Energy Storage System Market to Grow with a CAGR of ~6% During 2023-2035 and Attain ~USD 80 Billion by 2035

Research Nester’s recent market research analysis on “Energy Storage System Market: Global Demand Analysis & Opportunity Outlook 2035” delivers a detailed competitors analysis and a detailed overview of the global energy storage system market in terms of market segmentation by technology, component, application, end-user, and by region.

Growing Demand for Electricity to Drive Growth of Global Energy Storage System Market

The global energy storage system market is estimated to grow majorly on account of the radically rising demand and needs for electricity throughout the world. Since, the usage of energy has been augmenting as of the massive ratio of industrialization, surging population throughout the world, and rising advancements in the transportation sector. The large number of individuals demanding for affordable energy is anticipated to boost the demand for electricity in the upcoming years. As per International Energy Agency (IEA) figures, global total final energy consumption climbed to 15.1 Etta Joule by 2019. Whereas, industrial development and technological advancements in both developed and emerging nations are driving up worldwide energy demand. Presently, the majority of uninterrupted energy required for industries is in the form of electricity. Hence, the escalation in industries is significantly estimated to spur the demand for the energy storage system.

Moreover, currently, the traction for electric vehicles has been increasing across the globe as these vehicles completely rely on electricity for their mobility. Thus, the use of energy storage systems is expanding which is also led to lower carbon footprints. Therefore, such an increase in the electricity demand is estimated to boost the growth of the global energy storage system market radically. In addition to this, price fluctuation of petroleum-based fuels, along with ecological degradation associated with fossil fuels, such as greenhouse gas emissions that cause global warming, are all factors that are anticipated to accelerate the growth of the global energy storage system market in the projected time frame.

Some of the major growth factors and challenges that are associated with the growth of the global energy storage system market are:

Growth Drivers:

• Rising Outlays in Green Energy
• Dynamic Increase in Carbon Emission Throughout the World

Challenges:

The rising necessity of hefty spending is associated with the induction of battery energy storage systems. Since, battery energy storage systems comprising lithium-ion batteries, and so on require a higher amount for installation. Besides this, there is the requirement of huge investment for the manufacturing of flow batteries. Flow batteries have low charge and discharge cycles that necessitate a comparatively large surface area. Flow batteries are more expensive than lithium-ion batteries owing to the additional pumps, pipes, and maintenance required. Therefore, such an initial investment is not feasible for manufacturers in emerging nations. Hence, these are some of the major factors anticipated to hamper the growth of the global energy storage system market.

By technology, the global energy storage system market is segmented into pumped hydro storage, compressed air, battery energy, flywheel storage, and others. Amongst these segments, the pumped hydro storage segment is to garner the highest revenue by the end of 2035 by growing at a significant CAGR over the forecast period. Rise in the implementation of pumped hydro storage, followed by the significantly surging demand and consumption of electricity across the globe. For instance, according to a report, pumped hydro energy storage contributed to over 94% of the global storage generation capacity and almost 97% of total global storage energy volume through 2021. In addition to this, the significantly amplifying strategies of governments across the globe for the production of green energy are also anticipated to boost the growth of the market further in the projected time frame.

By region, the Asia Pacific energy storage system market is to generate the highest revenue by the end of 2035. This growth is anticipated by significant surging demand for electricity on the back of the swiftly increasing ratio of urban areas and the development of cities. For instance, the Asia Pacific region used almost 275.50 exajoules of energy production, a more than 6% increase from the prior year. Moreover, the tremendously escalating ratio of financing in the electrification of rural areas, followed by the massive outlay from the government for the huge implementation of sustainable energy, as well as growing initiatives by the government to encourage the corporate industry to deploy the green energy sources at a huge proportion are some of the significant factors that are projected to spur the growth of the market further in the forecast period. In addition to this, the huge adoption of electric vehicles (EVs) is another major factor that is projected to propel the growth of the market in the region in the coming years.

 This report also provides the existing competitive scenario of some of the key players of the global energy storage system market which includes company profiling of Siemens AG, Resonac Holdings Corporation (Showa Denko Materials, Co. Ltd.), LG Chem, Ltd., Hitachi, Ltd., The General Electric Company, ABB Ltd, NEC Corporation, East Penn Manufacturing Co., Inc., Electrovaya Inc., Langley Holdings PLC,