GlobalData’s latest report, ‘Battery Energy Storage Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Drivers, Constraints, Key Players and Forecast, 2021-2026’, reveals that the global battery energy storage is estimated to grow to $10.84bn in 2026. Several factors could contribute to such growth; primarily, the fall in battery technology prices and the increasing need for grid stability and resilience of the integration of renewable power in the power market.

GlobalData’s latest report, ‘Battery Energy Storage Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Drivers, Constraints, Key Players and Forecast, 2021-2026’, reveals that the global battery energy storage is estimated to grow to $10.84bn in 2026. Several factors could contribute to such growth; primarily, the fall in battery technology prices and the increasing need for grid stability and resilience of the integration of renewable power in the power market.

Over the last decade, various new digital and smart technologies have been integrated, with countries aggressively promoting the modernisation of grids and enhancing the grids’ capability to meet the requirements of the present and future. As part of the effort, batteries are being deployed to aid smart grids, integrate renewables, create responsive electricity markets, provide ancillary services, and enhance both system resilience and energy self-sufficiency. Various technologies have disrupted the operational structure of the power grid, altering the market from a linear centralised model to a decentralised model. With improving market conditions, more companies are moving into decentralised generation, leading to an increase in the onsite deployment of renewables and batteries, as with microgrids or mini-grids. Encouraging policies and high electricity charges are also nudging the market closer to renewables and/or storage plus renewables at the end consumer level. As the power sector evolves to accommodate new technologies and adapt to varying market trends, energy storage will play a crucial role in the transition and transformation of the power sector.

GlobalData’s report finds that the global market is expected to grow substantially over the forecast period, with Asia-pacific leading the market. The Asia-Pacific market is estimated to reach $7.33bn in 2026; accounting for close to 68% of the global market value. Asia-Pacific will continue to lead the market, with countries such as China, Japan, India, South Korea and Australia propelling the regional market. Investments will be made to increase the penetration of renewable energy, improve system flexibility and resilience, and provide auxiliary services in their respective national grids. Grid transformations, improving electrification rates,and electricity provisions for the rapidly growing population would create market opportunities for energy storage.

Similarly, the market in Europe, the Middle East and Africa (EMEA) and the Americas is expected to grow to reach $2.46bn and $1.04bn, respectively, in 2026. The EMEA region is expected to register steady deployment of battery storage systems over the forecast period, primarily in countries in Europe. Germany and the UK are expected to be the top markets for battery energy storage. The changes in market structure and increasing adoption of renewables throughout the electricity network will necessitate the use of technologies that provide flexibility without compromising grid reliability. The Middle East and Africa are expected to have minimum impact on the regional market during the forecast period but are expected to play a greater role beyond the forecast period.

The battery energy storage market in the Americas is at a growth stage, with countries such as the US, Chile, Canada and Brazil promoting battery storage installations in consumer segments. Countries in North America have a fairly advanced energy market, consisting of well-evolved designs for generation, capacity, transmission, ancillary services, and even permit trading of emissions of pollutants and renewable energy credits. Unlike in the North, South and Central America are undergoing changes, leading to the formation of a developed market structure in the power sector.

China is the largest battery energy storage market, with a cumulative installed capacity of 4.16GW in 2021. The market for battery energy storage in China is estimated to reach $4.04bn in 2026. China, South Korea, the US, Germany and the UK will be the major markets on the back of supportive regulations and incentives. The rapid growth in demand for electricity and the wider use of renewable integration will keep the demand for the battery energy storage market buoyant in other countries, leading to significant growth in the market over the forecast period.

Source: Global Data