Off-Grid Energy Storage Systems Market Size, Share, Growth Analysis, By Type(Lithium-ion Battery, Lead-acid Battery, Others), By Application(Family Backup Power, Industrial UPS, Unattended Equipment, Others), By Region - Industry Forecast 2024-2031

Drivers

Investment in Designing and Manufacturing of BESS Devices to Play a Significant Role in Industry Dynamics

• Numerous industry entities persistently strive to innovate, introducing new natural and inorganic extensions to enhance the global acceptance of their products. Simultaneously, several players within the industry are dedicatedly unveiling advanced Battery Energy Storage System (BESS) units to align with the burgeoning growth across the sector. For instance, in March 2021, Tesvolt, a prominent German storage system manufacturer, unveiled its latest technological advancement: the TS-I HV 80 battery line. Specifically engineered to mitigate load peaks, this product line caters to the demand stemming from commercial and industrial clientele.

Restraints

Rising Expansion of the Off-Grid Energy Storage Business

• The expansion of the off-grid energy storage business encounters a significant limitation rooted in the demand for substantial capital investments. These systems are predominantly utilized in large-scale plants to address energy demands during peak loads, presenting a critical need for upfront capital. According to the World Bank's Energy Sector Management Assistance Program (ESMAP), the total installed cost of diverse energy storage systems spans from slightly over USD 2,000 per kW to around USD 3,300 per kW. This cost range encompasses various technologies and components, impacting the initial capital expenditures required for setting up or expanding off-grid energy storage systems.