Utility-Scale Battery Storage Market

The Global "Utility-Scale Battery Storage Market" size is estimated to be $34.500 Million in 2024, and it will reach $124206.1 Million by 2030, growing at a CAGR of 23.8% during the forecast period from 2024 to 2030.

Industry Overview

Utility-scale battery storage refers to large energy storage systems that are connected to the power grid and used to store electricity on a large scale. These systems are made to store surplus energy produced during off-peak hours by conventional power plants or renewable energy sources like solar and wind, and then release it when demand rises or renewable energy output declines. By balancing supply and demand, lowering the need for peaking power plants, and enhancing the dependability and effectiveness of electricity distribution, they contribute to grid stabilisation. Because utility-scale storage makes it possible for intermittent power sources to be more fully integrated into the grid, it is essential to the shift to renewable energy.

The growing demand for grid stabilisation, integration of renewable energy, and energy storage solutions for utilities is propelling the global market for utility-scale battery storage. Big battery systems are in high demand as nations look to cut carbon emissions and switch to greener energy sources. The market is dominated by lithium-ion batteries because of their high energy density, efficiency, and falling costs. On the other hand, because of their scalability and long-duration storage potential, emerging technologies like solid-state batteries and flow batteries are becoming more popular. Major players are Fluence, Tesla, and LG Energy Solution, and the most prominent deployment regions are Asia-Pacific, Europe, and North America. Market expansion is anticipated to be further propelled by government policies, incentives, and breakthroughs in battery technology.

Segmental Analysis

Lithium ion Battery to hold the highest market share: By Type

In terms of type, the global utility-scale battery storage market has been segmented as Lithium-ion battery, Lead Acid battery, Sodium-based battery and flow battery.

In the global utility-scale battery storage market, lithium-ion batteries dominate the market share, greatly outpacing lead-acid, sodium-based, and flow battery types. The reason for this dominance is because lithium-ion is now the preferred technology for large-scale energy storage projects due to its higher energy density, longer cycle life, and decreasing production costs. The use of lithium-ion technology has also increased as a result of developments in the field, including better battery chemistries and increased safety measures. Because of these batteries' efficiency, scalability, and versatility—which make them perfect for peak shaving, grid stabilisation, and integration of renewable energy—they are widely employed in utility applications. However, although alternatives like sodium- and flow-based batteries provide unique advantages like robustness and greater store duration, they are still in the niche or growing stages of the market.

Utility-scale battery storage with capacity less than Less than 100 MW to hold the highest market share.

In term of capacity the global utility scale battery storage market has been segmented as less than 100 MW, 100-250 MW, 250-500 MW, and Above 500 MW.

In the global utility-scale battery storage industry, systems with a capacity of less than 100 MW currently hold the highest market share. This is mainly because smaller storage projects can be deployed more easily and with greater flexibility across a wider range of applications and geographical areas. These smaller-scale systems are frequently used in both urban and rural regions by utilities and grid operators for peak shaving, grid balancing, and integration of renewable energy. These smaller systems are more accessible to a wider range of utilities due to their relative affordability when compared to bigger installations; this is especially true for utilities in developing markets or locations with expanding renewable energy infrastructure.

The necessity for long-duration storage, particularly in areas like the United States and China, as well as huge renewable energy projects are driving the rapid growth in demand for greater capacities (over 100 MW). In the upcoming years, it is anticipated that these bigger enterprises will take a larger percentage as they grow.

But the need for bigger capacities (over 100 MW) is also rising quickly, mostly in China and the United States, due to large-scale renewable energy projects, rising electricity consumption, and the necessity of long-duration storage. In the upcoming years, it is anticipated that these bigger enterprises will take a larger percentage as they expand. Specific benefits, such as longer duration storage and resilience, they remain in niche or emerging phases and haven’t reached the same level of commercial adoption.

Regional Analysis

In terms of region, the global market has been segmented as North America, Europe, Asia Pacific, Middle East and Africa, and South America.

Significant regional variations characterise the global utility-scale battery storage industry, with a few key regions driving adoption owing to differing degrees of grid stability requirements, legislative support, and the expansion of renewable energy.

