Energy Storage Systems Market (By Technology: Compressed Air, Pumped Hydro Storage, Lithium Ion, Sodium Sulphur, Lead Acid, Redox flow, Nickel Cadmium, Flywheel, By Application, Transportation, Grid Management; By End User: Residential, Non-Residential, Utilities) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024 – 2033


Energy Storage Systems Market Size to Reach USD 535.53 Bn by 2033

The global energy storage systems market size was valued at USD 246.54 billion in 2023 and is expected to hit USD 535.53 billion by 2033 and is poised to grow at a CAGR of 8.05% from 2024 to 2033.

Energy Storage Systems Market Size 2024 to 2033

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Key Takeaway

  • The Asia Pacific has held the highest revenue share of 47.14% in 2023.
  • By technology, the pumped hydro technology segment accounted for 95.4% of the total market share in 2023.
  • The electrochemical storage segment is poised to grow at a registered CAGR of 14.2% from 2024 to 2033.

Energy Storage Systems Market Size in Asia Pacific 2024 to 2033

The Asia Pacific energy storage systems market size was estimated at USD 116.21 billion in 2023 and is projected to surpass around USD 259.73 billion by 2033 at a CAGR of 8.36% from 2024 to 2033.

Asia Pacific Energy Storage Systems Market Size 2024 to 2033

Asia Pacific dominated the global energy storage systems market in 2023 with a 47.14% revenue share. The favorable government policies and increased investments in the industrialization and urbanization of the region have fostered market growth. Moreover, the availability of cheap factors of production is attracting the FDIs in the region. Countries like China are the manufacturing hub of the world. The significantly growing economic activities in the region are exponentially fostering the demand for an efficient and regular energy supply. The rising investments in the electrification of the rural regions, increased government investments in the adoption of sustainable energy sources, and increased government initiatives to incentivize the corporate sector to adopt renewable energy sources are the major factors that drive the growth of the energy storage systems market in the Asia Pacific region. China is the leading manufacturer and the leading consumer of energy storage systems across the globe. Therefore, the growth of the Asia Pacific energy storage systems market is attributable to China’s huge contribution to the market.

North America is expected to grow at a considerable rate. The increased awareness regarding the benefits of renewable energy sources, rising initiatives to reduce carbon footprint, and burgeoning demand for regular and efficient power supply are expected to drive the market growth. The rising government initiatives to ensure an efficient and sustainable power supply are boosting market growth. Moreover, the increased adoption of electric vehicles in market like the US and the presence of EV manufacturers have positively impacted the market growth in the region.

Energy Storage Systems Market Share, By Region, 2023 (%)

Growth Factors

The energy storage systems refer to the equipment that can store multiple forms of energy and can be utilized as per the needs. The technological advancements pertaining to the energy storage systems have significantly impacted the market growth in the recent years by ensuring the advantages of continuous energy supply. The rising adoption of the renewable energy sources is fostering the demand for the storage systems for renewable energy across the globe. The significant increase in the demand for the energy across the globe has led to the growth of the energy storage systems market. The surging government and private investments towards the production of the renewable energy is expected to drive the growth of the global energy storage systems market. The growing energy consumption across the globe, rising demand for efficient energy sources, growing demand for battery, and shifting focus towards the clean energy is boosting the growth of the market across the globe. The rapid growth in the demand for the efficient grid management, regular load management, and efficient and uninterrupted power supply are the prominent factors that impact the market growth.

The rapid industrialization and urbanization of the developing regions, rising air pollution, growing concerns regarding carbon emission, and rising investments towards sustainable energy sources are the major factors that are estimated to drive the growth of the energy storage systems market in the forthcoming years. Moreover, the surging economic activities, rising production facilities, and increasing adoption of the digital technologies is significantly boosting the demand for the efficient and uninterrupted power supply across various industries. The growing investments in the research and development of the infrastructure of the renewable energy sources across the government and the private sector is expected to impact the energy storage systems market positively during the forecast period. Moreover, the various government initiatives and subsidies provided by them for encouraging the adoption of the clean and green energy sources is surging the growth of the energy storage systems market.

