Increasing Adoption of Electrical Energy to Augment Growth: Fortune Business Insights
The global battery energy storage market size is expected to gain momentum by reaching $19.74 billion by 2027 while exhibiting a stellar CAGR of 20.4 % between 2020 to 2027. In its report titled “Battery Energy Storage Market, 2020-2027.”Fortune Business Insight mentions that the market stood at $7.06 billion in 2019.
The involvement of private organisations to incorporate advanced electrochemical technologies in combating the climate crisis is expected to propel market growth.
For instance, the German government plans to expand the country’s wind energy target to 15 GW to 20GW by 2030. However, their final aim is to achieve a capacity of 40GW by 2040 to ensure an efficient supply of electrical energy using wind and promote a Green wave in the region.
The negative effect of the global pandemic, Covid-19, has been felt across several economies facing unprecedented loss.
Owing to sudden lockdown across the globe hampered the cross-border trade. It resulted in the unavailability of several essential battery parts in the manufacturing units. This led the various businesses to face financial stress, and thus the market witnessed significant shrink because of the pandemic.
Based on product type, the global market for battery energy storage is divided into lithium-ion battery, lead-acid battery, and flow battery. On the basis of connectivity, it is bifurcated into off-grid and on the grid
Based on connectivity, the on-grid segment held a market share of about 44.5 % in 2020. The segment is expected to experience considerable growth backed by the increasing government support in providing energy back up to the power grid.
By its application the market is divided into, residential, non-residential, and utility By ownership the market is segmented into customer-owned, third-party-owned, and utility-owned. Finally, based on region, the market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World (RoW).
The global market for battery energy storage report provides a detailed analysis of several factors such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, contributing to the growth of the market.
It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships and collaborations that will further contribute to the market growth.
Propel Market Growth
The increasing demand for energy in developing and developed economies is anticipated to drive the global battery energy storage market growth.
For instance, a report by the International Energy Agency mentioned that the demand for global energy is expected to rise by 50% by the year 2050.
In addition, several initiatives by governments to ensure zero carbon emissions will propel the demand for the product. On the other hand, the high initial cost of installing lithium-ion batteries and several risks, such as fire accidents, obstruct market growth.
North America to Dominate Owing to Increased Funding by Organisations. Asia Pacific is expected to hold the largest battery energy storage market share during the forecast period.
This is ascribable to the presence of a large number of local vendors along with established key players. In addition, in developing economies such as India and China, the developing infrastructure is fueling the market growth. The region stood at $3.13 in 2019.
North America is expected to showcase significant CAGR in upcoming years due to the increasing investment in R&D to lower the cost of batteries. The presence of large-scale battery storage plants in the region is expected to promote regional market growth.
The global market for battery energy storage is consolidated by the presence of major companies that are striving to maintain their position by focusing on building new products and introducing new alternatives to traditional methods.
For instance, in March 2020, Total, a French BESS company, announced a new type of lithium-ion batteries for energy storage units in France.
This new project provides stability to the national grid network. It is one of the largest energy storage capacity of 25MWh and has a power of 25 MW. Moreover, other key players are adopting proactive strategies such as new product launches, mergers, and facility expansion to favor the market’s growth in the forthcoming years.
August 2020: Békéscsaba announced the installation of a 1.2 MW lithium-ion BEES along with the 1.3 MW PV facility. This project is developed to boost the renewable generation of electricity.
Hitachi Chemical Co., Ltd.LG ChemGE Renewable Energy Eve Energy Co. Ltd. Siemens EnergyABBKokamVRB EnergyBlack & VeatchEVE EnergyTotal
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