Energy Storage System (ESS) Market Size, Share, Trend Analysis and Forecast by Technology (Electromechanical, Electrochemical, and Thermal Storage), End-Use and Region, 2021-2026
Energy Storage System Market Overview
The Energy Storage System market size was valued at US$ 61.9 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% during 2021-2026. The demand for energy storage solutions has observed tremendous growth post-pandemic era owing to the falling prices of the technology and increased awareness towards clean energy systems.
However, this industry comes with its own challenges which are not just limited to supply chain issues but also include cost perception in price-sensitive markets and limited regulatory incentives. Nonetheless, the situation is evolving rapidly wherein developed as well as developing country governments are forming new regulatory policies to promote the deployment of ESS on a larger scale. For instance, in the U.S., the recently passed Inflation Reduction Act (IRA) 2022 is projected to directly aid the market growth of clean energy technologies over the near future.
Energy Storage System Market Overview, 2021 ($ Billion)
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According to GlobalData estimates, the global ESS market will grow from US$ 61.9 billion in 2021 to US$113.9 billion in 2026 at a CAGR of 13.0% from 2021 to 2026. This industry observed favorable growth over the last two years and is projected to witness rapid development over the forecast period. The key driver for the aforesaid growth is increasing emphasis to develop and scale up renewable systems and reduce the reliance on traditional fossil fuel-based electricity.
ESS Technology Insights
Energy storage system technology segment comprises of electromechanical, electrochemical, and thermal storage. Among these, electromechanical technology segment dominated the overall market share in terms of volume as well as revenue in 2021. This segment is anticipated to continue its dominance over the forecast period.
In addition, electromechanical technology segment is clearly the most developed technology, representing for more than 90% of the energy storage industry, followed by electrochemical and thermal storage.
Energy Storage System Market Analysis by Technology, 2021 (%)
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In addition to this, the electrochemical technology segment is poised to showcase the highest compounded annual growth rate of nearly 20% in terms of revenue from 2021 to 2026. This technology segment is largely driven by the reduction in its raw material cost and a strong boost from a regulatory perspective. The development of electrochemical energy storage systems with larger efficiency and reduced cost is projected to emerge as the key market trend over the near future. For instance, in August 2022, a group of researchers from MIT developed a new battery system made from aluminum and sulfur which offers low-cost backup as compared to the existing battery storage systems.
ESS End-Use Insights
The three key end-use segments of energy storage systems cover grid-scale, commercial & industrial, and residential users. Among these end-use segments, the grid-scale is projected to dominate the overall energy storage market share in terms of volume as well as in revenue in 2021. This end-use segment captured a total volumetric market share of more than 88% in 2021.
Energy Storage System Market Analysis by End-Use, 2021 (%)
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The residential end-use segment is projected to drive market growth over the forecast period. This segment has observed rapid development especially in countries like Germany, China, and India. The countries above are projected to invest heavily in this segment to enhance their energy self-reliance and reduce their energy import dependence. The residential end-use category is likely to showcase a compounded annual growth rate of over 18% from 2021 to 2026.
Lastly, the commercial & industrial end-use segment is expected to witness slowest growth as compared to its counterparts. Reason being that perception surrounding energy storage system technology cost especially in the developing countries continue to hinder its deployment at a mass level. However, with the assistance of solid policy framework and additional incentives, this challenge can be overcome over the forecast period.
ESS Regional Insights
Asia-Pacific region emerged as the largest regional market in terms of volume as well as revenue in 2021, capturing over 40% of the overall market size. China is projected to emerge as the regional growth engine with a market volumetric share of more than 49% in 2021. The country has witnessed the rapid deployment of ESS technology especially post pandemic era. For instance, as per the report published by the China Energy Storage Alliance (CNESA), the country witnessed a growth of nearly 30% on year-on-year basis in 2021.
Asia-Pacific ESS Market Analysis by Country, 2021 (%)
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North America is projected to emerge as the second largest region, accounting for a revenue market share of over 34% in 2021. The U.S. is anticipated to drive regional market growth over the near future, with strong fiscal and regulatory investment in clean energy technologies. The recently passed Inflation Reduction Act (IRA) 2022 by the U.S. government is likely to boost the avenues for the energy storage system market over the predicted timeline.
EMEA region comprising Europe, the Middle East & Africa is likely to witness slower market growth for energy storage systems as compared to its counterparts. The lower regional growth rate can be attributed to the geopolitical tensions in the region including Russia-Ukraine War, Brexit, and tensions in the Middle East region. However, particularly in the EU region, industry experts suggest that the growth is likely to be sustained with regulatory policy incentives and increased focus to reduce oil and gas dependence on Russia.
