Battery Energy Storage Systems Market - Snapshot
Battery energy storage systems are used to store the electricity generated by power plants, especially renewable power plants. This electricity is then used to ensure smooth supply to consumers when power generation from renewable power plants fluctuates due to weather conditions.
Investment in renewable energy plants and associated battery energy storage systems a major market driver
Different countries are initiating new development programs, raising funds, or entering into public–private partnerships to promote the use of renewable energy through development of battery energy storage systems. For example, in China, the government is encouraging emerging battery energy storage system technologies to support micro grid development and renewables integration. In 2016, the government of China released a 15-year energy technology innovation action plan for further research in advanced energy storage. In 2014, the U.S. government invested US$ 34 Bn in solar power plants, wind farms, and other renewable energy projects.
Lack of standards to ensure safe installation and usage of battery energy storage systems an important restraint for the market
A report by Australia’s Commonwealth Scientific & Industrial Research Organization (CSIRO) investigated safety issues and regulations regarding battery technologies of 1–200kW capacity. No consensus was formed on the precise method to extinguish a lithium-ion battery fire. In another example, in January 2013, Boeing 787 Dreamliner commercial jets suffered safety issues, due to electric issues caused by lithium-ion batteries.
Rise in demand in the residential sector is creating growth opportunities for the battery energy storage systems market
Policies such as net metering 2.0, net zero export limitations, and devaluation of exported solar PV are augmenting the demand for battery energy storage systems in the residential sector. Net metering (net energy metering, NEM) helps consumers who produce their own electricity to use that electricity any time. This is particularly important with wind and solar energy. Establishment of tax credit for standalone storage is expected to improve the economic scenario for the battery energy storage systems market. Deployment of energy storage systems in the U.S. is expected to increase in the near future. Since 2012, Panasonic Corp. has started mass production of compact lithium-ion battery storage systems for the residential sector in Europe. In countries across Europe, there is a growing movement among residents to adopt rooftop solar systems, motivated by the need to reduce energy costs and increase in pricing incentives by governments.
High threat to manufacturers due to constantly changing specifications of products
Constant changes in specifications and the introduction of new product lines by manufacturers of battery energy storage systems increase the possibility of internal substitution. Lithium-ion batteries are expected to face intense competition from other types of batteries such as flow batteries, sodium sulfur batteries, and sodium ion batteries. However, the threat from new entrants is likely to remain low during the forecast period. The battery energy storage systems market is driven by economies of scale and proprietary systems. These act as effective barriers to the entry of new players. Battery energy storage system operations are capital-intensive and they require substantial investment in the construction of storage facilities and their use.
Several battery energy storage system projects have been launched recently
Governments across the world are launching battery energy storage systems at a rapid pace. For example, in March 2017, ABB received an order for Denmark’s first urban energy storage system. The company agreed to deliver a two-megawatt (MW) battery energy storage system (BESS) to DONG Energy. In August 2015, General Electric announced its plans to supply a 30-MW battery energy storage system to Coachella Energy Storage Partners (CESP) in order to develop one of the largest battery storage plants in the western U.S. In February 2015, Hitachi America, Ltd., a wholly owned subsidiary of Hitachi, Ltd., and Demansys Energy, Inc. constructed and commissioned a 1-MW lithium-ion energy storage facility by utilizing Hitachi's CrystEna*1, a compact, container-type energy storage system. In July 2017, Xcel Energy and Panasonic announced a collaboration with the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), Denver International Airport (DEN), and LC Fulenwider, Inc. in order to study the possible implementation of a carbon-neutral energy district master plan for Pena Station NEXT in Denver, Colorado. The partnership has commissioned 1-MW/2-MWh lithium-ion battery energy storage systems.
Battery energy storage systems market is undergoing the introductory phase
The growth rate at which the global battery energy storage systems market is expanding has increased over the last few years. This is due to economies of scale led by the increasing number of projects. The same trend is expected to continue during the forecast period, further aided by the constant decline in prices of energy storage batteries.
Battery Energy Storage Systems Market - Overview
Battery energy storage systems can be defined as systems used for storage of electricity generated by power plants. These especially include renewable power plants. The electricity stored is then used for ensuring smooth power supply to consumers when power supply from renewable power plants fluctuates due to weather conditions. These systems are also employed for providing energy to the people living off-grid as well as to the automotive sector.
This report analyzes and forecasts the market for battery energy storage systems at the global and regional levels. The market has been forecast based on revenue (US$ Mn) from 2017 to 2026. The study includes drivers and restraints for the global battery energy storage systems market. It also covers the anticipated impact of these drivers and restraints on the demand for battery energy storage systems during the forecast period. The report also highlights opportunities in the battery energy storage systems market at the global and regional levels.
The report comprises a detailed value chain analysis, which provides a comprehensive view of the global battery energy storage systems market. Porter’s five forces model for the battery energy storage systems market has also been included to help understand the competition landscape of the market. The study encompasses market attractiveness analysis, wherein application segments have been benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global battery energy storage systems market by segmenting it in terms of technology, application, and region. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for battery energy storage systems in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers individual segments in all regions.
The study includes profiles of major companies operating in the global battery energy storage systems market. These include ABB Limited, Maxwell Technologies, LG Chem, NEC Corporation, Samsung SDI Ltd., Contemporary Amperex Technology co. Limited (CATL), Gildemeister, Primus Power, Tesla, Hitachi Ltd., Panasonic, and General Electric Company. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.
The report provides the estimated market size of the global battery energy storage systems market for 2017 and forecast for the next nine years. The market size has been provided in terms of revenue. Market numbers have been estimated based on technology, application, and regional segments of the battery energy storage systems market. Market size and forecast for each major segment has been provided in terms of global and regional/country-level markets.
Key takeaways of study
• The report provides an extensive analysis of the battery energy storage systems market trends and shares from 2017 to 2026 to identify market growth opportunities and market developments
• The report provides consumption and production of battery energy storage systems by technology, application, region, and country in order to help understand market growth opportunities and developments
• The report also provides key developments within various manufacturing companies operating in the global battery energy storage systems market
• The report identifies key factors in order to build a roadmap for upcoming opportunities for the battery energy storage systems market at the global, regional, and country levels
• The report offers a comprehensive analysis with respect to investments, regulatory scenario, and price trend that would subsequently impact the market outlook and forecast of the global battery energy storage systems market between 2016 and 2026
• The report provides details of various stakeholders in the value chain of the market to help understand growth opportunities for them as well as their role in the market
• The report offers a detailed competition landscape for key players in the market to help understand the competition level and leading players in the global market
• Porters’ five forces analysis and SWOT analysis highlight the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and analyze their strengths and weaknesses to gain a leading position in the market.
The global battery energy storage systems market has been segmented as follows:
Battery Energy Storage Systems Market, by Technology
- Lithium-ion Batteries [Lithium Cobalt Oxide, Lithium Manganese Oxide, Lithium Nickel Manganese Cobalt Oxide (NMC), Lithium Iron Phosphate (LFP), Lithium Nickel Cobalt Aluminum Oxide, and Lithium Titanate]
- Nickel Cadmium Batteries
- Sodium Sulfur Batteries
- Sodium-ion Batteries
- Flow Batteries [Redox Flow Batteries, Iron Chromium Flow Batteries, Vanadium Redox Batteries, Hybrid Flow Batteries (Zinc Hybrid Cathode, Other Hybrid Batteries), and Others]
Battery Energy Storage Systems Market, by Application
- On-grid Connected Systems
- Off-grid Connected Systems
Battery Energy Storage Systems Market, by Region
- North America
- Latin America
- Rest of Latin America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- Rest of Middle East & Africa