[Research Report] The lithium-ion battery energy storage market was valued at US$ 7,972.80 million in 2022 and is expected to reach US$ 26,224.37 million by 2028; it is estimated to register a CAGR of 13.9% from 2023 to 2028.
The power grid energy storage system is essential in balancing power generation and utilization in the electrical energy transformation process. Among various battery technologies, lithium-ion batteries (LIBs) provide high energy efficiency, long cycle life, and relatively high energy density. Renewable energy sources are susceptible to geological, seasonal, and temporal conditions. The abundance and wide distribution of renewable sources have become one of the most cost-effective choices for power generation in power grids in many regions. LI BESS devices can be easily incorporated into residential, commercial, and industrial-scale solar and wind energy generating techniques to ensure peak power use supply.
Moreover, Laurel Mountain's company installed a LIB energy storage system with 32 MW/8 MWh power to support the 98 MW wind generation plant in New York in 2011. The largest European LIB energy storage pilot is in process in the UK. It will deploy a LIB system with 6 MW/10 MWh power at the primary substation, which can effectively balance the intermittency of wind and other renewable energy sources. Such developments would have a positive impact in the overall lithium-ion battery energy storage market growth.
Lithium-ion Battery Energy Storage Market -
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Lithium-ion Battery Energy Storage Market: Strategic Insights
Market Size Value in US$ 7,972.80 million in 2022 Market Size Value by US$ 26,224.37 million by 2028 Growth rate CAGR of 13.9% from 2023 to 2028 Forecast Period 2023-2028 Base Year 2022
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Lithium-ion Battery Energy Storage Market: Strategic Insights
| Market Size Value in | US$ 7,972.80 million in 2022 |
| Market Size Value by | US$ 26,224.37 million by 2028 |
| Growth rate | CAGR of 13.9% from 2023 to 2028 |
| Forecast Period | 2023-2028 |
| Base Year | 2022 |
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Impact of COVID-19 Pandemic on Lithium-ion Battery Energy Storage Market
The COVID-19 outbreak dramatically impacted the global economy during its initial days in 2020, hampered manufacturing business activities. Before the onset of the COVID-19 outbreak, the lithium-ion battery energy storage market was experiencing substantial growth owing to the increasing sale of vehicles; growing use of energy storage systems in residential, commercial & industrial, and utilities; and the rising standard of living. On the contrary, the pandemic has also led to significant changes in fields such as energy demand owing to remote working and decreased commercial and industrial activities. Furthermore, the COVID-19 pandemic has hastened the shift to renewable energy sources because governments of various countries have incentivized clean energy projects to spur economic recovery. Due to the intermittent nature of renewable energy sources, this trend has increased the demand for energy storage technologies. Mentioned aspects is projected to propel the lithium-ion battery energy storage market growth globally.
Lucrative Regions for Lithium-ion Battery Energy Storage Market
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Market Insights – Lithium-ion Battery Energy Storage Market
Lithium-ion batteries are highly efficient and flexible, making them well-suited for use in battery energy storage systems. They can store energy from solar panels during sunlight and discharge it when demand is high, providing reliable backup power for homes and businesses. Since these batteries are used for residential and commercial purposes, it is becoming affordable. The cost of lithium-ion batteries has been declining steadily in recent years, making them more cost-effective for homeowners and businesses to install. This has helped to increase the adoption of battery energy storage systems, particularly when paired with solar energy systems.
Connection Type-Based Insights
Based on connection type, the lithium-ion battery energy storage market is bifurcated into on-grid and off-grid. In 2022, the on-grid segment dominated the market and is expected to continue its dominance during the forecast period. Lithium-ion batteries have various advantages such as relatively high energy density, high energy efficiency, and long cycle life. Owing to these advantages, lithium-ion battery storage is preferred to integrate with renewable energy sources in on-grid energy storage systems. The growing use of renewable energy in residential, commercial, and industrial applications is driving the demand for on-grid connections.
