Distributed Energy Storage Market - Forecast (2022 - 2027)
The Distributed Energy Storage market size is forecast to reach $19.2 billion by 2027, growing at CAGR 8.6% from 2022 to 2027. The growth of this market is mainly driven by increasing demand for continuous electricity, increasing investment on renewable energy projects by both developed and developing countries and rising demand for grid storage technology, especially micro-grid.
Rapid industrialization and growth in purchasing power increases the demand for power, which enhances the adoption of distributed energy storage system including renewable energy storage, thermal energy storage, superconducting magnetic energy storage, flywheel energy storage, battery energy storage system and others, as it helps in meeting the energy requirement during peak hours. Furthermore, governments are taking various initiatives to promote the usage of renewable energy as a prime source of power generation, which is boosting the growth of distributed energy storage market. Hence, the above-mentioned factors are fueling the growth of Distributed Energy Storage industry during the forecast period 2022-2027.
Key Takeaways
Distributed Energy Storage Market Value Share, by Geography, 2021 (%)
For More Details on This Report - Request for Sample
Distributed Energy Storage Market Segment Analysis - By Technology
By technology, the Distributed Energy Storage market is segmented into Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology. Thermal Storage Technology segment is analysed to grow, with a significant CAGR of around 9.2%, during the forecast period 2022-2027. Thermal energy storage systems have various advantages over the other segments, such as it is more cost effective and it is a clean energy storage technology, which makes it more environment friendly than others. This technology is highly suitable as a storage method for large-scale applications as well as for small-scale applications for hot water and heating, as it utilizes every part of thermal transformation.
Distributed Energy Storage Market Segment Analysis - By Application
Based on Application, Distributed Energy Storage Market is segmented into Transportation, Grid Storage, Renewable Energy Storage and others. According to Distributed Energy Storage Market report of IndustryARC, Distributed Energy Storage market size for transportation is analysed grow at a CAGR of 9.65% during 2022-2027, owing to increasing adoption of electric mode of transportation. According to the Global EV Outlook 2020 report published by International Energy Agency, 2.1 million electric cars were sold globally in 2019. Such growth affects the distributed energy storage market positively.
Distributed Energy Storage Market Segment Analysis - By Geography
APAC dominated the market with around 33% Distributed Energy Storage market share in 2021, and is estimated to grow at a CAGR of around 10.42% during the forecast period 2022-2027, due to the increasing demand for electricity, and growing investment for renewable energy projects along with rise in purchasing power. A report from IEA, India energy outlook 2021 shows that, Indian residential sector will witness a growth in electricity consumption, from around 1000 kWh per household in 2019 to 1500 kWh in 2030, due to the growth in disposable income of people in this country. Such growth in electricity demand influences the adoption rate of distributed energy storage system positively. Similarly, In July 2020, the Neyveli Lignite Corporation (NLC) India Limited announced about the confirmation of commissioning of a 20MW solar power project integrated with 8MWh BESS by the electricity department of Andaman and Nicobar.
Rising Usage and Investments towards Renewable Energy is driving the growth of this market
Growing investment towards renewable energy is one of the major driving factors behind the growth of distributed energy storage market. Nowadays most of the countries are relying and investing heavily on renewable energy sources to produce electricity, which creates huge demand for distributed energy storage technology, as it helps to store the excess energy generated from renewable sources for use during peak demand. In April 2021, ACEN announced about their investment plan for the development of solar, wind and Battery Energy Storage System (BESS) projects, in order to increase its renewable energy portfolio. Similarly, ACEN has already invested in BESS through its renewable energy laboratory in Mariveles, Bataan and this facility is going to test various technologies in solar and battery energy storage system. Therefore, these types of investments towards renewable energy and its high usage rate will fuel the adoption rate of distributed energy storage system in the forecast period 2022-2027.
