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Grid Scale Battery Market - Growth, Trends, and Forecast (2020 - 2025)

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  • 120 Pages
  • March 2020
  • Region: Global
  • Mordor Intelligence
  • ID: 4515043
The electricity generation through renewables grew at a CAGR of more than 15% during the period 2011-2018 and is expected to continue the same trend over the forecast period. This factor, in turn, is expected to drive the grid scale battery market as batteries are used in renewable integration into the grid. Moreover, the concerns regarding the negative effect of climate change clubbed with the growing carbon emission in major cities have created a significant demand for renewable integration. Major factors fostering the growth of the market include the investments in renewable energy, and the cost reduction of grid-scale battery owing to technological advancements and expanded deployment. Furthermore, the government aids and standards for boosting energy efficiency are likely to drive the growth of the grid-scale battery market in upcoming years. However, the increasing demand-supply mismatch of the vital raw materials such as cobalt has the potential to restrain the growth of the market.
  • The technological advancement, which has led to a sharp increase in the energy density of the lithium-ion battery market even while decreasing the overall cost of lithium-ion batteries, has enabled the increase in the grid-scale battery deployment. Owing to the aforementioned factors, the lithium-ion battery segment is expected to witness the fastest growth rate during the forecast period.
  • The increasing focus on rural electrification using the grid-scale battery deployment is expected to create a significant amount of opportunity for the growth of the market during the forecast period.
  • Asia-Pacific is the fastest-growing market owing to the rapid rate of industrialization and urbanization, which has led to an increase in demand for electricity.

Key Market Trends

Increasing Demand for Lithium-ion Battery
  • The renewable energy sources like wind and solar energy are heavily reliant on the prevailing weather conditions which has been responsible for holding back the growth of renewable deployment. Therefore, the renewable integration with the energy storage system can easily help in the removal of the shortcoming and can provide uninterrupted power supply. With lithium-ion batteries providing a viable option, the demand for these batteries is expected to grow at a significant rate over the forecast period.
  • Furthermore, due to technological innovations and improved manufacturing capacity, lithium-ion battery chemistry has experienced a steep price decline of over 80% from 2011-2018, and prices are projected to decline further. The lithium-ion battery is expected to dominate the market, and is expected to grow during the forecast period, due to its high energy density, fast recharge capability, and high discharge power.
  • Furthermore, the recycling of Li-ion batteries is expected to secure the supply of raw materials, such as cobalt and lithium, and reduce the dependence on extracting and refining materials from mineral resources. Recycling of lithium-ion battery that is currently being used in EVs offers an opportunity for companies to utilize the refined constituent materials, for manufacturing lithium-ion batteries that are to be used for Energy Storage Systems (ESS).

Asia-Pacific Region to Dominate the Market
  • Asia-Pacific is expected to continue its dominance in the grid-scale market over the forecast period. The region consists of countries with tremendously increasing electricity demand due to urbanization and population growth.
  • The expanding grid in developing countries to meet the electricity demand is likely to include large amounts of renewable energy, which is becoming increasingly cost-effective throughout the world. The deployment of renewable is likely to bestow the opportunity for the increase in demand for grid-scale batteries during the forecast period.
  • Furthermore, developing countries like India are aiming to create 275 GW of total wind and solar capacity by 2027. Renewable energy’s share of installed capacity is forecast to rise to 43% by 2027. With the growing renewable sector, the demand for grid-scale batteries, to address the challenges related to intermittency in renewable power generation, is expected to grow.
  • Favorable policies, such as the energy efficiency standards and increasing peak demand charges, is expected to drive the demand for grid-scale batteries in the region.

Competitive Landscape

The grid scale battery market is moderately fragmented. Some of the key companies in market include Panasonic Corporation, LG Chem Ltd., Contemporary Amperex Technology Co Ltd, Samsung SDI Co. Ltd., and BYD Co Ltd.

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast, in USD billion, till 2025
4.3 Global Annual Energy Storage Deployments (in MW), till 2025
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Investment Opportunities
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitutes Products and Services
4.9.5 Intensity of Competitive Rivalry
5.1 Battery Type
5.1.1 Lead-Acid Battery
5.1.2 Lithium-ion Battery
5.1.3 Others
5.2 Application
5.2.1 Frequency Regulation
5.2.2 Bill Management
5.2.3 Load Shifting
5.2.4 Others (Renewable Integration, Transmission and Distribution Services, Black Start, etc.)
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Tesla Inc.
6.4.2 Panasonic Corporation
6.4.3 LG Chem Ltd.
6.4.4 Contemporary Amperex Technology Co Ltd
6.4.5 Samsung SDI Co.Ltd.
6.4.6 BYD Co Ltd
6.4.7 East Penn Manufacturing Company
6.4.8 GS Yuasa Corporation
6.4.9 Clarios

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Tesla Inc.
  • Panasonic Corporation
  • LG Chem Ltd.
  • Contemporary Amperex Technology Co Ltd
  • Samsung SDI Co.Ltd.
  • BYD Co Ltd
  • East Penn Manufacturing Company
  • GS Yuasa Corporation
  • Clarios