The global lithium-ion battery energy storage market size is segmented on the basis of connection type, end-use, capacity, and geography. Based on connection type, the lithium-ion battery energy storage market is bifurcated into on-grid and off-grid. Based on end-use, the lithium-ion battery energy storage market is categorized into residential, commercial and industrial, and utility. Based on capacity, the lithium-ion battery energy storage market is classified into 0-10 kW, 10-20 kW, 20-50 kW, and above 50 kW. The lithium-ion battery energy storage market size, based on region, is segmented into North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW).
LG Chem Ltd.; CATL; Samsung SDI; Panasonic Corporation; and BYD Co., Ltd. are among the key lithium-ion battery energy storage market players operating across the world.
The lithium-ion battery energy storage market players are mainly focused on the development of advanced and efficient products.
- In 2023, GE Research was granted two projects through the US Defense Advanced Research Projects Agency's (DARPA) Materials with Novel Transport Properties (MINT) program. The projects aim to explore the possibility of developing certain types of metal materials and batteries that could last indefinitely. The research can lead to self-healing metals that can withstand corrosion and are nondegradable. DARPA is funding the project to support its mission of extending the life of critical infrastructure and systems. GE Research's involvement in the program is part of its ongoing efforts to advance innovative technologies and materials that can have significant implications for various industries.
- In 2022, Morrow Batteries and ABB signed two Memorandum of Understanding agreements to enhance their partnership and advance the shift to renewable energy sources and electrification across all sectors of society. As per the agreements, ABB has been selected as a non-exclusive preferred technology supplier for manufacturing and power supply to Morrow. The objective is to ensure that the planned giga factory at Eyde Energy Park in Norway becomes one of the most cost-effective and sustainable facilities globally. This partnership aims to leverage ABB's expertise and experience to optimize Morrow's manufacturing process and enable the production of high-quality, sustainable batteries. By joining forces, the two companies aim to accelerate the transition to a greener future by enabling more efficient energy storage and electrification.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Capacity, Connection Type, and End-use
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Canada, China, France, Germany, India, Italy, Japan, MEA, Mexico, SAM, South Korea, Spain, United Kingdom, United States
Frequently Asked Questions
RoW (Rest of the World) is anticipated to grow with the highest CAGR over the forecast period.
The countries anticipated to grow with the highest CAGR includes the US, rest of Europe, India, and South American countries.
The key players, holding majority shares, in lithium-ion battery energy storage market includes Contemporary Amperex Technology Co., Limited, LG Chem, BYD Company Ltd., SAMSUNG SDI CO.,LTD and Panasonic Industry Co., Ltd.
A network of decentralized, medium-scale power-generating units, such as wind farms, solar parks, combined heat and power plants, and adaptable power consumers and storage devices, makes up a virtual power plant (VPP). Depending on the market setting, VPPs can carry out various tasks. A virtual electrical grid that connects hundreds or even thousands of households and forms the backbone of a virtual power plant. Many homes might have already installed solar panels and energy storage systems. For backup purposes, a virtual power plant can use BESS together. It can be utilized when there is a need to remove extra power from the grid.
Wind farms continue to improve the safety and performance of energy storage systems in terms of environmental impact by enhancing their quality, quantity, and reliability. Battery storage solutions are becoming more popular due to widespread support for renewable energy and carbon reduction. Batteries can be crucial in balancing the erratic nature of renewable energy sources, significantly boosting electricity consumers' demand for clean energy.
The lithium-ion battery energy storage market was estimated to be US$ 7,972.80 Mn million in 2022 and is expected to grow at a CAGR of 13.9% during the forecast period 2023 - 2028.
The List of Companies - Lithium-Ion Battery Energy Storage Market
- AAB LTD
- Doosan GridTech Inc
- EXIDE INDUSTRIES LTD.
- Hitachi Energy Ltd.
- Toshiba Corp
- MITSUBISHI HEAVY INDUSTRIES, LTD.
- Blue Solutions SAS
- General Electric CO.
- Siemens Energy AG
- PowerTech System SAS
- Panasonic Corporation
- CATL
- Samsung SDI
- LG Chem
- BYD Company Ltd
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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