Increasing demand for grid storage systems will fuel the growth:
The growth of distributed energy storage market is significantly driven by the rising demand for grid storage systems for storing the energy generated from various sources. Weather changes, wind fluctuations and other reasons, lead to a variation in the amount of energy generation, which leads to growing requirement for the grid storage systems in order to store the energy. Distributed energy storage system helps the grid to store the excess generated electricity, which can be used while facing an electricity deficiency.
Distributed Energy Storage Market Challenges
Thermal Runaway and High capital investment are harming the growth of this market
All though the Distributed Energy Storage market is growing rapidly, but the thermal runaway issue of batteries is creating hurdles for the growth of this market. Thermal runaway is a major risk for Li-ion battery, which is a major challenge for battery energy storage system market. The major reasons behind this thermal runaway are internal cell defects, mechanical failures or damage or excess voltage, which leads to high temperatures, build-up of gas and potential explosive rupture of the battery cell, resulting in fire or explosion.
Distributed Energy Storage Industry Outlook
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Distributed Energy Storage Market. As of 2021, the market for Distributed Energy Storage industry outlook is consolidated with the top market players.
Report Coverage
The report: “Distributed Energy Storage Market– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Distributed Energy Storage Market.
By Type: Single-phase Type, Three-phase Type, Double-phase Fire Line Type.
By Technology: Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology.
By Application: Transportation, Grid Storage, Renewable Energy Storage and others.
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, South Korea, Australia and Others), and RoW (Middle east and Africa).
The report: “Distributed Energy Storage Market– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Distributed Energy Storage Market.
By Type: Single-phase Type, Three-phase Type, Double-phase Fire Line Type.
By Technology: Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology.
By Application: Transportation, Grid Storage, Renewable Energy Storage and others.
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, South Korea, Australia and Others), and RoW (Middle east and Africa).
Key Takeaways
- APAC held the major market share in 2021 and is estimated to witness the significant growth during 2022-2027, owning to increasing demand for electricity in this region, rising purchasing power and increasing investment for renewable energy projects.
- The market of Distributed Energy Storage is estimated to witness significant upsurge during the forecast period, owing to the growing investments and usage rate of renewable energy across the world.
- This industry is consolidated with top market players including ABB Ltd, General Electric, NEC Energy Solutions, Siemens AG, Schneider Electric SE among others.
Distributed Energy Storage Market Value Share, by Geography, 2021 (%)
For More Details on This Report - Request for Sample
Distributed Energy Storage Market Segment Analysis - By Technology
By technology, the Distributed Energy Storage market is segmented into Electro Chemical Technology, Mechanical Technology, Thermal Storage Technology. Thermal Storage Technology segment is analysed to grow, with a significant CAGR of around 9.2%, during the forecast period 2022-2027. Thermal energy storage systems have various advantages over the other segments, such as it is more cost effective and it is a clean energy storage technology, which makes it more environment friendly than others. This technology is highly suitable as a storage method for large-scale applications as well as for small-scale applications for hot water and heating, as it utilizes every part of thermal transformation.
Apart from that, thermal energy storage systems have lower maintenance costs than other segments, which creates the huge demand for thermal energy storage system. Apart from that, it is more efficient during the peak hours of electricity demand, which in turn drives the investments on this technology. In September 2021, Masdar City-based a start-up company, Seramic Materials developed ReThink Seramic – Flora, a unique patented solution to recycle industrial solid waste into a high-temperature thermal energy storage (TES) product, a circular economy solution that both reduces wastage and promotes renewable energy development. Such developments will accelerate the adoption rate of Thermal Energy Storage software, thereby driving the growth of this market during the forecast period 2022-2027.
Distributed Energy Storage Market Segment Analysis - By Application
Based on Application, Distributed Energy Storage Market is segmented into Transportation, Grid Storage, Renewable Energy Storage and others. According to Distributed Energy Storage Market report of IndustryARC, Distributed Energy Storage market size for transportation is analysed grow at a CAGR of 9.65% during 2022-2027, owing to increasing adoption of electric mode of transportation. According to the Global EV Outlook 2020 report published by International Energy Agency, 2.1 million electric cars were sold globally in 2019. Such growth affects the distributed energy storage market positively.
