April 20, 2024

Advanced Energy Storage is Estimated to Witness High Growth Owing to Increase in Demand for Renewable Energy Sources

Advanced energy storage refers to technologies or devices designed to store large amounts of energy, typically from renewable sources such as solar or wind, and make it available at a later time. Energy storage devices such as lithium-ion batteries play a significant role in renewable energy by ensuring supply reliability in times when renewable energy sources may not be generating power due to weather changes. These systems store surplus renewable energy harnessed during peak generation times and utilize it when demand exceeds supply. The global advanced energy storage market comprises various products including lithium-ion battery, lead acid battery, flow battery, and flywheel energy storage. Lithium-ion batteries dominate this market owing to their high energy density, no memory effect, long cycle life, and low self-discharge rate.

The Global advanced energy storage Market is estimated to be valued at US$ 16.9 Billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the advanced energy storage are ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd, General Electric Company, and Tesla Inc. These players are focusing on developing innovative and cost-effective energy storage solutions to gain a competitive edge in the market.

The key opportunities in the advanced energy storage market include growing adoption of renewable energy, rising focus on decentralized energy generation and storage, and increasing investments by governments and private organizations to modernize aging power infrastructure.

Globally, the demand for advanced energy storage solutions is expected to increase significantly driven by rapid expansion of renewable energy sector worldwide. Majority of new grid-scale battery storage projects are expected to come online in United States, China, India and European countries during the forecast period.

Market drivers

The advanced energy storage market is witnessing high growth owing to increasing demand for renewable energy sources worldwide. Many countries are setting ambitious renewable energy targets to reduce carbon emissions from conventional power sources and achieve energy security. This is expected to drive deployment of utility-scale energy storage technologies that help integrate intermittent renewable power sources into the grid efficiently. Deploying energy storage allows greater use of renewable generation and optimized utilization of the existing power infrastructure.

PEST Analysis

  • Political: Advanced energy storage faces regulations around safety standards. Governments also implement policies around renewable energy targets and carbon emission goals that affect demand.
  • Economic: Global economic growth drives more energy usage. Energy costs and incentives for clean energy adoption impact the market.
  • Social: Rising environmentalism increases social pressure for sustainable energy solutions. Populations in emerging markets desire more reliable power supplies.
  • Technological: Technology advances in batteries, power electronics, and energy management software improve storage performance and lower costs. Connectivity and data capabilities enhance grid management.

Geographical Concentration

North America currently holds the largest market share due to strategic investments and supportive policies around clean energy in the US and Canada. Growing adoption of residential and utility-scale storage supports regional growth.

Fastest Growing Region

Asia Pacific is expected to experience the fastest CAGR during the forecast period. Rapid industrialization and expanding populations increase energy demand across developing countries. Government mandates to diversify energy supply encourage renewable integration in countries like China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it