
The market is expected to be spurred by continuing spending in North America and the Asia Pacific for energy infrastructure upgrading and on-grid capacity expansion. Demand for long-term pumped hydro storage (PHS) is forecasted to be spurred by good compliance regulation and growing Chinese and US electricity demand.
Regional Insights
The Asia Pacific was the biggest segment in 2022 and held over 46.87% of the total market share due to the existence of rapidly growing economies like China and India.
Energy storage devices play a vital role in applications like UPS and data centers since this region experiences frequent power outages.
The ESS market in the region has been driven by advantages of new energy storage systems, including cost-effectiveness, eco-friendliness, and dependability.
The energy storage authorities of the above European nations have opted for battery energy storage technologies to maximize the application of renewable energy sources and minimize dependence on fossil fuels. The long-term expansion of the market for energy storage systems (ESS) is likely to be facilitated by the increasing use of electric vehicles in nations like Germany and France.
Key Companies & Market Share Insights
The industry is dominated by the presence of a number of major players and a couple of medium- and small-sized regional players. A lot of the companies have a sector of their own which they deal in and have an extremely high penetration within that sector.
For example, In August 2021, Active Power released scheduling a US road tour to deliver its containerized POWERHOUSE UPS to user’s doorsteps. Through this strategic move, Active Power engineers will collaborate with sales and service partners to provide a series of live demonstrations across the U.S. to showcase the POWERHOUSE UPS. The U.S. tour will commence in October and is likely to extend until 2022.
