USD 3.52 billion
Grid Scale Battery Market Size, Share, Growth Analysis, By Battery Type (Lithium-Ion, Lead Acid), By Ownership Model (Third-Party-Owned, Utility-Owned), By Application (Peak Shifting, Renewable Integration), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG55A2052 |
Region:
Global |
Published Date: December, 2024
Pages:
180
|Tables:
88
|Figures:
75
Grid Scale Battery Market Insights
Grid Scale Battery Market size was valued at USD 4.73 Billion in 2023 and is poised to grow from USD 6.36 Billion in 2024 to USD 68.19 Billion by 2032, growing at a CAGR of 34.50% during the forecast period (2025-2032).
As the number of products increases, the manufacturing cost per unit gradually decreases, making grid batteries more expensive to use. New cathode and anode materials provide higher efficiency and lower operating costs compared to traditional lithium-ion, further reducing overall battery system costs. Automation and advanced manufacturing processes provide product quality, which helps to reduce costs.
New materials, such as nickel-rich layered oxide, lithium and iron phosphate provide higher energy densities, enabling batteries to store more energy in smaller quantities, reducing the deployment footprint and cost of replacing traditional graphite anodes with Silicon as well for greater theoretical energy density, potentially doubling storage capacity, increasing range for future battery systems. Advances in stacking and packaging increase energy density without compromising safety or stability. Advances in battery technology will continue to reduce costs, improve efficiency and expand applications, and help drive the transition towards a cleaner and more resilient energy future.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Lead-acid
Fastest Growth
Lithium-ion
Growth Rate
34.50% CAGR
Global Grid Scale Battery Market ($ Bn)
Country Share for North America Region (%)
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Grid Scale Battery Market Segmental Analysis
Global Grid Scale Battery Market is segmented by Battery Type, Ownership Model, Application, and region. Based on Battery Type, the market is segmented into Lithium-Ion, Lead Acid, Flow Battery, Sodium-Based Battery, and Others. Based on Ownership Model, the market is segmented into Third-Party-Owned, Utility-Owned. Based on Application, the market is segmented into Peak Shifting, Renewable Integration, Ancillary Services, Backup Power, and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Type
The lead-acid segment remains dominant in the global grid scale battery market, especially in applications where cost and reliability are paramount. Lead-acid batteries have been widely used for decades and widespread applications in grid-scale energy storage systems continue to do so again, although they face increasing competition from new technologies such as lithium-ion batteries. The main advantage of lead-based batteries is their relatively low cost compared to alternatives, making them an attractive option for large-scale energy storage projects with budget constraints. Furthermore, battery packaging copper construction is well established and reliable and efficient Has a proven track record, ensuring trust between grid operators and utilities.
By 2022, the lithium-ion segment will hold the largest share of the market. These batteries are used in a variety of applications to technological innovation and manufacturing efficiency. Lithium-ion technology accounted for more than 90% of the installed capacity and power in large battery storage systems (more energy between charge and discharge) and faster response times in operation in North America.
Analysis by Ownership
The utility-owned segment dominated the global grid scale battery market share due to increased investments from government and utilities. This segment is driven by sound political initiatives from local organizations such as the US Energy Storage Association (2021). Utilities have better insight into grid demand and can better meet those demands and provide storage but pass all costs on to customers.
The third-party owned segment plays a crucial role in the global grid scale battery market by offering alternative financing models for energy storage projects. In this segment, third-party entities, such as independent power producers (IPPs), energy service companies (ESCOs), or financial institutions, own and operate battery storage systems deployed within the grid infrastructure. One of the primary benefits of the third-party owned model is that it alleviates the upfront capital costs associated with battery installation and deployment. This allows grid operators, utilities, and commercial entities to accelerate.
Global Grid Scale Battery Market By Type (%)
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Grid Scale Battery Market Regional Insights
North America dominated the global grid scale battery market owing to the presence of favorable government policies, tax breaks for the use of renewable energy sources and investments by public and private companies. The availability of favorable government policies, tax breaks for renewable energy consumption, and increased investments by public and private sectors are some of the major factors driving the expansion of the regional market size.
The Asia-Pacific region is expected to grow at a rapid CAGR from 2024 to 2031. This is due to the increasing number of industries requiring large amounts of energy in the region, and heavy research on energy and are stored for new technologies. Development and investments are driving the market growth in this segment. Furthermore, the Chinese grid scale battery market held the largest market share, while the Indian grid scale battery market is the fastest growing market in the Asia-Pacific region.
Asia-Pacific is expected to grow at the highest CAGR during the forecast period. China accounted for the largest share of sales in the region due to ongoing government initiatives and investments to boost market growth.
Global Grid Scale Battery Market By Geography
- Largest
- Fastest
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Grid Scale Battery Market Dynamics
Drivers
Increased Addition of Renewable Energy to Increase Battery Consumption
- Grid-scale battery storage can also contribute to clean energy. Battery storage is one of many technical strategies that can improve power system flexibility and enable higher renewable energy integration. Research and real-world experience have shown that interconnected energy systems can safely and reliably blend large amounts of renewable energy from variable renewable energy (VRE) sources without energy storage.
