Report : Lithium-ion Battery Energy Storage Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Capacity (0-10 kW, 10-20 kW, 20-50 kW, and Above 50 kW), Connection Type (On-Grid and Off-Grid), and End-use (Residential, Commercial, and Industrial, and Utility)
According to the new research report titled “Lithium-ion Battery Energy Storage Market Forecast to 2028 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 26,224.37 million by 2028 and register a CAGR of 13.9% from 2023 to 2028.
The lithium-ion battery energy storage market is witnessing tremendous growth across the globe. For instance, various companies and governments of several countries in Europe are focusing on expanding their renewable energy installation. In January 2023, Iberdrola announced that it had secured environmental approvals to build the largest solar photovoltaic (PV) plant in Europe, which will be the fifth-largest PV plant worldwide. This new 1,200-MW Fernando Pessoa solar project is in Portugal. Further, in 2022, the company inaugurated the Tâmega pumped hydroelectric storage complex, for which an investment of ~US$ 1.63 billion (EUR 1.5 billion) was made. It is one of the largest hydroelectric storage complexes in Europe. Further, the company announced its plan to invest an additional US$ 3.26 billion (EUR 3 billion) in wind and solar energy in Portugal. Thus, the rise in new installations of wind and solar power plants in the region is expected to fuel the lithium-ion battery energy storage market growth.
Also, the growing demand for power generation through clean energy sources and supportive government policies are increasing the installation of solar, wind, and hydropower plants in the ROW. In August 2021, Dumat Al Jandal, the largest wind farm in the Middle East, was connected to the grid in Saudi Arabia and started producing electricity to power 70,000 homes. The project was developed by EDF Renewables and Masdar and consisted of ~99 Vestas wind turbines with a capacity of 4.2 MW each. Similarly, in Saudi Arabia, NEOM Green Hydrogen Project is being constructed and is expected to start operating by 2026. When operational, the plant will produce up to 600 metric tons per day of carbon-free hydrogen in the form of green ammonia. Also, according to the Brazilian Association of Photovoltaic Solar Energy (ABSolar), in November 2022, Brazil surpassed 22 GW of installed solar power. In 2022, the utility-scale sector hit a new record and reached 7,017 MW of installed solar power. Thus, the expansion of renewable power capacity is expected to boost the growth of the lithium-ion battery energy storage market in ROW during the forecast period.
The global lithium-ion battery energy storage market size is segmented on the basis of connection type, end-use, capacity, and geography. Based on connection type, the lithium-ion battery energy storage market is bifurcated into on-grid and off-grid. Based on end-use, the lithium-ion battery energy storage market is categorized into residential, commercial and industrial, and utility. Based on capacity, the lithium-ion battery energy storage market is classified into 0-10 kW, 10-20 kW, 20-50 kW, and above 50 kW. The lithium-ion battery energy storage market size, based on region, is segmented into North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW).
Key Findings of Study:
China held the largest lithium-ion battery energy storage market share in 2022. As per the International Energy Agency (IEA), China is expected to boost its renewable electricity capacity by ~800 GW (an increase of 85%) between 2021 and 2026, accounting for ~43% of total global renewable energy capacity growth during that period, which in turn will propel the lithium-ion battery energy storage market. It was also seen that China’s offshore wind capacity increased by 16.9 GW in 2021 to 26.38 GW, accounting for 86% of the global capacity rise. According to the CNOOC Energy Economics Institute, up to 30 GW of new offshore wind capacity is planned for installation before 2025. Also, in February 2022, MingYang Smart Energy, a wind turbine manufacturer, announced its plans to deploy two giant wind turbines, with 16 MW capacity each, in the South China Sea. In March 2022, the Government of China announced its plan to build 450 GW of wind and solar power generation capacity in the Gobi and other desert regions. According to the National Energy Administration (NEA), in the first nine months of 2022, China installed 52.6 GW of new solar capacity. This installation was ~106% higher compared to 2021, which was 25.56 GW during the same period. Furthermore, in September 2022, the investment in the solar sector increased 352.6% year-on-year (YoY) and reached approximately US$ 19.16 billion. Thus, the growing investments in wind and solar energy projects are driving the lithium-ion battery energy storage market growth in China.
Contact Person: Sameer Joshi
Email Id: email@example.com