Advanced Energy Storage Systems Market: Exploring the Impact of Artificial Intelligence in Storage Solutions

Advanced Energy Storage Systems Market: Exploring the Impact of Artificial Intelligence in Storage Solutions

Advanced energy storage refers to high-capacity energy storage technologies that can store renewable energy sources such as solar and wind for use when the sun isn't shining or the wind isn't blowing. It plays a critical role in transitioning to more renewable energy by enabling the storage and later use of electricity from variable renewable resources. Advanced energy storage technologies like lithium-ion batteries, lead-acid batteries, sodium-sulfur batteries, flow batteries, and flywheels are being increasingly adopted owing to their ability to efficiently store energy for long durations.

The global Advanced Energy Storage Market is estimated to be valued at US$ 16.9 Billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity of rise in demand for clean energy solutions will drive the advanced energy storage market over the forecast period. With surging concerns about environment and climate change, the demand for renewable energy sources like solar and wind power is growing rapidly across the globe. However, the intermittent nature of these energy sources necessitates efficient energy storage technologies to ensure reliability of supply. Advanced energy storage helps in effective utilization of renewable energy and reducing carbon footprint. It bridges the gap between energy generation and usage from renewable resources. Thus, the widespread adoption of renewable energy coupled with need for reliable clean energy infrastructure is expected to boost the advanced energy storage market growth during the forecast timeframe.

Porter's Analysis

Threat of new entrants: Low economies of scale and high capital requirements restrict entry in this market.

Bargaining power of buyers: Buyers have high bargaining power due to the availability of substitute products.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated raw material requirements.

Threat of new substitutes: Emergence of new energy storage technologies pose a threat.

Competitive rivalry: Intense competition among existing players to gain market share.

SWOT Analysis

Strengths: Rising investments in renewable energy generation and supportive government policies drive demand.

Weaknesses: High initial installation costs limit widespread adoption.

Opportunities: Increasing installations of microgrids and demand for backup power solutions provide opportunities.

Threats: Cyber security concerns over smart grid integration pose threats.

Key Takeaways

The global Advanced Energy Storage Market is expected to witness high growth. The global Advanced Energy Storage Market is estimated to be valued at US$ 16.9 Billion in 2024 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.

Regional analysis related content comprises North America is also projected to grow at a significant pace during the forecast period. Growing investments to develop lithium-ion battery manufacturing capabilities and increasing installations of behind-the-meter batteries are fueling the regional market growth. Europe, Middle East & Africa, and Latin America are other key regions in the advanced energy storage market.

Key players related content comprises Key players operating in the advanced energy storage market are ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd. ABB Ltd. is a leading player and offers advanced energy storage solutions for applications including utility-scale, commercial & industrial and microgrid projects.