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Global Stationary Lithium-ion Battery Growth Opportunities

  • Report

  • 75 Pages
  • March 2022
  • Region: Global
  • Frost & Sullivan
  • ID: 5561793

Future Growth Potential Driven by Demand for Battery Energy Storage Systems

Stationary lithium-ion systems are key components of the energy storage architecture, which fulfill energy storage requirements for utilities, residential, and commercial customers. The global growth of renewable energy installations has increased intermittent energy production, creating an unbalanced grid. This has led to a demand for energy storage solutions to balance the grid during lean times and feed back into the grid during high requirement times. Lead-acid batteries and pumped hydro storage traditionally dominated the market. However, in the past decade, the growing production of Li-ion batteries for the automobile sector has pushed down battery system prices, enabling their deployment in utility-scale, residential, and commercial storage systems. The focus on zero carbon emissions and need to move away from fossil fuels, namely coal, for power production prompt more governments to incentivize solar and wind power installations. These installations lend themselves to battery storage systems that store excess power generated. Government incentives to incentivize Li-ion battery installations also drive deployments across developing economies. Harsh weather conditions also strain existing transmission and distribution infrastructure, leading to extended blackouts and increased demand for energy storage solutions to reduce grid dependence. However, diesel gensets and lead-acid batteries pose major competition to the development of stationary Li-ion battery systems.

Utility sector installations are key drivers for battery energy storage systems (BESS). This segment is expected to grow from $2.25 billion in 2021 to $5.99 billion in 2030 at a CAGR of 11.5%. Lead-acid batteries dominate the utility equipment segment by revenue, though Li-ion batteries show a higher 34.4% CAGR due to their low growth base. Residential and commercial energy storage segments are other areas with large market potential of $5.51 billion in 2030, from $1.68 billion in 2021. The industrial sector continues its march toward zero carbon emissions, with companies making net-zero pledges in the next two decades. Telecom and data center companies are at the forefront of reducing carbon emissions with an increased focus on renewable energy power sources. These are key growth areas for Li-ion batteries as companies find ways to ensure reliable backup and grid balancing.

Asia-Pacific will be the largest stationary lithium-ion battery market by 2030, driven by utilities and industries. It will overtake North America and Europe with a market of $7.07 billion in 2030, growing from $1.24 billion in 2021 at a CAGR of 21.3%. North America and Europe will be the next largest markets due to their goals to decarbonize their economies and grid over the next two decades. LATAM will see the highest growth rate at a CAGR of 21.4% because of its smaller size and low base.

Market trends are analyzed for the 2020-2030 period, with the base year as 2021. The market is expected to grow from $5.42 billion in 2021 to $16.36 billion in 2030 at a CAGR of 13.1%. The study covers North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa regions. The study assesses the latest trends across the globe and discusses market growth till 2030. Fierce competition is expected to come from industry participants in Japan, China, and the United States, competing with quality products. Some companies considered in this study are Tesla, LG Chem, Panasonic, Samsung SDI, BYD, and CATL.

Key Issues Addressed:

  • What is the impact of increased RE power generation on Li-ion energy storage?
  • What are the key drivers and restraints for the market?
  • What are the various trends in each region, and how do they influence market growth?
  • What is the competitor landscape?
  • Which are the end-user industry verticals?

Table of Contents

1. Strategic Imperatives
  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
  • The Impact of the Top 3 Strategic Imperatives on the Stationary Lithium-ion Battery Industry
  • Growth Opportunities Fuel the Growth Pipeline Engine™

2. Growth Environment
  • Key Findings

3. Growth Opportunity Analysis
  • Scope of Analysis
  • Definitions
  • Key Competitors
  • Key Growth Metrics
  • Distribution Channels
  • Growth Drivers
  • Growth Restraints
  • Forecast Assumptions
  • Revenue Forecast
  • Revenue Forecast by End User
  • Revenue Forecast by Region
  • Revenue Forecast Analysis
  • Revenue Forecast Analysis by End User
  • Revenue Forecast Analysis by Region
  • Competitive Environment
  • Revenue Share
  • Revenue Share Analysis

4. Growth Opportunity Analysis - North America
  • Key Growth Metrics for North America
  • Revenue Forecast
  • Revenue Forecast by End User
  • Revenue Forecast Analysis

5. Growth Opportunity Analysis - Europe
  • Key Growth Metrics for Europe
  • Revenue Forecast
  • Revenue Forecast by End User
  • Revenue Forecast Analysis

6. Growth Opportunity Analysis - Asia-Pacific
  • Key Growth Metrics for Asia-Pacific
  • Revenue Forecast
  • Revenue Forecast by End User
  • Revenue Forecast Analysis

7. Growth Opportunity Analysis - Latin America
  • Key Growth Metrics for Latin America
  • Revenue Forecast
  • Revenue Forecast by End User
  • Revenue Forecast Analysis

8. Growth Opportunity Analysis - Middle East and Africa
  • Key Growth Metrics for Middle East and Africa
  • Revenue Forecast
  • Revenue Forecast by End User
  • Revenue Forecast Analysis

9. Growth Opportunity Universe
  • Growth Opportunity 1: Geographic Expansion
  • Growth Opportunity 2: New Product Development
  • Growth Opportunity 3: Second Life for Battery Storage

10. Next Steps
  • Your Next Steps
  • Other Competitors
  • List of Exhibits
  • Legal Disclaimer

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • BYD
  • CATL
  • LG Chem
  • Panasonic
  • Samsung SDI
  • Tesla