The global Stationary Energy Storage Market is estimated to be valued at US$ 35.17 Billion in 2022 and is expected to exhibit a CAGR of 23.64% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Stationary energy storage systems are utilized to store electricity from non-portable sources like the power grid and solar panels for later consumption. These systems aid in balancing the electricity demand and supply by storing excess energy generated during off-peak hours. They offer numerous advantages like stable electricity supply during power outages, peak shaving, and integration of renewable energy sources into the grid. Additionally, they help reduce electricity bills by storing energy when it is inexpensive and consuming it when prices are high.
Market key trends:
One of the major trends in the stationary energy storage market is the growing deployment of lithium-ion batteries. Lithium-ion batteries have emerged as a preferred stationary energy storage technology due to their high energy density, long lifespan, and minimal self-discharge. As renewable energy generation continues to grow globally, lithium-ion batteries are playing a key role in storing excess solar and wind energy to ensure grid stability and reliability. Their declining costs are further supporting widespread adoption across residential, commercial, and utility-scale stationary energy storage applications. This is expected to drive substantial growth in the lithium-ion battery segment over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the stationary energy storage market is low as it requires huge capital investment to set up manufacturing plants and R&D facilities for developing new battery technologies.
Bargaining power of buyers: The bargaining power of buyers is high in this market as there are many established players providing a variety of product options to choose from in terms of battery chemistry, capacity, and pricing.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material prices fluctuate frequently and new material suppliers are also emerging globally.
Threat of new substitutes: Stationary energy storage faces threats from emerging energy storage technologies; however, established battery chemicals like lithium-ion have minimal threat currently.
Competitive rivalry: The competitive rivalry is high among key players to gain market share through capacity expansion, product innovation, and strategic partnerships.
Key Takeaways
The global stationary energy storage market is expected to witness high growth, exhibiting a CAGR of 23.64% over the forecast period, due to increasing demand for battery storage solutions from the renewable energy sector and government incentives for clean energy adoption.
The Asia Pacific region dominates the market and is expected to continue its lead led by strong government support through regulatory mandates for renewable integration in countries like China and India. With booming solar industry, China has emerged as a global manufacturing hub for lithium-ion batteries and demands over 50% of the global lithium supply.
Key players operating in the stationary energy storage market are Tesla, Duracell Power Center, Durapower Group, Contemporary Amperex Technology Co., Limited (CATL), and Toshiba Corporation. Tesla has established itself as a market leader through its Powerwall and Powerpack products. CATL is rapidly expanding its global production capacity.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