ESS Company Market - Competitive Landscape
The overall competitive landscape for global energy storage system market is still under developing phase with key market participants emerging from China, South Korea, Japan, US and Europe. The industry is observing strong inflow of mergers and acquisitions especially post pandemic era. Key players in the energy storage system market include, GE Renewable Energy, LG Energy Solutions, SAMSUNG SDI CO.,LTD., BYD Co Ltd, Contemporary Amperex Technology Ltd, etc. among others.
Leading Players in the Energy Storage System Market
- GE Renewable Energy
- LG Energy Solutions
- SAMSUNG SDI CO.,LTD.
- NGK Insulators Ltd
- BYD Co Ltd
- Saft
- Amber Kinetics, Inc.
- Voith GmbH & Co. KGaA
- Contemporary Amperex Technology Ltd
- CALMAC
The presence of automotive giants like Tesla particularly in the electrochemical technology segment is projected to set precedence for the OEMs to enter and secure their supply chain. The market is still under development phase particularly for the aforementioned technology segment and is likely to mature by 2030.
Other Energy Storage System Market Vendors Mentioned
ANDRITZ, Hydrostor Inc., MAN Energy Solutions SE, VYCON, C&D TECHNOLOGIES, INC., Fluence, Narada, Abengoa, Brenmiller Energy Ltd., A123 Systems LLC, Sinexcel, Xtreme Power Inc., NextEra Energy, Inc. , Tesla, sonnenGroup , and Leclanché SA.
Energy Storage System Market Research Scope
| Market Size (2021) | US$ 61.9 billion |
| Market Size (2026) | US$ 113.9 billion |
| CAGR | 13.0% from 2021 to 2026 |
| Forecast Period | 2022-2026 |
| Report Scope & Coverage | Volume and revenue forecast, competitive index, company market share, growth trends |
| Technology Segment | Electromechanical, Electrochemical, and Thermal Storage |
| End-Use | Grid-Scale, Commercial & Industrial, and Residential |
| Key Regions | APAC, North America, EMEA |
| Key Companies | GE Renewable Energy; LG Energy Solutions; SAMSUNG SDI CO.,LTD.; NGK Insulators Ltd; BYD Co Ltd; Saft; Amber Kinetics, Inc.; Voith GmbH & Co. KGaA; Contemporary Amperex Technology Ltd; and CALMAC |
Energy Storage System Market Segments
ESS Market Technology Outlook (Value, $ Billion, 2021-2026)
- Electromechanical
- Electrochemical
- Thermal Storage
ESS Market End-use Outlook (Value, $ Billion, 2021-2026)
- Grid-Scale
- Commercial & Industrial
- Residential
ESS Market Regional Outlook (Value, $ Billion, 2021-2026)
- APAC
- North America
- EMEA
The market intelligence report provides an in-depth analysis of the following –
- ESS market outlook: analysis as well as historical figures and forecasts of revenue opportunities from the technology, end-use, and regional segments.
- The competitive landscape: an examination of the positioning of leading players in the ESS market.
- Company snapshots: analysis of the market position of leading service providers in the ESS market.
- Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
Reasons to Buy
- This market intelligence report offers a thorough, forward-looking analysis of the global ESS market by technology, end-use, and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in ESS markets.
- The report also highlights key technology segments (Electromechanical, Electrochemical, and Thermal Storage)
- The report also highlights key end-use segments (Grid-Scale, Commercial & Industrial, Residential)
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in ESS markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help energy and power sector stakeholders, service providers, and other ESS players succeed in growing the ESS market globally.
Key Players
Table of Contents
List of Tables
List of Figures
Frequently Asked Questions
The ESS market size globally was valued at US$61.9 billion in 2021.
The global ESS market is expected to grow at a CAGR of 13.0% during the forecast period (2021-2026).
The reduction in the raw material cost for ESS based solutions particularly the electrochemical technology is driving the market growth.
Technology Segments: Electromechanical, Electrochemical, and Thermal Storage
End-Use Segments: Grid-Scale, Commercial & Industrial, and Residential
The leading ESS companies are GE Renewable Energy; LG Energy Solutions; SAMSUNG SDI CO.,LTD.; NGK Insulators Ltd; BYD Co Ltd; Saft; Amber Kinetics, Inc.; Voith GmbH & Co. KGaA; Contemporary Amperex Technology Ltd; and CALMAC.
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