Energy Storage as a Service Market: Introduction
- Energy storage as a service (ESaaS) is a facility to avail an energy storage system by entering into a service agreement, without buying the system. Energy storage systems deliver a wide range of services to generate revenue; create savings; and improve electricity resiliency.
- The operation of an ESaaS system is a unique mixture of an advanced battery storage system, an energy management system, and a service contract, which can provide value to a business by providing reliable power more economically
- For most ESaaS services, energy is stored in night time and during off-peak hours when energy is produced from non-carbon-releasing sources. This energy is then used to counterbalance the required carbon production during peak hours.
Is something restraining your company’s growth in the Energy Storage as a Service Market? Ask for the report brochure here
Key Drivers of Energy Storage as a Service Market:
- Energy storage systems are expected to become a crucial element of power management systems, due to peak demands frequently changing with time of the day and season. Energy storage as a service (ESaaS) guarantees reduction in the most expensive hours of electric demand for building owners, thereby lowering electricity bills at no cost. This drives the ESaaS market.
- Rising attention toward and considerable investments in renewable power energy generation are driving the global energy storage as a service market. Major economies across the world are greatly focusing on developing power generation by using renewable energy sources so as to reduce their dependency on the conventional power generation through fossil fuels. Renewable energy currently holds a substantial share in the total energy production worldwide.
Back-up Power Service Segment and Utility End-user Segment to Witness Attractive Opportunities:
- The global energy storage as a service market can be segmented in terms of system, service, end-user, and region
- Based on system, the market can be divided into energy storage system, control and monitoring system, and service contract. The most common energy storage systems used for ESaaS are lithium-ion or flow batteries, primarily due to their size, high efficiencies, and low reaction times.
- In terms of service, the global energy storage as a service market can be classified into demand response, back-up power, peak shaving, and others. The back-up power service segment is expected to expand at a significant pace during the forecast period. If an electricity grid experiences power outage, the ESaaS system offers a back-up power service to continue powering all or a portion of the facility.
- Based on end-user, the market can be divided into utility and commercial & industrial. The utility segment dominated the global energy storage as a service market in 2018 and it is expected to expand at the maximum CAGR during the forecast period.
Stuck in a neck-to-neck competition with other brands? Request a custom report on competition on Energy Storage as a Service Market here
Europe expected to hold a Major Share of Global Energy Storage as a Service Market:
- Based on region, the global energy storage as a service market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- North America dominated the global market in 2018. This trend is estimated to continue during the forecast period also. The market in the region is driven by tangible factors such as the peak load challenge in New York and other states of the U.S.
- Utilities in countries such as the U.S. and Canada are employing energy efficiency projects and are looking forward to cutting energy generation costs. New approaches, such as pay-for-performance, are being introduced in the commercial sector in the U.S. to achieve energy efficiency at a larger scale. For example, in California, energy efficiency policies have mandated that at least 60% of the savings achieved in obligation schemes needs to be delivered by third-party service providers.
- The market in Asia Pacific is expected to expand at the maximum CAGR during the forecast period. Asia Pacific is gradually becoming a hub for the battery energy storage system industry. Rapid industrialization and rising importance of power generation through renewable energy sources in several countries of Asia Pacific are expected to drive the market in the region during the forecast period.
- China, India, Japan, Australia, and Indonesia are major contributors, in terms of revenue, to the energy storage as a service market in Asia Pacific
Key Players Operating in the Market:
The global energy storage as a service market is highly concentrated, with the top players accounting for approximately 40%–45% share of the market. A few of the key players operating in the global energy storage as a service market are:
- Siemens AG
- Spirit Energy
- Utility Alliance Ltd
- In February 2019, Royal Dutch Shell plc agreed to acquire Sonnen, a leading player in the fields of smart energy storage systems and innovative energy services for households, expanding its offerings of residential smart energy storage and energy services
- In September 2016, RES (Renewable Energy Systems) was awarded a four-year contract in U.K to provide frequency response services to the National Grid network with the help of a 35-MW lithium-ion battery energy storage system.
Global Energy Storage as a Service Market: Research Scope
Global Energy Storage as a Service Market, by Component
- Energy Storage System
- Control and Monitoring System
- Service Contract
Global Energy Storage as a Service Market, by Service
- Demand Response
- Back-up Power
- Peak Shaving
Global Energy Storage as a Service Market, by End-user
- Commercial & Industrial
This intelligence report by TMR is the outcome of intense study and rigorous assessment of various dynamics shaping the growth of the market. TMR nurtures a close-knit team of analysts, strategists, and industry experts who offer clients tools, methodologies, and frameworks to make smarter decisions. Our objective, insights, and actionable analytics provide CXOs and executives to advance their mission-critical priorities with confidence.
