Global Ancillary Services for Battery Energy Storage Systems Market Size study, by Type (Frequency Regulation, Congestion Relief, Voltage Support, Power Smoothing, Peak Shaving, Backup Power, Solar Plus Storage, Grid Reliability & Microgrid Capability, Ot

Global Ancillary Services for Battery Energy Storage Systems Market Size study, by Type (Frequency Regulation, Congestion Relief, Voltage Support, Power Smoothing, Peak Shaving, Backup Power, Solar Plus Storage, Grid Reliability & Microgrid Capability, Others), by Battery Energy Storage System Type (Lead Acid, Lithium-ion, Flow Batteries, Nickel-based Batteries, Sodium-Sulphur, Zinc-Bromide), by End-Use (Residential, Commercial, Industrial, Utilities) and Regional Forecasts 2022-2032

Global Ancillary Services for Battery Energy Storage Systems Market is valued approximately at USD 1.62 billion in 2023 and is anticipated to grow with a healthy growth rate of more than 14.77% over the forecast period 2024-2032. Ancillary services for battery energy storage systems encompass a variety of supportive functions beyond mere energy storage. These include frequency regulation, congestion relief, voltage support, power smoothing, and peak shaving, all of which are crucial for enhancing grid stability and reliability. By swiftly adjusting power output to meet demand fluctuations and maintain system balance, these services play an indispensable role in integrating renewable energy sources and managing grid variability effectively. Technological advancements in battery technology are further fuelling the market's growth. Innovations aimed at improving energy density, cycle life, safety, scalability, and affordability are ongoing, with lithium-ion batteries gaining significant attention due to their high energy density and rapid charging capabilities. Additionally, flow batteries, which utilize liquid electrolytes in external tanks, offer scalability and longer-duration storage options, positioning them as strong competitors in the energy storage domain.

The increasing penetration of renewable energy sources such as solar and wind power is a significant driver propelling the market growth. Fossil fuels have been a predominant energy source, causing climate change and adverse health impacts due to greenhouse emissions and pollution. The shift towards renewable sources, prompted by their abundance and minimal environmental impact, has led to a surge in demand for these sustainable energy options. According to the Energy Information Administration, U.S. solar power generation is projected to grow by 75%, from 163 billion kilowatt-hours (kWh) in 2024 to 286 billion kWh in 2025. Wind energy usage is also expected to rise, driven by the high demand for energy, increasing by 11% from 430 billion kWh in 2024 to 476 billion kWh in 2025. Renewable sources are anticipated to constitute 22% of the U.S. electric power generation in 2024, surpassing nuclear and coal.

The key regions considered for the global Ancillary Services for Battery Energy Storage Systems market study include Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. In 2023, the Asia Pacific region dominate the market in terms of revenue and expected to grow at a fastest CAGR during the forecast period 2024-2032, driven by the need for reliable and efficient electricity infrastructures amid ongoing industrialization and urbanization. The region is also witnessing significant investments in grid modernization and energy storage projects, particularly in countries such as China, Japan, South Korea, and Australia.

Major market player included in this report are:

Nidec Industrial Solutions

ESS Inc.

EDF Energy

Powin Energy

Saft

Mitsubishi Heavy Industries, Ltd.

Honeywell International, Inc.

LG Energy Solution Ltd.

NextEra Energy

Doosan GridTech

General Electric

Tesla, Inc.

Siemens AG

ABB Ltd.

Samsung SDI

The detailed segments and sub-segment of the market are explained below:

By Type:

Frequency Regulation (and Balancing)

Congestion Relief

Voltage Support

Power Smoothing

Peak Shaving

Backup Power

Solar Plus Storage

Grid Reliability & Microgrid Capability

Others

By Battery Energy Storage System Type:

Lead Acid

Lithium-ion

Flow Batteries

Nickel-based Batteries

Sodium-Sulphur

Zinc-Bromide

By End-Use:

Residential

Commercial

Industrial

Utilities

By Region:

North America

U.S.

Canada

Europe

UK

Germany

France

Spain

Italy

ROE

Asia Pacific

China

India

Japan

Australia

South Korea

RoAPAC

Latin America

Brazil

Mexico

Rest of Latin America

Middle East & Africa

Saudi Arabia

South Africa

RoMEA

Years considered for the study are as follows:

Historical year – 2022

Base year – 2023

Forecast period – 2024 to 2032

Key Takeaways:

Market Estimates & Forecast for 10 years from 2022 to 2032.

Annualized revenues and regional level analysis for each market segment.

Detailed analysis of geographical landscape with Country level analysis of major regions.

Competitive landscape with information on major players in the market.

Analysis of key business strategies and recommendations on future market approach.

Analysis of competitive structure of the market.

Demand side and supply side analysis of the market.

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