Renewed Governmental Support for Clean Energy Transition Propels an Already Fast growing Industry
Global battery energy storage (BES) deployment grew 51.8% in 2022 from 2021, with 17.54 GW/38.2 GWh commissioned. 2022 was a historic turning point in the clean energy transition.
Despite constraints in the supply of critical minerals and materials, shipping, and sitting and permitting processes, BES is a burgeoning technology poised for accelerated growth. A mix of geopolitical, economic, and climate factors pushed governments to scale the extent and pace of climate action. Governments formed policies and plans with long-term effects for renewable energy (RE) and BES, a critical element for the much-needed flexibility and resilience that modern energy systems require. The analyst forecasts the global market to grow nearly six-fold, reaching $71.98 billion with a cumulative capacity of 499.10 GW/1,340.00 GWh by 2030.
BES market expansion is bringing higher sophistication and specialization through the value chain, leading to the diversification of business models and opportunities in BES systems. Considerable growth is expected in AI-based software platforms, multi-technology power purchase agreements (PPAs), second-life applications, and increasing use of batteries in hybrid systems, data centers, fast charging infrastructure, power retailers’ net-zero homes programs, and virtual power plants (VPPs).
This study provides a regional-level forecast and analysis of how residential, commercial and industrial, and grid-scale battery storage capacity and investments will evolve through the course of this decade, with deep dives into main countries. It discusses the main trends in supply, technology, business models, and use cases. In addition, it highlights growth opportunities for industry participants, including co-location, second-life batteries, and digital products.
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 Battery Energy Storage Industry
- Growth Opportunities Fuel the Growth Pipeline Engine™
- Key Findings
- Scope of Analysis
2. Trend Analysis
- Key Trends in Battery Energy Storage
- Trend 1. R&D for New Chemistries Continues, but the Market is Still Not Diversified
- Trend 2. Merchant BES Is on the Rise
- Trend 3. Lithium, is it the Limiting Factor?
- Trend 4. Solar plus Storage Is the Perfect Match
- Trend 5. Flow Batteries, How Much Longer Should We Wait?
- Trend 6. AI-based Software Platforms for BES
- Trend 7. Circular Economy is Benefitting BES
- Trend 8. Transport Electrification is Driving Stationary BES Businesses
- Trend 9. Supply Chain Localization
- Trend 10. 24-7 Clean Electricity
- Trend 11. Beyond MW and MWh Counts, Innovative Business Models to Drive Higher Revenue from BES
- Trend 12. Co-located BES
- Growth Opportunities Snapshot
3. Growth Opportunity Analysis
- BES Use Cases
- Market Attractiveness Assessment by Segment and Region
- What do Attractive Markets for BES Have in Common?
- Value Chain Analysis - Front-of-the-Meter BES
- Key Competitors - Front-of-the-Meter BES
- Value Chain Analysis - Behind-the-Meter BES
- Key Competitors - Behind-the-Meter BES
- Growth Metrics
- Growth Drivers
- Growth Restraints
- Forecast Assumptions
- Cumulative Power Capacity Forecast
- Annual Power Capacity Forecast
- Annual Energy Capacity Forecast
- Revenue Forecast
- Capacity and Revenue Forecast Analysis
4. Segment Analysis - Residential BES
- Growth Metrics - Residential
- Annual Energy Capacity Forecast - Residential
- Unit Forecast - Residential
- Forecast Analysis - Residential
5. Segment Analysis - Commercial and Industrial BES
- Growth Metrics - Commercial and Industrial
- Annual Energy Capacity Forecast - Commercial and Industrial
- Power Capacity Forecast - Commercial and Industrial
- Forecast Analysis - Commercial and Industrial
6. Segment Analysis - Grid-scale BES
- Growth Metrics - Grid-scale
- Annual Energy Capacity Forecast - Grid-scale
- Cumulative Annual Power Capacity Forecast - Grid-scale
- Forecast Analysis - Grid-scale
7. Regional Analysis - Europe
- Cumulative Power Capacity Forecast by Segment - Europe
- Cumulative Power Capacity Forecast by Country - Europe
- Forecast Analysis - Europe
8. Regional Analysis - North America
- Cumulative Power Capacity Forecast by Segment - North America
- Cumulative Power Capacity Forecast by Country - North America
- Forecast Analysis - North America
9. Regional Analysis - Asia
- Cumulative Power Capacity Forecast by Segment - Asia
- Cumulative Power Capacity Forecast by Country - Asia
- Forecast Analysis - Asia
10. Regional Analysis - Latin America, Middle East and Africa
- Cumulative Power Capacity Forecast by Segment - Latin America, Middle East and Africa
- Cumulative Power Capacity Forecast by Region - Latin America, Middle East and Africa
- Forecast Analysis - Latin America, Middle East and Africa
11. Key Country Snapshots
- Key Country Analysis - Germany
- Key Country Analysis - Italy
- Key Country Analysis - United Kingdom
- Key Country Analysis - United States
- Key Country Analysis - Canada
- Key Country Analysis - China
- Key Country Analysis - India
- Key Country Analysis - Australia
- Key Country Analysis - Japan
12. Growth Opportunity Universe
- Growth Opportunity 1: Energy Storage-as-a-Service for C&I Customers
- Growth Opportunity 2: Mobile Energy Storage Rentals for Grid Enhancement
- Growth Opportunity 3: Optimization and Trading Platforms to Maximize Value for Merchant Storage
- Growth Opportunity 4: EV’s Second-life Batteries for Stationary Storage
- Growth Opportunity 5: Grid-Interactive Low-Carbon Data Centers
- Growth Opportunity 6: Gas Turbines/Generators + Storage Retrofits
- List of Exhibits