The scrutiny of the various forces impacting the dynamics of the market, and key and associated industries, guides enterprises in understanding various consumer propositions. Our clients leverage these insights and perspectives to enhance customer experience in the fast-paced business environment.
All our insights and perspectives are broadly based on 4 Pillars or Stages: ASBC-S, which offer an elaborate and customizable framework for the success of an organization. The essence and the roles of these in organizational successes are highlighted below:
- Agenda for CXOs: TMR, through the study, sets the tone for agendas that are pertinent to CEOs, CFOs, CIOs, and other CXO executives of businesses operating in the market. The perspectives help our clients to bridge the gap between agenda and action plan. TMR strives to offer guidance to CXOs to undertake mission-critical activities empowered by various business analysis tools, and boost the performance of the organizations. The perspectives guide you to decide on your own marketing mix that align well with the policies, visions, and mission.
- Strategic Frameworks: The study offers how organizations are setting both short-term and long-term strategic plans. Our team of experts collaborate and communicate with you to understand these to make your organizations sustainable and resilient during tough times. The insights help them decide sustainable competitive advantage for each business units.
- Benchmarking for Deciding Target Markets and Brand Positioning: The assessments in the study provides a scrutiny of marketing channels and marketing mix. Our various teams work synergistically with you to help identify your actual and potential direct, indirect, and budget competition areas. Additionally, the study helps you decide most effective budgets for various processes and promotional activities. Furthermore, the study guides you to set benchmarks for integrating people and processes with the 4Ps of marketing. Eventually, this will empower you to find out unique propositioning strategies and niches.
- Business Composability for Sustainability (C-S): Constant strategy planning for sustainability characterizing our C-S framework in the report has become more relevant than before in the face of disruptions caused by pandemics, recessions, boom and bust cycles, and changing geopolitical scenario. The TMR study offers a high level of customization to help you achieve business composability. Composable enterprises are increasingly gaining the attention of CXOs in order to help them combat market volatility. Our analysts and industry experts help you wade through such uncertainties and guide you to become a smart sustainable business in entirety.
The study presents scrutiny of region-specific consumer and technology trends, including the most recent industry dynamics. These broadly cover but not limited to
- North America, South America, and the Americas
- Asia Pacific and Japan
- Latin America
- Middle East and Africa
The study offers data-driven insights and guidance of several aspects. Some of the more notable questions are:
- What are the major recent trends that can influence the product life cycle and the RoI?
- Which regulatory trends shape corporate-level, business-level, and functional-level strategies?
- Which micromarketing initiatives of leading players will bring in investments?
- What can be the best framework and tools for PESTLE analysis?
- Which regions will witness rise in new opportunities?
- Which are the game-changing technologies being used to capture new revenue streams in the near future?
- Which operational and tactical frameworks are being adopted by various players in gaining customer loyalty?
- What is the current and expected intensity of competition the market in the near future?
With a robust experience in creating exceptional market reports, Transparency Market Research has emerged as one of the trusted market research companies among a large number of stakeholders and CXOs. Every report at Transparency Market Research goes through rigorous research activity in every aspect. The researchers at TMR keep a close watch on the market and extract beneficial growth-boosting points. These points help the stakeholders to strategize their business plans accordingly.
TMR researchers conduct exhaustive qualitative and quantitative research. This research involves taking inputs from the experts in the market, focused attention on recent developments, and others. This method of research makes TMR stand out from other market research firms.
Here's how Transparency Market Research helps the stakeholders and CXOs through the reports:
Inculcation and Evaluation of Strategic Collaborations: The TMR researchers analyze recent strategic activities like mergers, acquisitions, partnerships, collaborations, and joint ventures. All the information is compiled and included in the report.
Perfect Market Size Estimations: The report analyzes the demographics, growth potential, and capability of the market through the forecast period. This factor leads to the estimation of the market size and also provides an outline about how the market will retrieve growth during the assessment period.
Investment Research: The report focuses on the ongoing and upcoming investment opportunities across a particular market. These developments make the stakeholders aware of the current investment scenario across the market.
Disclaimer: This market research study is an ongoing effort and extreme care has been taken to maintain the highest levels of accuracy at all stages. However, in the light of the rapidly evolving business dynamics, some region-specific or other segment-specific changes may take time to be part of the study.