Access TOC
Get a SampleMarch 2024
Energy Storage Systems Market (By Technology: Compressed Air, Pumped Hydro Storage, Lithium Ion, Sodium Sulphur, Lead Acid, Redox flow, Nickel Cadmium, Flywheel, By Application, Transportation, Grid Management; By End User: Residential, Non-Residential, Utilities) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024 – 2033
The global energy storage systems market size was valued at USD 246.54 billion in 2023 and is expected to hit USD 535.53 billion by 2033 and is poised to grow at a CAGR of 8.05% from 2024 to 2033.
The Asia Pacific energy storage systems market size was estimated at USD 116.21 billion in 2023 and is projected to surpass around USD 259.73 billion by 2033 at a CAGR of 8.36% from 2024 to 2033.
Asia Pacific dominated the global energy storage systems market in 2023 with a 47.14% revenue share. The favorable government policies and increased investments in the industrialization and urbanization of the region have fostered market growth. Moreover, the availability of cheap factors of production is attracting the FDIs in the region. Countries like China are the manufacturing hub of the world. The significantly growing economic activities in the region are exponentially fostering the demand for an efficient and regular energy supply. The rising investments in the electrification of the rural regions, increased government investments in the adoption of sustainable energy sources, and increased government initiatives to incentivize the corporate sector to adopt renewable energy sources are the major factors that drive the growth of the energy storage systems market in the Asia Pacific region. China is the leading manufacturer and the leading consumer of energy storage systems across the globe. Therefore, the growth of the Asia Pacific energy storage systems market is attributable to China’s huge contribution to the market.
North America is expected to grow at a considerable rate. The increased awareness regarding the benefits of renewable energy sources, rising initiatives to reduce carbon footprint, and burgeoning demand for regular and efficient power supply are expected to drive the market growth. The rising government initiatives to ensure an efficient and sustainable power supply are boosting market growth. Moreover, the increased adoption of electric vehicles in market like the US and the presence of EV manufacturers have positively impacted the market growth in the region.
The energy storage systems refer to the equipment that can store multiple forms of energy and can be utilized as per the needs. The technological advancements pertaining to the energy storage systems have significantly impacted the market growth in the recent years by ensuring the advantages of continuous energy supply. The rising adoption of the renewable energy sources is fostering the demand for the storage systems for renewable energy across the globe. The significant increase in the demand for the energy across the globe has led to the growth of the energy storage systems market. The surging government and private investments towards the production of the renewable energy is expected to drive the growth of the global energy storage systems market. The growing energy consumption across the globe, rising demand for efficient energy sources, growing demand for battery, and shifting focus towards the clean energy is boosting the growth of the market across the globe. The rapid growth in the demand for the efficient grid management, regular load management, and efficient and uninterrupted power supply are the prominent factors that impact the market growth.
The rapid industrialization and urbanization of the developing regions, rising air pollution, growing concerns regarding carbon emission, and rising investments towards sustainable energy sources are the major factors that are estimated to drive the growth of the energy storage systems market in the forthcoming years. Moreover, the surging economic activities, rising production facilities, and increasing adoption of the digital technologies is significantly boosting the demand for the efficient and uninterrupted power supply across various industries. The growing investments in the research and development of the infrastructure of the renewable energy sources across the government and the private sector is expected to impact the energy storage systems market positively during the forecast period. Moreover, the various government initiatives and subsidies provided by them for encouraging the adoption of the clean and green energy sources is surging the growth of the energy storage systems market.
Furthermore, the surging acceptance of hybrid and electric vehicles among the global consumers is another major factor behind the growth of the energy storage systems market. The surging penetration of the electric vehicles across the globe is driving the demand for the batteries. Moreover, the popular EV manufacturers like Tesla are manufacturing vehicles based on the sustainable energy. The government in countries like Canada and Japan are providing subsidies to the buyers of the electric and hybrid vehicles, to encourage the adoption of the EVs and promote sustainable transportation. These government initiatives to promote the green energy sources are expected to drive the growth of the energy storage systems across the globe.
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 8.05% |
| Market Size by 2033 | USD 535.53 Billion |
| Market Size In 2023 | USD 246.54 Billion |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Technology, By Application, and By End User |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Based on the technology, the pumped hydro segment accounted for the largest market share 95.4% in 2023. The increased adoption of the pumped hydro technology across the globe is a major cause behind the dominance of this segment. Furthermore, the ongoing investments in research and development in upgrading the infrastructure and grid capacity in major markets like North America and the Asia Pacific are further expected to sustain the position of this segment throughout the forecast period.
On the other hand, the electrochemical storage is expected to grow at a considerable rate of 14.2% during the forecast period. The surging adoption of electrochemical storage systems in the regions like Middle East, the US, India, and the UK is driving the growth of this segment.
Depending on the application, the grid storage segment dominated the global energy storage systems market in 2023. Grid storage systems are extensively used for the storage of energy on a large scale. The demand for energy is high across the industrial sector which drives the growth of the segment. Moreover, the large-scale storage of energy facilitates uninterrupted and efficient power supply.
The transportation is expected to grow at the highest CAGR during the forecast period. The surging popularity of electric vehicles across the globe is significantly boosting the demand for the lithium-ion batteries. The rising investments in the development of EV charging infrastructure across the globe are further estimated to have a significant impact on the growth of the segment in the forthcoming years.
The energy storage systems market is highly fragmented with the presence of numerous top market players. These market players are investing heavily in value-added services to gain competitive advantage and gain market share. Furthermore, these market players are engaging in various developmental strategies such as product launches, partnerships, joint ventures, and mergers to exploit the prevailing market opportunities.
Segments Covered in the Report
By Technology
By Application
By End User
By Geography
For questions or customization requests, please reach out to us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
March 2024
October 2023
October 2023
August 2024