Global Battery Energy Storage Systems for Smart Grid Market By Type (Secondary Batteries, Flow Batteries, and Others) By Application (Energy Management, Backup Power, Voltage Support, Load Leveling, and Others) Growth, Future Prospects & Competitive Analysis, 2016 – 2030

Key Highlights of the report

How are the major segments performing in the Battery Energy Storage Systems for Smart Grid market?

• In 2022, the flow battery segment accounted for the largest market share as it helps to manage power flow efficiently and effectively.
• In 2022, the energy management segment was anticipated to hold a prominent share in the global battery energy storage systems for smart grid market owing to its capacity to measure the parameters and states of battery cells, such as state-of-charge (SOC) and state-of-health (SOH), and shield batteries from dangers like fire.

What is the Market Size of Battery Energy Storage Systems for Smart Grid regarding value?

The global Battery Energy Storage Systems for Smart Grid market is anticipated to grow at a substantial CAGR of X.X% in the upcoming years. The global Battery Energy Storage Systems for Smart Grid industry were estimated to be worth USD XX.X billion in 2022 and were expected to be worth USD XX.X billion by 2028.

Which region dominated the Battery Energy Storage Systems for Smart Grid market?

In 2022, the battery energy storage system industry will be concentrated in Asia. This region’s market will experience significant growth over the coming years. Regarding CAGR, the region might hold a sizable portion of the market for battery energy storage systems. Many nations in the Asia Pacific region plan to electrify off-grid areas mainly used for the grid.

How is US Market Performing in the Battery Energy Storage Systems for Smart Grid market?

In 2022, in the North American region, the U.S. was anticipated to hold a prominent share in the global battery energy storage systems for smart grid market. Adopting cutting-edge technologies like smart grids as part of grid modernization initiatives boosts demand for battery energy storage systems. Utilizing the potential of smart technologies is made easier by batteries. Additionally, the battery energy storage systems market is growing due to using grid energy storage solutions.

How does the economy impact the growth of Battery Energy Storage Systems for Smart Grid?

Companies aligned their strategies due to the significant changes brought about by the COVID-19 pandemic in the supply chain for battery energy storage systems for smart grids and the growing movement to switch to cleaner, more dependable, and sustainable energy sources. The need for battery energy storage systems for smart grid industry players to be more watchful and forward-thinking is further pressed by worries about the slowdown in the world economy, the effects of the conflict in Ukraine, and the risks of stagflation with potential market scenarios. Manufacturers of battery energy storage systems for smart grids and other related players are developing country-specific strategies in response to the economic and social effects of COVID-19, which are known to vary greatly between different countries/markets.

What is the competitive environment of the Battery Energy Storage Systems for the Smart Grid market?

The market is anticipated to grow almost linearly as it enters the current forecast period. Critical elements like the proliferation of grid modernization projects, the rise of sustainability projects, and the expanding use of electric and hybrid vehicles contributed to the market growth. These effects will continue into the current forecast period, supporting market growth. In February 2022, Battery manufacturer LG Energy Solution, based in South Korea, acquired NEC Energy Solutions for an undisclosed amount. LGES will have access to NEC Energy Solutions’ operational data and technology due to the acquisition. Inverters and other PCS components will be simpler to monitor and gather data. As a result, they are improving system-level performance and dependability. In December 2021, the South Korean company Samsung SDI Co., Ltd. introduced the PRiMX battery brand. It is currently trademarked in Korea and Europe and will soon be registered in the United States.

Executive Summary

What are the key trends in the Battery Energy Storage Systems for the Smart Grid market?

• Declining costs for grid and power users of battery energy storage systems fuel this market’s growth.
• Modernizing current grid systems and installing new grid systems are ongoing activities. Reliability on renewable alternatives is exploding because electricity is a sacred grid resource.
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How are Technological Advancements in Battery Energy Storage Systems for Smart Grid Affecting Market Growth?

A key trend that is becoming more and more popular in the battery energy storage system market is technological advancement. Major market players are concentrating on technological developments to improve the battery energy storage system. For instance, Franklin Whole Home, a privately funded cleantech company headquartered in the US, introduced its integrated battery and control system based on artificial intelligence technology in January 2022. The Franklin Home Power solution combines its lithium iron phosphate with aGate smart control technology to produce a distinct type of enhanced storage. The aGate control system has adaptive learning algorithms, allowing it to manage even the most demanding load situations successfully.

Which are the key investments by the Battery Energy Storage Systems for Smart Grid market players?

