Home / Energy / Advanced Energy Storage System Market by Technology (Batteries, Flywheel, Thermal, Molten Salt, Compressed Air): Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

Advanced Energy Storage System Market by Technology (Batteries, Flywheel, Thermal, Molten Salt, Compressed Air): Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

Published: Sep 2021 | Report Code: 60424-09-21

Market Insights

The advanced energy storage system is a rapidly evolving technology and provides an integrated solution to critical energy needs. The advanced storage system offers reliability & resilience, sustainable mobility, flexibility, and enhanced economic competitiveness for remote communities. The energy storage systems strengthen and stabilize the U.S. grid by providing backup power, leveling loads, and offering a range of other energy management services while minimizing infrastructure costs.

Global Advanced Energy Storage System Market

The advanced energy storage system market is expected to cross market value of USD 215.3 billion in 2027 from USD 155.6 billion in 2020. It is expected to grow at a CAGR of over 5.24% during the forecast period.

Key Market Drivers and Restraints      

The global advanced energy storage system market is likely to be driven by rapid growth in electrical vehicles in developed as well as developing countries and rising investment in renewable energy. Constant electricity production coupled with frequently increasing demand propels the growth of the market. The leading players are focusing on the development of efficient technology which can be available at lower prices with fewer emissions and more reliable power. Owing to extensive research and development for the development of renewable energy Technologys is anticipated to fuel growth in the advanced energy storage system market. Furthermore, rising concerns about energy conservation and evolution from fossil fuels to using alternative Technologys are expected to boost demand over the forecast period.

However, high capital costs and installation costs may hamper the demand of the advanced energy storage system market to a certain extend. The government authorities are forming R&D partnerships with key players to leverage reTechnologys and accelerate progress throughout the entire technology development cycle which in turn is fueling the market growth. In addition, rapid technological advancements and a rising focus on manufacturing cost-effective systems is expected to offer lucrative opportunities for the market in the forecast period.

Impact of COVID 19

The outbreak of COVID-19 infection has caused enormous difficulties for the global market. The sudden outbreak has changed the approach of consumers towards the adoption of advanced energy storage systems. The storage system market is facing many challenges during the pandemic situation. Government imposition of new regulations, temporary shutdown of manufacturing industry, and supply chain disruption in the market hamper the market growth for the short period. Further, temporary shutdown of the industrial sector reduced the consumption of electricity which in turn decline the demand of advanced energy storage system market. The market witnesses a slow growth rate during the pandemic period. However, post covid 19, the advanced energy storage system market processes will increase revenue gradually owing to the rise in new installation and technological innovation by market key players.

Asia Pacific to dominate the global advanced energy storage system market

Geographically, the global advanced energy storage system market is segmented into the Asia Pacific, Europe, North America, Middle East and Africa, and Latin America. Asia Pacific market is anticipated to account for the highest revenue share in the global market. China holds the largest market share for advanced energy storage system in Asia pacific region in 2020. Increasing concern towards energy security in emerging countries is propelling the industry demand for energy storage systems in this region. Further, increasing use of renewable energy reTechnologys for power generation specifically in emerging countries such as China, India, and South Korea is accelerating the demand for advanced energy storage system market in the Asia Pacific region.

North America is projected to register significant growth in the advanced energy storage market due to increasing commercial & residential applications and growing investment in renewable energy. Introduction of new large capacity advanced energy storage system infrastructure in the countries the United States and Canada.

Global Advanced Energy Storage System Market is Driven by the Thermal Segment

On the basis of technology, the global advanced energy storage systems market is divided into Batteries, Flywheel, Thermal, Molten Salt, and Compressed Air. Among all technology types, the thermal segment is accounted for the largest share of the Advanced Energy Storage System Market. However, the compressed air segment is anticipated to grow at a moderate CAGR during the forecast period.

Increasing investment by companies operating in the market likely to boost the market growth

The global advanced energy storage system market is highly fragmented with the presence of few key players occupying major of market share. The major players operating in the market are ABB Ltd., LG Chem, Ltd., General Electric Company, Tesla, Inc., Samsung SDI Co., Ltd, AES Energy Storage, Alevo Group S.A., ZBB systems, Altair Nanotechnologies Inc., and Electrovaya Inc. The leading players are continuously focusing on technological innovation to fulfill the requirement of end-user industries. Frequently changing consumer preferences are compelling manufacturers to focus on extensive research & development for the development of innovative products. Further, benefits associated with the advanced energy storage system such as minimum infrastructure investment, enhanced grid operation capabilities, high backup power for emergencies, and lower cost are expected to propel the market growth.

For instance, Hitachi ABB Power Grids Ltd. Company offers advanced battery energy storage solution namely e-meshTM PowerStoreTM for Thailand’s largest private microgrid at Saha Industrial Park in Sriracha. The battery energy storage system (BESS) helps to develop a more sustainable and resilient solution for the industry.

Frequently asked questions about global industry

Batteries, flywheel, thermal, molten salt and compressed air are major technologies of advanced Energy Storage System out of which Batteries segment dominated the global market and accounts for the major share in the global market.

Some of the major players operating in Advanced Energy Storage System industry include, ABB Ltd., LG Chem, Ltd., General Electric Company, Tesla, Inc., Samsung SDI Co., Ltd, AES Energy Storage, Alevo Group S.A., ZBB systems, Altair Nanotechnologies Inc and Electrovaya Inc. The key players in the market adopt different business strategies to gain a competitive edge in the market.

Asia Pacific region holds the largest share owing to large demand of Advanced Energy Storage System in several industries such as electrical, mechanical, thermal and others along with high level of awareness among end-users.

The market is anticipated to grow at a CAGR of 5.24% throughout the forecast period, in terms of revenue

Advanced energy storage system require high capital investment for production and installation for high quality and improved performance. Further, high cost of raw materials used for the manufacturing, propels the capital cost of the system which may restrain the market growth.

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