The increasing investments for environment friendly e-vehicles, government’s initiative to promote the adoption of EVs to improve the environment by reducing the pollution level caused by vehicles is creating demand for batteries, especially lithium-ion batteries, which has high energy density, high EE, high storage capacity and longer life cycle, low maintenance and cost effectiveness. This in turn, creates a positive impact on the demand of Distributed Energy Storage technology for transportation, thereby driving the growth of this market during 2022-2027.
Distributed Energy Storage Market Segment Analysis - By Geography
APAC dominated the market with around 33% Distributed Energy Storage market share in 2021, and is estimated to grow at a CAGR of around 10.42% during the forecast period 2022-2027, due to the increasing demand for electricity, and growing investment for renewable energy projects along with rise in purchasing power. A report from IEA, India energy outlook 2021 shows that, Indian residential sector will witness a growth in electricity consumption, from around 1000 kWh per household in 2019 to 1500 kWh in 2030, due to the growth in disposable income of people in this country. Such growth in electricity demand influences the adoption rate of distributed energy storage system positively. Similarly, In July 2020, the Neyveli Lignite Corporation (NLC) India Limited announced about the confirmation of commissioning of a 20MW solar power project integrated with 8MWh BESS by the electricity department of Andaman and Nicobar.
Such projects related to the renewable energy sources and energy storage systems is enhancing the growth. Apart from that, urbanization, industrialization and increasing requirement for electrification in remote areas are the key factors behind the growth of this market in this region. Furthermore, increasing environmental awareness among the people plays a major role in the growth of this market. According to a report of International Energy Agency (IEA), published on January 2020, alone in India, solar PV capacity can reach approximately 800 GW by the year 2040, which will ultimately reduce the power related CO2 emissions and air pollution. This type of developments will fuel the deployment rate of distributed energy storage system. Hence, the above-mentioned factors are poised to create tremendous growth opportunities for APAC Distributed Energy Storage System Market from 2022 to 2027.
Distributed Energy Storage Market Drivers
Distributed Energy Storage Market Drivers
Rising Usage and Investments towards Renewable Energy is driving the growth of this market
Growing investment towards renewable energy is one of the major driving factors behind the growth of distributed energy storage market. Nowadays most of the countries are relying and investing heavily on renewable energy sources to produce electricity, which creates huge demand for distributed energy storage technology, as it helps to store the excess energy generated from renewable sources for use during peak demand. In April 2021, ACEN announced about their investment plan for the development of solar, wind and Battery Energy Storage System (BESS) projects, in order to increase its renewable energy portfolio. Similarly, ACEN has already invested in BESS through its renewable energy laboratory in Mariveles, Bataan and this facility is going to test various technologies in solar and battery energy storage system. Therefore, these types of investments towards renewable energy and its high usage rate will fuel the adoption rate of distributed energy storage system in the forecast period 2022-2027.
Increasing demand for grid storage systems will fuel the growth:
The growth of distributed energy storage market is significantly driven by the rising demand for grid storage systems for storing the energy generated from various sources. Weather changes, wind fluctuations and other reasons, lead to a variation in the amount of energy generation, which leads to growing requirement for the grid storage systems in order to store the energy. Distributed energy storage system helps the grid to store the excess generated electricity, which can be used while facing an electricity deficiency.
The adoption of these storage systems offers better reliability and greater flexibility in terms of generation, transmission and distribution of electricity. Hence, the above-mentioned factors drive the adoption of these distributed energy storage systems, thereby fuelling the growth of the market during the forecast period 2022-2027. In June 2020, Broad Reach Power made an announcement regarding its plan of building 15utility-scale battery storage plant sites in areas near Houston and Odessa in Texas by the end of 2020 and each site will be capable of storing and distributing up to 10MW of power. Such developments will drive the growth of this market.
