Stationary Energy Storage Battery Market

Stationary Energy Storage Battery Market Size

Stationary Energy Storage Battery Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 25.4% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 57.6 billion and is projected to reach USD 696.3 billion by the completion of 2034.

Stationary energy storage batteries are large-scale systems that store electricity for future use, as opposed to portable batteries. These stationary installations are connected to power grids or renewable energy sources and fulfill various roles such as storing extra energy in off-peak times, supplying electricity on demand, and simplifying the integration of renewable energy. Additionally, stationary energy storage battery systems play an important role in upgrading energy infrastructure, along with improving the utilization of resources and assisting in shifting to renewable energy. Therefore, with the advancement of technology, stationary batteries are becoming crucial in the environment of evolving energy and serve as a major factor in creating a sustainable and strong energy system.

Market Highlights

Stationary Energy Storage Battery Market is expected to grow at a compound annual growth rate (CAGR) of 25.4% from 2024 to 2034

Stationary Energy Storage Battery Market is projected to reach USD 696.3 billion over the forecast period, due to a rise in the demand for grid stability and the incorporation of renewable energy sources. The growth of the market is attributed to several factors such as government incentives for the use of clean energy and falling prices of batteries. In addition, the market is shifting towards lithium-ion batteries due to their performance and lower costs. However, flow batteries and sodium-sulfur batteries are also becoming highly popular for certain uses. Furthermore, major industry stakeholders are making large investments in research and development to improve the efficiency and safety of stationary energy storage batteries. Consequently, the stationary energy storage market is anticipated to grow steadily due to global grid modernization programs, thereby playing a significant role in the global transition to renewable energy.

Source: Fatpos Global

Stationary Energy Storage Battery Market Segmentation

Thermal Energy Storage segment will dominate the market owing to its cost-efficiency and applications

Stationary Energy Storage Battery Market is divided by Energy Storage Type into Hydrogen & Ammonia Storage, Gravitational Energy Storage, Compressed Air Energy Storage, Liquid Air Storage, and Thermal Energy Storage. The thermal energy storage segment holds the top position in the stationary energy storage battery market due to its affordability and diverse potential uses. Different materials and methods can be used by thermal storage systems, such as molten salt for concentrated solar power and ice-based cooling systems for buildings. They provide excellent efficiency and prolonged storage capabilities. Moreover, thermal storage easily blends with existing infrastructures, that appeal to large-scale grid and commercial uses. Therefore, despite the potential of compressed air & liquid air storage, and the increasing interest in hydrogen & ammonia storage for long-term storage needs, thermal energy storage stands out in the market for its proven track record and wide-ranging applications.

Lithium-Ion segment will lead the industry for its benefits and characteristics

Stationary Energy Storage Battery Market is divided by Battery into Lithium Ion, Sodium Sulphur, Lead Acid, and Flow Battery. The Lithium-Ion segment is leading the stationary energy storage battery market, owing to the range of benefits offered by Lithium-Ion, such as high energy density, long cycle life, and fast charge-discharge capabilities. These benefits are further enhanced by their lower costs of production, along with the ability to be used in multiple applications. Although other battery types serve specific roles, the superior performance and affordability of lithium-ion batteries have made them a preferred option for several stationary storage projects. However, the market is expected to be dynamic as manufacturers explore alternative technologies that could transform the industry, in areas like long-term storage and particular applications where Lithium-Ion batteries have limitations.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increasing Renewable Energy Integration to Drive Growth in the Stationary Energy Storage Battery Market

Adoption of renewable energy sources is a major factor influencing the stationary energy storage battery market. The high number of solar and wind power installations presents various challenges for grid stability due to the irregularity of their sources. Stationary batteries provide a solution by storing extra energy when production is at its peak and delivering it when demand is high. This ability improves the reliability of the grid and improves the utilization of renewable energy sources. Besides, the integration of renewable energy and storage technologies is attracting investment and innovations across both industries.

