The global Energy Storage Solutions (ESS) market size was estimated at USD 46.4 billion in 2023 and is projected to reach USD 114.3 billion in 2030 at a CAGR of 13.75% during the forecast period 2023-2030.
Energy Storage Solutions (ESS) are solutions or equipment’s that store energy for later uses. The stored energy can be used to provide power to an electrical load, such as a motor or Electric Heater, or it can be discharged into the electrical grid. The importance of ESSs is twofold: they allow utilities to better manage their electricity grids and they provide opportunities for renewable energy sources, such as solar and wind power, to be more widely adopted. The technological advancements pertaining to the energy storage systems have significantly impacted the market growth in the recent years by ensuring the advantages of continuous energy supply.
The growing demand for efficient and competitive energy resources is likely to fuel the market growth in the coming years. Clean and renewable energy is an affordable alternative to fossil fuel-based electricity. Its use can help curb excessive dependence on fossil fuels, reduce greenhouse gases and thus air pollution, and diversify the electricity supply. Increasing number of data storage centers along with rapidly increasing competition in various sectors, including IT and finance, will drive demand during the forecast period. In addition, changes in consumer lifestyles and an increase in the number of power outages are expected to encourage the use of residential construction.
Market participants such as components, contractors and utilities have been adversely affected by COVID-19. The slowdown in the industry has been due to project delays or cancellations, logistical challenges, difficulties in acquiring equipment and delays in obtaining necessary permits. These factors led to reduced turnover and layoffs. Due to consumer financial insecurity, the economic downturn caused by COVID-19 has made it difficult to deploy home electricity storage mechanisms. In contrast, Commercial and Industrial suffered a setback because companies avoided unnecessary capital investment. In the coming years, the market is primarily expected to be driven by a growing renewable energy sector, favorable government policies and programs on energy storage solutions (ESS), and an improving economy.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The technological development related to energy storage systems has significantly influenced the growth of the market in recent years, ensuring the benefits of continuous energy supply. The growing adoption of renewable energy sources is increasing the demand for renewable energy storage systems worldwide. The significant increase in energy demand worldwide has led to the growth of the energy storage market. Growing government and private investment in renewable energy generation is expected to boost the growth of the global energy storage systems market. These factors have led to the expansion of the market and increased demand for Energy Storage Solutions (ESS) solutions.
Asia Pacific to Dominate the Market
