Energy Storage System (ESS) Market Size, Share, Trend Analysis and Forecast by Technology (Electromechanical, Electrochemical, and Thermal Storage), End-Use and Region to 2026
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Energy Storage System Market Overview
The Energy Storage System (ESS) market size will be valued at US$ 73.5 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% over the forecast period. 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.
Energy Storage System Market Outlook, 2022-2026 ($ billion)
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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.
The 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.
Market Size (2023) | US$ 73.5 billion |
Market Size (2026) | US$ 113.9 billion |
CAGR | 13.0% from 2022 to 2026 |
Forecast Period | 2022-2026 |
Historic Data | 2019-2021 |
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 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 Segmentation by Technology
Electromechanical, electrochemical, and thermal storage are the key energy storage system technology. The electromechanical technology segment dominated the overall market share in terms of volume as well as revenue in 2023. 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, 2023 (%)
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In addition to this, the electrochemical technology segment is expected to showcase the highest compounded annual growth rate of more than 19% in terms of revenue from 2022-2026. The growth is attributed to the reduction in its raw material cost and the strong boost from a regulatory perspective. The development of electrochemical energy storage systems with larger efficiency and reduced cost is expected to emerge as the major trend over the coming years. 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.
Energy Storage System Market Segmentation by End-Use
The three key end-use segments of energy storage system 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 2023.
Energy Storage System Market Share by End-Use, 2023 (%)
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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 2022 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.
Energy Storage System Market Analysis by Region
Asia-Pacific region emerged as the largest regional market in terms of volume as well as revenue in 2023, 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 2023. The country has witnessed rapid deployment of ESS technology especially post pandemic era.
Asia-Pacific ESS Market Share by Country, 2023 (%)
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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 2023. The U.S. is anticipated to drive regional market growth over the near future, with strong fiscal and regulatory investment in the 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 industry over the predicted timeline.
EMEA region comprising Europe, Middle East & Africa is likely to witness slower market growth for energy storage system as compared to its counter parts. The lower regional growth rate can be attributed to the geopolitical tensions in the region including Russia-Ukraine War, Brexit, and tensions in Middle East region. However, particularly in the EU region, the industry experts suggest that the growth is likely to be sustained with regulatory policy incentives and increased focus to reduce oil and gas dependence from Russia.
ESS 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 ESS 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 ESS 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 ESS 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.
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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
GE Renewable EnergyLG 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
Table of Contents
Table
Figures
Frequently asked questions
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What was the ESS market size in 2023?
The ESS market size was valued at $ 73.5 billion in 2023.
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What is the ESS market growth rate?
The ESS market is expected to grow at a CAGR of 13.0% during the forecast period (2022-2026).
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What are the key ESS market drivers?
The reduction in the raw material cost for ESS based solutions particularly the electrochemical technology is driving the market growth.
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What are the key ESS market segments?
Technology Segments: Electromechanical, Electrochemical, and Thermal Storage
End-Use Segments: Grid-Scale, Commercial & Industrial, and Residential
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Which are the leading ESS companies globally?
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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Is there a third level of segmentation in the report?
GlobalData’s focus is on providing reliable and accurate data that is supported by robust research methodology. Our reports undergo rigorous quality checks and are based on primary and secondary research sources, ensuring that the numbers and insights provided are trustworthy.
However, despite the best efforts to gather comprehensive data, there could be instances where the available data is limited, making it challenging to provide third level segmentation. In such cases, GlobalData may choose to provide high-level insights and general trends rather than forcing segmentation that may not be backed by sufficient data. This approach ensures that the report’s overall quality and credibility are maintained.
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