According to a recent research report by Technavio, an international market agency, the global energy storage system (ESS) battery market will grow by 1,477.40 MW between 2019 and 2023.
The report believes that the growing economic benefits of energy storage systems will drive the growth of the battery market in the next few years. With the increasing number of solar photovoltaic devices, energy storage systems are becoming more and more popular. Not only that, but energy storage systems are also used in a variety of end-user industries, including utilities, commercial, industrial and residential. The increasing demand for electricity has led to power outages and heavy loads during peak hours, driving demand for energy storage systems. In addition, the use of renewable energy in the energy mix has further boosted the demand for battery energy storage systems to overcome the intermittent nature of renewable energy.
It is expected that the battery market of energy storage systems will have a compound annual growth rate of over 9% during the forecast period. As demand grows, energy storage system battery technology is continually optimized to increase its energy density, safety and efficiency. Currently, the global energy storage system's battery market is highly fragmented, and the company is focused on deploying advanced technologies to meet changing end-user needs. During the forecast period, BYD, Kogham, LG Chem, Samsung SDI and Japan Insulator will become the world's leading suppliers of energy storage system batteries.
From a regional perspective, the Asia-Pacific region will become the largest energy storage battery regional market throughout the forecast period. Because of the rapid population growth and improvement of consumers’ living standards, the region's demand for energy is increasing. From the perspective of battery main materials, lithium batteries will account for the highest market share of energy storage system batteries.