The battery energy storage system market was worth USD 9.9 billion in 2022 and is anticipated to be worth USD 38.3 billion by 2032, at a CAGR of 14.6%. The trend toward low-carbon energy generation, which reduces greenhouse gas emissions, presents potential for growth in the battery energy storage system industry. Furthermore, the growing global population has hastened the need for electricity.

 

Several corporations have made significant investments to meet high energy demands while adhering to low carbon emission goals throughout time. As a result, numerous companies have begun to build new plants in order to build large-scale storage infrastructure with low carbon emissions. For example, Pacific Green, a global sustainable energy technology business, announced in March 2021 the start of an exclusive partnership with an infrastructure developer, TUP Energy, to establish a battery energy storage system in the United Kingdom. The system has a 1.1 GW (Gigawatt) capacity.

 

Battery energy storage systems require high capital investments owing to their high energy density and improved performance. Battery energy storage systems include various types, such as lithium-ion batteries, flow batteries, and lead-acid batteries. Lithium-ion batteries are costly as they offer high energy density, have low self-discharge rates, and even require low maintenance,as per globenewswire.

 

Because of their tiny and lightweight design, these batteries are employed in electric cars. However, the costs of lithium-ion batteries are predicted to fall due to continuous innovation in battery technologies. The high initial costs of producing and installing these systems are expected to limit the growth of the battery energy storage system industry.