About Large Scale Battery Storage
Large-scale stationary storage systems ("front-of-the-meter storage") can be used as short-term storage systems to quickly connect large amounts of renewable energy to the power grid. They can also be used to increase power grid transmission capacities, reducing the need for grid expansion. Large-scale storage systems equipped with grid-forming converters will play an important role in the future dynamic stabilization and control of power grids. To take over the grid-forming tasks (voltage and frequency control) currently performed by conventional must-run power plants, large-scale storage systems will be required. These storage systems can also temporarily store large amounts of surplus renewable electricity, which can then be fed back into the grid at a profit when demand is high.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 3.4% |
To entice more end users, market players are focusing on providing large-scale battery storage of higher quality while adhering to all regulatory standards. In the global large-scale battery storage market, there are numerous large and small-scale manufacturers. They are also concentrating on the implementation of numerous advanced technologies. Furthermore, the numerous industry profits have led to the entry of new players, raising the level of rivalry in an already competitive market. The large-scale battery storage market is currently expanding due to the increasing number of technological advancement in EV and Renewable energy storage. Some of the key players in this market follow strategies, which include new product offerings, product approvals, partnerships and alliances, mergers and acquisitions, and business expansions. Analyst at AMA Research estimates that Fragmented Manufacturers will contribute the maximum growth to Global Large Scale Battery Storage market throughout the forecasted period. Established and emerging Manufacturers should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
LG Chem (South Korea), Samsung (South Korea), Panasonic (Japan), Fluence (United States), Tesla (United States), BYD Company (China), ABB (Switzerland), GE (United States), GS Yuasa (Japan) and Toshiba (Japan) are some of the key players that are part of study coverage. Additionally, the Manufacturers which are also part of the research coverage are Saft (France), S&C Electric (United States), NGK Insulators (Japan), Sumitomo Electric Industries, Ltd. (Japan), Mitsubishi Electric Corp. (Japan) and Hitachi Ltd. (Japan).
Segmentation Overview
AMA Research has segmented the market of Global Large Scale Battery Storage market by Type (Lithium-Ion, Lead Acid and Others), Application (Arbitrage, Renewable Integration, Ancillary Services and Others) and Region.
On the basis of geography, the market of Large Scale Battery Storage has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Ownership, the sub-segment i.e. Third-Party Owned will boost the Large Scale Battery Storage market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Changing Consumer Preference for Renewable Energy Sources Due to Climate Change has Been Contributing towards Market Growth.
Market Growth Drivers:
The Technological Advancement and Rising Adoption of EV and Solar Energy have Been Driving the Market Growth.
Challenges:
High Installation Cost
Restraints:
Lack of Rules and Regulations to Clarify the Role of BESS
Opportunities:
Growing Technological Advancement in Battery Storage Technology Will Bring More Opportunities in the Market.
Market Leaders and their expansionary development strategies
In July 2022, Panasonic Energy Co., Ltd., a Panasonic Group company, and Kansas Gov. Laura Kelly jointly announced that the state of Kansas has approved an Attracting Powerful Economic Expansion (APEX) state incentive application submitted by Panasonic Energy Co., Ltd. The agreement would make the state the location for a proposed US-based lithium-ion battery manufacturing facility, pending approval by Panasonic Holdings Corporation Board of Directors.
In May 2022, Danish-owned Danfoss India recently opened India’s first privately owned and operated grid-scale battery-based Energy Storage System (ESS) at its Oragadam campus in Chennai to store the excess energy generated by renewables (solar power plant) installed inside the campus. The ESS has been engineered using Danfoss’ sustainable Drives technology.
Although storage may be technically capable of providing essential grid services, utilities and market operators may be unwilling to procure services from BESS if no regulations or guidelines explicitly state that storage can provide these services. Furthermore, storage developers and financing institutions may be unwilling to make the necessary capital investments if there is no guarantee that the services provided by a BESS project will be compensated. Order 841 of the Federal Energy Regulatory Commission (FERC) addressed this issue in wholesale markets in the United States and directed market operators to develop rules governing storage's participation in energy, capacity, and ancillary service markets. Among other things, the rules must ensure open and equal market access for storage systems, taking into account their unique operating and technical characteristics.
Key Target Audience
Battery Manufacturers, New Entrants and Investors, Venture Capitalists, Government Bodies, Corporate Entities, Government and Private Research Organizations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.