Stationary Battery Storage Market Forecasts to 2030 - Global Analysis By Battery, Storage Type, Application, End User and By Geography

According to Stratistics MRC, the Global Stationary Battery Storage Market is accounted for $118.15 billion in 2024 and is expected to reach $544.47 billion by 2030 growing at a CAGR of 29.0% during the forecast period. Stationary Battery Storage refers to the technology used for storing electrical energy in batteries for later use. Unlike portable batteries, stationary systems are fixed installations often used in homes, businesses, and utility grids. They store energy from renewable sources like solar or wind, or from the grid during off-peak times, to provide power during peak demand, outages, or for grid stabilization. These systems enhance energy efficiency; reduce reliance on fossil fuels, and support a more resilient and sustainable energy infrastructure. Popular battery types for stationary storage include lithium-ion, lead-acid, and flow batteries.

According to the International Renewable Energy Agency (IREA), flow batteries, which are currently under development, might have a two-third reduction in total installed cost by 2030, high-temperature batteries by 56%-60%; flywheels by 35%, and compressed air energy storage by 17%. According to IEA data, electricity will make up 50% of all energy consumed by 2050, up from 20% in 2018.

Market Dynamics:

Driver:

Grid modernization and reliability

Grid modernization and reliability are key drivers in the stationary battery storage market. Modernizing the grid involves integrating advanced technologies like battery storage to enhance stability, efficiency, and resilience against power disruptions. Stationary battery storage systems play a crucial role by providing reliable backup power during outages, thereby ensuring continuous electricity supply and reducing downtime for critical infrastructure and services. These systems also support the integration of renewable energy sources by storing excess power and releasing it during peak demand periods, thus optimizing grid operations and promoting sustainability.

Restraint:

Limited lifecycle and degradation

In the stationary battery storage market, limited lifecycles and degradation restraints are significant factors impacting technology and economic viability. Limited lifecycle refers to the finite number of charge-discharge cycles batteries can undergo before significant capacity loss occurs, necessitating replacement. This constraint influences long-term operational costs and sustainability goals. Degradation restraint pertains to efforts aimed at minimizing or slowing down battery performance decline over time.

Opportunity:

Residential storage solutions

Residential storage solutions represent a significant opportunity in the stationary battery storage market due to their ability to integrate renewable energy sources like solar power and provide backup during grid outages. These systems offer homeowners energy independence, reduced electricity bills through peak shaving, and the potential to sell surplus energy back to the grid. Technological advancements, decreasing costs of battery storage, and supportive policies further enhance this market's appeal, fostering innovation and competition among providers to cater to diverse consumer needs.

Threat:

Technology costs

In the stationary battery storage market, technology costs represent a significant threat due to their impact on project economics and profitability. The high initial costs of battery technologies, including lithium-ion and emerging alternatives, can deter potential investors and increase financial risk. Moreover, rapid advancements and fluctuating prices in battery technology pose challenges in predicting future costs and returns on investment. Variability in raw material prices (e.g., lithium, cobalt) further complicates cost projections.

Covid-19 Impact:

Supply chain disruptions led to delays in battery manufacturing and delivery. However, the heightened focus on energy resilience and reliability during the pandemic drove increased interest in battery storage solutions for backup power. Despite initial setbacks, the market saw accelerated adoption post-pandemic, with investments surging in renewable energy storage, grid stability, and residential backup systems. Additionally, government stimulus packages and policies aimed at green recovery provided further support, reinforcing the sector's growth and technological advancements.

The lithium-ion segment is expected to be the largest during the forecast period

The lithium-ion (Li-ion) segment is rapidly expanding in the stationary battery storage market due to its high energy density, efficiency, and decreasing costs. Li-ion batteries offer superior cycle life and faster charging times compared to traditional lead-acid batteries, making them ideal for applications in renewable energy storage, grid stabilization, and backup power. The push for decarbonization and integration of renewable energy sources has amplified demand, while advancements in battery technology continue to enhance their performance and affordability.

The grid services segment is expected to have the highest CAGR during the forecast period

The grid services segment within the stationary battery storage market is experiencing significant growth due to the increasing demand for grid stability and reliability. This growth is driven by the need for energy storage solutions that can support frequency regulation, voltage control, and grid balancing. The integration of renewable energy sources, such as solar and wind, into the power grid has further amplified the necessity for advanced energy storage systems. Moreover, supportive government policies and incentives for renewable energy adoption and storage technologies are propelling the expansion of this segment.

Region with largest share:

In North America, the stationary battery storage market has experienced significant growth, driven by several key factors. The region's increasing adoption of renewable energy sources, such as wind and solar power, has created a demand for energy storage solutions to manage intermittent supply. Grid modernization initiatives and the need for reliable backup power systems have further fuelled market expansion. Technological advancements in battery storage systems, coupled with supportive government policies and incentives, have also played a crucial role in attracting investments and accelerating deployment.

Region with highest CAGR:

The Asia-Pacific region has experienced significant growth in the stationary battery storage market due to several key factors. The rapid expansion of renewable energy sources like solar and wind has increased the need for storage solutions to manage intermittency and stabilize the grid. Supportive government policies and incentives across countries such as China, Japan, South Korea, and Australia have fostered a favourable environment for investment in battery storage infrastructure. Advancements in battery technology and decreasing costs have made stationary storage solutions more economically viable and attractive to both utilities and industrial consumers.

Key players in the market

Some of the key players in Stationary Battery Storage market include A123 Systems, LLC, BYD Company Ltd., Duracell, Inc., Durapower Group, Exide Technologies, Furukawa Battery Co., Ltd., GS Yuasa International Ltd, Invinity Energy Systems, Johnson Controls, LG Chem Ltd., Lockheed Martin Corporation, Narada Power Source Co. Ltd, Panasonic Corporation, Redflow Limited, Samsung SDI Co., Ltd, SCHMID Group, Siemens, Tesla and Toshiba Corporation.

Key Developments:

In June 2024, Johnson Controls announced that it has reached a definitive agreement to sell its Air Distribution Technologies business to Truelink Capital, a middle-market private equity firm based in Los Angeles. The transaction is expected to close the second half of the calendar year 2024, subject to customary closing conditions.

In June 2024, Toshiba JSW Power Systems announced the appointment of Daisuke Murata as its new Managing Director. In his new role, Murata will bolster the Make-in-India program and Export-from-India initiatives by expanding their business presence in overseas markets including Southeast Asia, the Middle East, and Africa.

Batteries Covered:

• Sodium sulphur
• Lead acid
• Flow battery
• Lithium-ion
• Other Batteries

Storage Types Covered:

• Hydrogen and Ammonia Storage type
• Gravitational Energy Storage type
• Liquid Air Storage type
• Thermal Energy Storage type
• Compressed Air Energy Storage type

Applications Covered:

• Grid services
• Off grid
• Behind the meter
• Other Applications

End Users Covered:

• Government and Public Sector
• Data centers
• Industrial and Manufacturing
• Defense and Military
• Commercial Buildings
• Residential
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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