The energy storage infrastructure market is projected to reach US$ 426.66 billion by 2028 from US$ 256.39 billion in 2020; it is estimated to grow at a CAGR of 6.7% from 2021 to 2028. In terms of capacity, the market is anticipated to reach 11.30 thousand megawatts by 2028 from 4.40 thousand megawatts in 2020, registering a lucrative CAGR of 12.8% from 2021 to 2028.
The integration of energy storage technologies could lead to a revolutionary transformation in the energy efficiencies capabilities of the power grid in long term. Factors such as a surge in power generation from renewable energy sources and an increase in demand for stabilizing the energy requirements from the power grid are set to be the major contributors to the growth of the energy sector. Moreover, recent advancements in energy storage technologies have encouraged the adoption of renewable energy sources across various residential as well as commercial end users globally. As a result, investment in energy storage technologies and infrastructure, especially in batteries technologies, has gained substantial traction among major investors and government organizations.
The energy storage infrastructure market has witnessed several notable developments in terms of technology modernization, price reduction, government policy rollout, and storage technology R&D investments in the past decade. For instance, the prices of battery technologies, which remained the most popular energy storage technology globally, plummeted to almost 80–85% in the last 10 years. Furthermore, several innovative technology start-ups have developed promising prototypes for potential disruptive energy storage technologies. However, the commercialization of energy storage technologies for scalable storage needs for longer periods remains a challenge for all the market players.
The energy storage infrastructure market comprises several leading, internationally prominent companies along with niche start-ups. However, the overall competencies of these companies are mainly consolidated around a specific technology such as mechanical, thermal, electromechanical, electromagnetic, chemical among other technologies. Scalability and commercial viability of new energy storage technology are the major focus areas, as well as existing challenges, the respective technologies possess individually. A few of the leading energy storage technology companies currently dominating the market are ABB Ltd., Tesla, General Electric, Simmens, LG Chem, and SunPower.
Impact of COVID-19 on Energy Storage Infrastructure Market
The COVID-19 pandemic led to disruptions in the overall supply chain and logistics of the renewable energy sector, including industries such as solar power and wind. Unlike other sectors, the renewable energy sectors in different countries failed to obtain any form of financial relief or aid from their respective governments during the prolonged lockdown periods. Consequently, the energy storage technologies market also plummeted owing to a lack of demand from renewable energy installation sites. Additionally, the energy requirements also fell sharply during the early stages of the lockdown. Government-imposed restrictions to control the COVID-19 spread also had a profound negative impact on the requirement for energy storage solutions. Furthermore, a decline in manufacturing and industrial production led to a momentary decrease in electricity demand. Also, several governments and corporates missed their annual renewable energy goals during the pandemic. Hence, numerous countries and international organizations were compelled to extend the preset deadlines for achieving their renewable energy goals and targets.
Lucrative Regions for Energy Storage Infrastructure Providers
Energy Storage Infrastructure: Market Insights
Technological Advancements and Cost Optimization to Bolster Energy Storage Infrastructure Market
Though energy storage technologies have been around for more than decades globally, their popularity and commercial viability gained tremendous momentum after batteries emerged as a popular option for energy storage. Furthermore, an exponential rise in the sales of electric vehicles contributed significantly to the rising demand for battery-technology-based energy storage infrastructure. On the other hand, the growing importance of grid modernization to enhance the overall performance and efficiencies of the electrical grid among public utilities in developed economies is also gaining traction. Subsequently, the government of numerous countries has allocated special programs and funds for the modernization of their public utilities for establishing superior energy storage capabilities in the coming years. As the countries continue to embrace the adoption of renewable energy for sustainable growth in the coming years, the batteries technology is expected to lead the energy storage technologies. Attractive financial incentives and policies offered by governments, coupled with competitive battery production costs, continue to lure substantial investments into the global energy storage infrastructure market during the forecast period. Simultaneously, numerous industry-leading market players such as Tesla, Hitachi, and Reliance Industries are investing significantly in the development of large-scale energy storage solutions.
Storage Technology-Based Market Insights
Based on type, the global energy storage infrastructure market is segmented into mechanical, electromechanical, chemical, and others. The others segment includes electromagnetic and thermal energy storage technologies. Although the energy storage infrastructure market is significantly dominated by hydro-pumped-based mechanical technologies, battery-based electromechanical technologies have gained unprecedented attention from investors in the last decade. Moreover, the rising popularity of electric vehicles has further multiplied the demand for battery-based energy storage infrastructure solutions in developed and developing economies.
Players operating in the energy storage infrastructure market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
- In January 2022, Hydrostor Inc., a Canadian energy company, received funds of up to US$ 250 million from Goldman Sachs, a leading investment company, for the development of superior compressed air energy storage facilities across the US and Australia in the coming years.
- In October 2021, the US government announced its plan to fund energy storage-based research to boost the lithium battery supply chain. The research focuses on ensuring the availability of electric vehicle batteries along with boosting the efficiencies of the existing energy storage infrastructure. The Department of Energy of the US also announced its plans for establishing public–private partnerships for minimizing the gaps in the lithium battery supply chain within the country.
The energy storage infrastructure market is segmented on the basis of storage technology and geography. Based on storage technology, the market is segmented into mechanical, electromechanical, chemical, and others. By geography, the energy storage infrastructure market is segmented into five major regions North America (US and Canada), Europe (UK, Germany, and France), Asia (China, Japan, and India), the Middle East (Saudi Arabia and UAE), and Rest of the World. In terms of capacity, China is expected to continue to dominate the energy storage infrastructure market during 2022-2028, following heavy investments in encouraging the adoption of renewable energy by the central government. In terms of competitive positioning, several leading technology companies, as well as innovative niche start-ups, continue to dominate the global energy storage infrastructure market with their business offerings. The report briefly overviews their performances, along with their key developments. A few of the companies profiled in the energy storage infrastructure market study are ABB Ltd; Tesla Inc.; LG Chem Ltd.; Hitachi Energy Ltd.; Toshiba Infrastructure Systems & Solutions Corporation; Panasonic Corporation; BYD Co. Ltd.; Samsung SDI Co., Ltd.; EcoFLow; and Sonnen GmbH.
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
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to segments covered.
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
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- abb ltd.
- byd co. ltd.
- Hitachi Energy Ltd.
- LG Chem Ltd.
- Panasonic Corporation
- SAMSUNG SDI CO.,LTD.
- sonnen GmbH
- Tesla Inc.
- Toshiba Infrastructure Systems & Solutions Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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