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.

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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.

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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

Key Developments:

  • 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
  • Others

Global Energy Storage as a Service Market, by End-user

  • Utility
  • Commercial & Industrial

The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.

The study is a source of reliable data on:

  • Market segments and sub-segments
  • Market trends and dynamics
  • Supply and demand
  • Market size
  • Current trends/opportunities/challenges
  • Competitive landscape
  • Technological breakthroughs
  • Value chain and stakeholder analysis

The regional analysis covers:

  • North America (U.S. and Canada)
  • Latin America (Mexico, Brazil, Peru, Chile, and others)
  • Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
  • Eastern Europe (Poland and Russia)
  • Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
  • Middle East and Africa (GCC, Southern Africa, and North Africa)

The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.

A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.

Highlights of the report:

  • A complete backdrop analysis, which includes an assessment of the parent market
  • Important changes in market dynamics
  • Market segmentation up to the second or third level
  • Historical, current, and projected size of the market from the standpoint of both value and volume
  • Reporting and evaluation of recent industry developments
  • Market shares and strategies of key players
  • Emerging niche segments and regional markets
  • An objective assessment of the trajectory of the market
  • Recommendations to companies for strengthening their foothold in the market   

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.