Global battery storage market to reach $13 billion in 2023

Image source: GlobalData Intelligence Center

According to GlobalData, the world battery energy storage market will grow 7% year-on-year to $13.13 billion (€11.7 billion) by 2023, with APAC (Asia Pacific) and EMEA (Europe, Middle East, Africa) dominating the market.

In its latest forecast for 2019-2023, released on Wednesday, the research consultancy said Asia Pacific will remain the largest market for battery energy storage, with a market value of $6.05 billion in 2023. Countries such as China, India, Japan, South Korea and the Philippines are expected to focus on frequency regulation of their grids as renewable energy capacity grows.

Last year, APAC accounted for 45% of the world's cumulative installed capacity.

In 2018, the Americas market was worth $1.97 billion, accounting for 28% of the global total, with most of the region’s capacity installed by the United States, Chile, Canada and Brazil. The U.S. market, in particular, is expected to reach $2.96 billion in 2023, accounting for 23% of the global market.

“The United States has been the largest market for battery energy storage systems (BESS) both in terms of cumulative installed capacity and market value of installed projects as of 2018, and is likely to continue to lead the country,” said power analyst Bhavana Sri.

The Europe, Middle East, and Africa (EMEA) market was valued at $1.73 billion, or 26% of the global total, in 2018. BESS in the Middle East and Africa region is still small, but is expected to expand as more renewable energy capacity comes online.

“As the power sector evolves to accommodate new technologies and adapt to different market trends, energy storage will play a central role in the transformation of the power sector,” said Bhavana Sri. The analyst noted that more companies are moving towards distributed generation, which in turn is spurring the deployment of renewable energy and batteries, a trend also supported by supportive policies extending to the end-consumer level.

In terms of technology, GlobalData expects lithium-ion batteries to remain the technology of choice for market deployment.

(Original text from: Renewable Energy Express New Energy Network Comprehensive)