Global Battery Energy Storage Systems (BESS) Market Report 2024-2030

Overview

The global Battery Energy Storage Systems (BESS) market is experiencing rapid expansion, with a projected compound annual growth rate (CAGR) of 21.3% from 2024 to 2030. Market value is expected to increase from US$13.7 billion in 2024 to US$43.4 billion by 2030. This growth aligns closely with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action), as BESS technologies support clean energy integration and climate resilience.

Market Analysis and Drivers

1. Clean Energy Transition: BESS facilitates the integration of renewable energy sources such as solar and wind by providing essential grid services including frequency regulation, voltage support, peak shaving, and load shifting. This supports SDG 7 by promoting affordable and clean energy access.
2. Technological Innovation: Advances in AI-driven energy management and IoT-enabled monitoring improve BESS efficiency and predictive maintenance, fostering SDG 9 through innovation and infrastructure development.
3. Cost Reduction: Decreasing lithium-ion battery costs, driven by economies of scale and manufacturing efficiencies, make BESS more accessible, supporting SDG 8 (Decent Work and Economic Growth).
4. Grid Resilience and Sustainability: BESS enhances grid resilience, provides backup power during outages, and supports microgrids and electric vehicle (EV) charging infrastructure, contributing to SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action).
5. Government Policies and Incentives: Global governmental support through favorable policies and subsidies accelerates BESS adoption, advancing SDG 17 (Partnerships for the Goals).
6. Battery Repurposing: The reuse of retired EV batteries for stationary storage reduces waste and extends battery life, promoting SDG 12 (Responsible Consumption and Production).

Market Segmentation

By Geographic Region

• Asia-Pacific: Largest and fastest-growing market, holding 42.2% share in 2024 with a CAGR of 36.1% through 2030.
• North America: United States, Canada, and Mexico.
• Europe: Germany, Italy, United Kingdom, and Rest of Europe.
• South America: Argentina, Brazil, Chile, and Rest of Latin America.
• Middle East & Africa.

By Element/Component

• Battery Hardware.
• Balance of Plant (BoP)/Other Elements: Largest segment with 54.4% market share in 2024 and fastest growth at 23.7% CAGR.

By Battery Type

• Lithium-ion (Li-ion): Dominates with 66.7% share in 2024, driven by high energy density, efficiency, long cycle life, and declining costs.
• Flow Batteries.
• Lead-Acid Batteries.
• Sodium-ion (Na-ion) Batteries.
• Other Types: Including Flywheel and Nickel-Based batteries.

By Power Rating

• Less than 30 kVA: Largest segment at 71.1% share in 2024, primarily for residential, small commercial, and institutional use.
• 30 kVA to 150 MVA.
• Greater than 150 MVA.

By Connection Type

• On-Grid: Dominant with 88.2% share in 2024 and fastest growth at 26.3% CAGR.
• Off-Grid.

By Ownership Model

• Third Party-Owned: Leading with 44.1% share in 2024, driven by Energy Storage as a Service (ESaaS) models.
• Customer-Owned.
• Utility-Owned.

By Application

• Utility Sector: Largest application segment with 53.4% share in 2024 and fastest growth at 28.1% CAGR.
• Commercial & Industrial.
• Residential.

Key Market Attributes

Leading Companies in the BESS Market

• AB Volvo
• ABB Ltd
• AEG Power Solutions BV
• Alevo Group SA
• Beacon Power LLC
• Black & Veatch Holding Co
• BYD Co Ltd
• C&D Technologies, Inc.
• Contemporary Amperex Technology Co Ltd (CATL)
• Delta Electronics, Inc.
• East Penn Manufacturing Co
• Eaton Corp
• Enersys
• Enphase Energy
• ESS Tech, Inc.
• EVE Energy Co Ltd
• Exide Industries Ltd
• Fluence Energy, Inc.
• GE Vernova
• General Electric
• Honeywell International, Inc.
• Hoppecke Batteries, Inc.
• Johnson Controls International plc
• Kokam Co Ltd
• LG Energy Solutions Co Ltd
• Mitsubishi Heavy Industries Ltd.
• Narada Asia Pacific Pte Ltd
• NEC Corp
• NextEra Energy, Inc.
• NGK Insulators Ltd
• Nidec ASI
• Nissan Motors
• Panasonic Corp
• Primus Power Solutions
• RES Group
• Saft Group SA (Total Energies)
• Samsung SDI Co Ltd
• Schneider Electric SE
• Siemens Energy
• SMA Solar Technology AG
• SolarEdge
• Sonnen GmbH
• Sunverge Energy, Inc.
• Tata Power Co Ltd
• Tesla, Inc.
• Tesvolt AG
• The AES Corp
• Toshiba Corp
• TotalEnergies SE
• Trinabess
• Varta AG
• VRB Energy
• Wartsila Corp

Conclusion

The Battery Energy Storage Systems market is a critical enabler for achieving multiple Sustainable Development Goals by supporting the global transition to clean energy, enhancing energy infrastructure, and promoting sustainable industrialization. The rapid growth and technological advancements in BESS are expected to play a pivotal role in global efforts toward climate action and sustainable development through 2030.

For further information, please visit the full report at ResearchAndMarkets.com.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses the growth of Battery Energy Storage Systems (BESS), which enable integration of renewable energy sources such as solar and wind, supporting clean energy transition.
2. SDG 9: Industry, Innovation and Infrastructure
   • Technological innovations including AI-driven energy management and IoT-enabled monitoring improve BESS efficiency and infrastructure modernization.
3. SDG 11: Sustainable Cities and Communities
   • BESS supports urbanization by providing reliable energy, grid resilience, and backup power, contributing to sustainable urban infrastructure.
4. SDG 12: Responsible Consumption and Production
   • Repurposing retired EV batteries for stationary storage reduces waste and extends battery utility, promoting sustainable consumption.
5. SDG 13: Climate Action
   • Promotion of BESS adoption through policies and subsidies supports decarbonization and climate change mitigation efforts.

2. Specific Targets Under Identified SDGs

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.3: Double the global rate of improvement in energy efficiency.
2. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
3. SDG 11: Sustainable Cities and Communities
   • Target 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
4. SDG 12: Responsible Consumption and Production
   • Target 12.5: Substantially reduce waste generation through prevention, reduction, recycling and reuse.
5. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.

3. Indicators Mentioned or Implied to Measure Progress

1. Market Size and Growth Rate
   • Indicator: Market value of Battery Energy Storage Systems in US$ (e.g., $13.7 billion in 2024 projected to $43.4 billion by 2030).
   • Indicator: Compound Annual Growth Rate (CAGR) of BESS market (21.3% from 2024 to 2030).
2. Share of Battery Types
   • Indicator: Percentage market share of lithium-ion batteries (66.7% in 2024) and emerging battery chemistries like sodium-ion and flow batteries.
3. Adoption and Deployment Metrics
   • Indicator: Market share by power rating, connection type (on-grid vs off-grid), ownership model, and application sector (utility, residential, commercial).
   • Indicator: Geographic distribution of market growth (e.g., Asia-Pacific holding 42.2% market share in 2024).
4. Technological Innovation Indicators
   • Indicator: Implementation of AI-driven energy management and IoT-enabled monitoring systems to improve efficiency and predictive maintenance.
5. Environmental Impact Indicators
   • Indicator (implied): Reduction in lithium-ion battery costs and repurposing of retired EV batteries to reduce waste and improve sustainability.

4. Table of SDGs, Targets and Indicators

Source: globenewswire.com