Grid-scale Battery Market - By Ownership Model , By Battery Type , By Deployment , By Application Type , By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030.

Grid-scale Battery Market Overview

Grid-scale Battery market size is forecast to reach $24.5 billion by 2030, after growing at a CAGR of 22.6% during 2024-2030. The increasing adoption of renewable energy sources like solar and wind power, coupled with the growing electric vehicle market, is driving the need for reliable energy storage solutions. Grid-scale batteries offer a solution by storing excess energy during off-peak hours and releasing it when demand is high or renewable energy output is low. Government support through incentives and policies, along with advancements in battery technology, is further accelerating the growth of this market. As the world transitions towards a cleaner and more sustainable energy future, grid-scale batteries are poised to play a crucial role in ensuring a reliable and resilient power grid. One prominent emergent trend in recent has been the increase in large-scale battery installations. These will play an important role in underpinning energy transition initiatives through the storage and redistribution of renewable energy resources to enhance the reliability of the grid. According to International Energy Agency, battery storage emerged as the world's fastest-growing energy technology in 2023 with deployments doubling year-on-year. A total of 42 GW storage capacity was added globally in 2023. Large-scale battery systems come as an attractive answer such as storing excess renewable energy when production is at its peak and redistributing it when generation levels are low. Such important capabilities would help grid operators unlock the ability to balance supply and demand, softening this journey toward a future where dependence on renewable energy sources will be great. Another key trend is the integration of grid-scale batteries with renewable energy sources like solar and wind. This pairing enables the storage of excess energy during off-peak hours and its subsequent release to meet peak demand, ensuring a reliable and consistent power supply.

Market Snapshot: 

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Grid-scale battery Market - Report Coverage:

The “Grid-scale battery Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Grid-scale battery Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic had a significant impact on the grid-scale battery market. The pandemic led to disruptions in global supply chains affecting the availability of critical raw materials and components for battery manufacturing. This results in manufacturing delays because factory closures and reduced workforce capacity impacted production timelines and increased costs.
• The Russia-Ukraine conflict has had a profound impact on the global energy landscape including the grid-scale battery market. By disrupting supply chains for critical battery materials and increasing geopolitical risks, the war led to higher costs and potential delays in the production and deployment of energy storage solutions.

Key Takeaways

North America dominates the market

North America dominates the market with a market share of 38%. North America, particularly the United States, dominates the grid-scale battery market, driven by a rapid expansion of energy storage projects. According to the data from the July 2024 electric generator inventory, battery energy storage systems are rapidly transforming the U.S. power grid. In the first seven months of 2024, the country added 5 GW of new utility-scale battery storage capacity, bringing the total to over 20.7 GW. The region’s focus on grid resilience, renewable integration, and innovation in battery technology has positioned it as a global leader in grid-scale energy storage. The region’s leading role in hybrid renewable-battery projects, and grid resilience measures underscores its commitment to clean energy transformation and energy storage solutions.

Utility-owned dominates the market

In the grid-scale battery market, utility-owned models currently dominate the market. Utilities are increasingly adopting grid-scale battery storage to directly control energy storage, meet regulatory requirements, support renewable integration, and enhance grid stability. This approach offers immediate access to stored energy during peak demand or emergencies, providing utilities with a strategic advantage. Utilities, with their long-term planning horizons, are well-positioned to invest in grid-scale battery storage. This strategic approach offers long-term benefits, including reduced peak energy costs and decreased reliance on fossil fuel-based power plants. According to US Energy Information Administration, utility-scale batteries, with a capacity of at least 1 MW, are primarily owned and operated by utilities or independent power producers to provide grid support services. By owning storage assets, utilities can spread costs over multiple years, directly manage maintenance, and more accurately predict financial returns from energy savings and grid optimization. This long-term ownership model allows utilities to align storage operations with broader grid management strategies and benefit from operational efficiencies.

Renewable Integration dominates the market

Renewable Integration is the dominant application type in the grid-scale battery market, driven by the global push for clean energy and the need to address the intermittent nature of renewable sources like solar and wind. It provides a critical solution to one of the biggest challenges in the transition to clean energy by managing the variability and intermittency of renewable sources like solar and wind. According to National Grid, UK is aiming to reach net zero by 2050, a crucial part of the strategy is to transition to an electricity system with 100% zero-carbon generation and much of this is expected to come from renewable energy. The UK is set to significantly increase its renewable energy capacity, particularly in offshore wind and solar power. The government's target of 50GW of offshore wind capacity by 2030, supported by substantial investments, is driving this growth. Additionally, solar power is expected to reach approximately 70GW of capacity by 2030. The increasing emphasis on renewable energy integration is propelling the growth of the grid-scale battery market. 

Supporting Electric Vehicle Adoption 

The increasing adoption of electric vehicles (EVs) is emerging as a key driver in the grid-scale battery market. Electric-vehicle batteries help store renewable energy to help make it a practical reality for power grids. When the capacity of electric-vehicle batteries drops to between 70 to 80 percent of their original capacity, they generally become unsuitable for transport uses. These end-of-vehicle-life batteries may still have years of use in less-demanding grid-storage applications. In the new study, researchers found that short-term grid-storage demands globally could be satisfied if only 12 to 43% of all EVs took part in vehicle-to-grid applications. Less than 10% would be needed to accomplish this goal if half of all end-of-vehicle-life batteries were repurposed for grid storage. Therefore, growing adoption of electric vehicles (EVs) is driving the demand for grid-scale battery storage. These systems are crucial for managing EV charging demand, stabilizing the grid, and integrating renewable energy sources into charging networks.

High initial cost

High initial costs remain a significant market challenge for the grid-scale battery sector, impacting both utilities and private investors. Building grid-scale battery storage facilities requires significant upfront capital for batteries, power conditioning equipment, grid integration, and land use. In a community meeting held on April 24, Mark McDaniels, Vistra Energy's vice president of renewables and storage, presented a $600 million battery storage projects in California. The costs are particularly high for advanced technologies like lithium-ion and flow batteries, which offer greater efficiency and durability but come at a premium. Although grid-scale battery storage offers long-term operational and environmental benefits, these high upfront expenditures make it difficult for utilities and investors to justify large deployments, especially in regions with limited public funding or without strong financial incentives.

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Key Market Players

Global Grid-scale battery top 10 companies include:

1. Tesla
2. ABB Ltd
3. BYD Company Limited
4. CATL
5. GS Yuasa Corporation
6. Exide Technologies
7. NGK Insulators
8. Panasonic Corporation
9. LG Chem
10. Saft Groupe S.A.

Scope of the Report: 

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