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The battery energy storage system market size is projected to reach US$ 98.23 billion by 2031 from US$ 15.45 billion in 2023. The market is expected to register a CAGR of 26.0% during 2023–2031. The role of battery energy storage systems in energy transitions is likely to offer new key trends to the market in the coming years.
Battery Energy Storage System Market Analysis
The rapid growth of the renewable energy industry, surge in demand for battery energy storage systems, and rise in government funding for utility-based renewable energy projects are the key factors fueling the US and Asia Pacific battery energy storage system market growth. Moreover, the growing investment in renewable power generation is anticipated to create lucrative opportunities for the key companies operating in the battery energy storage system market in the US and Asia Pacific during the forecast period. Further, the role of battery energy storage systems in energy transitions is expected to be a key future trend in the market from 2023 to 2031.
Energy producers, transmission system operators, storage providers, and end users are stakeholders involved in the ecosystem of battery energy storage systems. Various sources, including natural gas, fossil fuels, and renewable energy (wind and solar), are used to generate energy. Power generation is followed by the process of transmission and storage. The energy storage process involves large-scale facilities and distributed power or energy storage systems. The final step consists of distributing the stored energy to end users or major application areas. End users of the battery energy storage system market are power plants, commercial, residential, and utility sectors.
Battery Energy Storage System Market Overview
Battery energy storage systems (BESS) strengthen grid resilience and reliability. Moreover, the system eases electricity costs through arbitrage, mitigating the risk of curtailment by providing backup power. These benefits attract developers and governments of the US and APAC, specifically in China, India, Japan, and South Korea, to focus more on battery energy storage infrastructure. State governments are increasingly incentivizing the integration of energy storage with solar. Also, the Inflation Reduction Act (IRA) offers tax credits for installing solar-plus-storage systems and standalone battery energy storage systems, which is propelling the growth of the battery energy storage system market in the US. Similarly, the government of India introduced the Production Linked Incentive scheme for Advanced Chemistry Cell in May 2021 with the aim of decreasing dependency on imported cells and promoting industrial development in the country. The scheme seeks to increase India's manufacturing capacities in the energy storage segment through financial incentives. In order to make reasonable battery storage systems, the government of India has authorized a Viability Gap Funding (VGF) Scheme for setting up 4,000 MWh of battery energy storage system in 2023. The scheme has provision for VGF to the extent of up to ~40% of capital expenditure for BESS, which will bring down the expense of electricity from BESS.
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US and Asia Pacific Battery Energy Storage System Market: Strategic Insights
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
US and Asia Pacific Battery Energy Storage System Market: Strategic Insights
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Battery Energy Storage System Market Drivers and Opportunities
Mounting Demand for Energy
Rising population and growing urbanization are some of the key factors driving the use of energy in the US and Asia Pacific. As per the US Energy Information Administration (EIA), US energy consumption is anticipated to grow by 2050 owing to economic and population growth. EIA also reported that US electricity end-use consumption was ~3.2% higher in 2022 than in 2021. Battery energy storage has the potential application as energy storage used in times of crisis or in remote or distant locations where power networks are not available. Furthermore, due to the increasing energy uncertainties worldwide, the US government is boosting the application of battery energy storage. For instance, Plus Power secured a US$ 82 million tax equity investment from bank Morgan Stanley for the Arizona-based 90 MW/360 MWh Superstition BESS project in May 2024, which is anticipated to be operational in June 2024. Also, RWE completed the construction of three new battery energy storage systems (BESS) totaling 190 MW (361 MWh) in Texas and Arizona in February 2024.
The demand for battery energy storage systems is high in some of the rural countries of Asia Pacific, such as India and Indonesia, where sufficient power supply is still a challenge for authorities. Governments in these countries have been pushing for the installation of battery energy storage system (BESS), which is a reliable power supply during emergencies. For instance, in Q1 2024, Chhattisgarh (one of the rural states of central India) accounted for ~55% of the total country’s BESS cumulative capacity that was commissioned in 2024. Thus, the increasing energy demand fuels the development of the battery energy storage system market in the US and Asia Pacific.
