2021-25 Global grid-scale battery market compound annual growth rate of more than 10%

According to a report released by Technavio, an international market research institution, the global grid-scale battery market share is expected to increase by $3.
78 billion from 2021 to 2025, with a compound annual growth rate of 10.
46%
during the period.

The growing demand for ESS (Grid Energy Storage System) from utilities is significantly driving the grid-scale battery market growth, although factors such as regulatory barriers to grid-scale ESS installation may hamper the market growth
.
As utilities continue to diversify their generation portfolios and place increasing emphasis on renewable energy generation, the demand for ESS from utilities is increasing
.

Energy storage balances power demand
during peak and off-peak periods.
Energy storage technology can use intermittent renewable energy sources such as solar and wind to generate electricity and store these energy sources for use when they are not available
.
In this way, utilities can save money and reduce their carbon footprint
.
The integration of the Internet of Things (IoT) with energy storage technology enables utilities to understand their energy usage
.
Utilities can use the data generated from IoT devices for strategic planning, demand forecasting, and load balancing
.
Energy storage can provide backup power
during power outages and other unplanned grid outages.
As a result of the above factors, the demand for ESS from utilities has seen rapid growth
.

Meanwhile, regulatory barriers to grid-scale ESS installation will be a major challenge
for the market during the forecast period.
Under the current regulatory regime, the deployment of energy storage technology faces several obstacles: procedural issues, differences in cross-market rules, functional classification constraints, and cost allocation issues
.
One of the main procedural issues is administrative delays
in implementing new regulations that favor energy storage and addressing barriers to energy storage deployment.
ESS vendors operate in various regional and national markets to maximize revenue and expand reach
.
Different operating environments are difficult for suppliers because each market has its own characteristics, stakeholders, regulations, and market design
.
Suppliers need to analyze each market to determine profit potential, market requirements, and regulatory prospects to hedge against market uncertainty
.
The above regulatory hurdles are expected to pose significant challenges
to the growth of the global grid-scale battery market.

Over the forecast period, 59% of the market growth will come from Asia Pacific
.
India, China, Australia, and South Korea are the major markets
for grid-scale batteries in the Asia-Pacific region.
The market growth in this region will be faster than that in North America and the Middle East & Africa region
.
In addition, rising energy demand driven by population growth will boost the growth of the grid-sized battery market in Asia Pacific
.

On the other hand, the grid-scale battery market share growth in the lithium-based segment will be significant
during the forecast period.
Increasing lithium-ion ESS installations are driving the growth of the
lithium-based segment.
At present, many utility-scale lithium-ion battery energy storage projects around the world are in operation, and the installed capacity of lithium-ion battery-based energy storage systems continues to rise
rapidly.

During the forecast period, ABB, BYD, CATTL, GENERAL ELECTRIC, LG Electronics, NGK Japan, Samsung SDI, Sumitomo Electric, Tesla and SolarEdge Technologies will become the leading grid-scale battery technology suppliers
.