Grid Modernization Initiatives Act as a Catalyst for Market Growth

Initiatives for upgrading the grid are driving the expansion of the stationary energy storage battery market. Authorities and utility companies around the globe are acknowledging the need to improve old infrastructure to align with the demands of a decarbonized future. These initiatives consist of the integration of smart grid technologies and energy storage systems. In addition, stationary batteries are essential in this move as they offer services like frequency regulation and voltage support. They make grid operations more efficient, thus reducing the need for expensive plants. Besides, policy incentives and public-private partnerships are boosting the development of grid modernization, thus promoting growth in the stationary energy storage market.

Restraints

High Initial Cost in the Stationary Energy Storage Battery Market Will Impact the Growth

Despite its growth potential, the stationary energy storage battery market faces major limitations in the form of high initial costs. While battery prices have been declining, the upfront investment required for large-scale storage systems remains enormous. This financial barrier can discourage adoption in developing regions or for smaller enterprises with low capital. Moreover, the cost issue extends beyond the batteries and includes additional expenses for system integration and site preparation. Although the total cost of ownership may be beneficial in the long run, the high initial outlay continues to be a difficulty. However, this limitation is addressed through technological innovations and innovative financing models, but it remains a major factor influencing the growth and adoption rates of the stationary energy storage battery.

Recent Developments

• In September 2023, Tesla unveiled its Megapack XL, an enlarged version of its utility-scale battery storage system. This new product offers 50% more energy capacity than the original Megapack.
• In March 2024, LG Energy Solution announced a $5.5 billion investment to expand their production capacity in Arizona, USA. This facility aims to meet the growing demand for both electric vehicles and stationary storage batteries.
• In November 2023, Fluence won a contract for a 500MW/2000MWh battery storage project in Australia, one of the largest of its kind globally. In February 2024, they introduced Fluence Nispera AI, a new AI-powered software solution for optimizing energy storage operations across multiple assets.
• In October 2023, Siemens launched an enhanced version of their SIESTORAGE platform, offering improved modularity and efficiency for grid-scale applications. In April 2024, they initiated a pilot project in Germany exploring the use of green hydrogen for long-duration energy storage, complementing their battery storage offerings.
• In December 2023, ABB introduced a new modular energy storage solution for commercial and industrial applications, designed for easy scalability. In May 2023, they formed a partnership with Vestas to provide integrated storage solutions for large-scale wind projects, with the first joint project announced in Texas in February 2024.

Stationary Energy Storage Battery Market

Key Players:

• Tesla, Inc.
• Panasonic Corporation
• LG Energy Solution
• Samsung SDI
• BYD Company Limited
• ABB Ltd.
• Siemens AG
• General Electric Company
• Fluence Energy, Inc.
• Saft Groupe (Total SE)
• Toshiba Corporation
• Honeywell International Inc.
• NEC Corporation
• Mitsubishi Electric Corporation
• Lockheed Martin Corporation
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Stationary Energy Storage Battery Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region leads the global stationary storage battery market, due to rising awareness of climate change, along with the adoption of sustainable energy and supportive laws. The region’s commitment to reducing greenhouse gas emissions and shifting to a low-carbon economy strengthens its position as the dominating region. Besides, several initiatives and funding by the government for renewable energy integration are promoting the expansion of the market for stationary storage batteries.

At the same time, Asia-Pacific is becoming the fastest growing region, owing to growth in technology and high demand for reliable energy consumption. In addition, countries such as China, Japan, and South Korea are leading the production and use of batteries. This expansion offers profitable opportunities for market players to engage in the adoption of sustainable energy, which puts Asia-Pacific at the center of stationary battery storage.

Source: Fatpos Global

Impact of COVID-19 on the Stationary Energy Storage Battery Market

Initially, the pandemic resulted in several disruptions in supply chains and manufacturing, which led to delays in projects and temporary slowdowns in the market. However, the crisis also highlighted the significance of grid resilience and reliable power supply for important infrastructure such as hospitals and data centers. Additionally, the pandemic caused a faster shift towards digitalization and remote operations, which led to a higher demand for backup power systems.

Furthermore, COVID-19 highlighted the significance of energy security and sustainability in the long run, which attracted more funding for renewable energy and storage technologies. As a result, even though there was a brief pause in growth, the pandemic strengthened the positive aspect of the market in the long run by emphasizing how important energy storage will be for the development of future power systems.

Stationary Energy Storage Battery Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Stationary Energy Storage Battery Market Scope and Segments:

Frequently Asked Questions (FAQ):