Grid-scale Battery Storage Market 2020 and Forecast 2021-2027

  • TBI464262
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research
                                              

Report Overview: Global Grid-scale Battery Storage Market

The global grid-scale battery storage market size was estimated at USD 1.5 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 13.3% from 2021 to 2027. Grid-scale batteries are utilized for applications, such as ancillary services, renewable integration, black start, firm capacity, and various other application at the site of renewable energy generation and at transmission and distribution facilities of the power sector. The product demand is driven by factors, such as need to integrate the energy produced from renewable sources including solar photovoltaic and wind power, and also to improve stability, reliability, and resiliency of the grid. The market is evolving as one of the potential solutions to intensify the system flexibility, owed to their exceptional abilities to hold, absorb quickly, and then re-inject electricity. In the U.S., increasing demand for lithium-ion batteries as an essential battery storage product can be attributed to their highly improved efficiency, energy density, and deep discharge cycle. In addition, a rapid cost decrease owing to growing storage demand and increased deployment demand for a renewable source of energy integration is projected to drive the market over the forecast period 2021-2027. However, Increasing awareness among consumers regarding effective energy consumption coupled with rising demand to save extra energy produced at the grid location with effective load supervision is expected to play a key role in driving the demand. Also, ascending demand from grids, on account of rising need for distributed energy integration with the grid, is likely to propel the market growth over the forecast period. The outbreak of COVID-19 pandemic has hindered the market growth as supply chains for the battery industry was negatively impacted since the majority of vendors involved in battery market are located in Asia Pacific region and China, the largest manufacturer and leading supplier of components across the globe, was the first affected country. Type Insights Li-ion battery type accounted for the largest market share of more than 84% in 2019 and is likely to register the highest CAGR over the forecast period. These batteries are widely used across several applications due to technological innovations and improved manufacturing capacity, also these products have registered a steep price decline in the last 6 years, and prices are projected to decline further. Moreover, lithium-ion batteries require less space and are lightweight. They are also fast-charging and highly durable as compared to other products in the market. The lead-acid segment is anticipated to expand at a moderate CAGR over the forecast period. Lead-acid batteries can be recycled and reused in the manufacturing of new batteries. These advantageous properties are expected to propel their demand over the upcoming years.

Application Insights: Global Grid-scale Battery Storage Market

Ancillary services led the market accounting for more than 63% of global share in 2019 and are projected to witness substantial growth during the forecast period. The future of grid-scale battery storage is expected to rely significantly on renewable sources of energy, such as solar and wind. The operator uses grid-scale battery storage systems to provide ancillary services to mitigate the uncertainty and variability of the wind power projects on a grid-scale. In 2016, a new ancillary service, Enhanced Frequency Response, was introduced with an additional response time that can only meet with the help of storage batteries. Correspondingly in some countries, there are provisions for frequency regulation that are compulsory for the developers of large wind energy farms to decrease the need for increased rotating reserve from conventional power plants. Countries that operate on ancillary service (enhanced frequency response) markets have frequency regulated products, and these products are designed with some limitations to be followed by large power stations.

Regional Insights: Global Grid-scale Battery Storage Market

Asia Pacific is projected to register the highest CAGR of 26.9% during the forecast period. China accounted for the largest revenue share in the region due to the ongoing initiatives and investments by the government to augment industry growth North America is the most competitive and mature regional market. The lithium-ion battery segment leads the current market in U.S. Owing to the technological aspects and enhanced manufacturing capacity, these batteries have experienced a price decline of over 70% in the past few years and the prices are expected to decline in future.

Key Companies & Market Share Insights: Global Grid-scale Battery Storage Market

Market participants are emphasizing on R&D to develop advanced products to gain a competitive edge. The companies with strong market foot-hold have led to the advancements in the field of battery manufacturing and storage to develop innovative products. Also, there is integration by companies including ABB, GE, and Samsung SDI, which allows low-cost manufacturing with increased productivity. Broadening of product portfolio to increase base into new application markets is one of the leading approaches being implemented by the market players. Some of the prominent players in the grid-scale battery storage market include:

Key companies Profiled: Global Grid-scale Battery Storage Market Report

  • NGK Insulators Ltd.
  • BYD Co. Ltd.
  • Sumitomo Electric Industries, Ltd.
  • Samsung SDI Co. Ltd.
  • General Electric
  • Tesla
  • GS Yuasa Corp.
  • LG Chem Ltd.
  • Mitsubishi Electric Corp.
  • Panasonic Corp.
  • Hitachi Ltd.
  • Fluence Energy, LLC
  • ABB Group
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global grid-scale battery storage market report on the basis of type, application, and region:

Type Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)

  • Lithium-Ion
  • Lead Acid
  • Others
Application Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)
  • Renewable Integration
  • Ancillary Services
  • Others

Table of Contents
Chapter 1. Methodology and Scope
   1.1. Market segmentation & scope
   1.2. Information procurement
        1.2.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
        1.2.2. IFF internal database
        1.2.3. Secondary sources & third-party perspectives
        1.2.4. Primary Research
   1.3. Information analysis
        1.3.1. Data analysis models
   1.4. Market formulation & data visualization          
|  read more...

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