Energy Storage as a Service Market Size, Share, and Trends 2024 to 2034

Energy Storage as a Service Market Size and Growth 2023 to 2032

The global energy storage as a service market size was valued at US$ 62 billion in 2022 and it is expected to hit over US$ 138.25 billion by 2032 with a registered CAGR of 8.40% from 2023 to 2032.

Energy Storage as a Service Market Size in U.S. 2023 To 2032

The U.S. energy storage as a service market size reached US$ 13.45 billion in 2022 and is projected to expand US$ 30.56 billion by 2032, growing at a CAGR of 8.40% between 2023 to 2032.

North America dominated the market with revenue share of 31% in 2022. This is due to the growing need for smart buildings and building automation. The energy storage as a service market is developing due to rising demand for services such as offering demand energy response solutions and implementing energy efficiency projects as a result of the growing commercial industry.

Asia-Pacific is expected to develop at the fastest rate 12.7% during the forecast period. This is attributed to the presence of a number of undiscovered markets as well as increased energy consumption in Asia-Pacific. Moreover, the region’s rapid industry, high energy use, and greater knowledge of renewable energy sources.

Growth Factors

As energy storage becomes a more important part of the modern grid, a variety of economic models are becoming accessible. The energy storage as a service is gaining popularity among service providers in particular. Energy and sustainability managers in corporate commercial and industrial organizations are increasingly looking for cost effective, tailored, and comprehensive energy solutions that ensure energy consumption reduction and cost savings without affecting day to day operations.

The energy storage as a service is a fee for service or management approach for deploying advanced energy storage and energy management systems rather than a direct purchase of the asset by the end user. The concept of energy storage as a service is being used in other places to deliver consistent returns for investors after a distributed energy storage system project is completed. The energy storage as a service is a promising concept that has the ability to attract financing and further grow the industry, as energy storage transactions were previously avoided by investors due to the complexity of cash flow.

The energy storage as a service generally benefits large energy consumers with average consumption of above 500 kW, although depending on regional incentives, the energy storage as a service may also benefit smaller facilities. Electrical, chemical, metal, lighting, petrochemical, plastics manufacturers, resources such as oil, pulp and paper, metals and ore extraction, and food processing are all early adopters of energy storage as a service.

Report Scope of the Energy Storage as a Service Market

The majority of energy storage as a service during off peak hours, when energy is generated from non-carbon emitting sources. During peak hours, the energy is then used to offset the required carbon emitting manufacturing. The load shifting capabilities provided by energy storage as a service replaces the need for high emitting generation. The energy storage as a service is a contracted service that is managed by a third party automatically. This relieves a facility’s duty for allocating resources to control its energy profile, allowing it to focus on its primary activity. The system operators are familiar with local electricity markets and are constantly monitoring and updating system protocols as regional markets change. The data is used to maximize the energy storage as a service system’s value while still adhering to facility restrictions.

Due to the fact that peak demands vary depending on the time of day and season, energy storage devices are likely to become a critical component of power management systems. For building owners, energy storage as a service ensures a reduction in the most expensive hours of electric consumption, cutting electricity bills at no cost. The energy storage as a service market is driven by this. The global energy storage as a service market is being driven by increased interest in renewable energy generation and significant investments. Major economies throughout the world are putting a lot of effort into improving power generation utilizing renewable energy sources in order to lessen their reliance on fossil fuel-based power generation. Renewable energy now accounts for a significant portion of global energy output.

The growing investments in energy distribution infrastructure will surge the demand for distributed energy resources, propelling the energy storage as a service market. As a result, demand for energy storage as a service is projected to be driven by the growing requirement for distribution systems and major investment to improve grid efficiency.  

Services Insights

In 2022, the customer energy management services segment accounted revenue share of 31%. In comparison to utility and energy supply firms, the energy storage as a service model is gaining favor in the industrial, commercial, and residential sectors. The microgrid systems make use of it.

The ancillary services segment is predicted to develop at the quickest rate 11.8% in the future years. Ancillary services including as black start, voltage support, and frequency management are projected to reduce reliance on fossil fuel generators and shift to renewable and battery energy storage.

End User Insights

The industrial, residential, and commercial segment dominated the market in 2022 with revenue share of 71%. Commercial buildings with higher energy usage have energy applications such as district energy systems and service.

The utility segment is expected to witness growth at a CAGR of 11.3% during the forecast period. The segment’s growth is being fueled by a decrease in reliance on traditional fossil fuel generators and a greater focus on sustainability.

Key Developments

• Sonnen, a major operator in the sectors of smart energy storage systems and novel energy services for households was acquired by Royal Dutch Shell PLC in February 2019, increasing its offerings of residential smart energy storage and energy services.
• Renewable Energy Systems was given a four-year contract in the UK in September 2016 to offer frequency response services to the National Grid network using a 35-MW lithium-ion battery energy storage system.
• Engie Group and Google signed a deal in August 2021 to provide carbon free electricity in Germany. The arrangement will help Google meet its carbon free energy goals for its data centers, cloud regions, and offices throughout the world by 2030.
• Schneider Electric, a French multinational corporation that specializes in energy and digital automation solutions, announced a partnership with Huck Capital, an investment firm, in August 2020 to provide clean energy as a service to commercial and industrial buildings.

The mergers and acquisitions, partnerships, new product development, business expansions, collaborations, supply contracts, agreements, and contracts are some of the important marketing strategies used by the major market players to maintain their market position.

Some of the prominent players in the global energy storage as a service market include:

• Siemens Energy
• Honeywell International Inc.
• ENGIE Storage Services NA LLC
• Veolia
• NRStor Inc.
• YSG Solar
• Suntuity
• Hydrostor Inc.
• Customized Energy Solutions Inc.
• Johnson Controls

Segments Covered in the Report

By Services

• Bulk energy services
• Ancillary services
• Transmission infrastructure services
• Distribution infrastructure services
• Customer energy management services
• Others

By End User

• Utility
• Industrial, residential and commercial

By Component

• Energy Storage System
• Control and Monitoring System
• Service Contract

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