Battery Energy Storage System, Competitive Landscape, Analysis Updated 2021 to 2025 – Global Market Size
The global battery energy storage is expected to reach $11.04bn in 2025, with the market increasing by close to $5bn, over the forecast period up to 2025. Over climate change, the volatility of fuel import prices, increased competition, declining costs, and suitable policy instruments have supported the proliferation of renewable energy across the world. Development of resilient and sustainable power network needs use of energy storage technologies.
Asia-Pacific (APAC) was the largest market for battery energy storage systems in 2020, accounting for 49.9% of the global market installed capacity. The region is expected to maintain its top position in the forecast period up to 2025, as well as its market share of approximately 53.5% in 2025, followed by Europe, Middle East and Africa (EMEA) and the Americas.
Similarly, the market in EMEA and the Americas is expected to grow to reach $3.16bn and $1.87bn in 2025. South and Central America will witness an increase in renewable energy technology deployment and rapid population growth. However, the lack of good grid infrastructure will push for the adoption of battery storage technologies.
The energy storage market in China was valued at $950.4m in 2020. The demand for BESS is projected to increase in the near future as a result of renewable integration, load growth, inflexible generation, and varying loads. The proposal to increase the usage of electric vehicles will require increased flexibility and augmentation of the power grid. It is estimated to reach an aggregate value of $3.22bn in 2025.
Battery storage offers the flexibility required by the grid to support the integration of variable power generation from renewables. Declining costs and improved performance indices are creating new economic opportunities for battery storage. Apart from its use for reserve capacity and frequency response at the utility-scale, battery storage is gaining prominence in behind the meter and off-grid applications, particularly in distributed generation systems.