US and Asia Pacific Battery Energy Storage System Market is expected to reach US$ 98.23 Billion by 2031

Growing Focus on Establishing Vigorous Storage Infrastructure the US and Asia Pacific Battery Energy Storage System Market Growth 

According to our latest market study on "The US and Asia Pacific Battery Energy Storage System Market to 2031 – Regional Analysis – by Type, Connection Type, and End User," the US and Asia Pacific battery energy storage system market was valued at US$ 15.45 billion in 2023 and is expected to reach US$ 98.23 billion by 2031; it is anticipated to register a CAGR of 26.0% during 2023–2031. The US and Asia Pacific battery energy storage system market report includes growth prospects in light of current battery energy storage system market trends and driving factors influencing the market growth. 

The changing energy circumstances across the US and Asia Pacific are generating a demand for energy, which results in the rising demand for energy storage systems. The storage system allows energy storage and its usage as per the requirement. Battery energy storage is also important owing to the required balance of energy supply. Developments in energy storage systems and an increase in research and development in energy management systems are driving the battery energy storage system market. For instance, in the US, Stor4Build (an association on energy storage for buildings) is working to accelerate the optimization and deployment of storage technologies. The consortium is co-led by the National Renewable Energy Laboratory (NREL), US Department of Energy (DoE), Oak Ridge National Laboratory (ORNL), and Lawrence Berkeley National Laboratory (Berkeley Lab).

The US and Asia Pacific Battery Energy Storage System Market Share — by Country, 2023

Source: The Insight Partners Analysis

In January 2024, Plus Power stated that it initiated operation at its Kapolei Energy Storage facility in Oahu, Hawaii. The plant is equipped with a grid-scale battery energy storage system, helping in the transition of the state's electric power from coal to solar and wind. In June 2024, Plus Power started managing seven large-scale battery energy storage plants across Arizona and Texas for a total of 1,325 MW/3,500 MWh. Thus, the growing focus of countries on building a vigorous storage infrastructure is driving the battery energy storage system market in the US.

China is leading the battery energy storage system market in Asia Pacific. The country has completed the installation of renewable power generation infrastructure (Xi Jinping) which was scheduled to be completed by 2030. China has moved six years ahead of its scheduled targets of renewable power installations with this achievement. Moreover, as of 2023, China had ~86 GW of energy storage, wherein 59.3% accounted for pumped storage and 40.6% for battery energy storage capacities.

The scope of the US and Asia Pacific battery energy storage system market report focuses on the US, China, Australia, Japan, India, South Korea, and the rest of Asia Pacific. In terms of revenue, the US accounted for the largest battery energy storage system market share in 2023 and is anticipated to fuel the market growth during 2023–2031. China has been boosting its energy generation and storage capacities over the past few years. The country is engaged in the development and deployment of solar and wind farms to achieve its renewable capacity commitments. In 2023, China completed the installation of its renewable scheduled capacity, which was likely to be completed by the end of 2030. This remarkable achievement completed its renewable installation targets 6 years ahead of its schedule. Moreover, declining costs of lithium iron phosphate (LFP) BESS systems to a level of US$ 100/KWh drive the installation of BESS systems across the country. This shows a healthy deployment of BESS in China that has driven the growth in the country’s market in FY 2023. Further, in 2024, a 100MW/200MWh project using a semi-solid (BESS) system was connected to the grid in Zhejiang, China.

India started installing its battery energy storage capacity in 2013. The project is currently in the development phase, with various scheduled installations for the coming years to meet its scheduled targets. In March 2024, India's cumulative installed energy storage capacity reached ~219.1 MWh (~111.7 MW), with 120 MWh (40 MW) added in Q1 2024. Within the total installed capacity, solar (PV) and BESS together accounted for ~90.6% of the overall figure. This growth is majorly attributed to large installations in Chhattisgarh, India, holding ~55% of India's total BESS capacity. Similarly, Rajasthan has one of the largest BESS projects currently under development, which is mainly driven by favorable policies related to renewable installation policies and annual energy storage responsibilities applicable till 2030. Despite strong growth in the renewable energy sector in India, energy storage capacity is lagging behind overall requirements, which is leading to a lack of grid flexibility and stability across the country.

Thailand, Vietnam, Indonesia, Malaysia, Singapore, and Bangladesh are among the prominent countries in the Rest of APAC battery energy storage system market. The rising demand for renewable energy generation capacities, surging investment by private sectors in power generation, growing inclination toward renewable energy sources from fossil fuels, increasing demand for smart grid installation & upgradations of the existing grid, and growing targets for renewable installations of respective countries are boosting the market size in these countries. Some of the major developments across the Rest of APAC are mentioned below:

• Sembcorp Industries announced a joint venture with PT PLN Nusantara Renewables for the development of a 50 MW solar power facility and a 14 MWh battery energy storage system (BESS) in Nusantara, Indonesia. (Sembcorp, Press Release, June 2024)
• In November 2024, the government of Malaysia announced a new BESS project for the installation of 400 MW worth of BESS installation. The project will be conducted in four phases, each with a capacity of 100MW/400MWh, and is expected to become commercially operational by Q1 2026.
• American Energy Storage Innovations Inc (AESI) announced plans for its new manufacturing facility in Malaysia along with new partnerships, inducing an expanded cell supply deal with a Chinese firm and an over 1.5 GW BESS delivery pact in the UK. (AESI, Press Release, September 2024)

Current BESS installations and expected installations in the coming years are anticipated to drive the market growth for battery energy storage systems in the rest of APAC during the forecast period.

Key stakeholders in the US and Asia Pacific battery energy storage system market are raw material suppliers, manufacturers, suppliers/distributors, and end users. The demand for BESS has been growing significantly in recent years, owing to the rising infrastructure development initiatives by the government and private/public companies operating in the market. The anode, separator, and electrolyte are primary components in a lithium-ion battery cell. Cathode raw materials such as lithium and varying combinations of typically nickel, cobalt, cathode, manganese, phosphorus, and iron are obtained from the ground, processed into metal chemicals, and combined to generate the cathode active material. On the other hand, anodes are primarily made from graphite, which is produced from naturally occurring mined graphite. Individual lithium-ion battery cells are combined to form a battery pack for usage in BESS, EVs, and other battery applications. Battery suppliers play a crucial role in the battery energy storage system market in the US and Asia Pacific. A few lithium-ion battery providers in the US and Asia Pacific are BYD Company Ltd., LG Energy Solution, and Panasonic Corporation. End users of battery energy storage systems are power plants, such as commercial, residential, and commercial buildings, and utility sectors.

The US and Asia Pacific battery energy storage system market study is carried out by identifying and evaluating key players in the market. BYD Co. Ltd; Saft America Inc.; CATL; Tesla Inc.; Samsung SDI Co Ltd; Panasonic Holdings Corp; AES Corp; NextEra Energy, Inc.; Ameresco Inc.; ESS, Inc.; Siemens AG; EOS Energy Enterprises Inc.; KORE Power Inc.; General Electric Co; LG Chem Ltd.; SAFT Groupe SA; and ESS Inc. are among the key players profiled in the US and Asia Pacific battery energy storage system market report.  

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com