PUBLISHER: Market Research Future | PRODUCT CODE: 1555576
PUBLISHER: Market Research Future | PRODUCT CODE: 1555576
Global Ancillary Services for Battery Energy Storage Systems Market Research Report Information by Type (Frequency Regulation (and Balancing), Congestion relief, Voltage support, Power smoothing, Peak shaving, Backup Power, Solar Plus Storage , Grid Reliability & Microgrid Capability, Others) By Battery Energy Storage System Type (Lead acid, Lithium-ion, Flow batteries, Nickel-based batteries, Sodium-Sulphur and Zinc-Bromide) By End-Use (Residential, Commercial, Industrial and Utilities), and By Region - Forecast to 2032
In 2023, the market size of ancillary services for battery energy storage systems was estimated to be 1,597.0 USD million. The Ancillary Services for Battery Energy Storage Systems Market industry is anticipated to experience a compound annual growth rate (CAGR) of 14.63% from USD 1,763.9 USD Million in 2024 to USD 5,258.7 Million by 2032. This growth is expected to occur over the forecast period (2024-2032).
Wind and solar energy are expected to experience substantial growth in the United States' power generation over the next two years, as per the Energy Information Administration. The United States' solar power generation is expected to increase by 75% from 163 billion kilowatt-hours (kWh) in 2024 to 286 billion kWh in 2025 because of the rise or increase in solar projects. Additionally, the utilization of wind energy is anticipated to increase as a result of the emphasis on renewable energy sources. This is due to the high demand for wind energy, which is projected to increase by 11% from 430 billion kWh in 2024 to 476 billion kWh in 2025. The U.S. electric power sector generated 4,017 billion kilowatt-hours (kWh) of electric power in 2024.
Last year, renewable sources-including biomass, geothermal, wind, solar, and hydro-accounted for or were projected to account for 22% of generation, or 874 billion kWh. In 2021, the annual generation of renewable power surpassed nuclear generation for the first time, and in 2023, it surpassed coal generation for the first time. They anticipate that coal power generation will decrease by 18% from 665 billion kWh in 2024 to 548 billion kWh in 2025, in contrast to the increasing generation from renewables. It is anticipated that natural gas will remain the primary source of electricity generation in the United States, with an annual generation of approximately 1,700 billion kWh in 2024 and 2025, like the previous year.
Market Segment Insights
The Ancillary Services for Battery Energy Storage Systems The market has been segmented by type, including Frequency Regulation (and Balancing), Congestion relief, Voltage support, Power leveling, Peak shaving, Backup Power, Solar Plus Storage, Grid Reliability & Microgrid Capability, and Others.
The market is segmented into the following categories: Lead acid, Lithium-ion, Flow batteries, Nickel-based batteries, Sodium-Sulphur, and Zinc-Bromide.
Residential, commercial, industrial, and utilities comprise the market segmentation, which is determined by end-use.
Regional Perspectives
The market for Ancillary Services for Battery Energy Storage Systems is divided into five regions: North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia Pacific Ancillary Services for Battery Energy Storage Systems market is anticipated to account for a substantial revenue share during the forecast period and maintain the highest market share.
The market for ancillary services, including battery energy storage systems (BESS), is experiencing accelerated growth in Asia Pacific due to a variety of factors. As the region continues to experience industrialization and urbanization, the demand for electricity infrastructures that are both reliable and efficient is on the rise.
Furthermore, the deployment of BESS is being driven by the increasing use of renewable energy sources and ambitious climate objectives, which are intended to facilitate the integration of renewables and maintain grid stability. Significant investments in grid modernization and energy storage initiatives are being made by countries such as China, Japan, South Korea, and Australia, which are at the forefront of the deployment of BESS.
Nidec Industrial Solutions, ESS Inc., EDF Energy, Powin Energy, Saft, Mitsubishi Heavy Industries, Ltd., Honeywell International, Inc., LG Energy Solution Ltd., NextEra Energy, and Doosan GridTech are among the primary participants in the Ancillary Services for Battery Energy Storage Systems Market.