Distributed Energy Storage Market Challenges
Thermal Runaway and High capital investment are harming the growth of this market
All though the Distributed Energy Storage market is growing rapidly, but the thermal runaway issue of batteries is creating hurdles for the growth of this market. Thermal runaway is a major risk for Li-ion battery, which is a major challenge for battery energy storage system market. The major reasons behind this thermal runaway are internal cell defects, mechanical failures or damage or excess voltage, which leads to high temperatures, build-up of gas and potential explosive rupture of the battery cell, resulting in fire or explosion.
If not disconnected, thermal runaway can spread from one cell to other, causing more damage. This challenge is poised to impede the distributed energy storage system markets growth during the forecast period 2022-2027. Apart from that, this market requires huge amount of capital investment for manufacturing such system. Hence, the above-mentioned factor will hamper the growth of this market during the forecast period 2022-2027.
Distributed Energy Storage Industry Outlook
Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Distributed Energy Storage Market. As of 2021, the market for Distributed Energy Storage industry outlook is consolidated with the top market players.
Distributed Energy Storage top 10 companies are
In October 2020, Energy storage technology provider and system integrator Fluence acquired the California based company, Advanced Microgrid Solutions, known for its artificial intelligence (AI)-driven optimisation software platform for energy storage and flexible generation assets. This acquisition will combine digital intelligence platform of AMS with the sixth-generation battery storage hardware of energy storage company, to allow asset owners to halve their investment payback time from six years to three.
In May 2020, Northvolt launched Voltpack Mobile System, a new lithium-ion battery energy storage solution. It’s a zero-emission alternative, which can replace the diesel generators. This product will act as a modular power supply solution that can be used to meet the energy and power requirements of a wide range of market scenario including powering remote electricity grids, reinforcing weak grids, offering support to EV charging and delivering various other grid services such as balancing power, flexibility, or other ancillary services.
Buynow @ https://www.industryarc.com/purchasereport.php?id=19378
In September 2020, the Tennessee Valley Authority acquired its first grid scale, battery energy storage system, which is installed in Vonore, Tennessee, near an industrial complex and is estimated to be active by year 2022.
Relevant Report Titles:
Flywheel Energy Storage Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026
Report Code: EPR 51307
Distributed Energy Resource Management System Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026
Report Code: EPR 71129
For more Energy and Power related reports, please click here
- ABB Ltd
- General Electric
- NEC Energy Solutions
- Siemens AG
- Schneider Electric SE
- Johnson Controls
- MCV Energy
- Emerson Electric Co.
- Advanced Control Systems
- Opus One Solutions
In October 2020, Energy storage technology provider and system integrator Fluence acquired the California based company, Advanced Microgrid Solutions, known for its artificial intelligence (AI)-driven optimisation software platform for energy storage and flexible generation assets. This acquisition will combine digital intelligence platform of AMS with the sixth-generation battery storage hardware of energy storage company, to allow asset owners to halve their investment payback time from six years to three.
In May 2020, Northvolt launched Voltpack Mobile System, a new lithium-ion battery energy storage solution. It’s a zero-emission alternative, which can replace the diesel generators. This product will act as a modular power supply solution that can be used to meet the energy and power requirements of a wide range of market scenario including powering remote electricity grids, reinforcing weak grids, offering support to EV charging and delivering various other grid services such as balancing power, flexibility, or other ancillary services.
Buynow @ https://www.industryarc.com/purchasereport.php?id=19378
In September 2020, the Tennessee Valley Authority acquired its first grid scale, battery energy storage system, which is installed in Vonore, Tennessee, near an industrial complex and is estimated to be active by year 2022.
Relevant Report Titles:
Flywheel Energy Storage Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026
Report Code: EPR 51307
Distributed Energy Resource Management System Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026
Report Code: EPR 71129
For more Energy and Power related reports, please click here
Comments
Post a Comment