Advanced Energy Storage Systems Market Size, Share, Growth Analysis, By Technology(Mechanical Storage, Electrical Storage, Electrochemical Storage, and Thermal Storage), By Application(On-grid, off-grid, micro grid, and others.), By Region - Industry Forecast 2024-2031

Advanced Energy Storage Systems Market size was valued at USD 1.26 billion in 2022 and is poised to grow from USD 1.33 billion in 2023 to USD 2.08 billion by 2031, growing at a CAGR of 5.70% during the forecast period (2024-2031).

The advanced energy storage systems market is highly competitive due to the presence of prominent players. ABB is currently the leading player in the market as they offer advanced energy storage systems, services, and solutions. The key players adopted multiple growth strategies such as merger, acquisitions, new product launch, and others to strengthen their brand position in the market competition. 'Tesla, Inc.', 'LG Chem Ltd.', 'Panasonic Corporation', 'Samsung SDI Co., Ltd.', 'ABB Ltd.', 'General Electric Company', 'BYD Company Ltd.', 'Saft Groupe S.A.', 'NEC Corporation', 'Hitachi, Ltd.', 'Toshiba Corporation', 'Aquion Energy, Inc.', 'EnSync Energy Systems', 'Greensmith Energy Management Systems', 'Eos Energy Storage', 'S&C Electric Company', 'Alevo Group SA', 'Leclanché SA', 'Calmac Corporation', 'CODA Energy, Inc.', 'In July 2021, the National Renewable Energy Laboratory of the U.S. department of energy and Babcock & Wilcox announced a contract for intellectual property rights. It will be granted exclusive marketing rights for particle-based and advanced thermal energy storage technology.', 'In Feb 2021, Hitachi ABB Power Grids received a contract to assist in the creation of Singapore’s first Virtual Power Plant project by utilizing its advanced energy storage solution.'

The energy policies of both developed and developing nations are being updated to include a significant share of power generation sourced from renewable energy sources like wind and solar. Investments in renewable energy are increasing as a result of financial incentives from the governments and related return, which is further anticipated to propel market growth. For developing, modernizing, and enhancing the electricity grids there is a requirement of renewable energy. Recently, the costs of geothermal, hydropower, biomass, and onshore wind are comparable to those of power plants driven by gas, oil, and coal. The aforementioned factors are likely to aid in market expansion for the advanced energy storage systems industry in the long run.

Advanced Lithium-ion Batteries These batteries offer multiple advantages such as portability, fast charging, low maintenance, and versatility. However, they are extremely flammable, sensitive to high temperatures, require overcharge or complete discharge protection, and suffer from aging. Moreover, there is a huge environmental implication to mining the components for battery manufacturing. For example, Green Li-ion is the Singaporean start up that recycles lithium-ion batteries to produce battery cathode. The start-up’s modular processing plants use co-precipitation hydrometallurgical technology in contrast to the conventional process that uses leaching reagents. This increases the purity and reduces the production time of the rejuvenated cathode. Battery manufacturers utilize this solution for recycling batteries without the need for sorting.

Asia Pacific is expected to hold the major share of the market during the forecast period. The growth of this region is attributed to the rising awareness about the consumption of energy and fast-paced transition from demonstrated projects to commercially operated storage facilities.