- Batteries are beginning to mature allowing renewable energy to replace medium-sized natural gas. The nearly 200-megawatt battery is also intended to replace small- and medium-sized natural gas plants with renewable energy. According to Wesley Cole, an energy researcher at the National Renewable Energy Laboratory, adding storage also increases the efficiency of renewable energy. In addition, the more renewable energy you put on the grid, the lower the cost. Storage helps by diverting excess energy that would otherwise be lost in the middle of the day when electricity demand is low and into higher value time.
Benefits Of Grid-scale Batteries for Market Growth
- Energy storage provides benefits such as improving diversification, reliability and flexibility. In addition, grid-scale batteries offer arbitrage advantages. Charging the battery when energy prices are low and disposing of the battery during peak periods is a compromise. For battery energy storage system (BESS) operators, this practice can provide revenue that takes advantage of electricity prices that vary throughout the day.
Restraints
Adverse Effects of Battery Use in Society
- Extensive use of batteries can lead to health complications such as pneumonia, cough, headache, decreased cognitive ability, muscle weakness, seizures, skin diseases and burns have occurred, and are injurious to the eyes and skin. These side effects are estimated to hinder the market's growth in the coming years.
High Cost of Installation and Maintenance
- Lithium-ion batteries ignite due to differences in their energy components - electrolytes made of organic solvents, oxygen-rich cathodes and combustion gases. Furthermore, lithium-ion batteries are exceptionally sensitive to high temperatures and especially flammable. These batteries degrade faster than usual due to heat. When a lithium-ion battery discharges, it starts a spark and can cause serious damage. Despite all its advantages, lithium ion has drawbacks. It is fragile and needs a safety circuit to operate properly. Protective circuitry built into each pack limits the peak voltage of each cell throughout the charging period and prevents excessive cell voltage drops during discharge.
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Grid Scale Battery Market Competitive Landscape
The market dynamics research report includes the acceptable life cycle of the market, covering the stage where an innovator goes to the laggard stage. It focuses on adoptions in different settings depending on who is admitted. Furthermore, the market research and development report also include key buying criteria and price reduction factors to evaluate and execute the growth strategies of the companies
Top Player’s Company Profiles
- BYD Co. Ltd.
- Contemporary Amperex Technology Co. Ltd.
- General Electric Co.
- GS Yuasa International Ltd.
- Hitachi Ltd.
- Innolith Science and Technology GmbH
- Leclanche SA
- LG Electronics Inc.
- NEC Corp.
- NGK Insulators Ltd.
- Panasonic Holdings Corp.
- Powin Inc.
- Samsung SDI Co. Ltd.
- Siemens AG
- SolarEdge Technologies Inc.
- Sumitomo Electric Industries Ltd.
- Tesla Inc.
- Toshiba Corp.
- TotalEnergies SE
Recent Developments
- In September 2022, NGK Insulator assembles an extensive sodium sulfur (NAS) battery energy storage system at an eastern LNG terminal in Japan. Tohogas, a joint venture that serves 54 cities in three provinces in central Japan, has commissioned an 11.4 MW/69.6 MWh NAS system at the Tsu LNG terminal in Mie Prefecture and plans to complete the fiscal year 2025.
- In September 2022, RedFlow partnered with the University of Queensland at the Australian Research Council (ARC) Research Center for Safe and Reliable Energy Storage, managed by Deakin University in a research project entitled "Extending Flow Battery." Operation" indicating the working characteristics of a zinc bromine module (ZBM). For further expansion, a deeper understanding of electrolyte chemistry and electrode materials was developed.
- In May 2021, 24M raises 56 Series E financings to commercialize its capital-intensive, simple and cost-effective semisolid manufacturing system and expand its technology development program for grid storage and electric vehicle applications. ITOCHU Corporation, a global marketing company that raised $8 million, led the financing. As part of the financing and financing, Hiroki Murase, managing director of ITOCHU’s Sustainable Energy Business Division, will join 24M’s board.
Grid Scale Battery Key Market Trends
- Significant Advances in Battery Technology to Drive Market Growth: As the number of products increases, the manufacturing cost per unit gradually decreases, making grid batteries more expensive to use greater than. New cathode and anode materials provide higher efficiency and lower operating costs compared to traditional lithium-ion, further reducing overall battery system costs Automation and advanced manufacturing processes are provided product quality, which helps to reduce costs. New materials, such as nickel-rich layered oxide, lithium and iron phosphate provide higher energy densities, enabling batteries to store more energy in smaller quantities, reducing the deployment footprint and cost of replacing traditional graphite anodes with Silicon as well for greater theoretical energy density, potentially doubling storage capacity, increasing range for future battery systems. Advances in stacking and packaging increase energy density without compromising safety or stability. Advances in battery technology will continue to reduce costs, improve efficiency and expand applications, and help drive the transition towards a cleaner and more resilient energy future.
Grid Scale Battery Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
Increasing urbanization and electricity demand are primarily driving the market growth. Increasing competition from fuel cells is a major challenge restraining market growth. In the last few years, fuel cells have gained widespread adoption in consumer applications. Fuel cells have emerged as a reliable and efficient alternative technology for generating electricity and other basic electrical applications, as they can provide electricity and heat efficiently. Several governments have implemented projects and regulations to support the adoption of fuel cells. For example, the South Korean government promotes the use of clean, renewable and alternative energy sources.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 3.52 billion |
| Market size value in 2031 | USD 50.70 billion |
| Growth Rate | 34.50% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Grid Scale Battery Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Grid Scale Battery Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Grid Scale Battery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Grid Scale Battery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Grid Scale Battery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Grid Scale Battery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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