Energy Storage Converter Market Size, Share, and Industry Analysis, By Voltage Type (Less than 500KW, 500KW-1MW, and Above than 1MW), By Application (Power Station, Industrial Application, and Others), and Regional Forecast, 2024-2032

An energy storage converter is a kind of electronic power equipment used to realize the storage and release of electric energy. It is widely used in renewable energy power generation, power system stabilization, microgrids, and electric vehicles. These converters are used mainly in renewable energy systems, electric vehicles, industrial applications, and power systems. Renewable energy sources such as wind and solar are alternating, which means the change in weather impacts the generation of energy.

Energy storage converters help to store the energy produced during the peak generation period and help to use it during the low generation period. The growing technological advancements are increasing the use of energy storage converters for innovations spanning various areas, including materials, manufacturing processes, and digital technologies. Mastering these key technologies can realize the efficient, stable, and reliable operation of energy storage converters and provide high-quality power conversion services for various application scenarios.

• Europe's largest battery storage system has been launched in East Yorkshire. It can store enough energy to power around 300,000 homes for two hours, says Harmony Energy, the company behind the project. The renewable energy expert believes that the system will play an important role in the transition to net zero, which will ensure Britain's future energy security and reduce its dependence on foreign gas imports. Energy storage projects are essential to Europe's transition away from fossil fuels as they aim to avoid the worst of the climate crisis.

The hindering factor for energy storage systems is the upfront capital costs associated with energy storage converter systems, including equipment installation and infrastructure, which are expensive, especially for large-scale projects. Energy storage projects, especially innovative or first-of-a-kind installations, require high capital costs, which restrains market growth.

The global energy storage converter market was negatively affected by the outbreak of the COVID-19 pandemic. The break in the operation of various industries due to the disruption in the supply chain and imposition of lockdown led to the downfall of the economy of several countries. Degrading macroeconomic conditions across nations and lacking required capital among customers are key problems affecting market trends. 

KEY INSIGHTS

The report includes the following key findings:

• Recent Advancements in the Energy Storage Converter Market


• Key Industry Trends


• Regulatory Landscape in the Energy Storage Converter Market


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY VOLTAGE TYPE

By voltage type, the global energy storage converter market is segmented into less than 500KW, 500KW-1MW, and above than 1MW. The less than 500KW segment is used for commercial and industrial applications. Less than 500KW provides grid services such as load shifting, frequency regulation, and voltage support. These smaller-scale solutions offer flexibility, affordability, and localized benefits to users and contribute to the overall resilience and sustainability of energy systems.

The 500KW-1MW segment is expected to be the fastest-growing segment in the forecast period. It is used in various applications such as grid stability, renewable energy integration, peak shaving, and backup power. 1 MW energy storage converters are essential for modern energy systems that require higher energy capacity to enable demand management and ensure a reliable power supply across various applications.

ANALYSIS BY APPLICATION

Based on application, the global energy storage converter is segmented into power stations, industrial, and others. Energy storage converters are used for distributed power generation systems, such as wind and solar power, to ensure the balance and continuity of the distributed energy source, improve its energy quality, and improve the ability to connect to the power grid. It is suitable for frequency control and voltage power factor correction, which improves the stability of system operation. Energy storage converters are used in various industrial applications and offer benefits such as peak shaving, demand management, backup power, and grid stability.

REGIONAL ANALYSIS

By region, the global electricity and energy storage converter market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

North America is expected to dominate the global market share over the forecast period due to increasing solar and wind projects in the region that are positively influencing the market for energy resilience. The demand for renewables has generated incredible momentum for new projects and energy storage and boosted existing portfolios.

Europe is expected to become the fastest-growing region for the energy storage converter market in upcoming years owing to the presence of key industry players. Energy Storage Solutions (E22) manages one of the most important energy storage projects in the region. This 100 MWh system contributes to the regulation of the electricity network in Balen (Belgium). Gransolar's energy storage division has been responsible for the construction, supply, installation, commissioning, and maintenance of this facility for ten years, strengthening its position in the European market after developing battery projects in Australia, the U.S., and Spain, among others.

The Asia Pacific market is expected to grow during the forecast period. The demand for energy storage converters will increase due to growing industrialization and urbanization. Key emerging countries such as China, India, and Japan are growing rapidly due to the increasing solar and wind projects. Projects related to wind and solar energy will increase the use of energy storage converters.

Latin America and the Middle East & Africa markets are expected to boost market growth due to government initiatives focused on renewable energy sources. Rapid expansion for renewable energy will increase the use of energy storage converters.  

KEY PLAYERS COVERED

The report includes the profiles of key players such as ABB, Nidec Corporation, Sungrow Power Supply Co., Ltd, Johnson Control, Parker Hannifin, Delta Electronics Inc., HNAC Technology Co., Ltd., Destin Power Inc., Jiangsu Linyang Energy Co. Ltd., and China Greatwall Technology Group Co., Ltd.

KEY INDUSTRY DEVELOPMENTS

• In December 2023, ABB signed an agreement with U.K.-based gravity energy storage firm Gravitricity to explore how hoist expertise and technologies can accelerate the development and implementation of gravity energy storage systems in former mines. Gravitricity developed GraviStore, an innovative gravity energy storage system that raises and lowers heavyweights in underground shafts to offer some of the best characteristics of lithium-ion batteries and pumped hydro storage.

In December 2023, Nidec announced its selection by Gore Street Energy Storage Fund PLC (GSF) as the Engineering, Procurement, and Construction (EPC) contractor to supply and service a battery energy storage system (BESS) as part of ongoing efforts to support Texas energy grid. The 75 MW project for a one-hour energy storage system will total 75 MWh of energy. It will include Nidec's ES1500 Power Conversion System (PCS) as well as an operation and maintenance contract.