Stationary Energy Storage Market Size, Share & Industry Analysis, By Type (Pumped Hydro Storage, Lithium-ion Batteries, and Others), By End-User (Residential, Commercial & Industrial, and Utility), and Regional Forecast, 2024-2032

The global stationary energy storage market size was valued at USD 75.66 billion in 2023 and is projected to grow from USD 90.36 billion in 2024 to USD 231.06 billion by 2032, exhibiting a CAGR of 12.45% during the forecast period. Asia Pacific dominated the stationary energy storage industry with a market share of 54.42% 2023.

Stationary energy storage refers to the quantum state of capturing energy produced at one time for use at a later time, particularly during power failures or periods of peak demand. This technology is essential for ensuring a reliable energy supply as it allows stored energy to be dispatched when production from other sources is insufficient. Various types of stationary energy storage systems, such as Battery Energy Storage Systems (BESS), pumped hydro storage, Compressed Air Energy Storage (CAES), hydrogen storage, and others are being installed worldwide. These systems offer several advantages, including improving grid stability, boosting energy efficiency, and enabling better integration of renewable energy. They achieve this by storing excess energy during periods of high production and releasing it as needed to balance supply and demand.

The COVID-19 pandemic negatively impacted the stationary energy storage market. The temporary shutdown of commercial and industrial activities, coupled with workforce shortages in power plants caused by the imposition of lockdowns and government regulations, led to a downfall in the demand for electricity, further affecting the market growth.

Stationary Energy Storage Market Trends

Rapid Technological Advancement in Battery Storage to Propel Market Expansion

The rapid development of clean energy solutions worldwide is one of the market trends that has led to considerable technological development in stationary energy storage systems in recent years. Technological advancements, particularly in lead acid, lithium-ion batteries, and flow batteries, have led to significant improvements in energy density, life cycle, and safety. These enhancements have resulted in a surge in the deployment of these batteries across the globe. For instance, in March 2024, ENGIE received approval from the National Electricity Coordinator (CEN) to start its commercial operations at BESS Coya, Chile, and the largest battery energy storage system in Latin America. Located in the Antofagasta region, the facility has a storage capacity of 638 MWh and an installed power of 139 MW. It uses lithium battery technology to store renewable energy from the nearby Coya PV solar plant, which has a power generation capacity of 180 MWac. Additionally, innovations in flow batteries, such as vanadium redox flow batteries, coupled with the use of advanced materials, such as nanomaterials and graphene, will further enhance their performance and longevity.

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Stationary Energy Storage Market Growth Factors

Expansion of Renewable Energies to Increase Installation of Stationary Energy Storage

The rise in carbon emissions and need for energy-efficient solutions have led to the robust installation of renewable energy-based power plants across the globe. As per the International Renewable Energy Agency (IRENA) report for 2024, the global renewable power generation capacity reached 3,870 GW in 2023, accounting for 86% of new capacity additions. The governments of various nations worldwide have set individual targets for raising the share of renewable power generation in the energy mix to cater to the problem of carbon emissions. The new Renewable Energy Directive EU/2023/2413 has increased the EU's 2030 renewable energy target to at least 42.5%, up from 32%, with a goal of reaching 45%. The directive took effect in all EU countries on November 20, 2023. The generation of renewable power, mainly solar and wind, often faces the problem of intermittency, which poses a significant challenge to grid stability and reliability. Therefore, to address this problem, stationary energy storage systems are being increasingly used for storing surplus energy produced during high renewable power generation and releasing it when production is low, ultimately balancing the supply and demand.

Expansion of Off-grid or Mini-grid Energy Infrastructures to Enhance Market Growth

Off-grid energy systems, which are designed to operate independently from the main electrical grid, are gaining traction in remote locations or for supplying emergency power during power cuts in residential, commercial, and industrial spaces. These systems depend on diverse methods, including solar panels, wind turbines, hydropower systems, and diesel generators, for power generation. Energy storage is one of the important components of the infrastructure that ensures a reliable power supply during periods when renewable sources are inactive, such as nighttime for solar panels, calm days for wind turbines, and peak demands. This has led to the development of different types of battery energy storage systems, such as lithium-ion, lead-acid, flow batteries, and others. Additionally, hydrogen storage is emerging as a promising solution, where excess electricity is used to produce hydrogen through electrolysis. This hydrogen is then stored and later utilized in the form of electricity using fuel cells. Hence, energy storage systems are being installed at a rapid pace at off-grid locations to maintain a continuous power supply and achieve grid independence, further fueling the stationary energy storage market growth.

RESTRAINING FACTORS

Negative Decomposition Impacts of Batteries to Restrain Market Growth

The manufacturing of BESS, particularly the lithium-ion type, involves mining for raw materials, such as lithium, cobalt, and nickel, which poses substantial environmental risks. Mining operations lead to habitat destruction, water pollution, and high carbon emissions. For instance, lithium extraction requires large amounts of water, which can deplete local water resources and harm surrounding ecosystems. Cobalt mining, often concentrated in regions with weak environmental regulations, can result in toxic waste and pollution.

Furthermore, the disposal and recycling of batteries after their life cycle presents more challenges to the market. Improper disposal of used batteries leads to soil and water pollution caused by the release of hazardous components, such as heavy metals and electrolytes. Recycling processes for batteries are complex and not yet widely implemented, leading to a significant amount of battery waste ending up in landfills. Hence, the production process and disposal of the battery can restrain the global stationary energy storage market share.

