PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1569841
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1569841
According to Stratistics MRC, the Global Distributed Energy Storage Market is accounted for $6.11 billion in 2024 and is expected to reach $11.92 billion by 2030 growing at a CAGR of 11.79% during the forecast period. Distributed energy storage refers to a system of energy storage technologies deployed at various locations within the electrical grid, close to where energy is consumed or generated. Unlike centralized storage systems, which are located at large, central power plants, distributed energy storage units are installed in homes, businesses, or small-scale facilities. These systems, often using batteries, can store excess energy from renewable sources like solar or wind, and release it when needed to balance supply and demand. This approach enhances grid reliability, supports energy independence, and optimizes the use of renewable energy by providing localized, on-demand storage.
According to the International Energy Agency's Global EV Outlook 2020 report, 2.1 million electric vehicles were sold globally in 2019.
Rising Renewable Energy Integration
Rising renewable energy integration refers to the increased adoption of renewable sources like solar and wind power. This shift significantly impacts the market by creating a demand for storage solutions to manage the intermittent nature of renewable energy. Energy storage systems help balance supply and demand, ensuring a stable and reliable power supply. As more renewable are deployed, the need for distributed energy storage grows, driving market expansion and innovation. Thus, it boosts the growth of the market.
Economic and Market Fluctuations
Economic and market fluctuations refer to variations in economic conditions and energy market dynamics that can impact investment and consumer behavior, these fluctuations can lead to reduced funding for new projects, slower adoption rates, and increased uncertainty for stakeholders. Economic downturns or volatile energy prices may decrease demand for energy storage systems, thus it hinders the growth of the market.
Technological Advancements
Technological advancements in distributed energy storage, such as improvements in battery chemistry, energy density, and cost-efficiency, significantly boost market growth. Enhanced technologies lead to more reliable, longer-lasting, and affordable storage solutions, making them more attractive to consumers and businesses. Innovations also enable better integration with renewable energy sources and smart grid systems, enhancing overall energy management. As technology evolves, it drives broader adoption and increases the market's potential for energy independence and sustainability, thus it drives the growth of the market.
Regulatory and Market Barriers
Regulatory and market barriers refer to obstacles such as inconsistent policies, complex regulations, and restrictive market structures that hinder the adoption and deployment of distributed energy storage systems. These barriers can create uncertainties, increase compliance costs, and limit market access. Their effects include slowed market growth, reduced investment, and challenges in integrating storage systems. Thus, it hampers the growth of the market.
COVID-19 impacted the distributed energy storage market by causing supply chain disruptions and delays in project installations due to lockdowns and restrictions. The pandemic also led to decreased investments and slowed adoption rates as businesses faced financial uncertainty. However, it heightened awareness of energy resilience and the importance of reliable power sources, potentially accelerating future demand for distributed energy storage solutions.
The grid storage segment is expected to be the largest during the forecast period
The grid storage segment is expected to be the largest during the forecast period because it provides a buffer for intermittent renewable energy sources, stabilizes the grid, and reduces the need for peak power generation. This capability promotes the integration of distributed energy resources, such as residential solar panels, by ensuring a consistent energy supply. As a result, grid storage supports market growth by boosting confidence in distributed systems and encouraging broader adoption of decentralized energy solutions.
The flow batteries segment is expected to have the highest CAGR during the forecast period
The flow batteries segment is expected to have the highest CAGR during the forecast period because their ability to store large amounts of energy and discharge over extended periods makes them ideal for balancing intermittent renewable sources like solar and wind. Additionally, flow batteries can be easily scaled and have long lifecycles, promoting more efficient energy management and reducing dependency on traditional fossil fuel-based energy sources.
North America is projected to hold the largest market share during the forecast period because this market supports the integration of renewable energy sources, reduces reliance on centralized power plants, and helps manage peak demand more effectively. It also promotes energy independence and lowers electricity costs for consumers. By advancing technology and infrastructure, distributed energy storage fosters a more sustainable and efficient energy system, contributing to North America's goals of reducing carbon emissions and improving energy security.
Asia Pacific is projected to witness the highest CAGR over the forecast period because it enhances energy reliability and supports renewable integration by enabling localized storage solutions. It improves grid stability, reduces energy costs, and provides backup power during outages. This market fosters technological innovation and infrastructure development, driving economic growth and job creation. Additionally, it helps in managing energy costs and contributes to the region's sustainability goals by promoting cleaner, more efficient energy use.
Key players in the market
Some of the key players in Distributed Energy Storage Market include Abu Dhabi National Oil, Company, Bahrain Lube Distributed energy storage system Company, Bharat Petroleum Corporation Limited, BP p.l.c, Chevron Corporation, CNOOC Limited., EDistributed Energy StorageonMobil Corporation, GS Caltex Corporation, H&R OWS Chemie GmbH & Co. KG, Indian Oil Corporation Ltd., LUKOIL, Neste, PetroCanada Lubricants Inc., PetroChina Co., Ltd., Petroleum & Chemical Corp. (SINOPEC), PT Pertamina (Persero), Repsol, Saudi Arabian Oil Co., Sepahan Oil, Shell plc. and SK Lubricants Co.,Ltd.
In August 2024, Repsol and Volotea have reached an agreement for the supply of sustainable aviation fuel (SAF) on flights operated by the airline from airports in Spain. The multi-energy company plans to supply Volotea with up to 6.1 million litres of SAF.
In August 2024, Neste expanded its logistics infrastructure for liquefied recycled raw materials at its refinery in Porvoo, Finland, including materials such as liquefied waste plastic and liquefied rubber tires.
In March 2024, Repsol and Bunge have agreed to partner in the development of new opportunities to help meet the growing demand for lower carbon intensity feedstocks for the production of renewable fuels. This alliance, the first of its kind in Europe, will help to accelerate the ramp-up of production of these fuels mandated by the European Union.