The Global Energy Storage Market is projected to grow at a CAGR of 38.26% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The growing deployment of energy storage systems such as pumped hydro & batteries in the power grid and rising concern about the impact of fossil fuels on the environment are fostering market growth. Countries around the world are increasingly merging electricity grids with energy storage systems to enable renewable energy integration, manage peak demand, and facilitate grid modernization. The intermittent nature of renewable sources like solar and wind power, which fluctuate based on weather conditions, poses challenges to grid stability and reliability. However, energy storage systems could provide a solution by effectively storing surplus energy during high generation and releasing it at the time of low electricity generation.
Through governments are aiming to achieve their clean energy and climate goals in the future years. As a result, countries like China, Germany, and the USA, are taking steps to integrate energy storage systems into their electricity grid. According to the IEA, the installed grid-scale battery storage capacity is expected to expand 44-fold between 2021 and 2030 to 680 GW. Therefore, the integration of energy storage systems in electricity grids is expected to play a pivotal role in the global energy transition, which would contribute to market growth in the upcoming period.
Moreover, the rising government policies & regulations in the energy storage sector by countries like the USA, India, Germany, etc., are driving market growth by promoting the transition to renewable energy, mitigating climate change, and reducing greenhouse gas emissions. These initiatives create a supportive environment for integrating energy storage systems into the grid, attracting investments from companies like LG Chem, ABB, and Samsung. As a result, the energy storage market is expected to experience significant growth in the upcoming years, due to these government efforts and increased investments, further states the research report, “Global Energy Storage Market Analysis, 2023.”
Pumped Storage Hydropower is expected to Hold Major Share of the Global Energy Storage Market
Based on the type segment, the market is further bifurcated into, battery, pumped storage hydropower, compressed air energy storage (CAES), gravity-based energy storage, liquid air energy storage, and flywheel energy storage (FES). Amongst these, pumped storage hydropower is projected to hold the major share of the Global Energy Storage Market in the forecast period. The market growth imputes to the increasing need for renewable energy in diverse sectors, including residential, commercial, government, transportation, and industrial.
Additionally, the global reliance on fossil fuels sourced from foreign nations has raised concerns about energy security, including the risks associated with supply interruptions and price fluctuations. Furthermore, the integration of renewable energy sources into the electricity grid can lead to supply and demand fluctuations, potentially causing grid instability. Thus, Pumped Storage Hydropower helps to stabilize the grid by storing excess energy during times of low demand & releasing it during high demand, which is expected to escalate the market growth in the coming years.
Due to Growing Government Incentive Schemes and Subsidies, Asia Pacific Region is Likely to Hold Major Share of the Market
Based on region, Asia-Pacific is projected to grow considerably in the Global Energy Storage Market during 2023-2028. This growth is expected to accelerate due to the growing government incentive schemes and subsidies aimed at promoting the adoption of renewable energy sources such as solar and wind power in the region. Through these adoption governments like India, China, Japan, etc., are focusing to achieve energy transition and efforts to reduce carbon emissions. For instance, in 2022, Indonesia launched an energy transition program, the Just Energy Transition Partnership (JETP), an initial amount of USD20 billion would be mobilized by this program toward Indonesia’s adoption of renewable energy.
As a result of the increasing focus on energy transition and efforts to reduce carbon emissions, the installation of renewable energy sources in the Asia Pacific region is expected to surge. This, in turn, would create a demand for energy storage solutions to address the intermittency of renewable energy generation and ensure a reliable power supply.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Contemporary Amperex Technology Ltd, NextEra Energy, Toshiba Corporation, GS Yuasa Corporation, Siemens, ABB, LG Chem, Voith GmbH & Co. KGaA, ANDRITZ HYDRO GmbH, Hitachi Energy, Mitsubishi Electric Corporation, Tesla, Samsung SDI, UniEnergy Technologies, LLC, General Electric, and others) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report