Stationary Energy Storage Market Segmentation Analysis

By Type Analysis

Pumped Hydro Storage Dominated Market Owing to Its High Efficiency and Large Storage Capability

The market is segmented by type into pumped hydro storage, lithium-ion batteries, and others. The pumped hydro storage segment held a dominant share of the market for a long time. Its high efficiency, large-scale storage capability, and longer operational lifespan compared to other storage technologies have resulted in its greater market share.

The lithium-ion batteries segment is projected to grow significantly in the market owing to their growing deployment in the residential, commercial, and industrial sectors, apart from the utility sector. Installing a lithium-ion stationary energy storage system also incurs lower procurement and installation costs compared to other storage systems, further resulting in the growth of the segment.

By End-User Analysis

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Utility Segment Holds Dominant Market Share Due to Strong Support to Renewable Energy Power Plants

By end-user, the market is categorized into residential, commercial & industrial, and utility. The utility segment dominates the market with the largest share, driven by large-scale grid stabilization efforts and increasing renewable integration projects. The solar and wind energy projects often require a power backup system to supply electricity during intermittency, leading to the growth of lithium-ion battery installations.

The residential segment is anticipated to expand at the fastest rate due to the rising demand for emergency power back-ups during power outages. The battery energy storage system has been an ideal renewable energy solution for providing power during emergencies in these areas. The growing installation of solar energy in the residential sector is also augmenting the deployment of battery storage systems in the residential sector, further leading to the segment’s growth.

REGIONAL INSIGHTS

Based on geographical presence, the market is studied across North America, Europe, Asia Pacific, and the rest of the world.

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Asia Pacific holds the major market share and is projected to grow at the fastest rate owing to the rapid rise of energy storage projects in China, Australia, the Philippines, and other countries. Moreover, the rising installment of renewable power sources are also contributing to the demand for energy storage solutions to provide power during peak demand and intermittency.

North America holds a considerable share of the market due to the rapid transition toward cleaner energy sources, such as solar and wind energy. The growing investment in energy storage and grid modernization is also playing a key role in the development of the region.

Europe also holds a notable share of the market due to the growing installation of solar and wind power projects. The government's commitment to achieving carbon neutrality by 2050 is also contributing to the growth of renewable energies, further propelling the regional market growth.

The rest of the world is growing due to the increasing number of electrification programs for expanding electricity in rural and remote areas. The growing construction of new cities and rising residential & commercial sectors in various regions are necessitating the expansion of power grids, further providing an opportunity for the deployment of stationary energy storage systems.

KEY INDUSTRY PLAYERS

Focus on Developing Renewable Energy Sector to Fortify Market Position

Samsung SDI, Tesla, Panasonic, Siemens, and others are some of the key players in the global stationary energy storage market. These companies have indulged in continuous research & development to increase the performance of the stationary energy storage system, leading to the growth of their revenues. Siemens is one of the leading companies in this market, providing a scalable energy storage product portfolio like BESS and Compressed Air Energy Storage (CAES) designed for different applications, including grid stabilization, renewable energy integration, and industrial power backup. Siemens is also exploring hydrogen as a storage medium through its “Hydrogen Solutions” initiative, which includes production, storage, and distribution processes. Moreover, it is engaged in partnerships with energy companies and utilities to develop integrated energy storage projects. These partnerships involve implementing Siemens’ technology in third-party systems. For instance,

• In November 2023, Corre Energy BV announced a partnership with Siemens Energy AG to use Siemens' technology for its Compressed Air Energy Storage (CAES) project in West Texas, U.S.

LIST OF TOP STATIONARY ENERGY STORAGE COMPANIES:

• BYD (China)


• Samsung SDI (South Korea)


• Tesla (U.S.)


• Panasonic Corporation (Japan)


• LG Energy Solution (South Korea)


• GE Vernova (U.S.)


• ABB (Switzerland)


• Hitachi Energy (Japan)


• Honeywell (U.S.)


• Siemens (Germany)


• Toshiba Corporation (Japan)


• CATL (China)


• NGK Insulators (Japan)


• VRB Energy (Canada)


• Mitsubishi Heavy Industries, Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• August 2024 - Catalyze launched its first standalone BESS project in the Bronx, New York, U.S., claiming it to be one of the first MW-scale BESS projects fully approved under New York City's new permitting process. The project includes four Tesla MegaPacks with a total capacity of 4.29 MW/8.58 MWh.


• April 2024 - CATL unveiled TENER, the world's first mass-producible energy storage system with zero degradation for the first five years, in Beijing, China. TENER offers comprehensive safety and a robust 6.25 MWh capacity, aiming to boost the adoption of new energy storage technologies and advance the sector’s quality.


• January 2024 - Independent power producer Grenergy signed a strategic agreement with BYD to supply 1.1 GWh of battery energy storage systems for the Oasis de Atacama project in Chile's Atacama Desert. The first batch of batteries is part of a massive USD 1.4 billion solar-plus-storage project featuring a planned total of 4.1 GWh of batteries and 1 GW of solar capacity. Grenergy touts Oasis de Atacama as the world’s largest storage project.


• December 2023 - Gurin Energy Pte Ltd., a Pan-Asia renewables platform, announced plans to build and operate a 500-MW/2-GWh battery in Japan, marking its entry into the country's energy storage market. The project will feature the largest Battery Energy Storage System (BESS) in Japan, with a four-hour discharge capacity. The investment is estimated at approximately USD 633.4 million.


• October 2023 - Siemens Energy announced the delivery of Ireland's first hybrid grid stabilization and large-scale battery storage plant at Shannonbridge to manage the increasing energy demand. This marks the first time these two technologies have been combined in a single grid connection, enhancing grid stability and renewable energy use. Siemens Energy will provide a synchronous condenser with a flywheel, delivering around 4,000MWs of inertia to the system.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and top applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors listed above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation