The Asia-Pacific battery energy storage system market is expected to grow at a CAGR of more than 12.4% over the period of 2020-2025. Some of the major factors driving the market studied are the increasing levels of renewable energy penetration, demand for reliable and uninterrupted power supply across the globe. However, the high initial investment required for the installation of the battery energy storage system and the availability of alternative storage systems such as pumped hydro is expected to hinder the growth of the market studied.
- The commercial segment is expected to witness significant growth owing to a rapid development of commercial spaces across the region.
- The commercial and industrial (C&I) sector is far more sensitive to power outages than the residential sector and thereby the increase in reliability and decrease in the cost of battery energy storage system is expected to propel the adoption by the commercial and industrial sector and thereby creating an opportunity for the growth of the market during the forecast period.
- India is expected to witness significant demand over the forecast period due to a rapid development in renewable energy and industrial and commerical infrastructure.
Key Market Trends
Commercial Sector to Witness Significant Growth
- Utilities can use batteries to store electricity during periods of low demand and then tap the stored energy during peak periods to shave peak loads. The demand for energy storage systems in the utility sector is expected to increase in the future on account of technical advantages and decreasing prices of energy storage systems.
- The commercial segment has recently been explored by project developers, for whom it constitutes a significant growth opportunity. Key factors like increasing energy bills and price volatility are expected to drive the segment’s growth in the coming years.
- Regions like Asia-Pacific are also seeing rapid population growth and urbanization, which is increasing the demand for electricity. Renewable energy is becoming increasingly cost-effective, and developing countries are expected to add renewable energy to their grid.
- Also, many areas are expected to adopt a more distributed approach to grid development, using more local power generation and microgrid systems and thereby creating a potential for growth of the battery energy storage system market in the region.
- Driven by strong growth in China and India, the commercial and industrial storage segment is expected to reach 9 GW by 2025, So there is an increasing demand for the commercial and industrial sector.
India to Witness Significant Growth in the Market
- The India Energy Storage Alliance (IESA) has estimated over 70 GW and 200 GWh of energy storage opportunity in India by 2022, which is one of the highest in the world. Out of 70 GW, over 35 GW of demand is expected from newer applications like solar integration or electric vehicles, hence there is a sizable opportunity for advanced storage technologies in the new applications.
- On March 31st, 2019, India has installed its first grid-scale battery storage system. It was initially launched in February 2019. i.e. AES Corp. and Mitsubishi Corp. have installed a 10-MW battery storage system at a substation in Delhi, India. The system, which includes advancing technology from Fluence, is expected to be operated by Tata Power-DDL, which, in turn, is expected to promote the energy storage systems market.
- Moreover, India may also emerge the third-largest energy storage installation country by 2040 i.e. energy storage installations around the world is expected to multiply exponentially, from a modest 9GW/17GWh deployed as of 2018 to 1,095GW/2,850 GWh by 2040.
- Therefore, with the growing renewable sector, the demand for the battery energy storage system, to address the challenges related to intermittency in renewable power generation, is expected to grow.
- India issued a 1.2GW renewable energy storage system tender in August 2019. The tender has been issued under the central government policy and is thus a part of the inter-state transmission system scheme.
- Hence, based on the above-mentioned factors, India is expected to witness significant demand for energy storage systems market in Asia-Pacific region.
The Asia-Pacific battery energy storage system market is moderately consolidated. Some of the key players in this market include BYD Company Limited, LG Chem Ltd, Contemporary Amperex Technology Co. Ltd, Tesla Inc., and NEC Energy Solutions Inc.
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1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1.1 Lithium-ion Batteries
5.1.2 Lead-Acid Batteries
5.1.3 Nickel Metal Hydride
5.3.4 South Korea
5.3.5 Rest of Asia-Pacific
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BYD Company Limited
6.3.2 LG Chem Ltd
6.3.3 Contemporary Amperex Technology Co. Ltd
6.3.4 Tesla Inc
6.3.5 NEC Energy Solutions.Inc
6.3.6 Samsung SDI Co Ltd
6.3.7 Panasonic Corporation
6.3.8 Sunverge Energy LLC
A selection of companies mentioned in this report includes:
- BYD Company Limited
- LG Chem Ltd
- Contemporary Amperex Technology Co. Ltd
- Tesla Inc
- NEC Energy Solutions.Inc
- Samsung SDI Co Ltd
- Panasonic Corporation
- Sunverge Energy LLC