The global energy storage battery market size was valued at USD 3.19 billion in 2017. The global battery energy storage market is growing, owing to the increasing production of electricity. Artificial intelligence (AI) for energy storage systems is expected to provide growth opportunities for the market over the next few years.

                                     U.S. Energy Storage Battery Consumption, 2013-2025 (MW)

Electrochemical energy storage solutions typically encompass different types of batteries including lithium-ion, lead acid batteries and all flow batteries, which are used in diverse industry verticals depending on numerous factors including desired energy density and discharge cycles. Electrochemical energy storage solutions have been in use in different verticals for several years, thus, its market has achieved maturity. Nonetheless, the market is expected to restore its former prominent position due to the newer policies and regulations introduced and implemented by various governments across the world. Increasing investments in renewable sector and proposed energy storage capacities are the key reasons to drive the growth of the market over the next few years.

Up until 2017, lithium-ion batteries were the most widely used types of energy storage cells across the world. The segment generated revenues worth USD 2.81 billion in the same year due to its penetration across the automotive and consumer electronics sector. Over the next seven years, the usage of lithium ion batteries is set to significantly increase due to its installation in all types of electric vehicles. The rising sales of these vehicles is expected to compound the market growth of this battery energy storage solution. Likewise, the number of personal devices is set to exceed over six per person by 2025, which will further drive the demand for lithium-ion batteries.

                           Global Energy Storage Battery Volume Market Share, by Application, 2017 (%)

Energy storage batteries have tremendous untapped potential in the residential sector. This has been proven by the fact that the energy storage batteries installations in this sector were operational in 2017 worldwide, with a reported capacity of 24.81 MW. Uninterrupted power supply and reduction in energy costs have been the primary factors driving the number of renewable energy system installations in the residential sector. This in turn has had a positive effect on compact and portable energy storage solutions such as batteries.

Division of the global market into five major continents show that North America was at the leading position with the highest number of installations in 2017 making up for 46.7% of the total market share. The penetration of energy storage batteries in the region has moved past its peak, thereby, implying maturity with little scope for growth. However, opportunities for further development of the market are being created in the form of increasing investments in renewable energy at federal level.

Over the forecast period, Asia Pacific is likely to drive the global energy storage battery market with installations increasing from 479.6 MW in 2017 to over 2,000 MW by 2025. Certain countries such as South Korea, Japan, Australia, and New Zealand have an established infrastructure with advanced electricity grids. However, there is a lack of fundamental infrastructure in several other countries including India, Indonesia, and Vietnam. These countries are now developing their power grids for uninterrupted supply of electricity to support urbanization and improve their economies by boosting production output in various industries. The expanding electricity grids in these countries is likely to comprise renewable energy which has become cost-effective. These factors are expected to drive the demand for energy storage batteries in these regions over the next few years.

Focus of governments across the world to reduce carbon emissions is likely to be one of the key factors driving the global energy storage battery market in the near future. The Paris Agreement was signed by 196 countries in a summit held in 2015. As of July 2018, 180 of these 196 countries are already introducing and implementing policies abiding with the aim of the Paris Agreement to address climate change caused due to emissions. Energy storage have emerged as an ideal solution to harness and utilize clean energy, which in turn will assist the goals laid down by the Paris Agreement. Ease of maintenance & installation and ability to deploy and set-up regardless of the geography is another key benefit of battery energy storage.

Taking into consideration the changes within the global electricity market, energy storage battery companies are actively undertaking steps to broaden their presence in the global industry via innovation, mergers & acquisitions and partnerships. For instance, in April 2018, Enel (Enel X), a multinational power company, signed an agreement for the installation and operation of a 1 MWh lithium-ion behind-the-meter (BTM) battery system with Algoma Orchards, an Ontario-based commercial apple grower, processor and retailer. In the month of July of the same year, Enel X signed another agreement with Amhil North America, an Ontario-based food packaging company, for the installation and operation of a 2.34 MW/4.7MWh lithium-ion behind-the-meter (BTM) energy storage battery.

The momentum of the global energy storage battery market is expected to result in existing companies expanding their capabilities for undertaking projects with larger electricity storage capacities. Additionally, the market is likely to note increasing investments by venture capitalists (VC) in firms providing energy storage solutions cashing on the lucrative opportunity provided by the growth of the CleanTech sector.

Key segments of the global energy storage battery market

Type Overview, 2013-2025 (MW) (USD Million)

• Lithium Ion Battery
• All-Vanadium Flow Battery
• Zinc-bromine Flow Battery
• Others

Application Overview, 2013-2025 (MW) (USD Million)

• Utility Solution
• Residential Solution
• Non-Residential

Regional Overview, 2013-2025 (MW) (USD Million)

• North America
  • US
• Europe
  • UK
  • Ireland
  • Spain
  • Italy
  • France
  • Germany
• Asia Pacific
  • South Korea
  • Japan
  • India
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Chile
• Middle East & Africa

Reasons for the study

• The purpose of the study is to give an exhaustive outlook of the global energy storage battery market industry.
• We have been following the overall segmentation of energy storage systems especially, the lithium ion battery. This sector has been gaining immense importance, as a key fragment of the energy storage battery market. Globally, vanadium redox flow battery market is relatively untapped and has tremendous growth potential in tandem with the increase in automobile sales.
• Robust expansion of the energy storage industry in North America has been mainly driven by the increased necessity for energy efficient storage systems to support electrical grids, especially under highly stressed conditions to avoid power blackouts.
• While conducting research on the energy storage systems on regional and country level, we noticed that the use of a single storage facility in multiple applications for utility grid systems is expanding and being recognized for its value. With the decrease in cost of energy storage systems and the advent of improved technologies, consumers are being more reliable on battery storage technologies, making it an essential part of the energy storage system.

What does the report include?

• The study on the global energy storage battery market includes qualitative factors such as drivers, restraints, and opportunities
• Additionally, the market has been evaluated using the value chain and Porter’s Five Forces’ analysis
• The study covers qualitative and quantitative analysis of the market segmented on the basis of type, application and region. Moreover, the study provides similar information for the key geographies.
• Actual market sizes and forecasts have been provided for all the above-mentioned segments
• The study includes the profiles of key players in the market with a significant global and/or regional presence

Who should buy this report?

This study is suitable for industry participants and stakeholders in the energy storage battery industry, who want an in-depth insight into the movement of the vanadium redox battery market. The report will benefit:

• Executives of flow battery manufacturing companies that are engaged in the energy storage and distribution
• Managers within financial institutions looking to publish recent and forecasted statistics pertaining to energy storage systems
• Venture capitalist looking into investing capital
• Government organizations, regulatory authorities, policymakers and financial organizations looking for innovative solutions for power backup
• Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies