Global Grid Connected Battery Market - Insights
An electrical grid is a network, which delivers electricity for electricity production plant to consumer. The battery storage provides flexibility for end user application such as solar power and wind power. The grid storage is classified as either front of the meter (FOM) storage and behind the meter (BTM) storage. The front of the meter is for community energy storage, utility application, and others and behind the meter storage is for both residential and commercial application. Global grid connected battery storage market generated revenue of US$ 996.8 million in 2017 and is expected to reach US$ 4,242.4 million by 2025. The market is expected to exhibit a CAGR of 20.0% in the forecast period. Increasing demand for renewable energy is one of the major driving factors for growth of the market, use of renewable energy increased the need for battery storage systems in the power grids. According to International Renewable Energy Agency, in 2015, the global renewable energy production was 5.5 million Giga watt hour up from 5.3 million Giga watt hour in 2014. Hence, this increasing production of renewable energy has accelerated growth of the market, globally.
Lithium-ion battery segment held the dominant position in the global grid connected battery storage market in 2017
Lithium-ion battery held the dominant position in the market in 2017 and is expected to retain its dominance throughout the forecast period. Due to advantages of Lithium ion battery such as high energy density, low self-discharge, low maintenance have accelerated the segment in the market. Lithium ion battery are deployed in wide range of application such as from small scale batteries used in residential systems to multi-megawatt batteries used for utility application. In addition to this, due to advantage of high energy density and power density and declining cost of lithium ion battery is a major factor for growth of the segment in the grid connected battery market.
Figure. Global Grid Connected Battery Market Share (%), by Region, 2017
Asia Pacific held the dominant position in the grid connected battery market in 2017
On the basis of geography, the grid connected battery market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. The grid connected battery market in Asia Pacific region held the dominant position in the global market in 2017 and is projected to retain its dominance throughout the forecast period. China, India, and Japan are growth engines in the grid connected batteries market in Asia Pacific. Increasing investment in smart city initiatives is one of the key driving factors for growth of the grid connected battery storage market in the region. The integration of smart grid technology for the development of advanced electric transmission and distribution infrastructure in smart cities have accelerated the market in this region. For instance, according to the Indian government Union Budget 2018-19, the government has selected 99 cities under the smart city mission and will provide a fund of US$ 3.1 billion for the development of these cities. Moreover, increasing electricity production in Asia Pacific countries have also accelerated demand for grid connected battery storage. For instance, according to Coherent Market Insights, in 2017, India produced 1,156 terawatt hours electricity up from 1,098 terawatt hours in 2016. In 2017, 16% of the total electricity produced by renewable resources in India. Similarly, in 2017, China produced 6,529 terawatt hours up from 6165 terawatt hours in 2016. Hence, this increasing production of electricity have accelerated growth of the market of grid connected battery in this region. In addition to this, rising government initiative for increasing production of renewable energy have also accelerated growth of the market in this region. For instance, according to Indian Brand Equity Foundation, the Indian government released its road map to achieve 175 GW capacity in renewable energy by 2022, in which 100 GW is for solar power and 60 GW is of wind power. Similarly, in 2017, the China government announced plans to invest US$ 360 billion in renewable energy by 2020. Moreover, North America grid connected battery market held the second position in the market. The U.S. and Canada are some of the major countries in this region. The high production of renewable energy in the region is a major driving factor for growth of the market. For instance, according to Coherent Market Insights, in 2017, Canada produced 712 terawatt hours electricity, of which 65% energy was produced by renewable resources.
Key Players- Global Grid Connected Battery Storage Market.
The major players operating in the global grid connected battery storage market include NGK Insulators Ltd, BYD Company, NEC Corporation, Samsung SDI Co., LG Electronics Inc., Xtreme Power, Saft Groupe S.A., AES Energy Storage, Alevo, Delco, Altair Nanotechnologies Inc., EnerDel, GNB Corporation, Ecoult, and Powertree Services Inc.