Furthermore, the surging acceptance of hybrid and electric vehicles among the global consumers is another major factor behind the growth of the energy storage systems market. The surging penetration of the electric vehicles across the globe is driving the demand for the batteries. Moreover, the popular EV manufacturers like Tesla are manufacturing vehicles based on the sustainable energy. The government in countries like Canada and Japan are providing subsidies to the buyers of the electric and hybrid vehicles, to encourage the adoption of the EVs and promote sustainable transportation. These government initiatives to promote the green energy sources are expected to drive the growth of the energy storage systems across the globe.

Energy Storage Systems Market Scope

Report Coverage Details
Growth Rate from 2024 to 2033 CAGR of 8.05%
Market Size by 2033 USD 535.53 Billion
Market Size In 2023 USD 246.54 Billion
Largest Market Asia Pacific
Fastest Growing Market North America
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered By Technology, By Application, and By End User
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

 

Technology Insights

Based on the technology, the pumped hydro segment accounted for the largest market share 95.4% in 2023. The increased adoption of the pumped hydro technology across the globe is a major cause behind the dominance of this segment. Furthermore, the ongoing investments in research and development in upgrading the infrastructure and grid capacity in major markets like North America and the Asia Pacific are further expected to sustain the position of this segment throughout the forecast period.

On the other hand, the electrochemical storage is expected to grow at a considerable rate of 14.2% during the forecast period. The surging adoption of electrochemical storage systems in the regions like Middle East, the US, India, and the UK is driving the growth of this segment.

Application Insights

Depending on the application, the grid storage segment dominated the global energy storage systems market in 2023. Grid storage systems are extensively used for the storage of energy on a large scale. The demand for energy is high across the industrial sector which drives the growth of the segment. Moreover, the large-scale storage of energy facilitates uninterrupted and efficient power supply.

The transportation is expected to grow at the highest CAGR during the forecast period. The surging popularity of electric vehicles across the globe is significantly boosting the demand for the lithium-ion batteries. The rising investments in the development of EV charging infrastructure across the globe are further estimated to have a significant impact on the growth of the segment in the forthcoming years.

Key Market Developments

  • In June 2020, Siemens Energy and EnergyNest, a start-up that supplies energy storage systems, entered into a long-term partnership to provide thermal energy storage systems for industrial users.
  • In October 2021, the Government of India invited expressions of interest for the installation of 1000 MW battery storage systems as a pilot project in India.

The energy storage systems market is highly fragmented with the presence of numerous top market players. These market players are investing heavily in value-added services to gain competitive advantage and gain market share. Furthermore, these market players are engaging in various developmental strategies such as product launches, partnerships, joint ventures, and mergers to exploit the prevailing market opportunities.

Energy Storage Systems Market Companies

  • LG Chem.
  • Convergent Energy and Power Inc.
  • Eos Energy Storage
  • Beacon Power, LLC
  • BYD Company Ltd.
  • ABB Ltd.
  • Greensmith Energy Management Systems
  • Seeo, Inc.
  • S&C Electric Company
  • Scheider Electric
  • SMA Solar Technology AG
  • Exide Industries Ltd.

Segments Covered in the Report

By Technology

  • Pumped Hydro
  • Electro-Chemical
    • Lithium Ion Battery
    • Sodium Sulfur Battery
    • Lead Acid Battery
    • Flow Battery
    • Others
  • Electro-Mechanical
    • Flywheel
    • Compressed Air Energy Storage
  • Thermal
    • Water
    • Molten Salt
    • Phase Change Material
    • Others

By Application

  • Transportation
  • Grid Management

By End User

  • Residential
  • Non-Residential
  • Utilities

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of energy storage systems market?
The global energy storage systems market was accounted at USD 246.54 billion in 2023 and is anticipated to rake USD 535.53 billion by 2033.
What will be the CAGR of global energy storage systems market?
The global energy storage systems market is growing at a CAGR of 8.05% from 2024 to 2033.
Who are the major players operating in the energy storage systems market?
the major players operating in the energy storage systems market are LG Chem., Convergent Energy and Power Inc., Eos Energy Storage, Beacon Power, LLC, BYD Company Ltd., ABB Ltd., Greensmith Energy Management Systems, Seeo, Inc., S&C Electric Company, Scheider Electric, SMA Solar Technology AG, Exide Industries Ltd.
Which are the driving factors of the energy storage systems market?
The global energy storage systems market is primarily driven by the surging consumption of energy and burgeoning demand for the efficient and uninterrupted power supply.
Which region will lead the global energy storage systems market?
Asia Pacific dominated the global energy storage systems market in 2023 and will lead in near future.

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