Grid-Scale Battery Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Grid-Scale Battery Market is Segmented By Battery(Lithium-ion, Lead-acid, Flow Battery, Sodium-Based Battery, Others), By Ownership(Third-party Owned, Utility Owned), By Application (Peak Shifting, Renewable Integration, Ancillary Services, Backup Power, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Grid-Scale Battery Market size was worth US$ 6.84 billion in 2023 and is estimated to reach US$ 38.46 billion by 2031, growing at a CAGR of 25.74% during the forecast period (2024-2031). 

Grid-scale batteries allow for large-scale energy storage within electrical power systems. UPS, power transmission & distribution, grid support and energy management are the four categories of grid-scale battery technology. UPSs serve an important function as energy storage in frequency and power quality. Automatic generation control (AGC) ensures that an electric power system runs smoothly and efficiently. AGC's objective is to keep the frequency range within set limits and the exchange power at the desired level. An AGC system must be augmented with current and intelligent control approaches to offer enough power supply.

The grid-scale battery delivers benefits and services such as load control, power quality and uninterruptible power supply to aid energy transition and sustainable energy systems by increasing efficiency and securing electricity supply. Packed-storage hydroelectricity, electric batteries, flow batteries, flywheel energy storage and supercapacitors use grid-scale batteries. At renewable energy production sites and power transmission and distribution facilities, grid-scale batteries are frequently used in ancillary services, renewable integration, firm capacity and other applications.

Market Scope

For more details on this report Request for Sample

Market Dynamics

Rising investments in renewable energy, lowering grid-scale battery costs due to technology breakthroughs, increased deployment and government incentives and regulations to promote energy efficiency increase the market's growth. However, the high investment cost may stifle market expansion in the future period.

The decline in lithium-ion battery price 

Lithium-ion batteries offer several technical advantages. Rechargeable Li-ion batteries can last up to 5,000 cycles, compared to 400-500 processes for lead-acid batteries. Due to their scientific and economic advantages as the most energetic rechargeable batteries available, Li-ion batteries are becoming more widespread. Li-ion battery technology is becoming more affordable.

By 2030, the average price of a lithium-ion battery is expected to drop to around US$ 58/kWh, making it significantly more cost-competitive than other battery types. It is anticipated to increase the usage of lithium-ion batteries in new and exciting industries, such as energy storage systems (ESS) for residential and commercial applications linked to renewables such as solar, wind or hydro.

The rising demand for renewable energy sources

Factors driving product demand include the need to incorporate energy produced from renewable sources such as solar photovoltaic and wind power and the need to increase grid stability, reliability and resiliency. Because of their great capacities to retain, absorb fast and then re-inject power, the industry is growing as one of the viable options to increase system flexibility.

Lithium-ion batteries are becoming popular as a battery storage product in U.S. due to their enhanced efficiency, energy density and deep discharge cycle. Furthermore, the market is expected to be boosted by a quick cost reduction owing to rising storage needs and increased deployment requirements for renewable energy integration over the forecast period.

High capital investment

The rapid capital investment required to install these batteries has been cited as a major limitation in the Grid-scale battery business. Various utilities are hesitant to install these batteries due to budget concerns. The utilities' apprehensions stifle the expansion of the Grid-scale battery sector.

Market Segment Analysis

By battery, the grid-scale battery market is segmented into lithium-ion, lead-acid, flow battery, sodium-based battery and others.

The decline in the prices of lithium-ion battery

Renewable energy sources like wind and solar energy are highly dependent on weather conditions, which has slowed the expansion of renewable deployment. As a result, combining renewable energy with an energy storage system can readily alleviate the shortfall while also ensuring an uninterrupted power supply. Lithium-ion batteries are expected to significantly increase demand throughout the forecast period because they are a cost-effective option.

Furthermore, lithium-ion battery chemistry has seen a significant price drop due to scientific advancements and increased manufacturing capacity and the trend is expected to continue. Due to its fast recharge capability, high energy density and high cost, this sector will likely dominate the market and grow.

Furthermore, Li-ion battery recycling is projected to ensure the supply of raw materials such as cobalt & lithium and lessen reliance on extracting and refining components from mineral resources. Companies can use the refined constituent elements from lithium-ion batteries that are now utilized in EVs to make lithium-ion batteries for Energy Storage Systems (ESS).

