Battery Energy Storage Systems (BESS) Market Overview:
A battery energy storage system (BESS)is a sub-set of energy storage system and typically uses an electro-chemical solution.The main factors considered while selecting a battery energy storage system includes; capital cost, response time, cycling lifetime, operation &maintenance and self-discharge among others.
Around the world Battery energy storage system is gaining attraction and could fundamentally change the electricity market dynamics.
As per the research report of AGR, it is estimated that global BESS market is likely to grow @ CAGR of ~30-33% from USD 3.2 billion in 2019 to reach USD 18 billion by 2025.
- Based on the type, Lithium-ion batteries to hold larger size of the battery energy storage system market throughout the forecast period.
- By application, Utilities to hold larger size of the battery energy storage system market during the forecast period.
Large size of the market continues to be held by Lithium-ion batteries owing to its features such as high energy density, self-discharge ability, low maintenance need, less weight, and high life expectancy.
Battery Energy Storage Systems (BESS) Market Outlook:
Battery storage grew over the last few years. As per IEA, the overall installed battery energy storage system capacity in 2019 was ~3.5 GW.
- Huge investments predominantly in lithium-ion batteries are reducing the costs while project developers are continually getting better at designing and building customized storage systems.
- The key factors driving these developments are more favorable markets and regulation, improving system costs, increased access to finance and a need to upgrade ageing grid infrastructure.
At the same time, battery storage is still only a small part of the total power market and there is a more room for further deployment.
- AGR expects total installed grid-scale battery capacity of ~20 GW by 2025. (Excluding projections for residential or commercial and industrial (C&I) both of which have sizable market potentials).
- The growth is led by Key regions, such as Europe, South Korea and the US.Battery energy storage system market in APAC to grow at the highest CAGR between 2019 and 2025.
Battery Energy Storage Systems (BESS) Market Growth Drivers and Trends:
Primary factors driving the global battery energy storage market are:
- Increasing demand for grid-connected solutions.
- Growing demand for the lithium-ion technology in the renewable energy industry.
- Declining prices of lithium-ion batteries.
- Increasing demand of grid flexibility.
- Accelerated battery storage deployment due to digitization and market innovation.
- Increasing focus on rural electrification worldwide.
In addition, favorable government policies and regulations, upcoming mega projects across major economies along with the rising demand for the grid-connected solutions are the other important drivers of battery energy storage system market.
To know more about the report, please connect with AGR athttps://www.avalonglobalresearch.com/contact-us
Challenges disrupting the market:
Though the global Battery energy storage systems market has many growth drivers, there are certain major constraints hindering the market growth.
- Requirement of high capital investment for the deployment;
- All Battery energy storage technologies, including lithium-ion batteries, flow batteries, and lead-acid batteries, need high capital investment due to high-energy density and delivery of improved performance.
- Battery energy storage systems’ cost depends on the types and number of batteries used, and it also varies as per the intended application (residential, non-residential, and utilities) of the systems.
- Installation of battery energy storage systems in remote locations(include island and off-grid remote locations) is difficult as these locations are difficult to reach;
- Ambient conditions like temperature variation during the day and night
- Costly maintenance due to travel requirements to reach these locations
- Lack of installation infrastructure for equipment
However, there are some of the factors expected to continue the growth of the market;
- Increasing focus on rural electrification worldwide,
- Process of bringing electrical power to rural or remote areas,
- Need to have a reliable and uninterrupted power supply from the renewable and conventional sources,
- Increase in the overall system efficiency, and
- Economic savings across the system life cycle to fulfill this purpose
Battery Energy Storage Systems (BESS) Market Players Perspective:
Some of the key players operating in the market includes ABB (Switzerland),AEG Power Solutions (Netherlands),Exergonix Inc, Hitachi (Japan), LG Chem (South Korea),NEC Corporation(Japan), Panasonic Corporation(Japan),Samsung SDI Co. Ltd.,(South Korea), General Electric Co. (US), Mitsubishi Heavy Industries Ltd, SiemensAG (Germany), TeslaINc (US)., and Toshiba Corporation.
The market is expecting a high CAGR@ 39%, but it is unlikely to emerge as the recovery pace will depend on how quickly the COVID-19 crisis gets resolved and hence decline growth is likely to happen.
Large players continue to show a strong brand name owing to their innovative approach, technological excellence, high sustainability, and high-quality products.
- In 2019, Panasonic launched a new residential energy storage system named as “EverVolt” at Solar Power International 2019.
- In 2019, Tesla launched a massive battery energy storage system named as Megapack which combines around 3MWh of storage capacity and 1.5MW inverter.
- In November 2017, NEC Energy Solutions (NEC ES) (Japan) partnered with Trimark Associates as its qualified DSS partner in the USA
- In October 2017, during the Inter Battery (the battery conference), Samsung SDI (South Korea) launched a new product line of high-performance batteries, including the cylindrical 21700 models.
- In September 2017, Panasonic (Japan) launched Japan’s first microgrid system for 117 homes. This is a joint project of PanaHome, ENERES, IBJ Leasing, and the Public Enterprises Agency where, the storage battery system is used for the residential purpose.
Battery Energy Storage Systems (BESS) Market Research Scope:
- The base year of the study is 2019, with forecast done up to 2025.
- The study presents a thorough analysis of the competitive landscape, considering the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the battery energy storage system market.
- The assessment includes the forecast, an overview of the competitive structure, market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints are evaluated to gauge their impact over the forecast period.
- The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include opportunity areas for battery energy storage system market.