Global battery energy storage market to reach $13.13bn by 2023
1 May 2019
The global battery energy storage market is forecast to grow to $13.13bn by 2023. Asia-Pacific (APAC) and EMEA will be the dominant markets for battery energy storage systems over the forecast period 2019-2023, according to GlobalData.
The company’s latest report ‘Battery Energy Storage Market, Update 2019 – Global Market Size, Competitive Landscape and Key Country Analysis to 2023’ reveals that the fall in technology prices and increasing pace of development in the power market are the primary driving factors for the battery energy storage market.
APAC will continue to be the largest market, reaching $6.05bn in 2023, as countries are increasing investments for improving their grid infrastructure and improving the market structure to attract foreign investments. With respect to technology, Lithium-ion is and will continue to be, the preferred technology for market deployment.
Bhavana Sri, Power Analyst for GlobalData commented: “The US has been the largest market for Battery Energy Storage System (BESS) both in terms of cumulative installed capacity and by market value for projects installed up to 2018 and is likely to continue to lead the market at the country level. The US market for battery energy storage is estimated to reach $2.96bn in 2023, accounting for 23% of the global market.”
Asia-Pacific was the largest market for battery energy storage systems and it accounted for 45 per cent of the global market installed capacity in 2018. The region is also expected to maintain its top position in the forecast period. With the number of grid-connected renewable electricity generation plants increasing tremendously, countries such as China, India, Japan, South Korea, and the Philippines will focus on frequency regulation in the electric grid to normalise the variation in power generation from renewables.
The EMEA battery energy storage market registered a market value of approximately $1.73bn in 2018 and it accounted for 26 per cent of the global market. The region has strong demand for flexibility, due to technological advancements, evolving market conditions, strong research facilities, and supportive policies. Middle East and Africa are small markets with demand for storage expected to increase once renewable power generation gains significant traction in the market.