Market Geographical Share

Increasing demand for electricity in Asia-Pacific

Over the projection period, Asia-Pacific is expected to rule the grid-scale market. The region’s countries are experiencing a rapid rise in electricity consumption due to urbanization and population increase. Large volumes of renewable energy, which are becoming increasingly cost-effective worldwide, are likely to be included in the expanding grid in developing countries to meet the electrical demand.

 The surge in demand for grid-scale batteries is expected to coincide with the deployment of renewables. With the rising renewable energy sector, the need for grid-scale batteries to meet the issues of renewable power generating intermittency is likely to rise. Demand is projected to be driven by favorable policies such as energy efficiency regulations and increased peak demand charges.

Market Competitive Landscape

Major global grid-scale battery market companies include ABB Ltd., LG Chem, Ltd., Samsung Sdi Co., Ltd., Panasonic Corporation, Fluence Energy, LLC, BYD Company Limited, General Electric (GE), Saft Groupe S.A., S&C Electric Company and NGK Insulators.

COVID-19 Impact Analysis

All electrical and electronics firms were severely harmed during the epidemic years. The COVID-19's spread has had and continues to impact the passive electronic components industry, leading to lower operation levels among the supply chain's top component and raw material manufacturing plant suppliers and a drop in global sales in a wide range of countries and regions. 

As a result, several market suppliers have revised their global revenue and volume shipment forecasts. The pandemic of COVID-19 has hampered the expansion of the grid-scale battery market since supply chains for the sector have been harmed because the bulk of vendors in the battery market is based in Asia-Pacific, with China being the largest manufacturer main supplier of components.

Russia-Ukraine War Impact

Russia-Ukraine war has had a substantial impact on the grid-scale battery business, primarily by disrupting global supply chains for critical raw materials such as nickel, cobalt and lithium, which are used in battery production. Russia is a major exporter of these resources and the conflict has caused shortages, price rises and market instability. The disruption has driven battery producers to look for alternate sources, sparking research into new materials and technologies that can lessen reliance on old supply networks.

Furthermore, the war has highlighted the importance of energy security and robust energy infrastructure, driving increased investment in grid-scale battery storage solutions. As European countries work to lessen their dependency on Russian fossil fuels, there is a greater emphasis on renewable energy integration and energy storage to assure stability and reliability. The trend has accelerated the growth of the grid-scale battery business, as governments and private companies prioritize sustainable and secure energy solutions to reduce the risks associated with geopolitical crises.

By Battery 

• Lithium-ion
• Lead-acid
• Flow Battery
• Sodium-Based Battery
• Others

By Ownership

• Third Part Owned
• Utility Owned

By Application

• Peak Shifting
• Renewable Integration
• Ancillary Services
• Backup Power
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2023, LG Energy Solution, a leading global manufacturer of advanced lithium-ion batteries, announced the launch of a new residential storage system brand, LG Energy Solution enblock, as well as several new residential and grid scale energy storage system products, at Europe's largest and most diverse international exhibition and conference for batteries and energy storage systems.
• In September 2022, NGK Insulators installed a large sodium-sulfur (NAS) battery energy storage system at a disused LNG port in Japan. Toho Gas, a combined utility company that serves 54 communities across three prefectures in central Japan, has ordered the 11.4 MW/69.6 MWh NAS system for use at the Tsu LNG Station in Mie Prefecture. The completion date is set for FY2025.
• In September 2022, Redflow cooperated with the University of Queensland on the Australian Research Council (ARC) Research Hub for Safe and Reliable Energy Storage, which is overseen by Deakin University. The research project "Extending Flow Battery Operation" was chosen to gain a better understanding of electrolyte chemistry and electrode materials in order to enhance the operating capabilities of the Zinc Bromine Module (ZBM).

Why Purchase the Report?

• Visualize the composition of the grid-scale battery market segmentation by battery, ownership, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the grid-scale battery market by analyzing trends and co-development deals. 
• Excel data sheet with thousands of grid-scale battery market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study. 
• Product mapping in excel for the key product of all major market players

The global grid-scale battery market report would provide access to an approx. 61 market data table, 56 figures and 206 pages. 

Target Audience 2024

• Grid-Scale BatteryService Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Grid-Scale Battery Manufacturers