The advanced energy storage market comprises energy storage technologies like lithium-ion batteries, lead-acid batteries, flow batteries, and thermo chemical storage systems that are majorly used in utility services, residential and non-residential buildings. Advanced energy storage technologies are witnessing increased adoption across various end-use industries such as utilities, non-residential, and residential sectors for their inherent benefits like reliability, flexibility, and scalability. For instance, lithium-ion batteries can store a large amount of electric charge and discharge rapidly to power critical appliances during power outages. The global advanced energy storage market is estimated to be valued at US$ 19.9 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Surging demand for clean energy technologies is a major driver fueling the advanced energy storage market growth. Advanced energy storage technologies allow efficient utilization of renewable energy sources like solar and wind by storing excess energy produced during off-peak hours and supplying it when needed. They help overcome the issues of intermittency associated with renewable energy sources. Additionally, favorable government policies and regulations in various countries aimed at promoting clean energy adoption are further augmenting the demand for advanced energy storage systems. For instance, the European Union has set a binding renewable energy target of 32% of final energy consumption by 2030 under its ‘Clean energy for all Europeans’ policy package. Such initiatives are positively impacting the market dynamics.
Furthermore, the declining costs of advanced batteries is another vital driver propelling the advanced energy storage industry expansion. Continuous technology advancements and economies of scale are resulting in reduced prices of lithium-ion batteries and other energy storage solutions, increasing their affordability. Several large corporations are making strategic investments to develop new battery chemistries and manufacturing technologies to further cut down battery costs. This, along with increasing R&D efforts, is expected to make energy storage a more viable and affordable option for both utilities as well as commercial and residential prosumers in the forthcoming years.
Segment Analysis
The global advanced energy storage market is dominated by lithium-ion battery segment. It held around 55% share of the overall market in 2024 owing to its high energy density, long battery life and low maintenance. Lead-acid battery is the second largest segment due to its cost effectiveness and reliability. However, its growth is declining due to stringent environmental regulations around lead disposal. Flow batteries and other technologies like supercapacitors and thermochemical storage are emerging segments growing over 15% annually during the forecast period due to increasing demand for utility-scale energy storage in renewable energy integration.
PEST Analysis
Political: Supportive government policies around the world to incentivize renewable energy adoption and energy storage is driving market growth. Tax credits and subsidies for residential and grid-scale battery storage projects are encouraging investments.
Economic: Increasing investments in renewable energy integration and need to address intermittent power supply issues is a major factor for the growth. Declining battery prices is also improving the feasibility of large-scale deployment.
Social: Growing environmental concerns around fossil fuel based power generation and need for reliable backup power during outages is increasing demand for residential energy storage systems.
Technological: Advancements in lithium-ion battery chemistries, solid-state technologies and flow batteries are improving specific energy density and lowering costs. Digital technologies for battery monitoring and management are also enhancing performance.
Key Takeaways
The Global Advanced Energy Storage Market Size is expected to witness high growth during the forecast period led by increasing demand from the renewable energy and electric vehicle sectors.
Regional Analysis: Asia Pacific region currently dominates the market led by China owing to presence of leading battery manufacturers and strong government support for renewable energy adoption. Countries like Japan, South Korea and India are also emerging markets growing over 10% annually.
Key players operating in the advanced energy storage market are Himalaya Herbal Healthcare, Gaia Herbs, Nature’s Bounty, NOW Foods, NutriGold, Garden of Life, MegaFood, New Chapter, Sambucol, BioSchwartz, Solgar, Source Naturals, Nature’s Way, Jarrow Formulas, Pure Encapsulations. Tesla, Panasonic, LG Chem, Samsung SDI and BYD are some leading battery manufacturers active in both electric vehicles and grid-scale energy storage sectors. The market is witnessing partnerships and collaboration between players across the supply chain to strengthen production capabilities and service offerings. Strategic investments are also being made to develop better performing and lower cost battery technologies.
