The grid-Scale Battery Market is expected to grow from USD 1.37 Billion in 2018 to USD 5.82 Billion by 2023, at a CAGR of 33.52% during the forecast period. The growth of this market can be attributed to the increasing investments in renewable energy, reducing costs of grid-scale batteries owing to technological advancements and expanded deployment, and government subsidies and regulations for enhancing energy efficiency.
Some of the prominent key players are: LG Chem (South Korea), Samsung (South Korea), Panasonic (Japan), Fluence (US), Tesla (US), and BYD Company (China)
Lithium-ion batteries to hold the largest share of the grid-scale battery market throughout the forecast period
Lithium-ion batteries have high energy and power density, which allows these batteries to be lightweight with less standby losses and a high life expectancy of 5–15 years with 98% efficiency. In addition, these batteries are lighter in weight than nickel-cadmium and nickel-metal-hydride batteries. These features are expected to drive the growth of the grid-scale battery market for lithium-ion batteries.
Grid-scale battery market for peak shifting applications to grow at a high rate during the forecast period
Grid-scale batteries have applications in peak shifting, renewable integration, ancillary services, backup power, and other applications. The grid-scale battery market for peak shifting applications is expected to grow at the highest rate during the forecast period. Peak shifting is a highly cost-effective method of reducing electric utility expenses.
Asia Pacific is expected to dominate the grid-scale battery market during the forecast period.
In this report, the grid-scale battery market has been segmented on the basis of region into North America, Europe, Asia Pacific, and RoW. High population in APAC has resulted in the increased demand for energy; this has, in turn, amplified the need for fossil fuels. Moreover, governments of various countries in this region are striving to minimize the adverse effects of the energy sector on the environment. These factors are encouraging the deployment of grid-scale batteries in residential and utility applications.