Advanced Energy Storage Systems Market Size, Share, and Trends 2024 to 2034

Advanced Energy Storage Systems Market Size and Growth 2024 to 2033

The global advanced energy storage systems market size was valued at USD 12.80 billion in 2023 and it is expected to surpass around USD 31.72 billion by 2033 with a registered CAGR of 9.5% from 2024 to 2033.

Advanced Energy Storage Systems Market Key Takeaways

• North America led the global market with the highest market share of 30.14% in 2023.
• Asia Pacific is projected to expand at the fastest CAGR during the forecast period.
• By Technology, the compressed air segment captured the biggest revenue share in 2023.
• By Technology, the molten salt technology segment is expected to expand at the fastest CAGR over the projected period.

U.S. Advanced Energy Storage Systems Market Size and Growth 2024 to 2033

The U.S. advanced energy storage systems market size was estimated at USD 2.71 billion in 2023 and is predicted to be worth around USD 7.14 billion by 2033, at a CAGR of 10.2% from 2024 to 2033.

North America dominated the advanced energy storage systems market in 2023. The factors such as rising adoption of electric vehicles, surge in government funding for the infrastructural development projects, growing activities to curb pollution levels by government agencies, and favorable government rules and regulations are contributing towards the growth of the advanced energy storage systems market in North America region. In addition, the region has presence of numerous market players operating in the advanced energy storage systems market. Furthermore, the implementation of advanced technologies for the energy storage is also driving the advanced energy storage systems market in North America region. 

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. The established and emerging nations of Asia-Pacific region such as China, Japan, and India are supporting the growth of the advanced energy storage systems market. The implementation of advanced energy storage systems in the region have increased over a period of time. The advanced energy storage systems market in the Asia-Pacific region is being driven by the surge in demand for energy and growing government spending on the infrastructural development projects. The technologically innovative products are also paving way for the growth of the advanced energy storage systems market in the region.

Europe Advanced Energy Storage Systems Market Size and Growth 2024 to 2033

The Europe advanced energy storage systems market size was calculated at USD 3.64 billion in 2023 and is projected to expand around USD 9.52 billion by 2033, poised to grow at a CAGR of 10.1% from 2024 to 2033.

Advanced Energy Storage Systems Market Growth Factors

Nowadays, energy is stored with advanced methods and technologies such as compressed air, molten salt, flywheel, thermal, and batteries. The growth of the global advanced energy storage systems market is anticipated due to growing strict norms against carbon and greenhouse gas emissions and also due to growing demand for energy in underdeveloped and developing regions all around the globe. This factor is propelling the growth of the global advanced energy storage systems market over the forecast period.

The ongoing research and development activities for the development of advanced systems for energy storage are driving the worldwide advanced energy storage systems market. In addition, the major market players are concentrating on renewable energy sources for electricity generation, which is supporting the growing demand for advanced energy storage systems in the market. The developed regions such as North America and Europe are contributing greatly for the expansion of the global advanced energy storage systems market.

Furthermore, the declining costs of batteries are enabling the surge in demand for advanced energy storage systems globally. The favorable government regulations of developing regions such as Asia-Pacific and LAMEA are also boosting the growth of the global advanced energy storage systems market. On the other hand, the lack of strict guidelines regarding energy storage in some of the nations is hampering the expansion of the global advanced energy storage systems market. Additionally, the high cost of advanced technologies is also restricting the growth of the advanced energy storage systems market over the projected period.

The demand for power supply is more in the underdeveloped regions, where there are not enough resources for the electricity generation. The countries of Asia-pacific region such as India, Bangladesh, and Pakistan face lot of issues of load shedding. To avoid such situations, the government of those countries is taking favorable initiatives and actions for the growth of the global advanced energy storage systems market in those particular areas.

Due to energy depletion, the need and requirement of saving and storing energy is growing at a rapid pace. The industries such as manufacturing, oil and gas, and transportation requires large amount of energy. This is resulting into the high demand for the batteries based advanced energy storage systems. In addition, the government is constantly working with market players on rural development projects. Thus, this factor is also increasing the demand for energy storage all around the world. As a result, this is directly impacting the growth of the global advanced energy storage systems market.

Another reason driving the growth of the global advanced energy storage systems market is rising usage of electric vehicle. The electric vehicle requires abundant energy and power. This is quite possible due to the rising supply of energy storage systems. The energy storage systems enable electric vehicle manufacturers to manufacture products effectively and efficiently. Hence, all of these aforementioned factors are contributing to the expansion of the global advanced energy storage systems market. This has also increased the demand for advanced energy storage systems globally.

Report Scope of the Advanced Energy Storage Systems Market

Technology Insights

The compressed air segment dominated the advanced energy storage systems market in 2023. The compressed air technology is easy way to store energy. The compressed air is used in diverse sectors such as automobile and transportation sectors. The growth and expansion of the energy industry is contributing towards the development of the segment. The government is constantly investing towards the growth and development of the automobile sector all over the world. This factor is driving up the demand for compressed air on a large scale. In addition, the rising investments by government in renewable energy resources are also boosting the expansion of the compressed air segment globally.

The molten salt technology segment is the fastest growing segment of the advanced energy storage systems market in 2023. The molten salt technology is highly used for the storage of solar power. Solar energy is extracted and generated from the sun, which can be done only in day time. The molten salt technology helps to generate solar energy even during night time. The molten salt technology is also categorized as thermal storage. The energy stored with the help of molten salt technology can later be utilized for the generation of electricity. The key market players are highly utilizing molten salt technology in the global advanced energy storage systems market.

Advanced Energy Storage Systems Market Recent Developments

• The National Renewable Energy Laboratory and Babcock & Wilcox of the U.S. declared an Intellectual Property Option Agreement in July 2021. It will have sole rights and authority to sale and market a cutting-edge particle based thermal energy storage system.
• Hitachi ABB Power Grids received a contract in February 2021 to assist in the development of Singapore’s first virtual power plant project by implementing its revolutionary energy storage system.
•  Samsung SDI Co. Ltd and ABB Ltd. established a strategic business agreement in March 2015 to develop and sell energy storage solutions for microgrid systems. Samsung’s dominant position in the microgrid sector will be bolstered by this partnership.
• ABB built an innovative microgrid in Alaska in February 2017 that combined battery and flywheel-based storage technologies to evaluate the sustainability and enhance the stability of power for around 3 lakhs people.

Advanced Energy Storage Systems Market Companies 

• Siemens Ltd.
• Toshiba Corporation
• Tesla Inc.
• General Electric Company
• CALMAC
• ABB Ltd.
• GS Yuasa
• Samsung SDI Co. Ltd
• Tata Power
• SK Holdings

Segments Covered in the Report

By Technology

• Batteries
• Flywheel
• Thermal
• Molten Salt
• Compressed Air

By Application

• Transportation
• Grid Storage

By End User

• Residential
• Industrial
• Commercial
• Utility

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa