Global Energy Storage Market Outlook to 2030

Global Energy Storage Market Overview

• The global energy storage market reached a size of 100 gigawatt in 2023, driven primarily by increasing renewable energy adoption and the need for grid stability. The market growth is fueled by the declining costs of batteries, advancements in technology, and supportive government policies.

• The market is dominated by key players such as BYD Company Ltd, Contemporary Amperex Technology Co. Ltd, Samsung SDI, GS Yuasa International Ltd., and LG Energy Solutions. These companies have established strong market positions through extensive research and development efforts, strategic partnerships, and significant investments in expanding their manufacturing capacities.
• In 2024, the BYD Company Ltd secured a strategic deal with Grenergy for energy storage solutions and launched the BYD MC Cube product line. Additionally, they expanded into the Chilean market through the Oasis de Atacama project and are investing $281 million in a new R&D center in Shenzhen.

Global Energy Storage Current Market Analysis

• APAC as dominant region: The APAC region dominates the global energy storage market due to significant investments in renewable energy and the rapid adoption of electric vehicles. The APAC region's renewable energy generation has significantly increased, with a reported generation of 1690.1 TWh in 2021, doubling from 805.1 TWh in 2017. This growth is supported by the declining costs of renewable technologies and government policies promoting renewable energy adoption
• North America as emerging region: North America is emerging as a promising region due to substantial government initiatives and private sector investments. The United States dominates the North American energy storage market, with substantial investments in both residential and commercial sectors. The residential energy storage market alone is expected to achieve a value ofUSD 585.4 million by 2030.
• China as dominant country: China leads the global energy storage market, driven by its massive manufacturing capacity and aggressive renewable energy targets. In 2023, China produced 22.7 gigawatts (GW) of energy storage capacity, which represents a significant increase from 8.7 GW in 2022, effectively quadrupling its capacity.

Global Energy Storage Market Segmentation

The Global Energy Storage market can be segmented based on several factors:

By Technology: Global Energy Storage market segmentation by Product type is divided into Electrochemical energy storage, mechanical energy storage, thermal energy storage and others. In 2023, electrochemical energy storage dominated the market due to its high efficiency, scalability, and rapid technological advancements, particularly in lithium-ion batteries. These systems are favored for their versatility and application across various energy storage needs.

By Application: Global energy storage market segmentation by application is divided into grid scale energy storage, commercial and industrial energy storage and residential energy storage. In 2023, Grid scale energy storage led the market due to the increasing need for stabilizing large power grids, integrating renewable energy sources, and enhancing grid reliability and resilience. Significant investments and supportive government policies further boosted its adoption.

Global Energy Storage Market Competitive Landscape

• Contemporary Amperex Technology Co. Ltd: Contemporary Amperex Technology Co. Ltd developed its Tianheng energy storage system with an industry-leading energy density of 430 Wh/L and a cycle life of over 15,000 cycles, showing no degradation for the first five years. In 2023, the company launched the Shenxing Superfast Charging Battery and introduced the Condensed Battery, featuring an energy density of up to 500 Wh/kg.
• Samsung SDI: In 2024, Samsung SDI invested $18.5 million in Canada Nickel Company Inc., acquiring an 8.7% ownership stake. This strategic investment strengthens Samsung SDI's position in the energy and materials sector, emphasizing its commitment to securing critical resources for battery production.
• GS Yuasa International Ltd: In 2023, GS Yuasa International Ltd. and Honda Motor established Honda - GS Yuasa EV Battery R&D Co., Ltd. This joint venture focuses on the development of high-capacity, high-output lithium-ion batteries, specifically aimed at enhancing battery performance in battery electric vehicles (BEVs).

Global Energy Storage Industry Analysis

Global Energy Storage Market Growth Drivers:

• New Policies and Subsidies: Countries worldwide are increasingly backing energy storage through supportive policies and subsidies. China is emphasizing energy storage as a key technology to meet its peak CO2 emissions target by 2030 and achieve carbon neutrality by 2060. Meanwhile, Indias September 2022 draft National Electricity Plan targets 51 to 84 GW of battery energy storage by 2031-32.
• Technological Advancements: Technological advancements are significantly driving the growth of the energy storage market. Innovations in battery technologies, such as solid-state, lithium-sulfur, and flow batteries, are providing safer and more efficient storage solutions. Companies like Nostromo Energy are developing non-flammable storage systems for buildings, while startups like Invinity are offering vanadium flow batteries for long-duration storage, supporting better integration of renewable energy sources like solar and wind.
• Cost and Performance Improvements: The energy storage sector is benefiting from substantial cost and performance improvements, particularly in lithium-ion batteries. Driven by the expanding electric vehicle market and economies of scale in manufacturing, the cost of lithium-ion batteries has decreased significantly, from $1,100 per kWh in 2010 to $137 per kWh in 2023. This reduction, combined with enhanced battery performance and longer lifespans, is making energy storage solutions more accessible and effective, fueling further market growth.

Global Energy Storage Market Challenges:

• Supply Chain Disruptions & Geopolitical Uncertainty: Slow energy storage capacity growth is hindered by supply chain constraints, with geopolitical tensions creating dependencies on specific mineral suppliers like lithium and cobalt. Disruptions in the supply chain due to asymmetric power dependencies and geopolitical uncertainties can impact critical mineral sourcing. Trade restrictions exacerbate these issues, impacting market stability and growth.
• High Upfront Costs: The upfront investment for energy storage systems remains a barrier to widespread adoption, despite recent cost reductions. This challenge is pronounced in emerging markets due to financial constraints, energy theft issues, and entrenched subsidies, hindering private sector business models.

Global Energy Storage Future Market Outlook

By 2029, the global energy storage market is expected to reach 390 gigawatts, driven by continuous technological advancements, increased renewable energy integration, and supportive government policies. The market will likely witness significant growth in grid-scale storage solutions and residential energy storage systems, ensuring a more resilient and sustainable energy infrastructure.

Future Market Trends

• Development of Solid-State Batteries: Solid-state batteries are expected to become commercially viable by 2029 offering higher energy density, improved safety, and longer lifespans compared to traditional lithium-ion batteries. This technological breakthrough will revolutionize the energy storage market, enabling more efficient storage solutions for both EVs and grid applications. Companies like Samsung SDI and Toyota are already investing heavily in solid-state battery research and development.
• Increased Focus on Decentralized Energy Storage: The next five years will see a growing emphasis on decentralized energy storage solutions, particularly in developing regions. This trend will be driven by the need to enhance energy access and reliability in remote and underserved areas. By 2029, decentralized storage systems, including microgrids and community energy storage projects, will play a crucial role in achieving energy equity and supporting sustainable development goals.