Market Overview

The estimation of global market size of entire stationary energy storage systems (hereafter ESS) by shipment capacity at manufacturers in 2022 was 120,007 MWh. The year saw significant increase in demand for ESS, because of enhancement by the governments of major countries to support installations of renewable energy plants and ESS through subsidies and tax incentives, increased demand for producing and consuming electricity at households due to soaring electricity prices, decreased costs for generating electricity from renewable energy due to lower prices for solar panels, and improved profitability from selling electricity via reduced cost for renewable energy generation.
Continuously backed finantially by the governments in 2023, ESS deployment has continued growing to cater to increased installations of renewable energy plants in North America (the US in particular), Europe, and China. In addition, introduction of residential ESS is in progress in Japan, Europe, and North America, where electricity charges are relatively high. The global ESS market expects growth to reach 171,869 MWh in 2023, 143.2% on YoY.

Noteworthy Topics

Rapid Increase in Entry by Chinese Companies to ESS Projects Using Redox-Flow Batteries

A redox flow battery is a storage battery that charges and discharges electricity by circulating electrolyte. In addition to conventionally used vanadium, other redox flow batteries, i.e., iron-based, and those that use zinc bromide, iron-chromium, and galvanized iron, have been commercialized.
In recent years, development of establishing ESS technology to suppress the impact of long-term voltage fluctuations in power grids has been under way in China through incentive measures. This has increased entry to redox flow battery market by Chinese companies. Simultaneously, the ESS projects using the said battery have been made public in series. With too many market entrants in China, entry to redox flow battery market in China by companies from other countries seems to be more and more difficult. Meanwhile, Chinese enterprises that deal in redox flow batteries are likely to expand deployment overseas based on their achievements.

Future Outlook

To realize carbon neutrality, deployment of ESS will continue increasing. Meanwhile, efforts by ESS manufacturers to reduce costs will bring down the price of storage batteries, which expects demand expansion for ESS installations next to renewable energy plants.
CAGR for the global ESS market expects 18.0% from 2023 to 2032, with the global market size achieving 764,777MWh in manufacturer shipment capacity.

Research Outline