GlobalData: Global battery energy storage market to grow by 7% to reach $13.13B by 2023
03 May 2019
The global battery energy storage market will to grow to $13.13 billion by 2023, according to a new forecast by GlobalData. Asia-Pacific (APAC) and EMEA will be the dominant markets for battery energy storage systems over the forecast period 2019-2023.
The company’s latest report “Battery Energy Storage Market, Update 2019 – Global Market Size, Competitive Landscape and Key Country Analysis to 2023” finds that the fall in technology prices and increasing pace of development in the power market are the primary driving factors for the battery energy storage market.
APAC will continue to be the largest market, reaching $6.05 billion in 2023, as countries are increasing investments for improving their grid infrastructure and improving the market structure to attract foreign investments. With respect to technology, Lithium-ion is and will continue to be, the preferred technology for market deployment.
The US has been the largest market for Battery Energy Storage System (BESS) both in terms of cumulative installed capacity and by market value for projects installed up to 2018 and is likely to continue to lead the market at the country level. The US market for battery energy storage is estimated to reach $2.96bn in 2023, accounting for 23% of the global market.
—Bhavana Sri, Power Analyst for GlobalData
Asia-Pacific was the largest market for battery energy storage systems and it accounted for 45% of the global market installed capacity in 2018 and the region is also expected to maintain its top position in the forecast period. With the number of grid-connected renewable electricity generation plants increasing tremendously, countries such as China, India, Japan, South Korea, and the Philippines will focus on frequency regulation in the electric grid to normalize the variation in power generation from renewables.
The EMEA battery energy storage market registered a market value of approximately $1.73bn in 2018 and it accounted for 26% of the global market. The region has strong demand for flexibility, due to technological advancements, evolving market conditions, strong research facilities, and supportive policies. Middle East and Africa are small markets with demand for storage expected to increase once renewable power generation gains significant traction in the market.
The Americas battery energy storage market registered a market value of approximately $1.97bn in 2018 and it accounted for 28% in 2018. The battery energy storage market in the region is growing, with countries such as the US, Chile, Canada and Brazil promoting battery storage installations across consumer segments. Some US states have robust incentive programs, most notably California, which adopted an ambitious target for 1.3GW of energy storage by 2020, which it surpassed and a new target is awaiting approval.
“With countries aggressively promoting the modernization of grids, and developing their capability to handle the demands of the present and future, batteries are being deployed to support smart grids, integrate renewables, create responsive electricity markets, provide ancillary services, and enhance both system resilience and energy self-sufficiency.
Market conditions are improving and more companies are moving into a decentralized generation, leading to an increase in the onsite deployment of renewables and batteries; as in with micro or mini girds. Supportive policies and high electricity charges are also nudging the market towards renewables and/or storage plus renewables at the end consumer level. As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a central role in the transition and transformation of the power sector.
—Bhavana Sri
In spite of all the numbers in this article I had to do my own calculations to determine that the current market appears to be a bit over 7 billion dollars and it is projected to grow to 13.13 making total growth in 5 years about 87%. Appears to be about 13% CAGR.
Posted by: Calgarygary | 03 May 2019 at 09:06 AM
Increasing the production of battery storage in all segments, not just power storage, is the key to accelerating the transition to clean energy...some predict a trillion dollar market in all the segments. I see signs less fossil fuels will be needed in the future, perhaps this is the year of peak fossil fuel, hope so as we will have then turned the corner.
Posted by: Lad | 03 May 2019 at 03:38 PM
The arrival of a few more millions, heavy SUVs and Pick-Ups ICEVs, will probably push peak fossil/bio- fuel by another 15+ years?
Posted by: HarveyD | 04 May 2019 at 08:25 AM
Actually while the pace of growth is encouraging, it's nowhere close to projections being made in the days of $60-80 shares of Solar City, when CAGRs of 30% to even 50% were being projected by analysts (somehow with a straight face the whole time). A lot of wealth was torched on equity markets with that sort of foolishness, and now the $2B spent by TSLA shareholers for ex-SCTY continues on its path to zero (not to mention consequences for longsuffering SUNEQ bagholders).
And what of Tony Seba who projected that storage would obviate the need for fossil-fueled spinning reserves in CONUS by 2025? Not gonna happen. But you can still go join the adoring crowds and listen to him for $500 and up, with complimentary box wine and tiny-weiners-on-a-toothpick at the reception.
It's important to be realistic in projections, and this one, while still a bit optimistic, isn't asinine.
[ Before Lad comes and goes all chimp on me, please know I now have ~5kWh of LiFePO storage standing against the darkness in the basement of our retirement house (2P4S 100A-h batteries). Not funded by my windfall of paid Exxon posts, either -- just cuz I'm so green... and because the S. Maine grid is dodgy. ]
Posted by: Herman | 06 May 2019 at 11:31 AM