- It will exhibit a CAGR of 20.4 per cent during the forecast period
- Asia Pacific, with market size of $3.13 billion in 2019, is set to occupy a dominant position in this market
The global battery energy storage market size is projected to reach $19.74 billion by 2027 as per a report by Fortune Business Insights. It will exhibit a CAGR of 20.4 per cent during the forecast period. It added that improving access to electricity across the globe will be a prominent trend shaping the growth trajectory of this market.
According to a 2019 report produced by the International Renewable Energy Agency (IRENA), the International Energy Agency (IEA), the World Bank, the WHO, and the UN, 87 per cent of the global population had access to electricity in 2015 and by 2017 it had risen to 89 per cent.
The report highlights that approximately 840 million people still lack access to electricity. It adds, “Battery energy storage systems (BESS) can play a significant role in bringing electricity to the remotest and the poorest regions of the world. These systems are designed to store surplus energy that can be utilised at a later time and when deployed correctly, they can provide uninterrupted, reliable, and sustainable power supply in areas where ensuring access to such services is difficult through conventional means. “
Asia-Pacific to lead
It adds that despite the COVID-19 pandemic wreaking havoc across the energy and power industry, the share of renewables in electricity has increased even in these challenging times, rising from 26 per cent in 2019 to 28 per cent in 2020, according to the IEA. The IEA observes that several countries, even those that implemented strict lockdowns, experienced record-high shares of variable renewables in electricity consumption in Italy, Germany, Belgium, Hungary, and parts of the US
The main reason attributable to the impressive performance of renewables amid the current crisis, as per IEA’s analysis, is the completion of solar and wind projects in 2019. Other factor includes favorable policies in many countries that support renewables.
Asia Pacific, with market size of $3.13 billion in 2019, is set to occupy a dominant position in this market. This is due to extensive investments made in renewables by South Korea, India, and China. In North America, supportive policies framed by state-level authorities to integrate BESS with the existing infrastructure are expected to power the market for BESS in the region.
Europe is anticipated to fasten its grip on the battery energy storage market share during the forecast period owing to the EU’s ambitious emission reduction targets and unwavering focus on the energy efficiency of the grid. As per the report, public authorities and private companies are frequently entering into partnerships to synergize their resources and expertise and provide comprehensive energy storage solutions.