According to Dhirtek Business Research, the advanced battery energy storage market is to increase from US$ 71.1 billion in 2020 to US$ 94.8 billion by 2025. The market is estimated to grow with a CAGR of 5.9% during the forecast period. In the energy storage market, advanced batteries have been adopted as a cost-effective solution. Lithium-ion batteries, sodium-sulfur batteries, flow batteries, nickel-metal hydride batteries, and other batteries are examples of these batteries. The falling cost of lithium-ion batteries and rising energy storage deployments in power grids have had a significant impact on market growth. Advanced energy storage technologies are in high demand in the power grid system. On the other hand, the steadily decreasing price of lithium-ion batteries has aided market growth.
Increasing Demand for Electric Vehicles
The rise in demand for electric vehicles is expected to fuel the market for advanced battery energy storage systems. Different batteries, such as lithium-ion batteries, nickel-metal hydride batteries, lead-acid batteries, and ultra-capacitors, are used in hybrid electric vehicles, plug-in electric vehicles, and electric vehicles. According to the International Council for Clean Transportation (ICCT), approximately 7,70,000 electric vehicles were sold in 2016. China accounted for the highest increase in electric vehicle sales, accounting for 70% of the total i.e. 3,50,000 electric vehicles. China, the United States, Japan, Norway, and the Netherlands are among the major countries with a high demand for electric vehicles. The growing demand for electric vehicles fuels the growth of the advanced battery energy storage system market.
The lithium-ion batteries segment is expected to account for the largest share of the advanced battery energy storage market.
The market has been segmented based on battery type into lithium-ion batteries, sodium sulphur batteries, flow batteries, and other battery technology. The increasing use of lithium-ion batteries in transportation applications and the consumer electronics market has contributed to the growth of Li-ion battery technology's market share in comparison to other battery technologies.
In 2020, Asia Pacific held the dominant position in the market.
Because of the high utilization of consumer electronics and the growing number of electric vehicles, the Asia Pacific region dominates the market. The rise in energy consumption, as well as the rising demand for energy efficiency in light of the limited supply of electricity, has paved the way for significant growth in the advanced battery energy storage system market. The rise of electric vehicles (EV) in countries such as China and Japan is also fueling the growth of the market for advanced battery energy storage systems. Because of their widespread use in transportation, China, India, and Japan are the leading markets for advanced battery energy storage systems.
The advanced battery energy storage system market includes a variety of applications such as electric vehicles, power grids, and a variety of residential and non-residential applications. China is a promising market for advanced battery energy storage systems. According to cnesa.org, China recorded 170.6 MW of operating energy storage in 2016, representing a 34% increase in operating energy storage over 2015. The new storage systems are part of projects involving the integration of renewable energy grids with microgrids and distributed electricity generation. The growing demand for electric vehicles in China is driving the advanced battery energy storage system market. According to Beijing City's 13th Five-Year Plan for Strengthening National Science and Technology Innovation by 2020, Beijing will be China's primary alternate energy vehicle R&D center 2020. Beijing intends to produce approximately 500,000 electric vehicles by 2020.
Furthermore, rising investments in renewable energy, low cost of lithium ions used in grid-connected systems, rising demand for electric vehicles, and government support initiatives are driving the growth of India's advanced battery energy storage market. The energy storage market in India is still in its infancy, so there is enormous potential for growth in the coming years. Under the National Electric Mobility Mission Plan 2020, the Indian government has allocated Rs 20,000 crore (approximately $3.5 billion) over the next eight years to encourage pure and hybrid electric vehicles through R&D, infrastructure development, and subsidies. The plan calls for the adoption of 6 million Hybrid Electric Vehicles (HEVs) and Electric Vehicles (EVs) across a variety of customer segments. The Indian government has approved an ordinance to allow e-carts and e-rickshaws in the country after they were banned in 2014. The market potential for e-carts and e-rickshaws to be replaced by manually pulled rickshaws is enormous in Delhi, Punjab, Uttar Pradesh, Maharashtra, Bihar, and West Bengal. According to an EEE report, the number of e-rickshaws in Delhi has surpassed 200,000. In India, lead-acid batteries worth more than $100 million have been installed in e-rickshaws.
Advanced Battery Energy Storage Market Key Players:
Abb Ltd., Byd Company Ltd, Enersys Sa, Exide Technologies, Gs Yuasa Corporation, Hitachi Ltd, LG Chem Ltd, Nippon Chemi-Con Corp, Samsung Sdi Co Ltd, and Toshiba Corporation are some of the key players in the advanced battery energy storage market. One of the primary strategies for the global advanced battery energy storage system market is the new product launch strategy. Because of rising demand for advanced technologies and fierce market competition, the major companies have launched a variety of advanced battery energy storage products, allowing them to increase their market share and compete with other companies. As an example:
Advanced Battery Energy Storage Market - Scope of the Report
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