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Grid-Scale Battery Market By Battery Type (Lithium-Ion, Lead Acid, Flow Battery, Sodium-Based Battery, Others), By Application (Renewable Integration, Peak Shift, Ancillary Services, Back-Up Power, Others) - Growth, Share, Opportunities & Competitive Analysis, 2019 -2027

“Increasing investments towards renewable energy projects and reducing the cost of grid-scale batteries will boost the market.”

The global grid-scale battery market is growing competently, expected to grow at a CAGR of 22.0% during the estimated period from 2019 to 2027, starting from US$ 2.22 Bn in 2018.

Grid-scale battery storage systems will play a vital role in aiding the next stage of the energy transition towards renewable systems. The battery storage systems offer grid services like regulation reserves, frequency response, and ramp rate control. In addition, the grid-scale battery storage systems can facilitate greater dissemination of excess generated renewable energy into the grid. Furthermore, batteries provide cheaper and more reliable electricity in off-grid and isolated grids, thereby driving the demand for grid-scale batteries in the upcoming years.

Rapid growth in the production of renewable energy, push from the government to reduce global warming, large-scale addition of solar and wind projects, increasing transition towards low carbon electricity, and global demand for electric vehicles & consumer electronics are expected to expand the market for grid-scale battery over the forecast period. For instance, according to the World Energy Council (WEC), around 250 GW of energy storage is projected to get installed by 2030, owing to the growth rate for energy storage, supportive government policies, and the declining price of batteries. Additionally, the energy storage technology acts as a contributory tool in handling grid resiliency and reliability by regulating the variable generation and improving smart-grid and micro-grid functionality.

Market Synopsis

Battery Analysis

“Reducing cost in Li-ion technology coupled with the implementation of large-scale battery storage accounts for Li-ion batteries to hold a higher revenue share across the market.”

Li-ion batteries are projected to hold the largest share in storage capacity additions, owing to the decreasing costs in Li-ion technology, government policies, and growing production of renewable energy to meet the rising demand for electric vehicles. For instance, in 2018, according to International Energy Agency (IEA), Li-ion accounted for around 90% of large-scale battery storage additions. Furthermore, the integration of renewable energy with a conventional grid system increased the demand for grid-scale battery storage systems globally. For instance, Acciona Energia, a Spanish conglomerate group, has integrated a Li-ion battery storage system with a wind farm in Barasoain, Spain.

The development of energy storage markets through regulatory reforms subsequently reduces costs of Li-ion batteries through efficiencies of scale and increased competition to drive market growth. For instance, around 130 MWh of battery storage systems have been implemented in Hawaii, owing to providing smooth services for wind and solar PV systems in the grid services.

Regional Analysis

“Dominance is led by the government policies and initiatives for large scale battery storage projects.”

The provision of incentives by the American Recovery and Reinvestment Act of 2009 in the United States has opened a new cradle of financing for large-scale battery storage to various owners. As a result, around 124 grid-scale energy storage projects were commissioned from 2009 to 2014, which include ancillary services, battery storage for utility load shifting, and distributed storage for grid support. For instance, in November 2018, PG&E awarded the two largest battery contracts, i.e., 182MW / 730MWh and 300MW / 2 270MWh, in California.

Moreover, in 2017, San Diego Gas & Electric, a utility company, developed a 30 MW / 120 MWh Li-Ion battery storage project to collect surplus power production in Escondido, U.S. The aforementioned developments for battery storage in the U.S. created an opportunity for the growth of the grid-scale battery market over the forecast period. Increasing the use of renewable energy in the commercial and residential sectors, the initial measures to lead the utility-scale policy, and storage development are associated factors for the growth of the market. Furthermore, the development of new wind and solar energy technologies is eventually facilitating the growth of the grid-scale battery market across the region.

List of Companies Covered:

  • LG Chem Ltd
  • Samsung SDI Co Ltd
  • Panasonic Corporation
  • Fluence Corporation Ltd
  • Tesla Inc
  • BYD Co Ltd
  • ABB Ltd.
  • General Electric Company
  • GS Yuasa Corporation
  • Toshiba Corp
  • Saft
  • S&C Electric Co
  • NGK Insulators Ltd

Key Industry Development:

  • In July 2019, a new company in Canada announced its plan to introduce a grid-scale battery for utilities, which would offer around four times more energy and lifetime as compared to lithium-ion batteries. 
  • In February 2019, Tata Power, an Indian-based company, inaugurated a grid-scale battery storage system of 10 MW/10 MWh owned by Mitsubishi and AES at the Rohini sub-station in New Delhi, India.
  • In February 2019, Los Angeles announced its plan to roll out three power plants operating with natural gas and showed interest towards grid-scale battery storage.

Historical & Forecast Period

This study report represents analysis for each segment from 2017 to 2027, considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.

Segmentation Battery Type (2017–2027; US$ Bn) 

  • Lithium-Ion
  • Lead Acid
  • Flow Battery
  • Sodium-Based Battery
  • Others (Ni-Cd, NiMH, NiI, etc.)

 Application (2017–2027; US$ Bn)

  • Renewable Integration
  • Peak Shift
  • Ancillary Services
  • Back-Up Power
  • Others

 Geography (2017–2027; US$ Bn)

  • North America (the U.S., Rest of North America)
  • Europe (U.K., Germany, France, Rest of Europe)
  • Asia Pacific (Japan, China, India, Rest of Asia Pacific)
  • Rest of the World (Latin America, Middle East & Africa)

The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities that give a better market understanding of the overall foundation repair services market. The global report also represents the competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.

Frequently Asked Questions

The market for Grid-Scale Battery is expected to reach US$ 2.22 Bn in 2028.

The Grid-Scale Battery market is expected to see significant CAGR growth over the coming years, at 22.0%.

The report is forcasted from 2019-2027.

The base year of this report is 2021.

LG Chem Ltd, Samsung SDI Co Ltd, Panasonic Corporation, Fluence Corporation Ltd, Tesla Inc, BYD Co Ltd, ABB Ltd., General Electric Company, GS Yuasa Corporation, Toshiba Corp, Saft are some of the major players in the global market.

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Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
Trusted By
Godaddy
Published Date:  Jan 2020
Category:  Energy
Report ID:   60160
Report Format:   PDF
Pages:   120
Rating:    4.4 (58)
Delivery Time: 24 Hours to 48 Hours   
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