North America leads the global utility-scale battery storage business. This is because the country has robust laws, state-level regulations, and growing integration of renewable energy sources. Europe is not far behind, with nations like the United Kingdom and Germany driving expansion with their aggressive targets for renewable energy and their legislative backing for energy storage.

Due to its reliance on solar and wind power, Australia is also a prominent player in the Asia-Pacific region. However, China leads the region with massive expenditures in clean energy and infrastructure modernisation. The Middle East is becoming a new market as a result of these nations' significant investments in renewable energy initiatives to diversify their economies, especially Saudi Arabia and the United Arab Emirates. Meanwhile, Latin America is slowly adopting utility-scale storage, with Chile and Brazil exploring storage solutions to complement their expanding renewable sectors. Although Europe and the Middle East are exhibiting significant development potential, North America and Asia-Pacific remain the two largest markets at present.

Competitive Analysis

• BYD
• Fluence Energy
• General Electric
• GS Yuasa
• Hitachi
• LG Chem
• Mitsubishi Electric
• NGK Insulators
• Panasonic
• Redflow
• Samsung SDI
• STEAG
• Sumitomo Electric
• Toshiba
• VRB Energy
• Other Key Players

The growing need for grid stability and the integration of renewable energy sources is driving a dynamic and quickly changing competitive landscape in the global utility-scale battery storage industry. The market is dominated by major players such as General Electric, and LG Energy Solution, etc. who have made significant expenditures in R&D, large-scale project deployments, and innovative technologies. The ability to provide complete energy storage solutions is made possible by these companies' established utility connections and economies of scale. Strategic alliances, mergers, and acquisitions further define the competitive environment as businesses aim to increase their market share and improve their technological capabilities. Overall, the industry is expected to develop significantly due to continued breakthroughs in battery technology, decreasing expenses, and growing awareness of the crucial role energy storage plays in the shift to a sustainable energy future.

Recent Developments

• September 2^nd 2022, The Australian mining industry has been undergoing a significant transformation in order to meet the ambitious emission reduction targets. Further, in the meanwhile mining companies has been balancing the need for a reliable and stable power supply to maintain productivity as well as reduce the downtime.
• June 16^th 2021, Hitachi ABB power Grids announced that it would supply one the Europe’s largest battery energy storage system for TVO in finland. “By 2050, electricity will be the backbone of the entire energy system,” said Matti Vaattovaara, Country Managing Director of Hitachi ABB Power Grids’ business in Finland.
• February 23^rd 2024, Mitsubishi Power Announced Prevalon, standalone company dedicted to fast growing Battery storage market. Prevalon™ (pronounced preh-vuh-lon). Designed as a dedicated pure-play vehicle for innovation and growth in the battery energy storage space, Prevalon enters the market with an established track record, robust pipeline of global projects, and proven technology from Mitsubishi Power’s BESS business.

“As the speed of the energy transition increases, it is imperative that advanced technology solutions such as battery energy storage keep pace,” said Bill Newsom, President and CEO, Mitsubishi Power Americas. “With the establishment of Prevalon, we are confident its dedicated focus on battery energy storage solutions and services will unlock more value in this business to keep pace with this hyper-growth battery energy storage market. This is an example of Mitsubishi Power’s commitment to aligning and structuring its businesses in a way that brings more value and targeted expertise to the ever-changing energy transition.”

End Use Industry Analysis

As per SolarPower Europe, in 2021, the European region built around 2.3 GWh of household battery energy storage, which is a twofold increase from the previous year. The European Commission's mandate that solar energy systems be installed on newly constructed and remodelled buildings, along with the National Clean Flexibility Plan's battery storage goals in accordance with the National Energy and Climate Plans (NECPs), were the reasons for the increase in installations. This is probably going to get worse in the future as well.

Latest analysis from SolarPower Europe reveals that, in 2023, Europe installed 17.2 GWh of new battery energy storage systems (BESS); a 94% increase compared to 2022. This marks the third consecutive year of doubling the annual market.

