Advanced energy storage plays a crucial role in addressing the intermittent nature of renewable energy resources like solar and wind power. These energy storage technologies help in storing energy from renewable sources and supply it whenever required, which is important for supporting the stability of the electric grid. Batteries that can store energy from renewable sources for extended periods and discharge it as needed are becoming increasingly vital tools. Lithium-ion batteries remain the best contemporary option for energy storage applications given their high energy density, long lifetimes, and relatively fast charging ability. Their uses encompass everything from consumer electronics and electric vehicles to grid-scale installations helping integrate renewable energy onto the grid.
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:
One of the major trends driving the advanced energy storage market growth is the increasing use of lithium-ion batteries. Lithium-ion battery technology is more commonly used for grid energy storage and other stationary applications due to its high energy density and long shelf life. Lithium-ion batteries provide better performance compared to other battery technologies in terms of power delivery and uptake. Moreover, falling costs of lithium-ion batteries is another factor boosting their adoption in the energy storage market. Continued technological advancements are leading to higher battery storage capacity at lower costs.
- Threat of new entrants: Low economies of scale and significant capital requirements pose high barriers for new players trying to enter the advanced energy storage market.
- Bargaining power of buyers: Large buyers can negotiate lower prices from suppliers due to their high demand and purchasing power but choice is limited by available technologies.
- Bargaining power of suppliers: Suppliers have some influence over buyers since switching costs are involved with technology changes and the specialized nature of supply chains requires long term relationships.
- Threat of new substitutes: Ongoing R&D in battery technologies, renewable energy solutions and hydrogen economy reduce threats slightly but substitutes are not yet competitive on cost or performance.
- Competitive rivalry: Intense competition exists between technology platform providers to gain market share and shelf space. Lithium battery types dominate but competition is increasing from alternative chemistries.
The global Advanced Energy Storage market is expected to witness high growth. 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.
The Asia Pacific region dominates the market currently due to high renewable energy penetration and government initiatives in countries like China and India. Europe and North America are also major regional markets for advanced energy storage systems attributed to supportive government policies and programs.
Key players operating in the advanced energy storage market are ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd. ABB Ltd. is a leader in electricity and industrial automation with energy storage solutions across utility grids, commercial & industrial, and microgrid applications. LG Chem and Samsung SDI are prominent Korean battery makers that supply lithium-ion batteries for electric vehicles, consumer electronics and grid-scale energy storage systems.