Global Advanced Energy Storage Systems Market Size, Share, Growth Analysis, By Technology(Mechanical Storage, Electrical Storage), By Application(On-grid, off-grid) - Industry Forecast 2024-2031

Global Advanced Energy Storage Systems Market size was valued at USD 1.26 billion in 2022 and is poised to grow from USD 1.33 billion in 2023 to USD 2.08 billion by 2031, growing at a CAGR of 5.70% during the forecast period (2024-2031).

The expansion of the global market is fueled by the rising demand for electric vehicles, coupled with increased investments in renewable energy. Furthermore, the rapid expansion of grid infrastructure and modernization efforts are bolstering market growth. Additionally, the proliferation of solar farm installations and growing awareness of energy conservation are creating new growth avenues for the advanced energy storage systems market. This surge in renewable energy adoption stems from mounting concerns about the environmental impact of CO2 emissions and greenhouse gases, prompting developed and emerging nations to prioritize renewable energy integration in power generation. Such initiatives align with government policies aimed at transitioning a significant portion of energy production to sources like wind, hydro, and solar. As governments worldwide intensify efforts and investments to incentivize renewable energy production, a substantial increase in both private and public investment is anticipated. This trend, coupled with growing global concerns about energy wastage and ongoing endeavors to promote energy efficiency, is poised to further propel market expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Advanced Energy Storage Systems Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Advanced Energy Storage Systems Market Segmental Analysis

The global advanced energy storage systems market is segmented into technology and application. Based on technology, the Advanced Energy Storage Systems Market is divided into Mechanical Storage, Electrical Storage, Electrochemical Storage, and Thermal Storage. Based on application, the global Advanced Energy Storage Systems Market is segmented into-grid, off-grid, micro grid, and others.

Drivers of the Global Advanced Energy Storage Systems Market

Both developed and developing nations are revising their energy policies to integrate a significant portion of renewable energy sources such as wind and solar into their power generation mix. This shift is accompanied by increasing investments in renewable energy, buoyed by government incentives and expected returns, which are projected to drive market growth. The need for renewable energy is also driving efforts to modernize and upgrade electricity grids. Recent developments have seen the costs of geothermal, hydropower, biomass, and onshore wind become comparable to traditional fossil fuel-driven power plants, further fueling market expansion prospects for the advanced energy storage systems industry in the foreseeable future.

Restraints in the Global Advanced Energy Storage Systems Market

The production of energy storage technologies like lithium-ion batteries, flow batteries, and sodium sulfur batteries demands significant capital investment due to their superior performance and high energy density. The high cost of raw materials, particularly lithium, directly impacts the overall cost of lithium-ion batteries. As lithium gains traction in electric vehicles and grid storage, initial costs are expected to remain high for the first two to three years, gradually decreasing with broader acceptance. Moreover, as rated power increases, technology costs escalate, potentially impeding the growth of the advanced energy storage systems market in the foreseeable future.

Market Trends of the Global Advanced Energy Storage Systems Market

Advanced Lithium-ion Batteries offer numerous benefits including portability, rapid charging, low upkeep, and adaptability, yet they pose significant safety risks due to flammability and sensitivity to high temperatures, necessitating precautions against overcharging or complete discharge. Additionally, they face challenges such as aging and environmental concerns related to mining battery components. For instance, Green Li-ion, a Singaporean startup, addresses this by recycling lithium-ion batteries to create battery cathodes. Their modular processing plants employ co-precipitation hydrometallurgical technology, enhancing purity and reducing production time compared to conventional leaching processes. This innovation enables battery manufacturers to recycle batteries efficiently without the need for sorting.