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 Driver

Increasing Investments in Renewable Energy

• 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 Energy Storage Systems Market Restraint

High Capital Investments

• For the production of energy storage technologies such as lithium-ion batteries, flow batteries, and sodium sulphur batteries, high capital is required due to their features such as enhanced performance and high energy density. Since lithium as a raw material, has high cost so automatically, the cost of lithium-ion batteries is increased. The cost of technology is anticipated to be high during the first two or three years of lithium’s new and evolving usage in electric vehicles and grid storage; with increased acceptance, the cost is projected to reduce. Technology cost increases with increased rated power, and thus, it may cause hindrance to the overall advanced energy storage systems market in the coming years