June 25, 2024
Stationary Energy Storage Market

Stationary Energy Storage Market Is Expected To Be Flourished By Rapid Deployment Of Renewable Power Generation Sources

Stationary energy storage refers to large-scale electricity storage solutions that are primarily utilized by the electric power sector, industrial usage, and commercial infrastructure. Stationary energy storage solutions help utilities, industrial facilities, and commercial sites to reduce fluctuations in power delivery and optimize power consumption. The solutions offer benefits including improving the grid’s reliability by stabilizing frequency and voltage, reducing peak demand charges, ensuring backup power during outages, and integrating variable renewable energy sources like solar PV and wind energy. Battery energy storage is the most common technology utilized for stationary energy storage, while others include pumped hydroelectric storage, thermal energy storage, and kinetic energy storage. With increasing renewable penetration targets worldwide to curb greenhouse gas emissions, rapid investments are being made in large-scale battery energy storage installations by utilities to maintain grid stability and resilience.

The global Stationary Energy Storage Market is estimated to be valued at US$ 50.09 Bn in 2024 and is expected to exhibit a CAGR of 44.% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Rapid Deployment of Renewable Power Generation Sources: As mentioned in the heading, one of the key drivers for the growth of the stationary energy storage market is the rapid deployment of renewable energy sources globally like solar and wind power. Many countries have set ambitious targets to increase the share of renewable energy in their overall electricity generation to reduce dependence on fossil fuels and mitigate climate change. However, the intermittent nature of solar and wind power poses challenges for grid operators to maintain power quality and balance supply-demand. Large-scale stationary energy storage installations help accelerate the energy transition by absorbing excess renewable energy during high production periods and delivering it to the grid when generation drops, thus stabilizing the grid.

Growing Investment in Battery Energy Storage Projects: Battery technology has evolved rapidly in recent years, bringing down costs substantially. This has encouraged major investments by utilities and project developers in deploying battery energy storage systems, especially lithium-ion batteries, across grid-scale, commercial & industrial and behind-the-meter applications. Regions like the US, Europe, Australia, and parts of Asia are witnessing accelerated deployments of large battery energy storage projects to support renewable integration into their power grids. Such rising investments are expected to boost demand for stationary energy storage over the forecast period.

Segment Analysis

The stationary energy storage market is segmented into battery energy storage system (BESS) and non-battery energy storage system. The BESS segment dominated the market in 2018 and accounted for over 70% share. The widespread adoption of lithium-ion batteries in BESS has been a major factor for the segment’s large share. These batteries have higher energy density levels compared to other battery technologies, making them well-suited for stationary energy storage applications. Their reliability and scalability have further increased their popularity among end-users.

PEST Analysis

Political: Supportive government policies regarding clean energy adoption and carbon reduction targets in different countries are driving the stationary energy storage market. Growing focus on grid modernization will also aid market growth.

Economic: Cost reductions of lithium-ion batteries and other energy storage technologies are making stationary storage systems more affordable. As the levelized cost of storage declines, it will boost the business case for end-users across sectors.

Social: Rising environmental concerns are prompting the shift towards sustainable energy sources. Growing customer acceptance for clean power will escalate the deployment of renewable energy integrated with storage technologies.

Technological: Advancements in battery chemistries allow for improved lifespan and cyclability. The development of next-gen batteries with even higher energy densities is further enhancing the viability of stationary storage solutions. Falling costs of relevant power electronics will also support market expansion.

Key Takeaways

The Global Stationary Energy Storage Market Growth is expected to witness high over the forecast period.

Regional analysis: Asia Pacific held over 40% market share in 2018 led by China’s strong push for renewables+storage and growing installations across residential & commercial sectors. Japan & South Korea are also emerging as major markets with their focus to phase out nuclear while integrating more renewables.

Key players: Key players operating in the stationary energy storage market are Abbott, Danaher, Quidel, BD, LifeScan, Siemens Healthineers, and Ascensia Diabetes Care Holdings, among others. Abbott leads the market with strong brands like FreeStyle and Libre for blood glucose monitoring. The increasing competitiveness is pushing players to expand their product portfolios and focus on innovative service offerings.

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