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Growth Opportunities in the Battery Energy Storage Systems Industry

Publisher Frost & Sullivan
Published Nov 18, 2024
SKU # MC19339520

Description

Growth Opportunities in the Battery Energy Storage Systems Industry


Advanced Digital Technologies are Driving Transformational Growth for Front- and Behind-the-meter Applications

Battery energy storage systems (BESS) are crucial in enabling the energy transition. Their deployment is essential to providing electricity systems' flexibility to support higher electrification, relying primarily on variable renewable energy (RE) sources. At the behind-the-meter (BTM) level, batteries are also increasingly recognized as a critical technology for end users to maximize on-site RE generation, manage energy demand more efficiently, control costs, and reduce carbon footprint.

BESSs have entered a period of accelerated growth. Global annual deployments are set to expand at a 30.5% CAGR from 2023 to 2035, reaching 240.63 GW with 1.69 TW of cumulative capacity. Capacity deployments will be led by grid-scale batteries, accounting for between 70-80% of new capacity. While short-mid opportunities remain concentrated in China, North America, and Europe, by 2035, India and South Asia; East Asia; Australia, New Zealand, and the Pacific; and Latin America will have become attractive destinations for BESS investments.

The solar and battery low-price scenario, the push for domestic content, electric mobility, and higher transparency on ESGs are injecting extra dynamism into the market and new opportunities for differentiation. As the industry matures and batteries prove to be the right fit for a wide range of applications, the focus is on increasing efficiency, profitability, and sustainability. Numerous AI and analytics-based solutions are transforming the market, bringing gains in battery performance, manufacturing efficiency, trading, energy optimization, and circularity.

This Frost & Sullivan analysis provides a regional-level forecast and examination of how BESS capacity and investments will evolve by 2035 split by end-user segment. It discusses the main drivers and trends in supply, technology, business models, and use cases. In addition, it highlights growth opportunities for industry participants.

Table of Contents

    • Scope of Analysis
    • Regional Segmentation
    • End-user Segmentation
    • Applications by End User
    • Application Definitions for Grid-scale BESSs
    • Application Definitions for Residential and C&I BESSs
    • Why is it Increasingly Difficult to Grow?
    • The Strategic Imperative 8TM
    • The Impact of the Top 3 Strategic Imperatives on the BESS Industry
    • Key Findings
    • Key Trends Shaping the BESS Industry
    • Trend 1-AI Revolutionizing the BESS Value Chain
    • Trend 2-Carrots and Sticks to Foster BTM Self-consumption
    • Trend 3-VPPs to Unlock Extra Value from BTM Storage
    • Trend 4-Solar-plus-storage, the Perfect Match for Both Sides of the Meter
    • Trend 5-Alternatives to Lithium
    • Trend 6-Batteries Supporting Transport Electrification
    • Trend 7-Higher Transparency and ESG Accountability for Batteries
    • Trend 8-Predictive BESS Analytics
    • Growth Metrics
    • Growth Drivers
    • Growth Restraints
    • Key BESS Suppliers
    • Forecast Considerations
    • Cumulative Storage Capacity Growth
    • Cumulative Power Capacity Growth
    • Annual Power Capacity Forecast
    • Annual Storage Capacity Forecast
    • Capex Capacity Forecast
    • Capacity Forecast Analysis
    • Pricing Trends and Forecast Analysis
    • Regional Analysis-North America
    • Regional Analysis-Europe
    • Regional Analysis-ANZ and Pacific
    • Regional Analysis-China
    • Regional Analysis-East Asia
    • Regional Analysis-India and South Asia
    • Regional Analysis-ASEAN
    • Regional Analysis-Latin America
    • Regional Analysis-Middle East and North Africa
    • Regional Analysis-Sub-Saharan Africa
    • Regional Analysis-Russia and CIS
    • Growth Opportunity 1: Solar-plus-storage Retrofits
    • Growth Opportunity 2: BESS to Fuel Electric Transportation
    • Growth Opportunity 3: Energy Storage-as-a-Service
    • Growth Opportunity 4: AI and Advanced Analytics-based Platforms for BESS Optimization
    • Growth Opportunity 5: Grid-scale BESS to Shape Renewable Energy Power Purchase Agreements
    • Benefits and Impacts of Growth Opportunities
    • Action Items & Next Steps

Pricing

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