Global Grid-Scale Battery Market Report and Forecast 2024-2032

Global Grid-Scale Battery Market Outlook

The global grid-scale battery market size reached a value of more than USD 2.42 billion in 2023. The market is further estimated to grow at a CAGR of 33.10% in the forecast period of 2024-2032.

Rising Demand for Lithium-Ion Batteries to Propel the Grid-Scale Battery Market Growth

Based on type, the demand for lithium-ion batteries, owing to their multiple advantages, is growing rapidly. Lithium-ion batteries are widely utilised as supporting devices in the grid due to their energy density, superior energy efficiency, and long lifecycle. Moreover, lithium-ion batteries are available in various types such as coin, cylindrical, prismatic, and pouch, thereby contributing to the market expansion. 

The exceptional characteristics of prismatic and pouch cells like higher design freedom, reduced module-level dead volume, and ease of customisation are resulting in their increased utilisation in grid-scale batteries. The initiatives taken by the market players to improve the manufacturing capacity of lithium-ion batteries are contributing to the market development of grid-scale batteries. Advancements in the lithium-ion battery chemistry are improving the performance of lithium-ion batteries, which is likely to aid the grid-scale battery market development over the forecast period.

Market Segmentation

A grid-scale battery is an electrochemical device used in grid energy storage systems that collects and stores energy from the grid or a power plant. This battery storage technology enables the power system operators to discharge the stored energy at a later time to provide electricity when needed.

The market for grid-scale battery, by type, is divided into:

• Lithium-Ion Battery

• Lead Acid Battery

• Flow Battery

• Sodium-Ion Battery

• Zinc Hybrid

• Others

Based on ownership, the market is bifurcated into:

• Third-Party Owned

• Utility Owned

On the basis of application, the market is segmented into:

• Renewables

• Peak Shifting

• Ancillary Services

• Backup Power

• Others

The regional markets for grid-scale battery can be divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Growing Use in Renewable Power Generation Plants to Drive the Market Growth of Grid-Scale Battery

The rapid urbanisation, industrial development, and economic advancements are resulting in the increasing demand for electricity and driving the shift towards renewable energy for power generation, which is surging the utilisation of grid-scale batteries. The rapid response, modularisation, short construction cycles, and flexible installation benefits of batteries are also leading to their wider applications in grid energy storage systems.

The growing environmental consciousness and the rising need to decarbonise the economies worldwide are increasing the dependency on grid energy storage systems. As grid-level electrical energy storage systems and their batteries store the excess electricity during peak power generation periods, they are used to provide the stored power during emergencies across end-use sectors.

The introduction of favourable government initiatives to strengthen the domestic supply chain for lithium-based batteries and develop innovative methods to recycle grid-scale batteries is proving to be a significant grid-scale battery market driver. Further, various initiatives taken by the market players for developing cheaper and long-lasting batteries and advancements in battery technologies are expected to augment the market over the forecast period.

Key Players in the Global Grid-Scale Battery Market

The report gives a detailed analysis of the following key players in the global grid-scale battery market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• ABB Ltd.

• Hitachi Energy Ltd.

• Sumitomo Electric Industries, Ltd.

• LG Energy Solution

• Leclanche SA

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report