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Market Overview

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The global stationary energy storage market is forecasted to reach $233.9 billion by 2031, growing at a CAGR of 23.4% during the period from 2022 to 2031. This growth is primarily driven by factors such as the increasing focus on renewable energy, supportive government policies, the need for electricity grid optimization, and decreasing battery costs. However, challenges including safety issues associated with batteries and the lack of standardization for market stakeholders are expected to hinder market growth.

Stationary energy storage systems, which utilize various battery technologies to store surplus renewable energy for steady and predictable power delivery, are being deployed in two main applications: front of the meter (FTM) or grid-application, and behind the meter (BTM). Currently, BTM application is the largest consumer of stationary storage systems. However, FTM application is projected to experience higher growth during the forecast period, driven by investments in grid-scale energy storage deployment globally and the commitment of governments to increase the share of renewable energy in their energy mix.

The global stationary energy storage market is in a phase of rapid growth, and emerging trends such as the development of advanced lithium-ion batteries and the emergence of energy storage as a service are anticipated to create opportunities in the coming years. The shift toward renewable energy generation to reduce carbon emissions is driving the demand for energy storage, particularly in regions like Asia-Pacific, Japan, and North America.

Market demand for stationary energy storage is supported by several drivers, including the global growth of renewable energy, the implementation of government policies and incentive schemes, the need for electricity grid optimization, and the decreasing cost of batteries.

However, the market also faces limitations due to challenges such as safety concerns associated with batteries and the lack of standardization among market stakeholders. Addressing these challenges will be crucial for the sustained growth of the stationary energy storage market.

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Market Segmentation

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The market is segmented based on various factors, including application, battery type, and region.

Segmentation by Application
Front of the Meter
Behind the Meter

Segmentation by Battery Type
Lithium-Ion (Li-ion) Battery
Lead Acid Battery
Redox Flow Battery
Sodium Sulfur (NaS) Battery

Segmentation by Region
North America – U.S., Canada, and Mexico
Europe – Germany, France, Spain, Italy, U.K., and Rest-of-Europe
Asia-Pacific and Japan – Japan, India, South Korea, Australia, and Rest-of-Asia-Pacific and Japan
China
Rest-of-the-World (RoW) – Middle East and Africa and South America

During the forecast period of 2022-2031, the largest application of stationary energy storage is expected to be behind the meter (BTM). This growth is primarily driven by the advantages it offers to consumers, such as cost savings on bills and uninterrupted power supply during peak hours. BTM batteries refer to battery storage systems deployed at the consumer level, including residential, commercial, and industrial premises. These batteries are typically not directly controlled by the distribution system operator, although compensation programs exist where customers are rewarded for allowing operators to draw electricity from their batteries as needed. BTM batteries can range in size from 3 kW to 5 MW. Domestic consumers often have batteries exceeding 5 kW/13.5 kWh, while commercial or industrial systems typically have batteries of 2 MW/4 MWh.

The purpose of behind the meter storage is to store electricity generated by on-site solar rooftop photovoltaic (PV) systems or from the distribution grid during low-cost periods. When electricity rates are high, consumers can use the stored electricity to supplement their needs or feed it back into the distribution system. Initially, BTM battery storage systems were introduced to provide backup power during blackouts. However, the appeal of BTM battery storage solutions has grown for both consumers and system operators to enhance power supply reliability.

In this market, lithium-ion batteries have dominated, leading in 2021 and projected to continue leading throughout the forecast period. Lithium-ion is widely used in stationary energy storage for both grid and BTM applications due to its superior qualities compared to other battery chemistries. Additionally, the price of lithium-ion batteries has declined in recent years, leading to increased deployment. The popularity of lithium-ion batteries has expanded greatly over the past decade, finding applications in electric vehicles, stationary energy storage, military, aerospace industries, and more. Common cathode and anode materials in lithium-ion batteries include lithium cobalt oxide and graphite, respectively, while other materials like lithium iron phosphate and lithium manganese oxide are utilized in hybrid and electric vehicles. Ether is the typical electrolyte for lithium-ion batteries.

Another type of battery developed for energy storage is the redox flow battery (RFB), which consists of two chemical components separated by a membrane in liquid form. Charging and discharging occur as ions move from one component to another through the membrane. With increasing storage demands for renewable energy sources in stationary applications, interest in flow batteries has grown significantly. Various flow battery technologies have been developed over the past three decades, with the vanadium redox flow battery and zinc-bromine battery currently being considered for extensive grid integration.

China led the stationary energy storage market in 2021 and is expected to maintain its dominance throughout the forecast period. This is attributed to numerous government initiatives that encourage stakeholders in the energy industry to adopt renewable sources, thus driving the stationary energy storage market. Chinese consumers are inclined towards adopting next-generation energy storage systems to facilitate the transition to renewable energies. Additionally, China boasts leading battery manufacturers that help control the cost of batteries for the domestic market.

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Competitive Landscape

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The selection of the profiled companies was based on inputs obtained from primary experts, as well as analysis of their company coverage, product portfolio, and market penetration.

Key companies profiled in this report include Tesla, Duracell Power Center, Durapower Group, Exide Industries, Johnson Controls, Contemporary Amperex Technology Co., Limited (CATL), TOSHIBA CORPORATION, BYD Motors Inc., Panasonic, Hitachi Ltd., Hoppecke Batteries Inc., THE FURUKAWA BATTERY CO. LTD., LG Energy Solutions, SAMSUNG SDI CO., LTD., GS Yuasa International Ltd., ENERSYS., ION Energy Inc., Peak Power, GBatteries, 24M.

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Recent Industry Developments

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In July 2022, Durapower Group introduced the DP Omni Battery Pack, a compact and integrated battery pack. These packs have a recharge time of less than an hour and utilize high-energy lithium-nickel-manganese-cobalt-oxide (NMC) battery cells with patented technology, resulting in energy densities exceeding 160 Wh/kg. Furthermore, the design allows for convenient upgrades to future battery chemistries and cell designs, ensuring its compatibility with upcoming Energy Storage Solution (ESS) applications.

In September 2022, Contemporary Amperex Technology Co., Limited and Sungrow Power Supply entered into a strategic cooperative agreement to jointly explore energy storage systems on a global scale.

In November 2021, BYD signed an agreement with Canadian Solar Inc. to supply advanced battery technology for the 100 MWac Mustang solar facility in California. BYD will provide its lithium-ion battery storage solution, serving as the complete system integrator for the storage retrofit.

In November 2021, Duracell partnered with Power Center+ to introduce the Duracell Power Center product portfolio of Home Energy Storage solutions to North America and the Caribbean region.

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Key Questions Answered

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What are the primary factors and trends influencing the stationary energy storage market?

In what ways has the global adoption of the stationary energy storage market been affected by COVID-19?

Which applications are leading the rapid adoption of stationary energy storage?

What are the recent developments in different countries regarding the advancement of stationary energy storage, and what are some emerging applications on a global scale?

What governmental regulations or initiatives have contributed to the increased adoption of stationary energy storage worldwide?