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

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. In addition, the energy storage systems strengthen and stabilize the U.S. grid by providing backup power, leveling loads, and offering various other energy management services while minimizing infrastructure costs.

Global Advanced Energy Storage System Market

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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 electric vehicles in developed and developing countries and rising investment in renewable energy. Constant electricity production coupled with frequently increasing demand propels the market's growth. 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 technology is anticipated to fuel growth in the advanced energy storage system market. Furthermore, rising concerns about energy conservation and evolution from fossil fuels to alternative Technologies are expected to boost demand over the forecast period.

However, high capital and installation costs may hamper the demand of the advanced energy storage system market to a certain extent. The government authorities are forming R&D partnerships with key players to leverage technology and accelerate progress throughout the technology development cycle, fueling market growth. In addition, rapid technological advancements and a rising focus on cost-effective manufacturing systems are 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 epidemic has changed consumers' approach toward adopting advanced energy storage systems. The storage system market is facing many challenges during the pandemic situation. Government imposition of new regulations, temporary shutdown of the manufacturing industry, and supply chain disruption in the market hamper the market growth for a short period. Further, the temporary shutdown of the industrial sector reduced electricity consumption, which in turn declined the demand for advanced energy storage systems market. As a result, the market witnessed a slow growth rate during the pandemic. However, post covid 19, the advanced energy storage system market processes will increase revenue gradually owing to the rise in new installations and technological innovation by market key players.

The Asia Pacific dominates the global advanced energy storage system market

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

The Thermal Segment drives Global Advanced Energy Storage System Market

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 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 a major market share. The major players operating in the market are ABB Ltd., L.G. Chem, Ltd., General Electric Company, Tesla, Inc., Samsung SDI Co., Ltd, AES Energy Storage, Alevo Group S.A., and 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. In addition, 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 an advanced battery energy storage solution, 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

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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Published Date:  Sep 2021
Category:  Energy
Report ID:   60424
Report Format:   PDF
Pages:   120
Rating:    4.3 (62)
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