Advanced Energy Storage Market is Trending due to Increasing Renewable Energy Integration
The Global Advanced Energy Storage Market is estimated to be valued at US$ 21.85 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Naufan Cmi
The advanced energy storage market includes energy storage technologies like batteries, flywheels, compressed air and pumped-hydro storage that are used for storing electricity generated through sources like solar, wind and hydroelectricity. These energy storage systems play a vital role in improving the efficiency of the power grid by regulating voltage fluctuations and ensuring reliable power supply even during peak hours. They help maximize the use of renewable energy by storing surplus power generated during off-peak periods and dispatching it when demand is high. Advanced batteries like lithium-ion batteries are widely adopted in energy storage due to their high energy density, long lifespan and minimal self-discharge. They enable effective integration of intermittent renewable sources into the conventional power grid.
The Global Advanced Energy Storage Market is estimated to be valued at US$ 21.85 Bn in 2024 and is expected to exhibit a CAGR of 9.8% 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. They are investing heavily in developing robust and cost-effective energy storage solutions to meet the growing demand from utilities, commercial & industrial establishments and residential sector.
Rising integration of renewable energy due to environmental regulations is propelling the demand for advanced energy storage systems. They ensure stable grid operations by managing variability in renewable power generation. Additionally, fast decreasing battery costs and improving battery technologies are making energy storage a viable option for both grid-scale and behind-the-meter storage applications.
North America, Europe and Asia Pacific regions are witnessing significant growth in advanced energy storage deployment due to supportive government policies and incentives promoting clean energy. Major global players are expanding their energy storage business aggressively in these regions offering innovative products with improved performance characteristics.
Market Key Trends
Lithium-ion battery technology has emerged as a major driver in the Advanced Energy Storage Market Demand. The declining costs and rising energy density of li-ion batteries are driving their preference over other chemistries. Continuous R&D is improving the lifespan, efficiency and safety of li-ion batteries. Major companies like Tesla, LG Chem and Samsung SDI are investing heavily to ramp up li-ion battery manufacturing capacities. This is expected to make li-ion the dominant chemistry for most energy storage applications in the coming years.
Porter's Analysis
Threat of new entrants: Advanced energy storage technology requires significant R&D investments acting as a barrier. Bargaining power of buyers: Large consumers can negotiate better prices while smaller buyers have limited influence. Bargaining power of suppliers: Suppliers of critical components and raw materials can influence prices. Threat of new substitutes: Solar, wind and other renewable sources continue to emerge as viable alternatives. Intense competition.
Geographical Regions
North America dominates the global advanced energy storage market in terms of value owing to rising investments in grid infrastructure modernization and energy storage systems across utilities and industrial sectors in the US and Canada. Asia Pacific is the fastest growing regional market for advanced energy storage driven by a rapidly expanding renewable energy sector and supportive government policies promoting battery storage in countries such as China, India, Japan and South Korea.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