According to the eia, U.S. battery storage capacity has been growing since 2021 and could increase by 89% by the end of 2024 if developers bring all of the energy storage systems they have planned on line by their intended commercial operation dates. Developers currently plan to expand U.S. battery capacity to more than 30 gigawatts (GW) by the end of 2024, a capacity that would exceed those of petroleum liquids, geothermal, wood and wood waste, or landfill gas.

Industry Dynamics

Industry Trend

Technological Advancement

One of the major trend in the global utility-scale battery storage market is technological progress in battery storage. The advancement of battery technology is leading to improvements in various performance attributes, including energy density, longevity, charging speed, and safety. For example, advances in lithium-ion battery chemistries are enabling higher energy densities, allowing batteries to store more energy in a smaller amount of space. Examples of these developments are the creation of nickel-cobalt-aluminum (NCA) and nickel-manganese-cobalt (NMC) batteries.

In addition, companies and researchers are investigating substitutes such as flow batteries, which store energy using liquid electrolytes. These batteries are good for long-duration storage applications, like balancing intermittent renewable energy generation, because of their scalability and endurance advantages. In addition, solid-state batteries—which use a solid electrolyte rather than a liquid—are drawing interest because they may be safer and have higher energy densities than conventional lithium-ion batteries. By lowering the dangers connected to flammability and battery deterioration, this technology could open the door to more durable and secure energy storage options.

Industry Drivers

Growing demand for renewable energy

One of the main factors driving the utility-scale battery storage market is the rising need for renewable energy. There is a noticeable movement towards greener energy sources like solar, wind, and hydroelectric power as nations work to cut their carbon emissions and fight climate change. Government regulations, the need for sustainability in society, and technology developments are some of the elements driving this shift.

However, the nature of renewable energy sources makes them volatile; wind energy is contingent upon wind conditions, and solar power generation is restricted to daylight hours. Grid operators may face difficulties in maintaining a constant balance between supply and demand because to this fluctuation. In order to meet this issue, utility-scale battery storage systems are essential because they have the capacity to store extra energy produced during periods of peak production and release it during periods of low output or sudden demand spikes.

Battery storage technologies contribute to increased grid stability and dependability by facilitating a higher degree of integration of renewable energy. They enable utilities to reduce their dependency on peaking fossil fuel power facilities, which are frequently used in periods of high demand or low renewable energy. Consequently, battery storage contributes to a more sustainable energy environment by lowering greenhouse gas emissions and facilitating the switch to renewable energy sources.

Government incentives, public investment, and private sector initiatives all contribute to the growing demand for renewable energy sources. This has created a thriving market for utility-scale battery storage solutions, which may help guarantee a consistent and resilient energy supply.

Industry Restraint

Higher initial capital requirement & limited availability of raw materials.

Many challenges might hinder the global utility-scale battery storage market from growing. The high initial capital cost of installing battery storage systems is one major obstacle. Even while the cost of lithium-ion batteries is starting to decline, large-scale installations still require a significant initial investment. This could discourage some utilities and developers, particularly in areas where funding is scarce. Investors may also become dubious about the long-term viability of these technologies due to worries about battery performance and lifespan, including problems with deterioration over time and efficiency losses.

Furthermore, there is a danger to the supply chain due to the restricted availability of raw materials needed to produce batteries, such as nickel, cobalt, and lithium. Large-scale battery installations may not be as feasible or cost-effective due to fluctuating costs and possible shortages of these essential components. It can be difficult for businesses to navigate various markets due to regulatory obstacles and a lack of uniform regulations across regions. Furthermore, the development of alternative energy storage technologies could put battery storage solutions in competition with compressed air and pumped hydro energy storage, further confusing the dynamics of the market. Strategic methods are required to alleviate the unpredictability and challenges that the utility-scale battery storage sector faces as a result of these variables taken together.

Report Scope

The report includes Global & Regional market status and outlook for 2017-2028. Further, the report provides breakdown details about each region & countries covered in the report. Identifying its sales, sales volume & revenue forecast. With detailed analysis by Types, Capacity, End Use, Application, Sales Channel. The report also covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price, and Gross Margin 2017-2028 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.