Grid-Scale Stationary Battery Storage Market Size, Share & Industry Analysis, By Battery (Sodium Sulphur, Lithium-ion, Lead Acid, Flow Battery, Others), By Grid-Service (Reduced Reliance on Diesel Gensets, Reduced RE Curtailment, Frequency Regulation, Black Start Service, Flexible Ramping, Energy Shifting & Capacity Deferral, Capacity Firming, Transmission and Distribution Congestion Relief) And Regional Forecast, 2024-2032

Battery Storage systems play a vital role in generating a relentless and steady power supply. It also evolves as one of the most important solutions for integrating effectively high shares of wind and solar renewables in power systems worldwide. They have applications in various industries delivering exceptional connectivity and energy storage. High-capacity batteries are installed as means of the backup source to deliver stability to the electrical grid and to supply power during power failures or power outages. Increasing usage of renewable energy sources worldwide coupled with stringent government policies to lower carbon emissions will propel product adoption during the forecast period.

Based on the battery, the market is segmented into sodium sulphur, lithium-ion, lead-acid, flow battery, and others. The lithium-ion battery is expected to dominate and hold a significant share in the market, owing to its improved life cycle as compared to lead-acid. Also, the low cost of these batteries is further expected to propel the segmental market. The sodium sulphur battery is expected to grow on account of safety features and high-temperature stability associated with these batteries, which makes them ideal for grid-scale applications. In addition, no self-discharge, quick response time, and high shelf life are other factors estimated to drive the market for sodium sulphur batteries.

Based on grid service, the market is segmented into reduced reliance on diesel gensets, reduced RE curtailment, frequency regulation, black start service, flexible ramping, energy shifting & capacity deferral, capacity firming, and transmission and distribution congestion relief. The black start services are expected to dominate and hold a significant share in the market. This is attributed to the increasing market demand for power system flexibility related to power outages or power system failures, which has boosted the demand for structured systems for the launching of black start. The flexible ramping segment is estimated to grow significantly over the forecast period due to the changing lifestyle and increasing population, which will increase the electricity demand, thus creating a necessity for reliable energy storage systems to deliver electricity to lower the fluctuations.

The major market driver for the grid-scale stationary battery storage market is the growing deployment of the renewable energy sector coupled with favorable government initiatives to reduce carbon emissions. Also, the continuing clean energy systems integration such as solar and wind require cost-effective technologies for different networks synchronizing, which is expected to propel the market growth. In addition, growing demand for electricity supply and grid stability further boost the market outlook.

The factor that is expected to inhibit the growth of the market is the volatile investment opportunities across some industrial sectors and lack of standardization. Due to this, investors find it difficult to invest the amount for grid-scale stationary batteries. Besides, the COVID-19 has delayed a wide range of projects, including energy storage and renewable integration, owing to massive disruption in supply chains, which further hampers the market growth of grid-scale stationary batteries.

Key Market Driver -

Growing deployment of renewable energy sector coupled with government initiatives.

Key Market Restraint -

Volatile investment opportunities and lack of standardization.

Key Players Covered:

• Some of the major companies that are present in the grid-scale stationary battery storage market are Johnson controls, Durapower, Uniper, Tesla, Furukawa Battery Co., Ltd., Hoppecke Batteries, Inc., Toshiba Corporation, Exide Technologies, LLC, Koninklijke Philips N.V., Panasonic, and A123 Systems. 

Regional Analysis:

The grid-scale stationary battery storage market has been studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific is expected to dominate and hold a major share in the market, owing to the increasing investments in expanding power generation capacities propelled with growing demand for electrification, majorly in rural areas. The continuing industrialization in countries such as China, India, and Japan has led to the increasing emphasis on grid stability and reliable electricity. In addition, the rise in efforts to lower the carbon footprint by upgrading renewable energy infrastructure will further boost the market growth.

North America is another major market for grid-scale stationary battery storage. The growth in the region is due to the increasing investment for the refurbishment of old grid networks with the increasing integration of renewable energy technologies. The U.S. holds a major share and dominates the regional market, as the country is one of the significant energy consumers for grid-scale storage battery systems. Also, various states in the country have separate emission reduction targets, thus positively enhancing the grid-scale stationary storage battery market. Positive growth in industrial sectors propelled with efforts in maintaining grid stability will further enhance the market outlook in the region.

Europe is expected to grow in an analyzed time frame, owing to the presence of major key players in the region. The growing concern for energy security coupled with continuing innovations to obtain greater energy efficiency will positively enhance the region's grid-scale stationary battery storage market share. Major countries contributing to the European market are U.K., Germany, France, Spain, and Italy.

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Segmentation

Key Industry Developments

• In August 2021, Reliance Industries Ltd. has announced an investment of USD 144 million in an energy storage company in Massachusetts, Ambri Inc. with Bill Gates and strategic investors Paulson & Co. Inc. with few other investors. Ambri’s longduration energy storage systems will break through the longevity, safety barriers, and cost associated with lithium-ion batteries utilized in grid-scale stationary storage applications.


• In July 2021, Tesla had successfully 85MW of solar and 1,274MWh of storage in the first two quarters of 2021. This increase in storage installs came majorly from various large-scale battery storage projects, while residential storage deployments also got doubled as compare to year-on-year growth.