February 25, 2024
Stationary Energy Storage Market

The Stationary Energy Storage Market Is Driven By Increasing Renewable Energy Integration

The stationary energy storage market plays a crucial role in enabling the integration of renewable energy sources into the power grid. Renewable energy sources such as solar and wind are intermittent in nature, generating power inconsistently throughout the day and year based on weather patterns. Stationary battery storage technologies allow the excess power generated from renewable sources to be stored and dispatched to the grid when renewable energy generation drops, thereby providing dispatchable power. Lithium-ion battery technology is widely used in stationary energy storage systems owing to its high energy density and power capabilities. Its modular nature also allows for scalable and flexible solutions tailored for different applications ranging from residential and commercial to utility-scale installations.

The global Stationary Energy Storage Market is estimated to be valued at US$ 50.09 Bn in 2024 and is expected to exhibit a CAGR of 44. % over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Reducing battery costs is one of the key trends driving growth of the stationary energy storage market. Continuous technological advancements and economies of scale in lithium-ion battery production have led to a precipitous drop in battery costs over the past decade. Increased manufacturing capacityaddition by battery makers is expected to sustain this declining cost trajectory over the coming years, improving the business case for stationary battery deployments. As per estimates, lithium-ion battery pack prices have fallen by over 85% since 2010 and are forecast to slide under $100/kWh by 2024, the benchmark for grid parity without subsidies across many applications. This downward cost curve will boost the adoption of stationary batteries for various grid and behind-the-meter uses.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the stationary energy storage market is low as it requires huge initial investments and storage providers have strong existing customer relationships.
Bargaining power of buyers: The bargaining power of buyers is moderate as stationary energy storage solutions provide value in grid reliability and renewable energy integration. However, buyers can choose from multiple technology providers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components like batteries require specialized expertise. However, declining battery costs are reducing supplier power over time.
Threat of new substitutes: Threat from substitutes is moderate as other storage technologies like pumped hydro provide alternatives. However, stationary storage provides additional advantages in small footprints and modular installations.
Competitive rivalry: Competition in the stationary energy storage market is high among technology providers as the market shifts to battery-based storage solutions. Players compete on performance, lifetime, efficiency and total cost of ownership.

Key Takeaways

The Global Stationary Energy Storage Market Demand is expected to witness high growth over the forecast period of 2024 to 2030 supported by increasing installations of renewable energy sources.

Regional analysis: The Asia Pacific region is expected to dominate the stationary energy storage market during the forecast period. Countries like China, Japan and South Korea are among the leading markets and are witnessing strong government support for integrating renewable energy through energy storage solutions.

Key players: Key players operating in the stationary energy storage market are Abbott, Danaher, Quidel, BD, LifeScan, Siemens Healthineers, F. Hoffmann-La Roche, and Ascensia Diabetes Care Holdings, among others. These players are focusing on developing innovative and cost-effective stationary storage solutions through extensive research and development activities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it