April 22, 2024

The Global Advanced Energy Storage Market is Paving New Paths in Clean Energy

The advanced energy storage market comprises products and technologies that store electricity generated from cleaner energy sources such as solar, wind and others for utilities, commercial and industrial usage. Batteries play an important role in storing energy from renewable sources and ensuring power supply stability during peak demands. Lithium-ion batteries dominate the energy storage market currently due to their high energy density and efficiency. Other emerging energy storage technologies that offer longer duration include lead-acid batteries, flow batteries and hydrogen fuel cells.

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 between 2024 to 2031.

Key Takeaways

Key players: Key players operating in the advanced energy storage market are ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd, General Electric Company, and Tesla Inc. These companies are focusing on developing new battery chemistries and energy storage solutions to capture more share.

Growing demand: Rapid adoption of renewable energy coupled with increasing instances of power outages is driving demand for reliable and sustainable energy storage solutions globally. Energy storage helps integrate more renewables into the grid by managing variability and ensuring dispatchable power.

Global expansion: Major players are expanding their manufacturing footprint across regions to cater to the growing energy storage requirements. Partnerships with utilities and project developers are also helping commercialize large-scale stationary storage projects for applications like demand response and asset optimization.

Market key trends

One of the key trends gaining traction in the advanced energy storage market is the increasing integration of artificial intelligence (AI). Battery manufacturers are leveraging AI and machine learning algorithms to optimize battery performance, schedule charging and discharging cycles as well as predict maintenance needs. AI-powered energy management systems can maximize the value and lifetime of battery investments. This trend is expected to accelerate over the coming years as more data becomes available to train advanced algorithms.

Porter’s Analysis

  • Threat of new entrants: Low economies of scale in battery manufacturing and high costs of research and development pose challenges for new companies
  • Bargaining power of buyers: Large corporate and utility buyers are able to negotiate lower prices for energy storage systems due to their high purchasing power and volume.
  • Bargaining power of suppliers: A few large suppliers dominate the global markets for battery cells and other storage system components, giving them significant bargaining leverage over equipment manufacturers.
  • Threat of new substitutes: While other energy storage technologies exist, lithium-ion batteries remain the most widely adopted solution and no comparable substitute poses a viable threat in the near future.
  • Competitive rivalry: Establised global players intensely compete on technology innovation, product features, and pricing to gain market share from each other.

Geographical Regions

North America currently accounts for the largest share of the advanced energy storage market, valued at USD 6.8 billion in 2024. This is attributed to supportive government policies promoting renewable energy adoption as well as strategic investments by leading storage system manufacturers in the region.

The Asia Pacific region is poised to become the fastest growing regional market, expanding at a CAGR of 8.2% during the forecast period. Significant growth is expected across major Asia Pacific countries led by China, Japan, South Korea and India due to their large manufacturing sectors and increasing focus on integrating renewable energy into their power grids through energy storage technologies.

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