Growing Investment in Renewable Power Generation
The US government is focusing on reducing its carbon footprints, owing to which the energy industry is witnessing a transition toward clean energy. As a result, the government is boosting investments in green energy production. Power generation using fossil fuels is a key contributor to greenhouse gas (GHG) emissions that lead to climate change. The utilization of solar and wind energy is increasing due to rising focus on using clean and green energy, growing climate change concerns, and increasing government initiatives toward encouraging the usage of renewable energy across the US. By 2030, the US government targets to decrease net GHG emissions by ~50–52% compared to 2005 levels and achieve net zero emissions by 2050. Thus, rising concerns regarding greenhouse gas emissions are boosting the investment in renewable power generation, which is anticipated to offer lucrative opportunities in the development of the battery energy storage system market over the forecast period.
Battery Energy Storage System Market Report Segmentation Analysis
Key segments that contributed to the derivation of the US and Asia Pacific battery energy storage system market analysis are type, connection type, and end user.
- In terms of type, the US and Asia Pacific battery energy storage system market is bifurcated into lithium-ion and others. The lithium ion segment held a larger share of the market in 2023.
- Based on connection type, the US and Asia Pacific battery energy storage system market is bifurcated into on-grid and off-grid. The on-grid segment dominated the market in 2023.
- By end user, the US and Asia Pacific battery energy storage system market is categorized into commercial, utilities, and residential. The utilities segment held the largest battery energy storage system market share in 2023.
Battery Energy Storage System Market Share Analysis by Geography
The geographic scope of the battery energy storage system market report offers a detailed country analysis in the US and Asia Pacific. The US and China are major countries witnessing significant growth in the battery energy storage system market owing to the rise in government initiatives and investments in renewable power generation, along with the expansion of microgrids and battery energy storage systems (BESS) capacity. The rising awareness regarding adopting renewable energy and increasing investments in solar and wind energy projects are propelling the demand for lithium-ion batteries for energy storage in the US. In 2023, the US witnessed ~37% growth in renewables installation compared to 2021 and a 51% increase compared to 2022 installations.
A rise in demand for backup power during power outages or when the grid access is limited is expected to drive the demand for BESS in the country. In addition, the rise in usage of battery energy storage systems (BESS) in microgrids and off-grid systems across the US to ensure stable and reliable power supply is projected to boost the battery energy storage system market growth during 2023–2031. Moreover, the increase in investment and initiatives toward the development of solar and wind power projects across the country is anticipated to fuel the battery energy storage system market growth in the coming years. In 2023, Texas installed around 6,500 MW worth of solar energy systems across the region and surpassed California states to become the largest renewable installed state across the US.
Battery Energy Storage System Market Report Coverage and Deliverables
The "Battery Energy Storage System Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Battery energy storage system market size and forecast at country levels for all the key market segments covered under the scope
- Battery energy storage system market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Battery energy storage system market analysis covering key market trends, country framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the battery energy storage system market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The US & APAC battery energy storage system market is expected to reach US$ 98.23 billion by 2031.
Growing Focus on Establishing Vigorous Storage Infrastructure; and Mounting Demand for Energy are some of the major drivers of the US & APAC battery energy storage system market.
India is anticipated to grow at the fastest CAGR over the forecast period.
The key players operating in the US & APAC battery energy storage system market include BYD Co. Ltd; Samsung SDI Co Ltd; Panasonic Holdings Corp; Contemporary Amperex Technology Co Ltd; Tesla Inc; AES Corp; Ameresco Inc; Siemens AG; KORE Power Inc; General Electric Co; NextEra Energy Inc; Eos Energy Enterprises Inc; Saft Groupe SA; LG Chem Ltd; and ESS Inc.
The lithium-ion segment led the battery energy storage system market with a significant share in 2023.
The battery energy storage system market was valued at US$ 15.45 billion in 2023; it is expected to register a CAGR of 26.0% during 2023–2031.
Role of battery energy storage system in energy transitions is expected to drive the growth of the US & APAC battery energy storage system market in the coming years.
The List of Companies - US and Asia Pacific Battery Energy Storage System Market
- BYD Co. Ltd
- Samsung SDI Co Ltd
- Panasonic Holdings Corp
- Contemporary Amperex Technology Co Ltd
- Tesla Inc
- AES Corp
- Ameresco Inc
- Siemens AG
- KORE Power Inc
- General Electric Co
- NextEra Energy Inc
- Eos Energy Enterprises Inc
- Saft Groupe SA
- LG Chem Ltd
- ESS Inc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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