Energy storage is crucial for meeting increasing energy demand as well as environmental sustainability goals through integration of renewable energy sources into the power grid. Advanced energy storage solutions store electricity generated from renewable sources and deliver it on-demand, thereby allowing greater utilization of clean energy sources. They enable energy shifting from off-peak generation to peak consumption periods, providing backup power during grid outages, and improving power reliability and quality. Moreover, advanced energy storage effectively supports integration of distributed and variable renewable energy by mitigating intermittency issues.
The global Advanced Energy Storage Market is estimated to be valued at US$ 16.9 billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing demand for grid-level applications is one of the major trends driving growth of the advanced energy storage market. Advanced energy storage solutions are increasingly being deployed at the grid-level to store surplus energy produced from renewable sources like solar and wind during off-peak hours and supply it to the grid during peak demand hours. They help in addressing challenges related to intermittent power generation from renewable sources. Rapid integration of variable renewable power and the need for ancillary services and grid balancing are propelling deployment of utility-scale energy storage systems globally. Various energy regulatory bodies have also introduced favorable policies and incentives to promote grid-level energy storage projects.
SWOT Analysis
- Strength: Advanced energy storage has high energy density and long operating lifetime. It provides reliable power even during grid failures or blackouts.
- Weakness: Initial investment required is very high for advanced energy storage systems. There are technological challenges involved in developing low-cost energy storage technologies.
- Opportunity: Increasing integration of renewables in the energy mix increases the need for reliable energy storage systems. Growing electric vehicle market creates opportunities for deploying advanced batteries.
- Threats: Declining battery costs can increase competition. Stringent regulations around battery disposal and recycling pose compliance challenges.
Key Takeaways
The global Advanced Energy Storage market is expected to witness high growth. According to a recent report, Advanced Energy Storage market size was valued at US$ 16.9 Billion in 2024 and is projected to reach US$ 27.8 Billion by 2031, registering a CAGR of 5.6% during the forecast period.
Regional analysis: North America dominates the Advanced Energy Storage market currently due to supportive government policies promoting grid modernization programs and renewable integration in the region. The Asia Pacific region is expected to witness the highest growth in the Advanced Energy Storage market during the forecast period due to the increasing deployment of energy storage systems to meet rising electricity demand and integrate renewable energy sources in the electricity grid in major countries like China and India.
Key players: Key players operating in the Advanced Energy Storage market are ABB Ltd., LG Chem, Ltd., and Samsung SDI Co. These companies are focusing on developing innovative and cost-effective battery technologies like lithium-ion and solid-state batteries to gain a competitive advantage in the growing Advanced Energy Storage market.