Leading players operating in the market are focusing on investing in R&D activities on battery energy storage systems for smart grids. Since flow batteries don’t degrade in performance for 25 to 30 years and can be scaled to meet energy storage needs with a little upfront cost, they may prove to be a game-changing technology for stationary storage. The largest vanadium redox flow battery in the world, with a capacity of 100 MW and a storage volume of 400 MWh, was put into service in China in July 2022. Several states in the US have established storage-specific goals. The governor of New York pledged in January 2022 to double the state’s energy storage goal to deploy at least 6 GW of storage by 2030. Additionally, in August 2022, a stand-alone storage investment tax credit was included in the Inflation Reduction Act, passed, and is anticipated to increase the competitiveness of new grid-scale storage initiatives.

Some major players in the battery energy storage systems for smart grid market are Siemens, ABB, Samsung SDI, GEAlstom, A123, Bosch, BYD, AES Energy Storage, and LG Chem.

What are the Major Driving Factors for the Battery Energy Storage Systems for Smart Grid Market?

The market for battery energy storage systems for smart grids is benefiting from advances in digital technology that allow for more effective production, portfolio expansion, operational maintenance, and sales tracking. Increasing disposable incomes in developing countries that are developing quickly, decentralized networks, intelligent automation, and a proliferation of demand for smart storage are some key market developments. The post-pandemic economic recovery produces an impressive growth rate, which is boosting energy consumption and automotive, industrial, and consumer goods sales. Smart grids, which employ digital and IT systems to manage the flow of power efficiently and effectively, are being implemented by many utilities.

What are the Major Risks for the Battery Energy Storage Systems for Smart Grid Market?

Early-stage market participants frequently deal with various technical requirements, processes, and policies. Lack of standardization is a barrier to further deployment because battery suppliers are no exception. Stakeholders and policymakers worldwide are struggling with defining fast-acting battery storage, causing energy storage to become an identity crisis. Such factors are hampering the growth of the battery energy storage systems for smart grid market to a certain extent.

Which is the key application in the Battery Energy Storage Systems for Smart Grid market?

The flow battery segment is expected to hold a prominent share of the global Battery Energy Storage Systems for Smart Grid market during the forecast period. A flow battery is a device that circulates two liquids separated by a membrane and allows for ion exchange between them. Numerous flow battery constructions exist, many of which are still in the early stages of development. An example is the vanadium redox battery (VRB), which uses vanadium-based electrolytes. The flexibility in capacity offered by this technology, which depends on the physical dimensions of the electrolyte tanks in that capacity can be increased with increased tank size, is one advantage.

How are the Battery Energy Storage Systems for Smart Grid market performing in regions?

Asia Pacific market is anticipated to witness the fastest growth in the global Battery Energy Storage Systems for Smart Grid market during the forecast period. In developed economies and China, investment in grid-scale battery storage has increased, while pumped-storage hydropower investment is concentrated primarily in China. In China, for instance, there is currently being made the largest investment possible in new pumped-storage hydropower capacity. Compared to capacity additions in other regions, close to 50 GW of capacity is currently being built there. Since 2015, 80% of all final investment decisions for new capacity have been made.

What is the regulatory landscape for the Battery Energy Storage Systems for Smart Grid market?

Battery Energy Storage Systems (BESS) are crucial for enhancing the performance of distribution networks. The entire network’s performance can be enhanced by using BESS in the proper location, size, and configuration. In addition to helping to meet peak energy demand, the properly scaled and installed BESS enhances the benefits of integrating distributed and renewable energy sources, enhances power quality control, and lowers the cost of extending or reconfiguring distribution networks. Guidelines for purchasing and using battery energy storage systems (BESS) as part of the generation, transmission, and distribution assets, as well as ancillary services, have been released by the Ministry of Power. The guidelines are designed to aid in expanding the battery storage industry and assist in creating a consistent framework for all parties involved.

What are the major players planning for the future of the Battery Energy Storage Systems for Smart Grid market?

Future electricity demands for utilities, commercial customers, and residential and industrial customers will be increasingly met by distributed energy resources (DER). During the forecast period, there will be a rise in the demand for battery energy storage systems for the smart grid due to the increasing need to reduce power transmission and distribution losses.

Segmentation of Global Battery Energy Storage Systems for Smart Grid Market-

Global Battery Energy Storage Systems for Smart Grid Market – By Types

• Secondary Batteries
• Flow Batteries
• Others

Global Battery Energy Storage Systems for Smart Grid Market – By Application

• Energy Management
• Backup Power
• Voltage Support
• Load Leveling
• Others

Global Battery Energy Storage Systems for Smart Grid Market – By Region

• North America
  • US.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-east Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East and Africa