Stationery Energy Storage Market is Estimated to Witness High Growth Owing to Opportunity of Meeting Renewable Energy Targets

gaurik

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Stationery Energy Storage Market is Estimated to Witness High Growth Owing to Opportunity of Meeting Renewable Energy Targets

The global stationary energy storage market is estimated to be valued at US$ 43.48 Mn in 2023 and is expected to exhibit a CAGR of 44% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Stationary energy storage helps in storing electricity generated from renewable energy sources like solar, wind for future use. It comprises batteries, flywheels, compressed air storage etc. that help in balancing energy demand and supply. These storage systems play an important role in integration of renewable energy into the electricity grid by absorbing excess energy produced during off-peak hours and supplying it when demand is high.

Market Opportunity:
Meeting Renewable Energy Targets

Many countries have set ambitious renewable energy targets to reduce carbon emissions and mitigate climate change. For example, the United States and European Union have set a target of generating 80% of electricity from renewable sources by 2030 and 2050 respectively. Similarly, China aims to increase non-fossil fuel share in primary energy consumption to 20% by 2025. Achieving such aggressive targets require large scale integration of renewable energy into the conventional grid which poses challenges related to energy balancing and intermittency. Stationary energy storage can effectively address these challenges by storing excess renewable energy and supplying it when solar and wind power drops. This presents a huge market opportunity for stationary energy storage providers to support countries in meeting their clean energy goals.

Porter's Analysis

Threat of new entrants: The stationary energy storage market requires large investments in research and development as well as manufacturing facilities to produce batteries and energy storage systems at scale. This poses significant entry barriers for new companies.

Bargaining power of buyers: Individual buyers have relatively low bargaining power compared to utilities and grid operators who purchase large amounts of energy storage and can negotiate better prices.

Bargaining power of suppliers: A few key companies dominate the supply of critical battery components like lithium, cobalt, and graphics processing units (GPUs). This gives them significant influence over prices.

Threat of new substitutes: Technologies like pumped hydro energy storage offer substitutes but have limitations based on geographic constraints. Renewables like solar and wind are complements rather than substitutes.

Competitive rivalry: The market has few global players leading to high competition on the basis of product quality, pricing, technical support etc.

SWOT Analysis

Strengths: Growing demand for renewable integration and need for continuous power supply are driving significant interest in stationary energy storage solutions. Lithium-ion batteries provide high storage density.

Weaknesses: High initial investments and costs remain a challenge hampering widespread adoption. Dependency on rare earth materials increases supply risks.

Opportunities: Emerging technologies around low-cost flow batteries, solid-state batteries offer potential for cost reductions. Investments in microgrids and virtual power plants present an opportunity.

Threats: Geopolitical risks around materials supply could disrupt manufacturing. Installation challenges vary significantly across regions/weather conditions.

Key Takeaways

Global Stationary Energy Storage Market Size is expected to witness high growth over the forecast period supported by supportive regulations and initiatives promoting renewable energy adoption and grid reliability improvements across regions. The global stationary energy storage market is estimated to be valued at US$ 43.48 Mn in 2023 and is expected to exhibit a CAGR of 44% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific dominated the market in 2021 led by China’s push for renewables and energy storage deployment at the grid level. The US and European countries are also projected to see strong growth as policies supportive of clean energy proliferation take effect.

Key players: Key players operating in the stationary energy storage market are Abbott, Danaher, Quidel, BD, LifeScan, Siemens Healthineers, F. Hoffmann-La Roche, and Ascensia Diabetes Care Holdings, among others. They are focusing on developing innovative large-scale battery solutions with higher energy densities and integrated software platforms for grid management.