Growth Opportunities for the Grid-scale Battery Energy Storage Systems (BESS) Industry

Description

The Era of Flexibility is Approaching the Mainstream, Intensifying Competition and Requiring New Strategies to Capture Value

Global grid-scale battery energy storage system (BESS) deployment experienced unprecedented growth in 2023, expanding 159.5% from 2022. The year 2024 will break another record in new installations, with deployments of 41.84 GW/104.67 GWh.

BESS has rapidly become the fastest-growing clean energy technology, driven by the growth of wind and solar and the need for grid flexibility. Governments, system operators, and regulators recognize the diverse benefits of energy storage and are advancing regulations and incentives to support the technology's deployment, albeit at varying rates. While North America, Europe, Australia and New Zealand (ANZ), and China are the most important regions for development, Japan, India, Turkey, Chile, South Africa, and Israel, among other countries, are at a turning point in terms of development and poised for considerable growth.

The low-price scenario and the push for domestic content and higher ESG transparency are injecting additional dynamism into the industry. Frost & Sullivan forecasts cumulative grid-scale BESS capacity to grow nearly eight-fold, reaching 549.93 GW/1,549.02 GWh by 2030.

This study provides a regional-level forecast and analysis of how grid-scale BESS capacity and investments will evolve by 2035. It discusses the main drivers and restraints, supply and technology trends, business models, and use cases. In addition, it highlights growth opportunities for industry participants.

Product Code: KA8A-27

Strategic Imperatives

Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Grid-scale BESS Industry
Growth Opportunities Fuel the Growth Pipeline Engine™

Ecosystem

Scope of Analysis
Regional Segmentation
Key Findings

Trend Analysis

Key Trends Shaping the Industry
Trend 1-AI Revolutionizing the BESS Value Chain
Trend 2-Stronger Emphasis on Energy Shifting with Longer-duration Systems
Trend 3-Greater Transparency and ESG Accountability for Batteries
Trend 4-Solar-Plus-Storage, the Perfect Match
Trend 5-BESS to Guarantee 24/7 Clean Electrons
Trend 6-Higher Demand for Optimization Services
Trend 7-Challenging Outlook for EV Second-life Batteries
Trend 8-The Alternatives to Lithium
Trend 9-Thermal Power Plant Retrofits with BESS

Growth Opportunity Analysis

Grid-scale BESS Components
Grid-scale BESS Value Chain
Key Grid-scale BESS Suppliers
Key Applications for Grid-scale BESS
Growth Metrics
Growth Drivers
Growth Driver Analysis-Expansion of Intermittent RE
Growth Driver Analysis-Battery Production Capacity Expansion
Growth Driver Analysis-Cost Declines
Growth Driver Analysis-Supportive Policies, Incentives, and Market Regulations
Growth Restraints
Forecast Assumptions
Cumulative Power Capacity Growth
Cumulative Power Capacity Forecast
Annual Power Capacity Additions Forecast
Annual Energy Capacity Additions Forecast
Annual Energy Capacity Forecast by Region
Capex Forecast
Capacity Forecast Analysis
Pricing Trends and Forecast Analysis

Regional Analysis

Regional Analysis-Market Status
Regional Analysis-North America
Annual Additions by Sub-region-North America
Regional Analysis-Europe
Annual Additions by Sub-region-Europe
Regional Analysis-ANZ & Pacific
Annual Additions by Sub-region-ANZ & Pacific
Regional Analysis-China
Annual Additions-China
Regional Analysis-East Asia
Annual Additions by Sub-region-East Asia
Regional Analysis-India & South Asia
Annual Additions by Sub-region-India & South Asia
Regional Analysis-ASEAN
Annual Additions by Sub-region-ASEAN
Regional Analysis-Middle East & North Africa
Annual Additions by Sub-region-Middle East & North Africa
Regional Analysis-Latin America
Annual Additions by Sub-region-Latin America
Regional Analysis-Sub-Saharan Africa
Annual Additions by Sub-region-Sub-Saharan Africa
Regional Analysis-Russia & CIS
Annual Additions by Sub-region-Russia & CIS

Growth Opportunity Universe in Access Control Solutions

Growth Opportunity 1AI and Advanced Analytics-based Platforms for BESS Optimization
Growth Opportunity 2IoT Edge Platforms to Expedite BESS Integration
Growth Opportunity 3Storage-as-a-Service for Aggregators
Growth Opportunity 4BESS to Shape PPAs
List of Exhibits
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